CONSOLIDATED FINANCIAL STATEMENTS

* *
*

Year ended December 31, 2021

 KPMG Audit ERNST & YOUNG Audit
A division of KPMG S.A

This is a translation into English of the statutory auditors’ report on the consolidated financial statements of
the Company issued in French and it is provided solely for the convenience of English-speaking users.
This statutory auditors’ report includes information required by French law, such as verification of the
information concerning the Group presented in the management report and other documents provided to the
shareholders.
This report should be read in conjunction with, and construed in accordance with, French law and professional
auditing standards applicable in France.

CMA CGM
Year ended December 31, 2021

Statutory auditors’ report on the consolidated financial statements

 KPMG Audit ERNST & YOUNG Audit
A division of KPMG S.A. Boulevard Jacques Saadé
480 avenue du Prado 48, quai du Lazaret
13008 Marseille 13002 Marseille
S.A. au capital de € 5 497 100 S.A.S. à capital variable
775 726 417 R.C.S. Nanterre 344 366 315 R.C.S. Nanterre

Commissaire aux Comptes Commissaire aux Comptes

Membre de la compagnie Membre de la compagnie
régionale de Versailles et du Centre régionale de Versailles et du Centre

CMA CGM
Year ended December 2021,

Statutory auditors’ report on the consolidated financial statements

To the annual general meeting of CMA CGM,

Opinion

In compliance with the engagement entrusted to us by your Shareholders’ general meeting, we have audited the
accompanying consolidated financial statements of CMA CGM for the year ended December 31, 2021.

In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of
the financial position of the Group as at December 31, 2021 and of the results of its operations for the year then
ended in accordance with International Financial Reporting Standards as adopted by the European Union.

Basis for Opinion

 Audit Framework

We conducted our audit in accordance with professional standards applicable in France. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the Statutory Auditors’ Responsibilities for the
Audit of the Consolidated Financial Statements section of our report.
 Independence

We conducted our audit engagement in compliance with the independence requirements of the French
Commercial Code (Code de commerce) and the French Code of Ethics (Code de déontologie) for Statutory
Auditors’ rules applicable to us, for the period from January 1st, 2021 to the date of our report.

Justification of Assessments

Due to the global crisis related to the COVID-19 pandemic, the financial statements for this period have been
prepared and audited under special conditions. Indeed, this crisis and the exceptional measures taken in the
context of the health emergency have had numerous consequences for companies, particularly on their
operations and their financing, and have led to greater uncertainties regarding their future prospects. Some of
these measures, such as travel restrictions and remote working, have also had an impact on companies' internal
organization and on the performance of audits.

It is in this complex and evolving context that, in accordance with the requirements of Articles L.823-9 and R.823-7
of the French Commercial Code (Code de commerce) relating to the justification of our assessments, we inform
you of the assessments that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period.

These matters were addressed in the context of our audit of the consolidated financial statements as a whole and
in forming our opinion thereon, and we do not provide a separate opinion on specific items of the consolidated
financial statements.

Significant accounting judgments, estimates and assumptions:

Note 2.3 “Significant accounting judgments, estimates and assumptions” to the consolidated financial statements
discloses the significant accounting judgments, estimates and assumptions adopted by management. These
significant estimates mainly relate to judgments and assumptions used for (i) the impairment testing of non-
financial assets, (ii) the measurement and the recognition of deferred tax assets on tax losses carried forward, (iii)
the determination of demurrage receivables and accruals for port call and handling costs, (iv) the assessment of
whether the lease options are reasonably certain to be exercised, (v) the assessment of the risks related to
litigations and (vi) provisions related to employee benefits.

Our procedures consisted in assessing the data and assumptions underlying these judgments and estimates,
reviewing, using sampling techniques, the calculations performed by the Company and verifying the
appropriateness of disclosures provided in the notes to the consolidated financial statements on the assumptions
and options adopted by the Company.

As indicated in Note 2.3 to the consolidated financial statements, these estimates are based on assumptions that
are by nature uncertain, and actual results may sometimes differ significantly from forecast data used.

Specific Verifications

We have also performed, in accordance with professional standards applicable in France, the specific verifications
required by laws and regulations of the information given in the Group’s management report of the Board of
Directors.

CMA CGM 2
We have no matters to report as to its fair presentation and its consistency with the consolidated financial
statements.

We attest that the consolidated non-financial statement required by Article L.225-102-1 of the French Commercial
Code (Code de commerce) is included in the Group’s management report, it being specified that, in accordance
with Article L.823-10 of this Code, we have verified neither the fair presentation nor the consistency with the
consolidated financial statements of the information contained therein. This information must be reported on by
an independent third party.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with International Financial Reporting Standards as adopted by the European Union and for such
internal control as Management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, Management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless it is expected to liquidate the Company or to cease operations.

The consolidated financial statements were approved by the Board of Directors.

Statutory Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable
assurance about whether the consolidated financial statements as a whole are free from material misstatement.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with professional standards will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users made on the basis of these consolidated financial
statements.

As specified in Article L.823-10-1 of the French Commercial Code (Code de commerce), our statutory audit does
not include assurance on the viability of the Company or the quality of management of the affairs of the
Company.

As part of an audit conducted in accordance with professional standards applicable in France, the statutory
auditor exercises professional judgment throughout the audit and furthermore:

► Identifies and assesses the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit
evidence considered to be sufficient and appropriate to provide a basis for his opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

► Obtains an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
internal control.

CMA CGM 3
► Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management in the consolidated financial statements.

► Assesses the appropriateness of Management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. This assessment is based on
the audit evidence obtained up to the date of his audit report. However, future events or conditions may
cause the Company to cease to continue as a going concern. If the statutory auditor concludes that a material
uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in
the consolidated financial statements or, if such disclosures are not provided or inadequate, to modify the
opinion expressed therein.

► Evaluates the overall presentation of the consolidated financial statements and assesses whether these
statements represent the underlying transactions and events in a manner that achieves fair presentation.

► Obtains sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. The statutory
auditor is responsible for the direction, supervision and performance of the audit of the consolidated
financial statements and for the opinion expressed on these consolidated financial statements.

Marseille, March 4, 2022

The Statutory Auditors

French original signed by

KPMG Audit ERNST & YOUNG Audit

A division of KPMG S.A.

Georges Maregiano Loïc Herrmann Camille de Guillebon Charles-Emmanuel Chosson

CMA CGM 4
Contents
Consolidated Statement of Profit & Loss .......................................................................................................... 3
Consolidated Statement of Comprehensive Income ......................................................................................... 4
Consolidated Statement of Financial Position - Assets ..................................................................................... 5
Consolidated Statement of Financial Position - Liabilities & Equity .................................................................. 6
Consolidated Statement of changes in Equity ...................................................................................................7
Consolidated Statement of Cash Flows ............................................................................................................ 8
Notes to the Consolidated Financial Statements .............................................................................................. 9
Note 1 - Corporate information .................................................................................................................. 9
Note 2 - General accounting principles ....................................................................................................... 9
2.1 Basis of preparation ................................................................................................................. 9
2.2 Change in accounting policies and new accounting policies ....................................................10
2.3 Significant accounting judgments, estimates and assumptions .............................................. 11
2.4 Translation of financial statements of foreign operations .......................................................12
Note 3 - Significant events ........................................................................................................................ 13
3.1 Corporate information ............................................................................................................ 13
3.2 COVID-19 - Context of operations .......................................................................................... 13
3.3 Rating agencies ......................................................................................................................14
3.4 Debt repayment initiatives .....................................................................................................14
3.5 Renewal of the CMA CGM securitization program ..................................................................14
3.6 Sale of stakes in port terminals and logistics platform ............................................................14
3.7 Air cargo division .................................................................................................................... 15
3.8 Investments in port terminals ................................................................................................. 15
3.9 Vessel orderbook and Green transition ...................................................................................16
Note 4 - Results for the year ...................................................................................................................... 17
4.1 Operating segments ...............................................................................................................18
4.2 Operating expenses ............................................................................................................... 20
4.3 Gains / (Losses) on disposal of property and equipment and subsidiaries ................................21
4.4 Other income and (expenses) .................................................................................................21
4.5 NPV benefits related to assets financed by tax leases ............................................................ 22
4.6 Financial result ...................................................................................................................... 22
4.7 Current and deferred taxes .....................................................................................................23
Note 5 - Invested capital and working capital ............................................................................................ 27
5.1 Goodwill and other intangible assets ...................................................................................... 27
5.2 Property and equipment .........................................................................................................30
5.3 Impairment of non-financial assets ......................................................................................... 35
5.4 Working Capital ......................................................................................................................36
5.5 Non-current assets (or disposal group) held for sale ................................................................39
5.6 Operating and investing cash-flows ........................................................................................39
Note 6 - Capital structure and financial debt ..............................................................................................39
6.1 Financial risk management objectives & policies.................................................................... 40
6.2 Derivative financial instruments ............................................................................................ 44
6.3 Other non-current financial assets - Securities and other current financial assets .................. 46
6.4 Cash and cash equivalents, and liquidity ................................................................................ 49
6.5 Share capital, other reserves and earnings per share .............................................................. 50
6.6 Borrowings and lease liabilities ............................................................................................... 51
6.7 Cash flow from financing activities ........................................................................................ 54
Note 7 - Scope of consolidation .................................................................................................................55
7.1 Accounting principles and judgments used in determining the scope of consolidation ............55
7.2 Investments in associates and joint ventures .......................................................................... 57
7.3 List of companies or subgroups included in the consolidation scope ...................................... 59
7.4 Related party transactions ..................................................................................................... 62
Note 8 - Other Notes ................................................................................................................................ 64
8.1 Provisions, employee benefits and contingent liabilities ........................................................ 64
8.2 Other current liabilities ........................................................................................................... 72
8.3 Commitments ........................................................................................................................ 72
8.4 Significant subsequent events ................................................................................................ 75
Note 9 - Glossary ....................................................................................................................................... 77

CMA CGM / 2 Consolidated financial statements

Year ended December 31, 2021
Consolidated Statement of Profit & Loss
(in USD million, except for earnings per share)

For the year ended

December 31,

Note 2021 2020

REVENUE 4.1 55,975.7 31,445.1

Operating expenses 4.2 (32,873.1) (25,336.3)

EBITDA BEFORE GAINS / (LOSSES) ON DISPOSAL OF PROPERTY AND
23,102.6 6,108.7
EQUIPMENT AND SUBSIDIARIES
Gains / (losses) on disposal of property and equipment and subsidiaries 4.3 52.4 159.2
5.1.2 &
Depreciation and amortization of non-current assets (3,427.9) (2,755.7)
5.2.1
Other income and (expenses) 4.4 (172.9) (86.7)

Operating exchange gain/loss 31.4 116.2

Net present value (NPV) benefits related to assets financed by tax leases 70.6 38.4

EBIT BEFORE SHARE OF INCOME / (LOSS) FROM ASSOCIATES AND JOINT

19,656.2 3,580.2
VENTURES

Share of income / (loss) from associates and joint ventures 7.2 (42.9) (28.7)

EBIT 4.1 19,613.4 3,551.5

CORE EBIT 4.1 19,748.8 3,392.4

FINANCIAL RESULT 4.6 (1,298.4) (1,672.6)

PROFIT / (LOSS) BEFORE TAX 18,315.0 1,878.9

Income taxes 4.7 (370.1) (103.1)

PROFIT / (LOSS) OF THE YEAR 17,944.9 1,775.7

of which:

Non-controlling interests 50.9 20.5

OWNERS OF THE PARENT COMPANY 17,893.9 1,755.3

Basic and diluted Earnings Per Share (EPS) attributable to owners of the parent
1,184.1 116.2
company (in USD)

Consolidated financial statements CMA CGM / 3

Year ended December 31, 2021
Consolidated Statement of Comprehensive Income
(in USD million)

For the year ended

December 31,

Note 2021 2020

PROFIT / (LOSS) OF THE YEAR 17,944.9 1,775.7

Other comprehensive income / (loss) reclassifiable to Profit and Loss

Cash flow hedges:

Effective portion of changes in fair value 7.9 25.3
Reclassified to profit or loss 12.1 1.2

Net investment hedge 6.2.2 45.2 (48.5)

Net investment hedge - Share of other comprehensive income of associates and
6.2.2 & 7.2 16.2 (19.5)
joint ventures
Foreign operations – foreign currency translation differences (75.6) (88.2)
Foreign operations – Share of other comprehensive income of associates and joint
7.2 (13.0) 63.4
ventures
Other comprehensive income / (loss) non reclassifiable to
Profit and Loss

Remeasurment of defined benefit pension plans 8.1 41.7 (33.9)

Remeasurement of defined benefit pension plans of associates and joint ventures 7.2 (0.1) (0.5)

Tax on other comprehensive income non reclassifiable to Profit and Loss 4.7.2 & 7.2 (0.6) 1.1

TOTAL OTHER COMPREHENSIVE INCOME / (LOSS)

33.7 (99.5)
OF THE YEAR, NET OF TAX
TOTAL COMPREHENSIVE INCOME / (LOSS)
17,978.6 1,676.2
OF THE YEAR, NET OF TAX
of which:

Non-controlling interests 48.2 19.3

Owners of the parent company 17,930.4 1,656.9

CMA CGM / 4 Consolidated financial statements

Year ended December 31, 2021
Consolidated Statement of Financial Position - Assets
(in USD million)

As at December 31, As at December 31,

Note
2021 2020

Goodwill 5.1.1 2,855.8 2,872.8

Other intangible assets 5.1.2 2,046.9 2,427.0

INTANGIBLE ASSETS 4,902.7 5,299.8

Vessels 5.2.1 18,561.3 13,557.4

Containers 5.2.1 4,376.3 2,818.2

Lands and buildings 5.2.1 1,946.1 1,852.2

Other properties and equipment 5.2.1 1,485.7 379.4

PROPERTY AND EQUIPMENT 5.2.1 26,369.4 18,607.2

Deferred tax assets 4.7.2 234.3 182.3

Investments in associates and joint ventures 7.2 575.7 545.1

Derivative financial instruments 6.2 - 0.1

Other non-current operating assets 74.5 49.2

Other financial assets 6.3.1 814.1 573.0

NON-CURRENT ASSETS 32,970.7 25,256.7

Inventories 5.4 724.1 445.9

Trade and other receivables 5.4 4,504.2 3,512.3

Contract assets 5.4 2,404.1 1,269.7

Income tax assets 5.4 120.2 63.9

Derivative financial instruments 6.2 2.7 -

Securities and other financial assets 6.3.2 874.5 165.3

Cash and cash equivalents 6.4 10,130.9 1,880.4

Prepaid expenses 5.4 252.3 212.4

Assets classified as held-for-sale 5.5 - 93.2

CURRENT ASSETS 19,012.9 7,643.1

TOTAL ASSETS 51,983.6 32,899.8

Consolidated financial statements CMA CGM / 5

Year ended December 31, 2021
Consolidated Statement of Financial Position - Liabilities &
Equity
(in USD million)

As at December 31, As at December 31,

Note
2021 2020

Share capital 6.5 253.2 253.2

Reserves and retained earnings 5,657.8 4,704.3

Profit / (Loss) for the year attributable to owners of the parent company 17,893.9 1,755.3

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY 23,804.9 6,712.7

Non-controlling interests 113.1 66.1

TOTAL EQUITY 23,918.0 6,778.8

Borrowings and lease liabilities 6.6 14,649.4 13,903.5

Derivative financial instruments 6.2 35.2 38.8

Deferred tax liabilities 4.7.2 398.9 392.2

Provisions 8.1 405.0 324.0

Employee benefits 8.1 278.1 347.7

Other liabilities 52.4 84.6

NON-CURRENT LIABILITIES 15,819.0 15,090.8

Borrowings and lease liabilities 6.6 3,552.1 4,609.0

Derivative financial instruments 6.2 5.8 48.6

Provisions 8.1 228.0 181.7

Employee benefits 8.1 1.8 2.1

Trade and other payables 5.4 7,939.7 5,893.3

Income tax liabilities 5.4 284.3 94.3

Deferred income 5.4 234.9 138.4

Other liabilities 8.2 - 62.8

CURRENT LIABILITIES 12,246.5 11,030.2

TOTAL LIABILITIES & EQUITY 51,983.6 32,899.8

CMA CGM / 6 Consolidated financial statements

Year ended December 31, 2021
Consolidated Statement of changes in Equity
(in USD million)

Attributable to owners of the parent

Reserves, retained earnings and Profit for the year

Premium, legal Non-

reserves, Profit / Total
Share Other controlling
(Loss) for the TOTAL Equity
capital (i) Bonds comprehensive interests
year and other
redeemable in income
comprehensive
shares (ii) reclassifiable to
income non
profit and loss
reclassifiable to
profit and loss

Balance as at January 1, 2020 234.7 56.5 4,896.4 (136.0) 5,051.5 82.1 5,133.6

Profit / (Loss) for the year - - 1,755.3 - 1,755.3 20.5 1,775.7

Other comprehensive income / (expense), net of tax - - (33.3) (65.0) (98.3) (1.2) (99.5)

Total comprehensive income / (expense) for the year - - 1,722.0 (65.0) 1,656.9 19.3 1,676.2

Acquisition of subsidiaries - - - - - 6.4 6.4

Transaction with non-controlling interests - - 3.1 1.1 4.2 (25.5) (21.3)

Conversion of the bonds of BPI France 18.4 (56.5) 38.0 - - - -

Dividends - - - - - (16.2) (16.2)

Total transactions with Shareholders 18.4 (56.5) 41.2 1.1 4.2 (35.3) (31.1)

Balance as at December 31, 2020 253.2 - 6,659.5 (200.0) 6,712.7 66.1 6,778.8

Balance as at January 1, 2021 253.2 - 6,659.5 (200.0) 6,712.7 66.1 6,778.8

Profit / (Loss) for the year - - 17,893.9 - 17,893.9 50.9 17,944.9

Other comprehensive income / (expense), net of tax - - 41.3 (4.8) 36.4 (2.7) 33.7

Total comprehensive income / (expense) for the year - - 17,935.2 (4.8) 17,930.4 48.2 17,978.6

Acquisition of subsidiaries - - - - - 16.1 16.1

Other reclassification within equity - - 67.6 (67.3) 0.3 (0.8) (0.6)

IAS 19 IFRS IC Decision - Employee benefits - - 11.6 - 11.6 - 11.6

Dividends - - (850.0) - (850.0) (16.5) (866.5)

Total transactions with Shareholders - - (770.8) (67.3) (838.2) (1.2) (839.4)

Balance as at December 31, 2021 253.2 - 23,823.9 (272.2) 23,804.8 113.1 23,918.0

(i) The share capital is constituted of (i) 11,031,714 ordinary shares held by MERIT France SAS, its shareholders
and related persons, (ii) 3,626,865 ordinary shares held by Yildirim and (iii) 453,358 ordinary shares and 1
preferred share held by the Banque Publique d’Investissement (Bpifrance formerly FSI) for a total of 15,111,938
ordinary shares (see Note 3.1).

(ii) Bonds redeemable in shares correspond to the equity portion of the bonds mandatorily redeemable in
ordinary shares, subscribed in June 2013 by Bpifrance. Such bonds have been redeemed in ordinary shares as
at December 31, 2020.

Consolidated financial statements CMA CGM / 7

Year ended December 31, 2021
Consolidated Statement of Cash Flows
(in USD million)

For the year ended December

31,

Note 2021 2020

Profit / (Loss) for the year 17,944.9 1,775.7

Depreciation and amortization 5.2.1 3,427.9 2,755.7

Net present value (NPV) benefits related to assets financed by tax leases (70.6) (38.4)
Other income and expense 4.4 172.9 86.7
Increase / (Decrease) in provisions 41.6 43.2
Loss / (Gains) on disposals of property and equipment and subsidiaries 4.3 (52.4) (159.2)
Share of (Income) / Loss from associates and joint ventures 7.2 42.9 28.7
Interest expenses on net borrowings and lease liabilities 1,075.5 1,291.3
Income tax 4.7 370.1 103.1
Other non cash items 171.6 326.1
Changes in working capital 5.4 (614.3) (434.4)
Cash flow from operating activities before tax 22,510.0 5,778.5
Income tax paid (279.5) (154.3)

Cash flow from operating activities net of tax 5.6 22,230.5 5,624.1

Purchases of intangible assets 5.1.2 (98.5) (69.6)

Disposals of subsidiaries, net of cash divested 3.6 74.8 770.9
Acquisition of subsidiaries, net of cash acquired (62.6) (81.8)
Purchases of property and equipment 5.2.1 (3,196.4) (664.7)
Proceeds from disposal of property and equipment 56.1 120.9
Dividends received from associates and joint ventures 7.2 13.6 17.8
Cash flow resulting from other financial assets (400.8) (22.9)
Variation in securities 6.3.2 (513.5) (16.6)
Net cash (used in) / provided by investing activities 5.6 (4,127.2) 53.9

Dividends paid to the owners of the parent company and non-controlling interest (869.0) (92.4)
Proceeds from borrowings, net of issuance costs 6.6 924.9 3,236.0
Repayments of borrowings 6.6 (5,632.1) (5,355.6)
Cash payments related to principal portion of leases 6.6 (2,249.2) (1,750.9)
Interest paid on net borrowings (287.5) (458.4)
Cash payments related to interest portion of leases (743.2) (746.7)
Refinancing of assets, net of issuance costs 6.6 - 109.5
Other cash flow from financing activities 6.7 (995.5) (304.5)
Net cash (used in) / provided by financing activities 6.7 (9,851.6) (5,363.0)

Effect of exchange rate changes on cash and cash equivalents and bank overdrafts (27.1) (64.0)

Net increase / (decrease) in cash and cash equivalents and bank overdrafts 8,224.6 251.0

Cash and cash equivalents and bank overdrafts at the beginning of the year 1,849.0 1,598.0
Cash and cash equivalents as per balance sheet 10,130.9 1,880.4
Bank overdrafts (57.4) (31.4)
Cash and cash equivalents and bank overdrafts at the end of the period 6.4 10,073.5 1,849.0

Supplementary information: non cash investing or financing activities:

- Assets acquired through financial debt or equivalents 5.2.1 8,014.7 2,819.1
Supplementary information: Interest paid on net borrowings
- Interests received 36.6 19.7
- Interests paid excluding interest on leases (324.1) (478.0)

CMA CGM / 8 Consolidated financial statements

Year ended December 31, 2021
Notes to the Consolidated Financial Statements
Note 1 - Corporate information
CMA CGM S.A. is a limited liability company (“Société Anonyme”) incorporated and located in France. The
address of its registered office is Boulevard Jacques Saadé, 4 Quai d’Arenc, 13235 Marseille Cedex 2, France.

The Consolidated Financial Statements (“CFS”) of CMA CGM S.A. (“CMA CGM”) and its subsidiaries (hereafter
referred to together as “the Group” or “the Company”) for the year ended December 31, 2021 were approved
by the Board of Directors on March 4, 2022, subject to the approval by the shareholders during the next
Annual General Meeting.

The Group operates primarily in the international containerized transportation of goods as well as in logistics
business, through the Freight Management and Contract Logistics solutions provided by CEVA. Other
activities mainly include port terminals and air cargo operations.

Note 2 - General accounting principles

Starting from Note 4, the accounting principles have been highlighted in blue.

2.1 Basis of preparation

The consolidated financial statements of CMA CGM have been prepared under the historical cost basis, with
the exception of financial assets measured at fair value, securities, derivative financial instruments and net
assets acquired through business combinations which have all been measured at fair value. The principal
accounting policies applied in the preparation of these consolidated financial statements are set out below.
These policies have been consistently applied to all periods.

2.1.1 Statement of compliance

The CFS of CMA CGM have been prepared in accordance with IFRS as adopted by the European Union (“EU”).

IFRSs can be found at: https://eur-lex.europa.eu/legal-content/FR/TXT/?uri=LEGISSUM%3Al26040

IFRSs include the standards approved by the IASB, that is, IAS and accounting interpretations issued by the
IFRS IC or the former IFRIC (until 2010) and SIC (until 2002).

2.1.2 Basis of consolidation

The CFS comprise:

▪ The financial statements of CMA CGM;
▪ The financial statements of its subsidiaries; and
▪ The share in the net result and the net assets of associates and joint ventures.

The CFS are presented in U.S. Dollar (“USD”), which is also the currency of the primary economic environment
in which CMA CGM operates (the “functional currency”). The functional currency of the shipping activities is
U.S. Dollar, except for certain regional carriers. This means that, among other things, the carrying amounts of
property, plant and equipment and intangible assets and, hence, depreciation and amortization are
maintained in USD from the date of acquisition. For other activities, the functional currency is generally the
local currency of the country in which such activities are operated.

All values are rounded to the nearest million (USD 000,000) with a decimal unless otherwise indicated.

Consolidated financial statements CMA CGM / 9

Year ended December 31, 2021
2.2 Change in accounting policies and new accounting policies
The accounting policies adopted in the preparation of these CFS have been applied consistently with those
described in the annual financial statements for the year ended December 31, 2020, except as outlined in the
paragraphs below.

2.2.1 Adoption of new and amended IFRS and IFRS IC interpretations from January 1, 2021

The following amended Standards did not have any significant impact on the Group’s CFS and performance:

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest Rate Benchmark Reform – Phase 2

The Phase 2 amendments, Interest Rate Benchmark Reform—Phase 2, address issues that might affect
financial reporting during the reform of an interest rate benchmark, including the effects of changes to
contractual cash flows or hedging relationships arising from the replacement of an interest rate benchmark
with an alternative benchmark rate (replacement issues).

2.2.2 New IFRS and IFRS IC interpretations effective for the financial year beginning after January 1,
2021, endorsed by the European Union

Amendment to IFRS 16: Leases – COVID-19-Related Rent Concessions

This amendment exempts lessees to determine whether rent concessions occurring as a direct consequence of
the COVID-19 pandemic are lease modifications and allows lessees to account for such rent concessions as if
they were not lease modifications, with impacts directly recognized in Profit and Loss. Initially, it applies to
COVID-19-related rent concessions that reduce lease payments due on or before 30 June 2021, and under
conditions. On March 31, 2021, the IASB has extended by one year the application period of the practical
expedient in IFRS 16 to help lessees accounting for covid-19-related rent concessions and to cover rent
concessions that reduce only lease payments due on or before 30 June 2022.

The amendment has been endorsed by the European Union on August 30, 2021 and is applicable for annual
reporting periods beginning on or after April 1st , 2021. The Group early adopted such amendment, no impact
was identified.

IFRS IC position related to IAS 19 Employee Benefits: Attributing Benefit to Periods of Service

In May 2021, IASB approved the tentative agenda decision on Attributing Benefit to Periods of Service (IAS 19
– Employee Benefits) that was finalised by the IFRS IC in April. The original request concerned a defined
benefit plan under which employees are entitled to a lump sum benefit payment when they reach retirement
age, provided that they are employed by the entity at that point. The request asked which periods of service
the benefits should be attributed to, should these benefits be attributed to the last consecutive years of
service immediately prior to retirement, or should they be attributed to the entire length of service. In other
words, the amount of the payment depends on the employee’s length of service but is capped at a set number
of consecutive years of service. The IFRS IC had concluded that the entity should attribute retirement benefits
to the last consecutive years of service immediately prior to retirement. The Group took into account the
effect of such clarification, with no material impact.

The following amendments have been endorsed by the European Union and their effective date is January 1,
2022. They are not early adopted.
Amendments to IFRS 3 Business Combinations
Amendments to IAS 16 Property, Plant and Equipment
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets
Annual Improvements 2018-2020

The impacts of these amendments are currently being assessed by the Company.

CMA CGM / 10 Consolidated financial statements

Year ended December 31, 2021
 2.2.3 New IFRS and IFRS IC interpretations effective for the financial year beginning after January 1,
2021, endorsed by the European Union and not early adopted

IFRS 17 & related amendments: Insurance Contracts

On 23 November 2021, the European Union published Commission Regulation (EU) 2021/2036, adopting IFRS
17 – Insurance Contracts. The standard will replace the “interim” standard IFRS 4. It has been adopted to
permit first-time application for financial periods commencing on or after 1 January2023.

2.2.4 New IFRS and IFRS IC interpretations effective for the financial year beginning on or after
January 1, 2021 and not yet endorsed by the European Union

▪ New IFRS and IFRS IC interpretations effective for the financial year beginning on January 1, 2021 and
not yet endorsed by the European Union

IFRS 14: Regulatory Deferral Accounts

The endorsement process of this interim standard has been suspended until the publication of the final IFRS
standard.

▪ New IFRS and IFRS IC interpretations effective for the financial year beginning after January 1, 2021 and
not yet endorsed by the European Union

The impacts of the following new or amended Standards are currently being assessed by the Company:

Amendments to IAS 1: Presentation of Financial Statements – Classification of Liabilities as Current or Non-

Current
Amendments to IAS 1: Presentation of Financial Statements and IFRS Practice Statement 2 - Disclosure of
Accounting policies
Amendments to IAS 8: Accounting policies, Changes in Accounting Estimates and Errors - Definition of Accounting
Estimates
Amendments to IAS 12: Income Taxes
Amendments to IFRS 17: Insurance Contracts - Initial Application of IFRS 17 and IFRS 9 – Comparative Information

2.2.5 Change in accounting estimates (see notes 3.9 and 5.2)

As part of periodic accounting estimate review:

▪ Management revised the useful life of dry containers from 13 to 15 years and recorded the effect on
depreciation expense prospectively as from July 1, 2021 onwards. The impact is not material;
▪ Management reviewed the useful life of certain specific vessels as part of the green transition (see
Note 3.9).

2.3 Significant accounting judgments, estimates and assumptions

The preparation of the CFS requires the use of judgments, estimates and assumptions that affect the reported
amount of revenues, expenses, assets, liabilities and the disclosure of contingent liabilities at the reporting
date.

Although these CFS reflect management's best estimates based on information available at the time of the
preparation of these financial statements, the outcome of transactions and actual situations could differ from
those estimates due to changes in assumptions or economic conditions.

The significant judgements made by management in applying the Group’s accounting policies and the key
sources of estimation uncertainty were the same as those applied to the 2020 annual CFS, have been
described in the below mentionned notes of these annual CFS and are mainly as follows:

Consolidated financial statements CMA CGM / 11

Year ended December 31, 2021
 ▪ Measurement of the deferred tax assets related to tax losses carried forward (see Note 4.7.2);
▪ Impairment of non-financial assets (see Note 5.3);
▪ Determination of the vessels useful lives and residual values (see Note 5.2);
▪ Assessment of whether the lease contract options (purchase, extension, renewal and early
termination…) are reasonably certain to be exercised or not and assessment of other items which
may affect the lease term (see Note 5.2);
▪ Demurrage & detention revenues and receivables, accruals for port call expenses, transportation
costs and handling services (see Note 5.4);
▪ Risks related to cargo and corporate claims and related accounting provisions (see Note 8.1);
▪ Defined benefit obligations (see note 8.1.2).

2.4 Translation of financial statements of foreign operations

2.4.1 Translation of financial statements of foreign entities

The financial statements of foreign entities are translated into the presentation currency on the following
basis:
▪ Assets and liabilities are translated at the closing exchange rate;
▪ The Statement of Profit & Loss is translated at the average exchange rate for the reporting year;
▪ The results of translation differences are recorded as “Currency translation differences” within other
comprehensive income; and
▪ Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and
liabilities of the foreign entity and are translated at the closing rate.

Exchange differences arising from the translation of the net investment in foreign entities, and of borrowings
and other currency instruments designated as hedges of such investments, are recorded within other
comprehensive income. On disposal of a foreign operation, these exchange differences are recognized in the
statement of Profit & Loss as part of the gain or loss on sale.

2.4.2 Foreign currency transactions

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at the year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in the income statement, except when deferred in other
comprehensive income when qualified as cash flow hedges or net investment hedge.

Foreign exchange gains and losses relating to operating items (mainly trade receivables and payables) are
recorded in the line item “Operating exchange gains / (losses), net”. Foreign exchange gains and losses
relating to financial items are recorded in the line item “Foreign currency income and expense” within the
financial result.

Exchange rates used for the translation of significant foreign currency transactions against one USD are as
follows:

Closing rate Average rate

December 31, December 31,
year ended December 31,
2021 2020 2021 2020
Euro 0.88355 0.81493 0.84552 0.87744
British pound sterling 0.74228 0.73262 0.72698 0.77974
Australian Dollar 1.37950 1.29541 1.33191 1.45335
Chinese Yuan 6.34980 6.53777 6.45242 6.90330
Singapore Dollar 1.35040 1.32165 1.34392 1.37984

CMA CGM / 12 Consolidated financial statements

Year ended December 31, 2021
Note 3 - Significant events
3.1 Corporate information
In February 2021, CMA CGM SA shares owned by the main shareholder have been transferred from MERIT CC
SAL, a Lebanese Company, to MERIT France SAS, a French Company. The ultimate beneficiary owners, i.e.
the Saadé Family, remain unchanged.

In April 2021, Merit France SAS, the main shareholder of CMA CGM SA, acquired 453,359 shares from
Bpifrance, increasing its shareholding to 72.61% while Bpifrance now owns 3.0% of the Company.

Dividends to shareholders have been declared in the year ended December 31, 2021 for an amount of USD
850.0 million and paid within the period.

3.2 COVID-19 - Context of operations

The COVID-19 global pandemic situation continues to prevail. Although vaccination campaigns are underway
in most parts of the world, they progress at different speed and some countries are still susceptible to
implement lockdown measures. The Group continues to monitor the developments closely in order to ensure
the safety of its staff and adapt its operations to the demand and its customers’ needs.

The sanitary situation has resulted in a shift of retail consumption in favor of goods rather than services,
notably supported by the development of e-commerce. Consequently, the demand for transport and logistic
services recovered quickly from the trough levels observed in the second quarter of 2020 to reach very high
levels since the second half of 2020. The Group has therefore been operating at full capacity ever since.
Towards the end of last year and during 2021, the level of demand combined with disruptions related to the
COVID-19 (eg: staff shortages) have created severe congestion in global supply chains including in ports and
hinterland infrastructures. In container shipping, this translated into slower asset rotations and severe
equipment shortages (vessels and containers). The Suez incident towards the end of the first quarter and the
resurgence of COVID-19 infections which led to new restrictions in certain Asian ports over the second quarter
combined with equipment shortages and port congestions have exacerbated an already tensed situation.

Congestions continued to affect operations during the third quarter’s peak season and in fact throughout the
second half of the year, thereby constraining volume growth despite continuing strong underlying demand. In
this context, the Group has continued to adapt operations by adding capacity wherever and whenever possible
or reorganizing its services to cope with the restrictions and a high level of demand. Future business prospects
remain highly uncertain in the current environment and may vary significantly from region to region,
depending among other factors on the virus spread, the severity of sanitary containment measures,
availability and progress of the vaccination as well as government incentives to support their respective
economies.

As far as CMA CGM is concerned, transported volumes in the container shipping division were strong in the
first half of the year (+14.8% year-on-year in H1 2021) but decreased by -3.4% in H2 2021 as a result of the
congestions and a high comparable base in H2 2020. The group’s financial performance has been supported
by a combination of unit revenue dynamics in the container shipping division and cost containment efforts
across the group, although the current context generates material cost increases such as extra costs in
terminals and higher charter rates. In addition, the current inflationary environment has led to a significant
increase in energy prices reflected in higher bunker costs. Such trends currently continue to prevail. The
longer-term effects of the pandemic and the development of macro-economics circumstances are difficult to
predict at this stage.

In a context marked by strong demand, port congestion and severe supply chain disruptions, clients have
sought to mitigate the impact of the current environment on their operations by ordering early and
overstocking to the extent possible, thereby suppressing or lowering the typical seasonality of the Group’s
activities.

Consolidated financial statements CMA CGM / 13

Year ended December 31, 2021
3.3 Rating agencies
Since the beginning of the year, the Group’s financial performance and deleveraging actions combined with a
a favourable market environment for shipping have prompted several positive rating actions by Standard and
Poors and Moody’s:

▪ On March 4, 2021, Standard and Poors upgraded CMA CGM and CEVA corporate ratings to BB- with a
stable outlook.

▪ On March 9, 2021, Moody’s upgraded CMA CGM corporate rating to B1 with a positive outlook.
CEVA’s corporate rating was upgraded to B2 with a positive outlook.

▪ On July 29, 2021, Standard and Poors upgraded CMA CGM and CEVA corporate ratings to BB with a
stable outlook.

▪ On September 13, 2021 CMA CGM corporate and CEVA have been upgraded again by Moody’s to Ba3
with a positive outlook.

3.4 Debt repayment initiatives

The Group pursued its debt repayment initiatives over the period through the early repayment of borrowings
for an amount of USD 4.1 billion, including mainly EUR 950 million on French-State guaranteed facility (“Prêt
Garanti par l’Etat”), EUR 650 million early repayment on the 2022 Senior Notes issued by CMA CGM as well as
the repayment of amounts outstanding under CEVA’s revolving credit facility (subsequently cancelled in
August 2021, see note 6.6), USD 736 million early repayments of some vessels’ debts, a voluntary repayment
of USD 500 million on the securitization program in September 2021 and EUR 750 million early repayment (in
full) on the 2025 Senior Notes issued by CMA CGM in October 2021. As a result, total borrowings (excluding
lease liabilities) decreased from USD 9.7 billion at year-end 2020 to USD 5.3 billion at year-end 2021.

3.5 Renewal of the CMA CGM securitization program

The Group closed in Q1 2021 the renegotiation of the securitization programs with its core financial partners,
with the main key features of the new merged program (excluding CEVA securitization program) being:
▪ 3-year maturity; hence allowing a sharp reduction of the current portion of borrowings;
▪ USD 2.1 billion facility, increased from USD 1.8 billion;
▪ Improved financing conditions.

In December 2021, CEVA renegotiated the terms of its existing receivables’ securitization program, extending
its maturity from November 2022 to December 2024.

3.6 Sale of stakes in port terminals and logistics platform

Port terminals

Two terminals which were part of the Terminal Link transaction were still classified as assets held for sale as at
December 31, 2020. In Q1 2021, Management decided to reclassify these two investments in associates and
joint ventures as their sale was no longer considered as highly probable. End of September 2021, the
contractual long stop date of the transaction expired with no agreement between the parties, hence the two
terminals will remain within CMA CGM.

CMA CGM / 14 Consolidated financial statements

Year ended December 31, 2021
Ameya logistics platform

The sale of the Group’s 50% stake in Ameya, presented in assets held for sale since December 31, 2019, has
been closed for a net consideration of USD 77.2 million in the course of Q1 2021 and a gain on disposal
amounting to USD 57.9 million.

3.7 Air cargo division

In February 2021, CMA CGM announced a new strategic development with the creation of its AIR CARGO
division.

To support its expansion into air freight, the Group acquired five second-hand aircrafts, including four 60-
tonne payload Airbus A330-200F freighter aircrafts, which came into service between 2014 and 2016 for a net
book value of USD 257.9 million. With a range of 4,000 nautical miles, they connect Europe with America and
Middle East. Two additional Boeing 777F and four Airbus 350 aircrafts have been ordered later on and are
recorded as asset in progress as of December 31, 2021 for USD 723.2 million, with expected delivery dates
between 2022 and 2026, respectively (see Note 5.2 and Note 8.3.1).

The CMA CGM Group entrusted the operation of its freighter fleet to a European airline.

This expansion into air freight is a new milestone in the Group’s strategic development, with the aim of
providing Group customers a complementary range transportation and and logistic services.

3.8 Investments in port terminals

CMA CGM acquires the Tripoli Terminal in Lebanon

In February 2021, the Group acquired the Tripoli Container Terminal in Lebanon for an non material amount, in
which a 20% stake had already been acquired in 2016. The terminal is operated under a 25-year concession
from the government, awarded in late 2013. It has a berth length of 600 meters with a depth alongside of
more than 15 meters. Equipped with five large STS, the facility has an annual design capacity of TEU 750,000.

CMA CGM acquires an equity stake in TTIA container terminal in Algeciras

In March 2021, the Group announced that its CMA Terminals subsidiary had acquired a 50% interest minus one
share in Spain’s Total Terminal International Algeciras (TTIA) port terminal for an amount of USD 27.9 million.
The TTIA terminal, a multi-user facility with an annual capacity of 1.7 million 20-foot equivalent units (TEUs),
was inaugurated in 2010 and is the first semi-automatic terminal in the Mediterranean area.

CMA CGM Group and its partners in Algeciras, HMM and DIF Capital Partners, will join forces to support and
develop this strategic terminal.

This investment is recorded as an investment in associate and joint venture (see Note 7.2).

Alexandria Joint-Venture

On November 8, 2021, CMA CGM Group and the Egyptian Group for Multipurpose Terminals (EGMPT) agreed
a joint-venture agreement to kit out and run Tahya Misr, Alexandria's new container and goods terminal.

The joint venture will be owned by EGMPT (68%) and CMA Terminals, a subsidiary of CMA CGM (32%). The
new Tahya Misr terminal has been designed to be a world-class TEU 1.5 million multi-user container terminal
and is due to enter service by mid-2022.
The transation had no effect on the 2021 CFS.

Consolidated financial statements CMA CGM / 15

Year ended December 31, 2021
CMA CGM acquires 90% of Fenix Marine Services terminal in Los Angeles

On November 3, 2021, the Group announced it agreed to acquire 90% of Fenix Marine Services terminal in Los
Angeles from investment fund EQT Infrastructure III. The Group already owned a 10% stake in this terminal.
The closing of this transaction occurred on January 4, 2022 (see Note 8.4).

3.9 Vessel orderbook and Green transition

Owned vessel orderbook

On April 30, 2021, the Group announced an order of 22 containerships with China’s CSSC Group. The order
consists of three categories of vessels with the larger ones being LNG-powered in line with the group’s
commitment to increase its share of alternative fuels. Twelve of the new ships will use LNG, six with a capacity
of 13,000 TEU, and the other six with a capacity of 15,000 TEU. The remaining 10 ships in the order will be
VLSO-powered with a capacity of 5,500 TEU.

In September 30, 2021, six additional LNG vessels with a capacity of 7,300 TEU were ordered.

In November 22, 2021, ten additional LNG vessels with a capacity of 2,000 TEU were ordered.

All vessels mentioned above are scheduled to be delivered in 2023 and 2024.

Green transition – IMO regulation

As part of the Green transition and in anticipation of IMO23 regulation, Management reviewed the economic
viability and efficiency of its vessels fleet, particularly older vessels which are likely to be mostly affected by
these changes in regulation. This has resulted in a shortening of their remaining useful lives and hence a USD
39.0 million additional depreciation expense was recorded in the last quarter.
The useful life applied to the majority of the vessels fleet remains unchanged at 25 years.

Partnership with Engie

On November 11, 2021, CMA CGM and ENGIE have decided to establish a long-term, strategic and operational
project focused on the production of decarbonized fuels. The goal is to develop the production and
distribution of synthetic methane on an industrial scale so it can be used by the shipping sector.

CMA CGM / 16 Consolidated financial statements

Year ended December 31, 2021
Note 4 - Results for the year
Significant judgment

Determination of the demurrage and detention to be recognized requires estimates concerning the expected
amount of the receivable as well as the question of whether it is highly probable that the revenue recognized
will not be subject to any significant correction in future. These estimates are based on past experience.

Revenue and expense recognition principles

Revenue comprises the payment the Company expects to be entitled in exchange for the sale of shipping and
logistics services, net of value-added tax, rebates and discounts after eliminating sales within the Group.

As required by IFRS 15 “Revenue from contracts with customers”, the Group recognize revenue respecting the
following five steps approach : (i) identify the contract with a customer, (ii) identify all the individual
performance obligations within the contract, (iii) determine the transaction price, (iv) allocate the price to the
performance obligations, (v) recognize revenue as the performance obligations are fulfilled.

In accordance with IFRS 15, expenses are recognized in the income statement when they are incurred.

In some specific circumstances, a business practice of the Company might be to concede price reduction to
certain customers afterwards. Such variable consideration is initially estimated and recognized as a reduction
of the transaction price.

Application of IFRS 15 to specific transactions related to OCEAN Alliance

In accordance with IFRS 15.BC58/59, sales and purchases of slots related to Ocean Alliance do not generate
revenue and cost recognition.

Container shipping

For container shipping activity, one single performance obligation has been identified by the Group for
container transportation itself, inland transportation and ancillary services (such as THC, BAF…) as they are all
part of one global shipping transportation performance obligation and as the transaction is contracted with
the customers as a whole transaction.

Freight revenues are recognized on a percentage of completion basis, which is based on the proportion of
transit time completed at report date for each individual container.

Freight receivables for which the Company transferred a portion of the services to the customers as per
revenue recognition principles, are reported as contract assets.

Operating expenses are recognized based on an event-driven approach (call date for eg.).

Detention & demurrage revenue is recognized overtime.

Logistics activities

CEVA derives revenue from the transfer of services mainly over time in two major service lines, contract
logistics and freight management (including Air, Ocean, Ground and other Freight Management services -
“Other FM”).

The CEVA sub-Group recognizes revenue when (or as) performance obligations are satisfied by transferring
promised goods or services to the customer, which generally is dictated by the type of service CEVA is
providing in agreement with the customer.

Consolidated financial statements CMA CGM / 17

Year ended December 31, 2021
Contract logistics services

CEVA provides a range of logistics services such as distribution, pick and pack, materials management
services, international insurance services, global project management services and trade facilitation services.
The revenue performance obligation is satisfied over time based on the service delivered measured by either
actual costs or output provided depending on the terms and conditions in the contracts. Costs are recorded or
accrued to match revenue recognition.

Air and Ocean Freight Management – indirect carrier

As an indirect carrier, CEVA obtains shipments from its customers, consolidates shipments bound for a
particular destination, determines the routing, selects the direct carrier and tenders each consolidated lot as a
single shipment to the direct carrier for transportation to a distribution point. CEVA issues a Bill of Lading to
customers as the contract of carriage. CEVA has complete discretion in selecting the means, route and
procedures to be followed in handling, transportation and delivery of freight. CEVA is the direct point of
contact for service fulfilment. The progress towards complete satisfaction of each performance obligation is
measured based on the progress of each shipment during its time of travel, and thus met on an over time
basis. The share of travel time not falling into a given reporting period is deferred to next period.

Other FM – Value added services

CEVA provides services at either origin or destination to clear shipments through customs, helping customers
clear shipments through customs by preparing required documentation, calculating and providing for
payment of duties and other taxes on behalf of the customers as well as arranging for any required inspections
by governmental agencies and arranging for delivery or providing additional services such as warehousing,
transportation, storage and document handling. The performance obligation is satisfied at the point in time
once the service has been completed, as the performance obligation is either met or not met.

Cargo agent (direct freight services) revenue as included in the Air and Ocean Freight Management business lines

As an authorized cargo sales agent of most airlines and ocean shipping lines, CEVA also arranges for
transportation of individual shipments and receives a commission from the airline or ocean shipping line for
arranging the shipments or earns net revenue for the excess of amounts billed to the customer over amounts
paid to the direct carrier. The contract of carriage is between the customer and the direct carrier and the direct
carrier is the primary obligor from the perspective of the customer. When acting in this capacity, CEVA does
not consolidate shipments or have responsibility for shipments once they have been tendered to the carrier,
therefore the CEVA performance obligation is satisfied at the point in time once an agreement on the
shipment between the customer and the carrier is reached. The revenue respective to agent revenue is
recognized as either Ocean or Air.

The group does not expect to have any contracts where the period between the transfer of the promised
goods or services to the customer and payment by the customer exceeds one year. As a consequence, the
group does not adjust any of the transaction prices for the time value of money.

Other activities

For other activities, no individual performance obligations have been identified in the contracts: revenue is
recognized when the services have been rendered or when the goods have been delivered.

4.1 Operating segments

As required by IFRS 8 “Operating Segments”, the segment information reported below is based on the
internal reporting used by the Company’s management to allocate resources between segments and to assess
their performance.

CMA CGM / 18 Consolidated financial statements

Year ended December 31, 2021
Since the CEVA acquisition, the Group reports three operating segments: container shipping activity, logistics
and other activities.

For container shipping activity, CMA CGM is organized as a worldwide container carrier, managing its
customer base and fleet of vessels and containers on a global basis.

Segment performance is evaluated by management based on the following measures:

▪ Revenue;
▪ EBITDA before gains / (losses) on disposal of property and equipment and subsidiaries;
▪ EBIT (“Earnings Before Interests and Taxes”) / Core EBIT;

EBITDA corresponds to the line item “EBITDA BEFORE GAINS / (LOSSES) ON DISPOSAL OF PROPERTY AND
EQUIPMENT AND SUBSIDIARIES” reported on the Consolidated Statement of Profit & Loss.

EBIT and EBITDA before gains / (losses) on disposal of property and equipment and subsidiaries are a non-IFRS
quantitative measure used to assist in the assessment of the Company's ability to drive its operating
performance. The Company believes that the presentation of these non-gaap measures is a relevant
aggregate to management for decision making purposes. However, these measures are not defined in IFRS
and should not be considered as an alternative to Profit / (Loss) for the year or any other financial metric
required by such accounting principles. However, in terms of segment reporting, management believes that
EBIT and EBITDA before gains / (losses) on disposal of property and equipment and subsidiaries are more
relevant aggregates to assess the segment performance as financial result and income tax are not allocated to
segments.

The segment information for the reportable segments for years ended December 31, 2021 and 2020 is as
follows:
Revenue EBITDA EBIT
For the year ended December 31,
2021 2020 2021 2020 2021 2020
Container shipping segment 45,290.2 24,026.2 22,068.9 5,338.2 19,341.2 3,205.1
Logistics segment 10,903.1 7,422.6 881.5 613.9 341.8 104.6
Other activities 882.5 611.2 153.4 157.5 67.0 85.9
Total core measures before elimination 57,075.8 32,060.0 23,103.8 6,109.6 19,750.0 3,395.6
Eliminations (1,100.1) (614.9) (1.2) (0.9) (1.2) (3.2)
Total core measures 55,975.7 31,445.1 23,102.6 6,108.7 19,748.8 3,392.4
Reconciling items - - - - (135.4) 159.1
Total consolidated measures 55,975.7 31,445.1 23,102.6 6,108.7 19,613.4 3,551.5

Certain items included in EBIT are presented as reconciling items as management considers that they do not
affect the recurring operating performance of the Group. As a consequence, these items are not reported in
the line item “Total Core measures”.

The bridge from EBIT to core EBIT can be presented as follows in sync with Notes 4.3, 4.4 and 7.2 below:

For the year ended

December 31,
2021 2020
Core EBIT 19,748.8 3,392.4
Gains / (losses) on disposal of property and equipment and subsidiaries 52.4 159.2
Other income and (expenses) (172.9) (86.7)
Operating exchange rate gain/loss 31.4 116.2
Impairment / non recurring items recorded in associates and joint ventures (46.5) (29.6)
EBIT 19,613.4 3,551.5

Consolidated financial statements CMA CGM / 19

Year ended December 31, 2021
4.2 Operating expenses
4.2.1 Variations of operating expenses

Operating expenses are analyzed as follows:

For the year ended December

31,

2021 2020

Bunkers and consumables (4,225.7) (3,072.5)

Chartering and slot purchases (1,610.2) (1,263.2)

Handling and stevedoring (8,223.1) (6,330.9)

Inland and feeder transportation (8,893.3) (6,190.7)

Port and canal (1,631.1) (1,463.5)

Container equipment and repositioning (1,357.4) (1,162.2)

Employee benefits (4,859.8) (4,133.1)
General and administrative other than employee benefits (1,667.4) (1,299.0)
Additions to provisions, net of reversals and impairment of
(48.0) (59.4)
inventories and trade receivables
Others (357.3) (361.8)
Operating expenses (32,873.1) (25,336.3)

The increase of operating expenses is due to the increase of carried volumes in the Container Shipping division
as well as surcharges due to port congestion and increased tariffs impacting certain operating expenses such
as handling and stevedoring (including storage), bunker, inland transportation and vessel chartering. Such
increase is by far more than compensated by the growth of shipping revenue, thus explaining the sharp
increase in profitability.

4.2.2 Employee benefits

Employee benefit expenses are analyzed as follows:

For the year ended

December 31,

2021 2020
Wages and salaries (4,077.4) (3,492.2)
Social security costs (613.0) (498.0)
Pension costs (see Note 8.1) (122.1) (100.2)
Other expenses (47.4) (42.7)
Employee benefits (4,859.8) (4,133.1)

The number of employees of the controlled subsidiaries of the Group is 72,684 as at December 31, 2021 (72,331
as at December 31, 2020). The total number of employees, including those employed in certain joint-ventures
or through international seafarer providers and interim worforces, is 126,617 as at December 31, 2021 (117,179
as at December 31, 2020).

The number of full-time equivalent employees of the controlled subsidiaries of the Group is 72,282 for the year
ended December 31, 2021 (67,709 as at December 31, 2020).

Beyond the effect of the number of employees, the increase of the employee benefit is due to the current
volume of activity and profitability.

CMA CGM / 20 Consolidated financial statements

Year ended December 31, 2021
4.3 Gains / (Losses) on disposal of property and equipment and subsidiaries
Gains and losses on disposals correspond to the difference between the proceeds and the carrying amount of
the asset disposed of.

Accounting principles related to sale and lease-back transactions are presented in Note 5.2.

Gains / (losses) on disposal of property and equipment and subsidiaries consist of the following:

For the year ended December

31,

2021 2020
Disposal of vessels (0.5) 1.0
Disposal of containers (2.4) (2.2)
Other fixed assets disposal (1.9) (9.3)
Disposal of subsidiaries 57.3 169.8
Gains / (losses) on disposal of property
52.4 159.2
and equipment and subsidiaries

In 2021, disposal of subsidiaries mainly corresponds to the sale of the Group’s 50% stake in Ameya for USD
57.9 million (see Note 3.6).

In 2020, disposal of subsidiaries mainly corresponds to the sale of a portfolio of stakes in terminals to Terminal
Link for USD 169.7 million.

4.4 Other income and (expenses)

Other income and (expenses) can be analyzed as follows :

For the year ended December

31,

2021 2020
Impairment (losses) / reversals of assets (336.2) (60.2)
Others 163.4 (26.4)
Other income and (expenses) (172.9) (86.7)

In 2021, "Impairment (losses) / reversals of assets” includes

▪ the write-off of the APL trademark for USD (190.7) million following the full implementation of the
trade rationalization exercise initiated in 2020,
▪ a partial impairment of an IT development for USD (58.2) million, and
▪ certain individual vessels intended to be sold for scrapping, and some individually not material assets
(right-of use, specific vessel components, other property and equipment, intangibles, …).

For the year ended December 31, 2021, “Others” line item mainly includes :
▪ the positive reevaluation of the 10% ownership in Fenix Marine Services (FMS) for USD 113.4 million,
▪ the earn-out to be received upon closing of FMS transaction for USD 105.9 million, related to the sale
of 90% of the terminal’s shares in 2017, and
▪ various items such as transaction fees, some variations of non recurring provisions or other non-
recurring items individually not material for a total amount of USD (55.9) million.

Consolidated financial statements CMA CGM / 21

Year ended December 31, 2021
4.5 NPV benefits related to assets financed by tax leases
“NPV benefits related to assets financed by tax leases" relate to some vessel tax financings whereby a portion
of the associated benefit is credited to the Consolidated Statement of Profit & Loss over the tax financing
period.

4.6 Financial result

Accounting principles related to borrowings and cash and cash equivalents have been presented in Notes 6.4
and 6.6.

The Company presents interest expenses as a cash flow used for financing activities in its consolidated
statement of cash flows.

The financial result is analyzed as follows:

For the year ended December
31,

2021 2020
Interest expense on net financial debt excl. Leases (364.7) (576.4)
Interest expense on leases (763.1) (763.1)
Net interests on cash and cash equivalents 16.9 15.6
Cost of borrowings and lease liabilities, and net interest on
(1,111.0) (1,323.9)
cash and cash equivalents
Settlements and change in fair value of derivative instruments (23.2) (56.8)
Foreign currency income and expense, net 39.9 (297.1)
Other financial income and expense, net (204.1) 5.1
Other net financial items (187.4) (348.7)
Financial result (1,298.4) (1,672.6)

For the year ended December 31, 2021:

▪ “Interest expense on net financial debt excl. leases” includes USD (71.8) million corresponding to the
amortization of past issuance costs recognized using the effective interest method (USD (62.3)
million for the year ended December 31, 2020). The decrease of cost of borrowings is the result of the
deleveraging initiatives since Q3 2020 (se Note 3.4)
▪ “Interest expense on leases” apparent stability is the combination of (i) a sharp increase in the
number, average cost and duration of leases and (ii) a decrease in the average discount rate reflecting
the improvement of the Group’s credit rating.

“Settlements and change in fair value of derivative instruments” reflect the impact, on the portfolio of
derivative financial instruments, of specific settlement operations as well as the volatility of currencies and
interest rates during the periods presented.

“Foreign currency income and expense, net” is mainly composed of foreign currency exchange gains / (losses)
on financial operations due to the translation of borrowings and financial instruments denominated in
currencies different from USD (mainly but not limited to transactions in EUR). Among other minor effects, the
exchange gain for the year ended December 31, 2021 are due to the depreciation of EUR currency versus USD
since the end of 2020 (as opposed to the appreciation of EUR versus USD in 2020 which generated losses).

“Other financial income and expense, net” mainly includes a revaluation of the value of our funds and various
investments in Lebanon, driven by the continued depressed economic situation in the country. Besides, such
caption generally includes impacts arising from unwinding of discount, termination fees, lease modifications,

CMA CGM / 22 Consolidated financial statements

Year ended December 31, 2021
interests income related to financial assets, dividends received from related parties and changes in fair value
of assets at fair value through profit and loss.

4.7 Current and deferred taxes

4.7.1 Current tax

In Accordance with IAS 12 “Income Taxes”, current income tax is the amount of income tax payable
(recoverable) in respect of the taxable profit (tax loss) for the year. Taxable profit (tax loss) is the profit (loss)
for the year, determined in accordance with the rules established by the taxation authorities, upon which
income tax is payable (recoverable).

Significant judgment

The Group is subject to income tax and equivalent in numerous jurisdictions. Most of the Group’s shipping
carriers benefit from specific tax regimes regarding their shipping activities (tonnage tax regime or
equivalent).. The French tonnage tax regime actually consists in determining the taxable result, on a flat-rate
basis,that will be subject to income tax on the basis of eligible vessel’s tonnage. For this reason, among others,
the Company classifies the consequences of tonnage tax regime as current income tax.

For the year ended December 31,

2021 2020
Current tax income / (expense) (421.4) (159.5)

Deferred tax income / (expense) 51.3 56.4

Income Taxes (370.1) (103.1)

Most of the shipping activities handled by the Group are subject to specific tax regimes (tonnage tax regimes
or equivalent) in France, in Singapore and in the United States. For instance, no provision is made for taxation
on qualifying shipping income derived from the operation of the vessels which is exempt from taxation under
Section 13A of the Singapore Income Tax Act and Singapore's Maritime Sector Incentive Approved
International Shipping Enterprise Scheme. In France, income arising from liner activities are subject to a
tonnage-based tax system under which the computation of tax is based on the tonnage of the qualifying
vessel fleet. Other Group’s subsidiaries and/or branches are subject to income tax in accordance with the local
tax laws of their respective countries.

Tax consolidation agreements are in place in certain countries in which the Group operates, mostly in France.
It allows the Companies of the same tax consolidation agreement to combine their taxable profits or losses to
calculate the overall tax expense for which only the parent company is liable.

The Group’s subsidiaries generated an increase of the current tax expenses in sync with increased profitability
and sustained activities.
In the French tax consolidation Group, the current tax expenses have significantly increased due to higher
operations not subject to tonnage tax and to some income taxes incurred abroad.

4.7.2 Deferred tax

In accordance with IAS 12, deferred tax is provided for on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the CFS. The deferred tax is not accounted for if it arises
from initial recognition of an asset or liability in a transaction, other than a business combination, that at the
time of the transaction affects neither the accounting nor the taxable profit or loss. Deferred tax is determined
using tax rates (and laws) that have been enacted or substantially enacted at the Statement of Financial

Consolidated financial statements CMA CGM / 23

Year ended December 31, 2021
Position date and are expected to apply when the related deferred tax asset is realized or the deferred tax
liability is settled.

Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilized.

Deferred tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and
associates, except where the timing of the reversal of the temporary difference is controlled by the Group and
it is probable that the temporary difference will not be reversed in the foreseeable future.

The deferred taxes are recognized in the income statement, except to the extent that it relates to items
recognized in other comprehensive income or directly in equity. In this case, the deferred taxes are recognized
in other comprehensive income or directly in equity, respectively.

Significant judgment and estimates

Deferred tax assets are recognized for all temporary differences to the extent that it is probable that taxable
profit will be available against which the losses can be utilized. Management judgment is required to
determine the amount of deferred tax assets that can be recognized, based upon the likely timing and level of
future taxable profits.

Due to the tonnage tax regime and equivalent applicable on the main part of the Company’s Shipping activity,
resulting in a lower income tax payable in the future, the amount of deferred tax assets to be recognized is
limited.

Deferred taxes related to carry forward losses

The mechanism of tonnage tax requires to estimate the portion of the future results that will be treated as part
of tonnage tax regime and the residual portion that will not be subject to tonnage tax regime. For the purpose
of the recognition of the deferred tax assets in France, Management has also based its estimates on:
▪ The fact that the French tonnage tax regime has been renewed in 2013 for a 10-year period;
▪ The best estimates of the future taxable results of activities that are not subject to tonnage tax regime.

Deferred taxes related to permanent differences

Considering the tonnage tax regime applicable to Group shipping activities, differences between taxable and
book values of assets and liabilities are generally of a permanent nature. This is due to the fact that the taxable
result for tonnage tax eligible activities has no correlation with either the carrying value or the generally
applicable tax value of assets and liabilities. As a consequence, temporary differences are limited to those
arising from other activities which are subject to usual tax laws.

CMA CGM / 24 Consolidated financial statements

Year ended December 31, 2021
Deferred tax balances break down as follows:

Deferred tax assets As at December 31, 2021 As at December 31, 2020

Investment tax credit 0.9 0.2

Tax losses carried forward 125.4 88.6
Retirement benefit obligations 33.2 31.3
Other temporary differences 91.0 78.2
Total gross deferred tax assets 250.6 198.3
Total net deferred tax assets 234.3 182.3

Deferred tax liabilities As at December 31, 2021 As at December 31, 2020

Revaluation and depreciation of property and

2.2 3.2
equipment
Intangible assets adjustment due to purchase price
300.3 314.1
allocation
Undistributed profits from subsidiaries 67.4 54.6
Other temporary differences 45.3 36.2
Total gross deferred tax liabilities 415.2 408.2
Total net deferred tax liabillities 398.9 392.2

Total net deferred tax assets / (liabilities) (164.6) (209.9)

The breakdown of deferred tax assets and deferred tax liabilities presented in the table above is based on
gross amounts. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred taxes relate to the same tax authority.
The amount recognized in the statement of financial position corresponds to the net deferred tax assets and
liabilities.

The deferred tax P&L impact for the year ended December 31, 2021 is mainly explained by :
(i) An increase of USD 24.0 million in deferred tax assets related to carry forward losses previously
unrecognized (on activities non eligible to tonnage tax);
(ii) An increase of USD 26.2 million in deferred tax liabilities on subsidiaries’ reserves not yet distributed;
(iii) In the logistics division, a tax rate increase in the UK and the recognition of net operating losses due
to foreseeable profitable results in some countries, leading to the increase of deferred tax asset on
carry forward losses by USD 26.9 million; and
(iv) A recurrent decrease of the deferred tax liability related to purchase price allocation for USD 12.8
million.

Tax losses are recognized only to the extent of the level of the corresponding deferred tax liability and the
foreseeable taxable profit generated by these activities under common law conditions (excluding tonnage tax
regimes). None of the related entities have incurred losses in either the current or preceding years.

In France, unused tax losses whose recovery within a reasonable timeframe is considered less than likely are
not recognized in the Statement of Financial Position and represented USD 915.3 million as at December 31,
2021 (USD 1,381.0 million as at December 31, 2020). The corresponding unrecognized deferred tax asset
amounts to USD 236.2 million in 2021 (USD 413.1 million in 2020). Most of these unused tax losses can be
carried forward indefinitely.

Regarding CEVA, unused tax losses of USD 883.0 million (USD 1,137.0 million in 2020) are available for offset
against future taxable profits for which no deferred tax asset has been recognized because the entities
concerned reported losses in either the current or prior year, of which tax losses amounting to USD 419.0
million can be carried forward indefinitely, and USD 463.0 million will expire in 4 to 20 years.

Consolidated financial statements CMA CGM / 25

Year ended December 31, 2021
A USD 47.0 million of deferred tax liabilities on temporary differences associated with undistributed earnings
of certain subsidiaries within CEVA was not recognized because CEVA is in a position to control the timing of
the reversal of the temporary difference, and it is probable that such differences will not reverse in the
foreseeable future.

Income tax impacts related to other comprehensive income are presented in the statement of comprehensive
income.
For the year ended
December 31,

2021

Net deferred tax at the begining of the year (209.9)

Changes through Profit & Loss 51.3
Changes through Other Comprehensive Income (0.6)
Currency translation adjustment (3.3)
Other variations (2.1)
Net deferred tax at the end of the period (164.6)

4.7.3 Tax proof

In France, from January 1, 2021, a rate of 27.50% (28.41% incl. 3.3% surtax) applies to entities with a revenue
equal or above EUR 250.0 million.
As a consequence, the theoretical income tax rate taken into account has been updated at 28.41% for the year
ended December 31, 2021 in the tax proof presented below:

For the year ended

December 31,
2021 2020

Profit / (Loss) before tax and excluding share of profit

18,357.9 1,907.5
(or loss) of the associates and joint ventures

Profit Before Tax under tonnage tax regime 17,798.9 2,147.7

Profit Before Tax under regular income tax 558.9 (240.2)

Theoretical income tax (tax rate of 28.41% in 2021 /

(158.8) 76.9
32.02% in 2020)

Income tax expense (370.1) (103.1)

Difference between theoretical and effective income
(211.4) 507.7
tax
Other income not subject to income tax 6.9 93.4
Deferred tax assets impacts related to carry forward losses
93.4 (57.4)
and unrecognized tax losses
Effect of different tax rates in foreign tax jurisdictions 49.5 52.7
Variation of deferred taxes with no impact on profit / (losses)
(25.6) (8.6)
before tax
Current income tax expense driven by a specific income tax
(98.1) (15.1)
basis
Changes in respect of prior years (23.8) 11.7
Other Permanent differences (213.6) (256.7)
Difference (211.4) 507.7

CMA CGM / 26 Consolidated financial statements

Year ended December 31, 2021
The other permanent differences mainly relate to currency impacts, with material change of EUR versus USD
rate between 2020 and 2021, with the parent Company being the main contributor with a USD functional
currency while its statutory currency is the EUR as a French Company.

Note 5 - Invested capital and working capital

5.1 Goodwill and other intangible assets
5.1.1 Goodwill

Goodwill and Business Combinations

Business combinations are accounted for using the acquisition method defined in IFRS 3 “Business
combinations”. Accordingly, all acquisition-related costs are recognized as operating expenses.

The consideration transferred for the acquisition of a subsidiary consists of the assets transferred by the
Group, the liabilities incurred to former owners of the acquiree and the equity interest issued by the Group at
transaction date. The consideration transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Contingent payments classified as debt are subsequently remeasured
through the consolidated income statement.

Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair
values at the acquisition date.

Determination of goodwill

Goodwill is measured as the difference between:

▪ The aggregate of (i) the value of the consideration transferred, (ii) the amount of any non-controlling
interest, and (iii) in a business combination achieved in stages, the acquisition-date fair value of the
acquirer's previously-held equity interest in the acquiree, and
▪ The net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed,
measured in accordance with IFRS 3

If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase,
then the difference is recognized directly in the income statement.

Non-controlling interests represent the portion of the profit or loss and net assets (of the Group or of one of its
subsidiaries) attributable to equity interests held by third parties.

Adjustments are recognized as changes to goodwill, provided they result from new information obtained
about facts and circumstances that existed at acquisition date and are made within twelve months of the date
of acquisition.

Presentation and subsequent measurement of goodwill

Goodwill on acquisition of subsidiaries is disclosed separately in the Statement of Financial Position. Goodwill
on acquisition of associates and joint ventures is included in the Company’s share in investments in associates
and joint ventures.

At the time of the sale of a subsidiary or a jointly controlled entity, the amount of the goodwill attributable to
the subsidiary or associates and joint ventures is included in the calculation of the gain and loss on disposal.

Impairment of goodwill

See Note 5.3.

Consolidated financial statements CMA CGM / 27

Year ended December 31, 2021
The carrying amount of goodwill has been allocated to the following operating segments and cash generating
units based on the management structure:

As at December 31,
As at December 31, 2021
2020

Beginning of the year 2,872.8 2,851.8

Goodwill from business combinations 11.2 20.9

Other variations - 2.4
Impairment (11.0) -
Foreign currency translation adjustment (17.2) (2.4)

At the end of the period 2,855.8 2,872.8

of which:
Allocated to container shipping segment 1,127.9 1,143.0
Allocated to logistics segment 1,726.6 1,717.3
Allocated to other activities 1.4 12.5

5.1.2 Other intangible assets

Other intangible assets mainly consist of:

▪ Trademark and customer relationships, which are generally valued using the income approach,
consisting in both (i) the relief from royalty method applied to the valuation of brands and (ii) the excess
earnings method applied to the valuation of customer contracts and terminal concession rights. The
useful life of customer relationships is generally depending on the churn rate applied to the customer
portfolio ;
▪ Software developed or acquired for internal corporate use, which is recorded at the initial acquisition cost
plus the cost of development minus the total of the amortization and any impairment loss. In-house
software development costs are capitalized in accordance with criteria set out in IAS 38 “Intangible
assets”;
▪ Terminal concession rights for which the useful life is generally based on the concession contractual
maturity with reasonable renewal assumptions.

Costs associated with maintaining computer software programs are recognized as an expense when incurred.

Software developed or acquired is amortized on a straight-line basis over five to ten years based on the
estimated useful life.

CMA CGM / 28 Consolidated financial statements

Year ended December 31, 2021
Other intangible assets are analyzed as follows:

Software
Trademarks & Terminal
Customer concession Others Total
In use In-progress
relationships rights

Cost of Other intangible assets

As at December 31, 2019 666.9 330.2 2,137.6 115.0 9.9 3,259.6

Acquisitions 13.2 49.4 0.5 - 0.0 63.1
Disposals (88.3) (4.2) (0.7) - (0.0) (93.3)
Reclassification 269.0 (269.6) - - 0.8 0.2
Foreign currency translation adjustment 17.1 2.5 (3.9) - (1.5) 14.1
As at December 31, 2020 877.9 108.2 2,133.5 115.0 9.1 3,243.8
Acquisitions 31.5 71.8 0.1 - 0.2 103.6
Disposals (29.7) (0.5) - - - (30.2)
Impairment and write-offs - - (203.0) (44.0) - (247.0)
Reclassification 32.9 (34.3) 0.0 - 0.3 (1.1)
Foreign currency translation adjustment (19.4) (2.6) (11.8) - (0.7) (34.6)

As at December 31, 2021 893.2 142.5 1,918.8 71.0 8.9 3,034.4

Software
Trademarks & Terminal
Customer concession Others Total
In use In-progress
relationships rights

Amortization and impairment

As at December 31, 2019 (484.8) - (164.4) (39.8) (4.6) (693.7)
Amortization (70.0) - (88.6) (4.2) (1.5) (164.4)
Disposals 77.2 - 0.7 - - 77.9
Impairment - - - (30.9) - (30.9)
Reclassification 4.3 - - - - 4.3
Foreign currency translation adjustment (9.3) - (1.5) - 0.8 (10.1)

As at December 31, 2020 (482.6) - (253.9) (74.9) (5.4) (816.8)

Amortization (84.4) - (92.4) (3.1) (1.5) (181.4)
Disposals 33.1 - - - 0.0 33.1
Impairment and write-offs (58.2) - 12.2 13.2 - (32.8)
Reclassification (0.2) - - - - (0.2)
Foreign currency translation adjustment 7.9 - 2.1 - 0.5 10.5
As at December 31, 2021 (584.4) - (332.0) (64.8) (6.4) (987.5)

Software
Trademarks & Terminal
Net book value of Other intangible
Customer concession Others Total
assets In use In-progress
relationships rights

As at December 31, 2021 308.8 142.5 1,586.8 6.2 2.6 2,046.9

As at December 31, 2020 395.3 108.2 1,879.6 40.1 3.8 2,427.0
As at December 31, 2019 182.1 330.2 1,973.2 75.2 5.3 2,566.0

The net carrying value of other intangible assets mainly relates to (i) the trademark and customer relationships
recognized as part of the purchase price allocations for USD 1,586.8 million (USD 1,879.6 million as at
December 31, 2020), (ii) USD 6.2 million to terminal concession rights (USD 40.1 million as at December 31,
2020) and (iii) software in use or in progress for an amount of USD 451.3 million (USD 503.5 million as at
December 31, 2020).

High-performance information systems are critical within our industry, which requires significant internal and
external software development. Software capitalized costs mainly correspond to costs incurred for the in-
house development of (i) shipping agency systems, implemented throughout the global Group agency
network and Shared Services Centers, which address bookings, billings and transportation documentation, (ii)
the operating system including logistical support and container tracking and (iii) the comprehensive
accounting and financial reporting ERP systems implemented in all Group shipping entities.

The software in progress recorded as at December 31, 2021 mainly corresponds to the finance parts of SAP
project which is planned to be deployed early next 2023, as well as IT developments within the logistic division.

Consolidated financial statements CMA CGM / 29

Year ended December 31, 2021
During the year ended December 31, 2021, the capitalized costs of the future information system amounted to
USD 33.3 million (USD 17.6 million during the year ended December 31, 2020).

The amortization schedule of the currently used ERP has been adjusted to its reassessed remaining useful life.

5.2 Property and equipment

Recognition of property and equipment

In accordance with IAS 16 “Property, Plant and Equipment”, items of property and equipment are recognized
as assets when it is probable that the future economic benefits associated with the asset will flow to the
Company and the cost of the asset can be measured reliably.

Right-of-use asset under IFRS 16

IFRS 16 requires to recognize a right-of-use asset (and a lease liability) representing its obligation to make
lease payments for leases. At the commencement date, the right-of-use asset should be measured at cost,
which includes: (i) the amount of the initial measurement of the lease liability, (ii) prepayments, (iii) initial
direct costs and (iv) dismantling and removing costs.

Depreciation of the right-of-use asset is calculated using the straight-line method. The right-of-use asset
should be depreciated from the commencement date to the earlier between the end of the useful life of the
right-of-use asset and the end of the lease term. Otherwise, if the lease transfers ownership of the underlying
asset to the lessee by the end of the lease term, or if the cost of the right-of-use asset reflects that the lessee
will exercise a purchase option, the right-of-use asset is depreciated from the commencement date to the end
of the useful life of the underlying asset, taking into account the relevant residual value.

When lease agreements include both lease and non-lease components, the Company separates both
components based on their relative stand-alone price. This split is primarily applicable for vessel chartering
contracts in order to exclude the running costs from the rental expense and thus determine a bareboat
equivalent lease component.

IFRIC position related to lease term and useful life of leasehold improvements

In assessing whether a lessee is reasonably certain to extend (or not to terminate) a lease, IFRS 16 requires an
entity to consider all relevant facts and circumstances that create an economic incentive for the lessee. This
includes significant leasehold improvements undertaken (or expected to be undertaken) over the term of the
contract that are expected to have significant economic benefit for the lessee when an option to extend or
terminate the lease becomes exercisable.

In addition, as noted above, an entity considers the broader economics of the contract when determining the
enforceable period of a lease. This includes, for example, the costs of abandoning or dismantling non-
removable leasehold improvements. If an entity expects to use non-removable leasehold improvements
beyond the date on which the contract can be terminated, the existence of those leasehold improvements
indicates that the entity might incur a more than insignificant penalty if it terminates the lease. Consequently,
applying IFRS 16, an entity considers whether the contract is enforceable for at least the period of expected
utility of the leasehold improvements.

Sale and lease-back transactions

In order to determine the accounting treatment applicable to a sale and leaseback transaction, the Group
assesses whether the transfer of the asset is a sale under IFRS 15 requirements or not.

▪ If the transfer of an asset by the Group satisfies the requirements of IFRS 15 to be accounted for as a sale
of the asset, the Group shall measure the right-of-use asset arising from the leaseback at the proportion

CMA CGM / 30 Consolidated financial statements

Year ended December 31, 2021
 of the previous carrying amount of the asset that relates to the right of use retained by the seller-lessee.
Accordingly, the Group recognize only the amount of any gain or loss that relates to the rights transferred
to the buyer-lessor. The lease is accounted applying IFRS 16.

▪ If the transfer of an asset by the seller-lessee does not satisfy the requirements of IFRS 15 to be accounted
for as a sale of the asset, the Group continues to recognize the transferred asset and recognize a financial
liability equal to the transfer proceeds. It shall account for the financial liability applying IFRS 9.

Measurement of property and equipment

As required by IAS 16, property and equipment are recorded at the historical acquisition or manufacturing
cost, less accumulated depreciation and any impairment loss. Acquisition or manufacturing costs comprise
any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable
of operating in the manner intended by management. The pre-operating costs are expensed when incurred.

Borrowing costs incurred for the construction of any qualifying assets are capitalized during the period of time
that is required to complete and prepare the asset for its intended use. Other borrowing costs are expensed.

On initial recognition, the cost of property and equipment acquired is allocated to each component of the
asset and depreciated separately.

Maintenance costs are recognized as expenses for the year, with the exception of mandatory dry-docks
required to maintain vessel navigation certificates, which constitute an identifiable component upon the
acquisition of a vessel and which are thereafter capitalized when the following dry-docks occur. Dry-docks are
depreciated over the remaining useful life of the related vessel or to the date of the next dry-dock, whichever
is sooner.

Depreciation on assets is calculated using the straight-line method to allocate the cost of each part of the
asset to its residual value (scrap value for vessels and estimated sale price for containers) over its estimated
useful life, as follows:
Useful life in
Asset
years
Buildings (depending on components) 15 to 40
New vessels 25
Dry-docks (component of vessels) 1 to 7
Second-hand container vessels and Roll-on Roll-off vessels (depending on residual useful life) 6 to 22
New barges/ Second-hand barges 40 / 20
New dry containers 15
New reefer containers 12
Second-hand containers (depending on residual useful life) 3 to 5
Fixtures and fittings 10
Other fixed assets such as handling and stevedoring equipment 3 to 20

For scrubbers, a 7-year useful life has been retained.

The assets’ residual values and useful lives are reviewed, and adjusted if necessary, at each Statement of
Financial Position date. The residual value for vessels is based on the lightweight and the average market price
of steel. The residual value for containers is based on the Company’s historical experience of the sale of used
containers.

An asset’s carrying amount is immediately written down to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount (see Note 5.3).

Significant estimates: Determination of the vessels useful lives and residual values

The depreciation of vessels is a significant expense for the Company. Vessels are depreciated over their
expected useful lives to a residual value.

Consolidated financial statements CMA CGM / 31

Year ended December 31, 2021
Useful lives and residual values are reassessed regularly based on available information such as the age of
vessels in service on the market and the average age of scrapped vessels. This assessment also reflects current
technology, service potential and vessel structure. This approach excludes short-term market fluctuations to
the extent possible. Changes to estimates of useful lives and residual values may affect the depreciation
expenses significantly.

Significant judgments and estimates: Assessment of whether the lease contract options (purchase, extension,
early termination…) are reasonably certain to be exercised or not and assessment of other items which may affect
the lease term

In assessing the lease terms, Management assessed existing purchase options, redelivery conditions, renewal,
extension and termination options, taking into account economic and any other relevant factors in order to
determine whether those existing options are reasonably certain to be exercised or not.

This assessment is made on a regular basis in order to assess any changes in Management’s intention. These
changes can modify the lease term or the option status and lead to a change in the value of lease liabilities and
right-of-use assets.

The lease term also takes into account the redelivery period for vessels and the build-down period for
containers that are part of the enforceable period of the leases, based on historical statistics and contractual
provisions.

5.2.1 Variation of property and equipment

Property and equipment are analyzed as follows:

As at December As at December
31, 2021 31, 2020

Vessels net
Owned 10,171.8 8,152.5
In-progress 655.7 563.2
Right-of-use 7,733.8 4,841.8
18,561.3 13,557.4
Containers net
Owned 1,089.6 398.2
In-progress 155.0 3.8
Right-of-use 3,131.7 2,416.1
4,376.3 2,818.2
Lands and buildings net
Owned 483.6 536.2
In-progress 18.1 7.8
Right-of-use 1,444.5 1,308.3
1,946.1 1,852.2
Other properties and equipments net
Owned 542.6 263.0
In-progress 786.9 26.3
Right-of-use 156.2 90.1
1,485.7 379.4
Total net
Owned 12,287.6 9,349.8
In-progress 1,615.7 601.1
Right-of-use 12,466.2 8,656.2
-
Property and equipment 26,369.4 18,607.2

As at December 31, 2021, assets under IFRS 16 included in the above table represented a net book value of
USD 12,466.2 million (USD 8,656.2 million as at December 31, 2020).

Changes in the cost of property and equipment for the year ended December 31, 2021 and the year ended
December 31, 2020 are analyzed as follows:

CMA CGM / 32 Consolidated financial statements

Year ended December 31, 2021
 Vessels Containers Lands and Other Total
buildings properties
Owned Right-of-use In-progress and
equipments

As at December 31, 2019 9,474.6 7,001.7 439.8 3,670.9 2,432.8 696.5 23,716.2
Acquisitions 171.2 1,025.1 995.9 770.3 396.2 126.5 3,485.2
Acquisitions of subsidiaries - - - - 21.5 2.4 23.9
Disposals (88.9) (82.5) - (247.5) (137.2) (70.3) (626.4)
Reclassification - - 13.6 2.8 5.7 (12.6) 9.5
Vessels put into service 886.1 - (886.1) - - - (0.0)
Vessels refinancing & exercise of purchase option 963.5 (963.5) - - - - -
Foreign currency translation adjustment 11.5 3.6 (0.0) 0.4 106.2 29.9 151.4
As at December 31, 2020 11,417.9 6,984.4 563.2 4,196.8 2,825.2 772.4 26,759.9
Acquisitions 1,028.9 4,889.7 1,127.5 2,267.2 675.3 1,217.4 11,206.0
Acquisitions of subsidiaries - - - - 9.1 66.1 75.2
Disposals (53.0) (130.2) (0.0) (207.5) (175.6) (28.7) (595.1)
Disposals of subsidaries - - - - (0.1) (7.9) (8.0)
Revaluation - - - - (17.1) - (17.1)
Reclassification 18.9 - - 0.0 (14.0) 9.6 14.6
Vessels put into service 1,027.9 6.9 (1,034.8) - - - 0.0
Vessels refinancing & exercise of purchase option 1,148.8 (1,148.9) - - - - (0.0)
Foreign currency translation adjustment (33.8) (7.1) (0.1) (0.0) (157.0) (64.5) (262.6)
As at December 31, 2021 14,555.7 10,594.7 655.7 6,256.5 3,145.9 1,964.4 37,172.8

As at December 31, 2021, the Group holds 192 owned vessels and 331 leased vessels or equivalent agreements
in the scope of IFRS 16 (128 owned vessels and 174 leased vessels or equivalent agreements in the scope of
IFRS 16 as at December 31, 2020).

During the year ended December 31, 2021:

▪ “Acquisitions” of owned vessels relate mainly to the acquisition of 33 second-hand vessels ranging from
TEU 1,338 to 5,400, as well as scrubbers for existing vessels and dry docks;
▪ “Acquisitions” of right-of-use vessels relate to :
o 189 new leases entered into for a ROU amount of USD 4,072.1 million,
o 44 vessel lease extensions for a ROU adjustment of USD 535.6 million,
o 8 vessels with purchase options for a ROU amount of USD 234.4 million,
o Dry-docks for leased vessels for USD 21.0 million.
▪ “Acquisitions” of in-progress vessels relate to the delivery instalments paid at the delivery dates of five
TEU 23,000 vessels and two TEU 1,400 vessels which were delivered in 2021, as well as to the instalments
paid in relation to some vessels in the orderbook : ten TEU 5,500 vessels, six TEU 7,300 vessels, six TEU
13,000 vessels, six TEU 15,000 vessels; this also related to investment in scrubbers to be fitted on vessels;
▪ “Acquisitions” of containers relate to new leases entered into as well as some modifications of existing
leases;
▪ “Acquisitions” of land and buildings mainly include leases entered into by CEVA for an amount of USD
597.3 million;
▪ “Acquisitions” of other properties and equipments mainly include USD 726.6 million related to 5 Airbus
cargo aircrafts and the ordering of 2 Boeing aircrafts (recorded as asset in progress) for an amount of USD
188.5 million;
▪ “Vessels put into service” relate to the delivery of the five TEU 23,000 vessels, two TEU 2,500 vessels, two
TEU 2,200 vessels and 19 scrubbers.
▪ “Vessels refinancing & exercise of purchase option” relate to the exercise of purchase options in relation
to 16 leased vessels.

Variations occurred during the year ended December 31, 2020 were disclosed in the 2020 CFS.

Borrowing costs capitalized during the year ended December 31, 2021 amounted to USD 4.3 million (USD 10.1
million for the year ended December 31, 2020).

Acquisition of property and equipment, intangible assets and reconciliation with the Consolidated Statement of
Cash Flows

Purchases of property and equipment and intangibles amounted to USD 11,309.7 million for the year ended
December 31, 2021 (USD 3,548.2 million for the year ended December 31, 2020).

Consolidated financial statements CMA CGM / 33

Year ended December 31, 2021
The reconciliation of these acquisitions with the capital expenditures (CAPEX) presented in the statement of
cash-flows, under the heading “Purchase of property and equipment” can be presented as follows:

As at December 31,
2021 2020
Acquisition of assets presented in the above tables a 11,309.7 3,548.2
(+) Acquisition of assets held-for-sale b - 2.6
(-) Assets not resulting in a cash outflow (i) c (680.2) (758.7)
(-) IFRS16 leases increase d (7,334.6) (2,057.9)
CAPEX cash from purchases of intangible assets e (98.5) (69.6)
CAPEX cash from purchases of property and equipment f = a (+) b (-) c (-) d (-) e (3,196.4) (664.7)
CAPEX cash from business combination g (62.6) (81.8)
Total CAPEX as per Consolidated Statement of Cash Flows e (+) f (+) g (3,357.4) (816.1)

(i) The group assets include assets financed via financial leases or assets which purchase price is settled directly by the
financing bank to the yard hence not resulting in a cash stream upon acquisition.

In addition to USD 3,357.4 million capex cash as per Consolidated Statement of Cash-Flows, the Group
proceeded to the following investments in its operating assets:
▪ USD 774.7 million financing cash outflow related to the exercise of purchase options of vessels and
containers; this resulted into a reclassification of the carrying values of the related tangible assets
from leased to owned categories for a net book value of USD 657.1 million for vessels and USD 433.1
million for containers;
▪ USD 680.2 million non-cash capex related to vessels and containers purchased through a financing
drawdown or working capital items with no immediate cash impact for the Group;
▪ USD 7,334.6 million non-cash capex related to new leases entered into.

Changes in the accumulated depreciation for the year ended December 31, 2021 and the year ended
December 31, 2020 are analyzed as follows:

Vessels Containers Lands and Other Total

buildings properties
Owned Right-of-use In-progress and
equipments

As at December 31, 2019 (2,403.0) (1,707.4) - (919.0) (608.7) (312.3) (5,950.5)

Depreciation (439.6) (971.5) - (605.8) (465.1) (109.4) (2,591.3)
Disposals 65.3 82.6 - 145.6 140.1 63.5 497.0
Impairment (10.2) (1.4) - - (3.3) (8.6) (23.5)
Reclassification (470.9) 457.4 - - 1.3 (6.5) (18.7)
Foreign currency translation adjustment (7.0) (2.3) - 0.5 (37.4) (19.7) (65.8)

As at December 31, 2020 (3,265.4) (2,142.6) - (1,378.6) (972.9) (393.0) (8,152.6)

Depreciation (656.8) (1,340.7) - (636.7) (476.2) (136.2) (3,246.6)
Disposals 53.2 130.2 - 135.4 180.7 23.1 522.7
Disposals of subsidaries - - - - - 6.9 6.9
Impairment (32.5) (1.5) - 0.0 (0.3) (4.0) (38.3)
Vessels refinancing & exercise of purchase option (491.8) 491.8 - - - - 0.0
Reclassification - - - - 4.7 (10.8) (6.1)
Foreign currency translation adjustment 9.4 1.7 - (0.2) 64.3 35.5 110.6

As at December 31, 2021 (4,383.9) (2,861.0) - (1,880.2) (1,199.7) (478.7) (10,803.4)

Including intangible assets, the total depreciation for the year ended December 31, 2021 amounts to USD
3,427.9 million (USD 2,755.7 million for the year ended December 31, 2020).

The net book value of property and equipment at the opening and closing for the year ended December 31,
2021 and the year ended December 31, 2020 are analyzed as follows:

Containers Lands and Other Total

Vessels buildings properties
and
Owned Right-of-use In-progress equipments

As at December 31, 2021 10,171.8 7,733.8 655.7 4,376.3 1,946.2 1,485.7 26,369.5
As at December 31, 2020 8,152.5 4,841.8 563.2 2,818.2 1,852.2 379.4 18,607.3
As at December 31, 2019 7,071.6 5,294.3 439.8 2,751.9 1,824.1 384.2 17,765.8

CMA CGM / 34 Consolidated financial statements

Year ended December 31, 2021
As at December 31, 2021, the carrying amount of property and equipment held as collateral (mainly of
financial debts) amounts to USD 16,581.6 million (USD 15,480 million as at December 31, 2020) and USD
4,113.5 million excluding leased assets under IFRS 16 (USD 6,821.4 million as at December 31, 2020).

5.2.2 Group fleet development

Prepayments made to shipyards relating to owned vessels under construction are presented within “Vessels”
in the consolidated statement of Financial Position and amount to USD 655.7 million as at December 31, 2021
(USD 563.2 million as at December 31, 2020).

Prepayments made with regards to aircraft orderbook are presented within “Other properties and equipment”
in the consolidated statement of Financial Position and amount to USD 723.2 million as at December 31, 2021.

5.3 Impairment of non-financial assets

As required by IAS 16 “Property, Plant and Equipment” and IAS 36 “Impairment of Assets”, the Group reviews
the carrying amounts of property and equipment (see Note 5.2) and intangible assets (see Note 5.1) annually
in order to assess whether there is any indication that the value of these assets might not be recoverable. If
such an indication exists, the recoverable value of the asset is estimated in order to determine the amount, if
any, of the impairment loss. The recoverable amount is the higher of an asset’s fair value less costs to sell and
value in use. For the purposes of assessing impairment of goodwill and other assets that do not generate
independent cash inflows, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows (cash generating units or “CGU”).

The impairment tests on goodwill and intangible assets with an indefinite useful life or unavailable for use are
performed annually at the CGU level, or more frequently if there is an indication of impairment.

Right-of-use assets under IFRS 16 are considered as non-financial assets. Thus, they are in the scope of IAS 36.

Right-of-use assets are tested annually or when impairment indicators exist. They are assessed for impairment
at Group’s CGUs level.

The impairment test is performed according to the following assumptions:

▪ Right-of-use assets are included in the carrying amount of the related CGU; or
▪ The carrying amount of the lease liabilities is deducted from the carrying amount of the CGU.

Any impairment recorded on goodwill may not subsequently be reversed.

Significant judgment, estimates and assumptions

When value in use calculations are undertaken, management must estimate the expected future cash flows of
the asset or cash-generating unit and choose a suitable discount rate and a perpetual long-term growth rate in
order to calculate the present value of those cash flows. These estimates take into account certain
assumptions about the global economic situation and the future growth of the container shipping and logistics
industries.

The main assumptions used by the Company in order to perform impairment testing of non-financial assets
are the following:

▪ The level at which the assets were tested:

(i) CMA CGM, is organized as a global container carrier, managing its customer base and fleet of vessels and
containers on a global basis. Large customers are dealt with centrally and assets are regularly reallocated
within trades according to demand. Even though certain trades may have their own specificities, none
generates cash flows independently of the others. As such, vessels, containers, goodwill and other long-

Consolidated financial statements CMA CGM / 35

Year ended December 31, 2021
 term assets related to the container shipping activity are not tested individually but rather on the basis of
the cash flows generated by the overall container shipping activity.
(ii) As far as logistics activities are concerned, Management monitors goodwill based on two cash generating
units : Freight Management (FM) and Contract Logistics (CL). The recoverable amount of each CGU is
determined based on calculating its value in use.
(iii) For terminal operations, when the Company controls the entity, the CGU correspond to each individual
terminal or entity, or to a group of terminals or entities when they operate in the same geographic area
and their activities are interrelated.

▪ For the container shipping activity, the cash flows used to determine the value in use are based on the
most recent business plan prepared by management, which covers a 4-year period. The container
shipping industry is currently particularly volatile in sync with the context of operations. To prepare its
business plan, management considered historical data and opinions from independent shipping experts
which tend to indicate that in the medium term, fleet capacity and demand will be more balanced.

▪ For logistics, the value in use is calculated by applying discounted cash flow modelling to management’s
own projections covering a four year period. Management’s projections have been prepared on the basis
of strategic and performance improvement plans, knowledge of the market, performance of competitors
and management’s views on achievable growth in market share and margins over the longer term.

▪ The post-tax discount rates, or Weighted Average Cost of Capital (“WACC”) , used for testing purposes
are included within the range 7%-18% (8%-15% in 2020) depending upon the inherent risk of each activity
tested.
▪ The perpetual growth rate applied to periods subsequent to those covered by management’s business
plan was generally set between 1% and 2% (between 1% and 2% in 2020 – see sensitivity analysis below).

Sensitivity of the impairment test to changes in the assumptions used in the determination of the value in use

Regarding the container shipping activity:

▪ If the discount rate had been increased by 1%, the net present value of future cash flows would have been
lowered by USD 4.5 billion (USD 2.0 billion as at December 31, 2020), which would not have resulted in
any impairment charge;
▪ The estimated value in use of the container shipping assets to be tested would have been approximately
equal to its carrying amount if the discount rate had been increased by 13.2% (4.2% as at December 31,
2020);
▪ If the perpetual growth rate had been set at 0%, the net present value of future cash flows would have
been lowered by USD 3.4 billion (USD 1.6 billion as at December 31, 2020), which would not have resulted
in any impairment charge.

Regarding the Logistics’ CGUs: If the discount rate had been increased by 1% or if the perpetual growth rate
had been decreased by 1%, the net present value of future cash flows generated by freight management (FM)
and contract logistic (CL) would have been lowered by USD 0.7 billion as at December 31, 2021 (USD 0.2 billion
as at December 31, 2020), which would not have resulted in any impairment charge.

5.4 Working Capital

Inventories - Initial recognition

Inventories are initially recorded at cost. Cost represents the purchase price and any directly attributable costs.
Inventories mainly relate to bunker fuel at the end of the year. Cost is determined on a first-in, first-out basis.

Inventories - Write-down rules

When the net realizable value of an item of inventory is less than its cost, the excess is immediately written-
down in profit or loss.

CMA CGM / 36 Consolidated financial statements

Year ended December 31, 2021
The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, is
recognized through profit or loss so that the new carrying value is the lower of the cost and the revised net
realizable value.

Trade receivables

Freight receivables for which the Company transferred a portion of the services to the customers as per
revenue recognition principles, are reported as contract assets, net of the portion of the services not
performed at cut-off date (deferred revenue).

Impairment of trade receivables

According to the simplified approach allowed by IFRS 9 for trade receivables, the Group determined that the
provision that would be recognized using a provision matrix based on historical and projected statistics for
determining expected credit loss (ECL) on trade receivables would not be materially different from the
provision accounted through the methodology described below:

Write down is measured taking into account:

▪ Customer segments that have similar loss patterns : the Group differentiates freight receivables from
demurrage receivables;
▪ The receivables’ maturities in correlation with their estimated collection rate : at date, the Group fully
depreciates aged receivables above one year as well as doubtful receivables.

Individual receivable identified as risky are also depreciated when:

▪ It is probable that the receivable will not be recovered; and
▪ The amount of the loss can be reliably measured.

Impairment of contract assets

Contract assets are impaired following the same rules as trade receivables.

Securitization of receivables

The Company transfers certain receivables of certain shipping and logistics entities by way of a securitization
program. As a significant portion of the risks and rewards of ownership related to these trade receivables have
been retained by the Group, they are not derecognized and a borrowing is recorded against the cash
consideration received from the lenders (collateralized borrowing). Similarly, when the Company receives
shares from the securitization vehicle either (i) as a consideration for receivables transferred during the period
or (ii) as an advance consideration for receivables to be transferred in a subsequent period, the related
receivables are not derecognized and maintained in the Statement of Financial Position (see Note 6.6 and
Note 8.3.2).

Significant estimates: Demurrage and detention receivables, accruals for port call expenses, transportation costs
and handling services

The amount of demurrage receivables as well as port call expenses, transportation costs and handling services
are estimated on the basis of standard costs, as there can be delays between the provision of services and the
receipt of the final invoices from shipping agents and customers or suppliers throughout the world (see Note 4
for revenue recognition accounting principles).

Consolidated financial statements CMA CGM / 37

Year ended December 31, 2021
 5.4.1 Inventories

As at December 31, As at December 31,

2021 2020
Bunkers 659.8 389.3
Other inventories 64.8 57.1
Provision for obsolescence (0.5) (0.5)
Inventories 724.1 445.9

5.4.2 Trade receivables and payables

Trade and other receivables are analyzed as follows:

As at December 31, As at December 31,

2021 2020
Trade receivables 3,534.2 2,456.1
Less impairment of trade receivables (86.6) (133.1)
Trade receivables net 3,447.5 2,323.1

Prepayments 197.4 199.0

Other receivables, net 606.9 768.7
Employee, social and tax receivables 372.5 285.3
Trade and other receivables (*) 4,624.3 3,576.1
(*) including current income tax asset

“Other receivables, net” mainly include accrued income estimated due to the time between the provision of
services and the issue of the final invoices from shipping agents to customers throughout the world.

A large portion of trade receivables included in the table above have been pledged as collateral under its
securitization programs (see Note 8.3.2).

Trade and other payables are analyzed as follows:

As at December 31, As at December 31,

2021 2020

Trade payables 2,719.9 2,076.5

Employee, social and tax payables 963.3 663.3
Other payables (mainly accruals for port call expenses,
4,540.7 3,247.8
transportation costs, handling services)
Trade and other payables (*) 8,224.0 5,987.6
(*) including current income tax liability

The working capital can be analyzed as follows:

As at
As at December 31, Variations linked to Acquisition of Currency translation
Others December 31,
2020 operations subsidiaries adjustment
2021

Inventories 445.9 281.5 0.2 (2.5) (1.0) 724.1

Trade and other receivables (*) 3,576.1 1,015.6 84.4 (270.1) 218.3 4,624.3
Contract assets 1,269.7 1,144.0 2.5 (12.1) 0.1 2,404.1
Prepaid expenses 212.4 90.5 0.0 (2.3) (48.3) 252.3
Trade and other payables (**) (5,987.6) (1,833.5) (111.4) 166.5 (458.0) (8,224.0)
Deferred income (138.4) (83.8) 0.1 (3.3) (9.4) (234.9)
Net working capital (621.8) 614.3 (24.2) (123.8) (298.4) (454.0)
(*) including current income tax asset
(**) including current income tax liability

Trade receivables and payables, including current income tax assets and liabilities, mature as follows:

CMA CGM / 38 Consolidated financial statements

Year ended December 31, 2021
 As at December 31, 30 to 60 60 to 90 90 to 120 Over 120
Not yet due 0 to 30 days
2021 days days days days

Trade and other receivables 4,624.3 2,999.9 799.0 239.9 72.4 112.8 400.1

Trade and other payables 8,224.0 6,072.2 902.4 311.9 154.0 189.4 594.0

5.5 Non-current assets (or disposal group) held for sale

Non‐current assets (or disposal group) to be disposed of are classified as non-current assets (or disposal group)
held‐for‐sale and measured at the lower of the carrying amount and fair value less costs to sell. Non‐current
assets are classified as held‐for‐sale only when the sale is highly probable and the asset is available for
immediate sale in its present condition, subject to terms that are usual and customary for the sale of such
items. Management must be committed to the sale, which should be expected to qualify for recognition as a
completed sale within one year from the date of classification. If the fair value is lower than the carrying
amount, an impairment charge is recognized in the income statement.

A disposal group may include both current and non-current assets as well as liabilities (current and non-
current) directly related to those assets to be disposed of in the same transaction.

Liabilities directly associated with these assets are presented in a separate line in the balance sheet.

When a non‐current asset or a group of assets is classified as held‐for‐sale, its depreciation is discontinued.

There are no non-current assets (or disposal group) held for sale as at December 31, 2021 as (i) the stakes in 2
terminals that were left to be sold to Terminal Link as part of the transaction with CMP have been reclassified
in associates and joint ventures and other non-current financial assets and (ii) the transaction regarding the
stake in a logistic platform in India has been closed in the period (see Note 3.6).

5.6 Operating and investing cash-flows

Cash flow from operations stands at USD 22,230.5 million of which EBITDA contributed for USD
23,102.6 million, income tax paid for USD (279.5) million and variation of working capital for USD (614.3)
million. Cash flow generated from investing activities amounted to USD (4,127.2) million.

Cash flow from investing activities has been mainly impacted by capital expenditures from intangible assets
and purchasing of property and equipment representing a cash outflow of USD (3,294.9) million, the sale of
Ameya for USD 77.1 million, the net cash used for some acquisitions of subsidiaries or associates and joint
ventures for USD (62.6) million, the proceeds from disposal of properties and equipment for USD 56.1 million,
the net cash flow resulting from the variation of other financial assets for USD (400.8) million, the purchase of
securities for USD (513.5) million and the dividends received from investments in associates and joint ventures
for USD 13.6 million.

Note 6 - Capital structure and financial debt

The Group’s activities entail a variety of financial risks: market risk (including foreign exchange risk, bunker
costs risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management program
focuses on the unpredictability of financial and oil/commodity markets and seeks to minimize potential
adverse consequences on the Group’s financial performance. The Group uses derivative financial instruments
to hedge certain risk exposures.

Risk management is carried out by a central treasury department and a bunkering department in accordance
with policies approved by management. These departments identify, evaluate and hedge financial risks in

Consolidated financial statements CMA CGM / 39

Year ended December 31, 2021
close relation with operational needs. Management provides written principles for overall risk management,
as well as written policies covering specific areas, such as bunker risk, foreign exchange risk, interest rate risk
and credit risk, use of derivative financial instruments and non-derivative financial instruments, and
investment of liquidity.

6.1 Financial risk management objectives & policies

6.1.1 Market risk

Bunker costs risk

The Group seeks to apply bunker surcharges (Bunker Adjustment Factor “BAF”) in addition to freight rates to
compensate for fluctuations in the price of fuel. The Group’s risk management policy is also to hedge through
fixed price forward contracts. The analysis of the exposure to price fluctuations is performed on a continual
basis.

The fuel prices over the last three years are as follows:

Market data as at : 2021 2020 2019 2021 2020 2019

Nymex WTI (1st nearby, in $ per barrel) * 75.21 48.52 61.06 68.08 39.34 57.04
Brent (1st nearby, in $ per barrel) * 77.78 51.80 66.00 70.94 43.21 64.16
* Based on the future contract maturing at the closest maturity on each considered date

As at December 31, 2021, the Company hedged approximately 8.0% of expected purchase of bunkers for the
next year through fixed price forwards with delivery (0.5% of expected purchase for the year 2021 as at
December 31, 2020). These bunker purchases are treated as executory contracts.

As at December 31, 2021, the Company hedged approximately 0.5% of expected purchase of bunkers for the
next year through derivatives products (nil as at December 31, 2020)

The table below presents the fair value of the Group’s bunker hedge derivatives in relevant maturity groupings
based on the remaining period, from the Statement of Financial Position date to the contractual maturity
date:

Nominal amount Maturity

As at December 31, 2021 Less than 1 More than 1 Fair value of
year year derivatives

Bunker hedge - cash flow hedge 46.5 46.5 - (3.1)

Total 46.5 46.5 - (3.1)

Based on the fuel consumption for the year ended December 31, 2021, an increase of the fuel prices by USD 10
(in USD per ton) would have had a negative impact on the Statement of Profit & Loss of approximately USD
82.0 million, excluding any effect on the BAF mechanism mentioned above as well as any other correlation
with freight prices.

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency
exposures. The functional currency of the Group being the U.S. Dollar, the Company is primarily exposed to
the Euro currency fluctuations regarding its operational and financing transactions. Transactional currency
exposure risks arise from sales or purchases by an operating unit in a currency other than the Group’s
functional currency.

The Company may conclude certain derivative transactions to hedge specific risks.

CMA CGM / 40 Consolidated financial statements

Year ended December 31, 2021
The Group’s exposure to the transaction currencies, taking into account the effect of hedges, can be presented
as follows:

Carrying
As at December 31, 2021 USD EUR CNY GBP Others
amount

Trade receivables and prepaid expenses 4,756.5 2,137.4 1,118.0 334.7 101.6 1,064.7

Cash and cash equivalents and securities 10,130.9 8,377.2 581.4 81.3 51.8 1,039.2

Trade payables and current deferred income 8,174.5 4,142.9 1,753.3 264.4 153.2 1,860.8

Borrowings 18,201.5 15,475.6 1,657.6 12.3 465.8 590.1

This exposure is mitigated to a certain extent by the currency mix of operating revenues and expenses.

Cash Flow Interest rate risk

The evolution of short-term USD rates is as follows:

Closing rate as at December 31, Annual average rate

Market data: 2021 2020 2019 2021 2020 2019
LIBOR USD 3 M 0.21% 0.24% 1.91% 0.16% 0.65% 2.33%

The Group’s interest rate risk mainly arises from borrowings. Indeed, the Group has borrowings issued at
variable rates (USD Libor) that expose the Group to a cash flow interest rate risk.

As at December 31, 2021, taking into account the interest rate hedges, the borrowings bearing interest at
variable rates represent 24% of total debts, 76% at fixed rates.

The table below presents the fair value of the Group’s interest rate derivatives in relevant maturity groupings
based on the remaining period, from the Statement of Financial Position date to the contractual maturity
date:

Maturity
As at December 31, 2021 Less than 5 More than 5 Fair value of
Nominal amount
years years derivatives

Cross currency interest rates swaps - fair value hedge 302.4 302.4 - (35.2)
Total 302.4 302.4 - (35.2)

The following table presents the sensitivity of the Group’s profit before tax and of the Cash Flow reserve as at
December 31, 2021 to a possible change in interest rates, assuming no change in other parameters:

Income Statement impact Balance Sheet

impact

Change in fair
Interest Cash Flow
value of
expenses Reserve
derivatives

U.S Dollar +100 bps (12.6) (3.0) -

Singapore Dollar +100 bps 6.7 2.8 -

6.1.2 Credit risk

The Group trades with large, recognized, creditworthy third parties and also with a very large number of
smaller customers for which prepayments are often required. Trade receivables and third party agents

Consolidated financial statements CMA CGM / 41

Year ended December 31, 2021
outstanding balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debt
is not significant (bad debts represent 0.1% of revenue in 2021 and 0.5% of revenue in 2020). Because of the
large customer base, the Group has no significant concentration of credit risk. No customer represents more
than 5% of Group revenue.

Counterparties for transactions on derivatives are limited to high-credit-quality financial institutions. The
Group has policies that limit its exposure to credit risk towards financial institutions when dealing derivative
financial instruments.

6.1.3 Liquidity risk

The table below presents the undiscounted cash flows of interest swap derivatives based on spot rate as at
December 31, 2021 and on the interest rate curve as at December 31, 2021:

2022 2023 2024 2025 2026 Onwards

Cross currency interest rates swaps - Liabilities (4.2) (4.1) (8.6) (9.5) - -

Total (4.2) (4.1) (8.6) (9.5) - -

Since end of 2018, the Group’s financing arrangements are subject to compliance with the following financial
covenants:
▪ A leverage ratio, calculated as adjusted net debt to a 3-year average adjusted EBITDA;
▪ Minimum liquidity balance.

These covenants are based on specific calculations as defined in the financing arrangements (see below).

As at 31 December 2021, the Group is in compliance with its financial covenants.

The definition of EBITDA in the agreements allows adjustments and certain items to be added back to the
reported EBITDA for the purpose of calculating the covenants.

On the basis of the agreements, adjusted net debt and unrestricted cash and cash equivalents are calculated
as follows:
As at December 31, As at December 31,

Note 2021 2020

Total Borrowings and lease liabilities (A) 6.6 18,201.5 18,512.5

Cash and cash equivalents as per statement of financial position 6.4 10,130.9 1,880.4
(+) Securities 6.3.2 530.2 35.7
(-) Restricted cash 6.4 (179.3) (295.5)
Unrestricted cash and cash equivalents (B) 10,481.9 1,620.6

Adjusted net debt : A (-) B 7,719.7 16,891.9

Regarding the liquidity risk linked to property and equipment, refer to the financial commitments presented in
the Note 8.3.1 Commitments on assets.

6.1.4 Capital risk management

The Group monitors capital on the basis of the ratios described above.

CMA CGM / 42 Consolidated financial statements

Year ended December 31, 2021
 6.1.5 Fair value hierarchy

Fair Value of financial assets

The fair values of quoted investments are based on current mid-market prices. If the market for a financial
asset is not active (and for unlisted securities), the Group establishes the fair value by using valuation
techniques. These include the use of recent arm’s length transactions, reference to other instruments that are
largely similar and discounted cash flow analyses refined to reflect the issuer’s specific circumstances.

The table in the Note 6.3.3 Classification of financial assets and liabilities that presents a breakdown of
financial assets and liabilities categorized by value meets the amended requirements of IFRS 7. The fair values
are classified using a scale which reflects the nature of the market data used to make the valuations. This scale
has three levels of fair value:
▪ Level 1: fair value based on the exchange rate/price quoted on the active market for identical instruments;
▪ Level 2: fair value calculated from valuation techniques based on observable data such as active prices or
similar liabilities or scopes quoted on the active market;
▪ Level 3: fair value from valuation techniques which rely completely or in part on non-observable data such
as prices on an inactive market or the valuation on a multiples basis for non-quoted securities.

The following table presents the Group’s assets and liabilities that are measured at fair value at December 31,
2021:

As at December 31, 2021 Level 1 Level 2 Level 3 Total Balance

Assets
Securities 530.2 - - 530.2
Derivatives used for hedging - 2.7 - 2.7
Other financial assets - - 11.3 11.3
Investments in non consolidated companies - - 372.5 372.5
Total Assets 530.2 2.7 383.8 916.7

Liabilities
Derivatives used for hedging - 5.8 - 5.8
Cross currency interest rates swaps - fair value hedge - 35.2 - 35.2
Total Liabilities - 41.0 - 41.0

The following table presents the Group’s assets and liabilities that are measured at fair value at December 31,
2020:

As at December 31, 2020 Level 1 Level 2 Level 3 Total Balance

Assets
Securities 35.7 - - 35.7
Derivatives used for hedging - 0.1 - 0.1
Investments in non consolidated companies - - 223.5 223.5
Total Assets 35.7 0.1 223.5 259.2

Liabilities
Interest swaps - cash flow hedge - 9.8 - 9.8
Interest swaps - not qualifying to hedge accounting - 44.2 - 44.2
Cross currency interest rates swaps - fair value hedge - 31.2 - 31.2
Cross currency interest rates swaps - cash flow hedge - 2.2 - 2.2
Total Liabilities - 87.4 - 87.4

Consolidated financial statements CMA CGM / 43

Year ended December 31, 2021
The variations of assets included in level 3 are as follows:
ASSETS

Fair value
through other Fair value
comprehensive through P&L
income
Opening balance - 223.5
Total gains or losses for the period
Included in profit or loss - 147.7
Foreign Currency impact - (2.0)
Purchases, issues, sales and settlements
Purchases - 33.7
Reclassification - (8.8)
Depreciation - (7.0)
Settlements - (2.0)
Others - (1.3)
Closing balance - 383.8

6.2 Derivative financial instruments

Derivative instruments and hedging activities

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are
subsequently re-evaluated at their fair value. The method of recognizing the resulting gain or loss depends on
whether the derivative is designated as a hedging instrument, and if this is the case, on the nature of the item
being hedged. The Group designates certain derivatives as hedges of highly probable forecast transactions
(cash flow hedge).

The Group documents the relationship between hedging instruments and hedged items at the inception of the
transaction, as well as its risk management objective and strategy for undertaking various hedge transactions.
The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the
derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash
flows of hedged items.

Movements on the hedging reserve are shown in other comprehensive income.

Classification of the Company’s derivative instruments

▪ Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges are recognized in other comprehensive income. The gain or loss relating to the ineffective portion is
recognized immediately in the income statement. The impact in the Statement of Profit & Loss (effective and
ineffective portion) of bunker hedging activities that qualify as cash flow hedges is presented in the line item
“Bunkers and Consumables”.

The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowing is
recognized in the Statement of Profit & Loss within “Interest expense on borrowings”. The gain or loss relating
to the ineffective portion is recognized in the income statement under the heading “Other financial items”.

However, when the forecast transaction that is hedged results in the recognition of a non-financial asset (for
example, inventory), the gains and losses previously deferred in other comprehensive income are transferred
from other comprehensive income and included in the initial measurement of the cost of the non-financial
asset.

CMA CGM / 44 Consolidated financial statements

Year ended December 31, 2021
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in other comprehensive income at this time remains in other
comprehensive income and is recognized when the forecast transaction is ultimately recognized in the income
statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was
reported in other comprehensive income is immediately transferred to the income statement.

▪ Fair value hedge

Fair value hedges apply when hedging the exposure to changes in the fair value of a recognized asset or
liability or an unrecognized firm commitment or an identified portion of such an asset, liability or
unrecognized firm commitment that is attributable to a particular risk.

The fair value changes on the effective portion of derivatives that are designated and qualify as fair value
hedges are recognized in the income statement within the same line item as the fair value changes from the
hedged item. The fair value changes relating to the ineffective portion of the derivatives are recognized
separately in the income statement.

▪ Derivatives that do not qualify for hedge accounting

Certain derivative instruments do not qualify for hedge accounting. Such derivatives are classified as assets or
liabilities at fair value through profit and loss, and changes in the fair value of any derivative instruments that
do not qualify for hedge accounting are recognized immediately in the income statement. The impact in the
Statement of Profit & Loss of such derivatives is presented in the line item “Other financial items”.

▪ Net investment hedge

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges.

Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized in other
comprehensive income; the gain or loss relating to the ineffective portion is recognized immediately in the
income statement.

Gains and losses accumulated in other comprehensive income are included in the income statement when the
foreign operation is disposed of.

6.2.1 Derivative financial instruments

Derivative financial instruments can be analyzed as follows :

As at December 31, 2021 As at December 31, 2020

Assets Liabilities Assets Liabilities

Interest swaps - cash flow hedge - - 0.1 9.8

Interest swaps - not qualifying to hedge accounting - - - 44.2
Bunker hedge - cash flow hedge 2.7 5.8 - -
Cross currency interest rates swaps - fair value hedge - 35.2 - 31.2
Cross currency interest rates swaps - cash flow hedge - - - 2.2
Total derivative financial instruments 2.7 41.0 0.1 87.4
of which non-current portion (greater than 1 year) - 35.2 0.1 38.8
of which current portion (less than 1 year) 2.7 5.8 - 48.6

The derivative financial instruments related to CEVA’s Term Loan B, requalified as at December 31, 2020 as
“Interest swaps - not qualifying to hedge accounting”, have been settled in January 2021.
The Company did not record any transfer between derivative financial instruments’ categories in the period
ended December 31, 2021.

Consolidated financial statements CMA CGM / 45

Year ended December 31, 2021
 6.2.2 Net investment hedge

A foreign currency exposure arises from the Group’s net investment in certain subsidiaries, associates or joint
ventures with a euro functional currency, notably in the port terminal and container shipping short sea
activities.

The risk arises from the fluctuation in spot exchange rates between the Euro and the US Dollar, which causes
the amount of the net investment to vary.

The hedged risk in the net investment hedge is the risk of a weakening euro against the US dollar that will
result in a reduction in the carrying amount of the Group’s net investment in the euro investees.

To assess hedge effectiveness, the Group determines the economic relationship between the hedging
instrument and the hedged item by comparing changes in the carrying amount of the debt that is attributable
to a change in the spot rate with changes in the investment in the foreign operation due to movements in the
spot rate.

Part of the Group’s net investment in its euro investees is hedged by a Euro denominated senior note, which
mitigates the foreign currency exposure arising from the investee’s net assets. A portion of the euro loan has
been designated as a hedging instrument for the changes in the value of the net investment that is
attributable to changes in the EUR/USD exchange rates.

The amount of the change in the value of the Senior Notes that has been recognized in OCI to offset the
currency translation adjustment of the foreign operation amounts to an exchange gain of USD 61.5 million for
the year ended December 31, 2021 (exchange loss of USD (68.0) million for the year ended December 31,
2020).

6.3 Other non-current financial assets - Securities and other current financial
assets
The Group classifies its financial assets in the following categories, depending on their nature (i.e. their
contractual cash flow characteristics) and how they are managed (i.e. the Group business model used for
managing these financial assets):

Financial assets subsequently measured at amortized cost

These financial assets are initially recognized at fair value plus directly attributable costs.

They are classified as subsequently measured at amortized cost if they meet both of the following criteria:
▪ The asset is held within a business model whose objective is to hold the financial asset in order to collect
contractual cash flows; and
▪ The contractual terms of the financial asset give rise to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding on a specified date.

Amortized cost is determined using the effective interest method, less impairment.

Financial assets subsequently measured at fair value through other comprehensive income

These financial assets are initially recognized at fair value plus directly attributable costs.

They are classified as subsequently measured at fair value through other comprehensive income (FVOCI) if
they meet both of the following criteria:
▪ The asset is held within a business model whose objective is achieved by both holding the financial asset
in order to collect contractual cash flows and selling the financial asset; and

CMA CGM / 46 Consolidated financial statements

Year ended December 31, 2021
▪ The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

The business model mentioned as first criteria involves greater frequency and volume of sales than the
business model used for financial assets measured at amortized cost. Integral to this business model is an
intention to sell the instrument before the investment matures.

Financial assets subsequently measured at fair value through profit or loss

These financial assets are initially recognized at fair value excluding directly attributable costs that are
immediately recognized in profit and loss.

These financial assets are classified and measured at Fair value through profit or loss (FVTPL) if:
▪ The asset is held within a business model that does not correspond to the business model used to classify
financial assets at amortized cost or at fair value through other comprehensive income; and
▪ The contractual terms of the financial asset give rise to cash flows that are not solely payments of
principal and interest(SPPI).

A financial asset is thus classified and measured at FVTPL if the financial asset is:
▪ A held-for-trading financial asset;
▪ A debt instrument that do not qualify to be measured at amortized cost or FVOCI;
▪ An equity investment which the Group has not elected to classify as at FVOCI.

Changes in fair value are recognized in profit and loss as they arise.

Impairment of financial assets

At each Statement of Financial Position date, the Group performs impairments tests using a forward-looking
expected credit loss (ECL) model.

The amount of impairment to be recognized as expected credit losses (ECL) at each reporting date as well as
the amount of interest revenue to be recorded in future periods are determined through a three-stage
impairment model based on whether there has been a significant increase in the credit risk of a financial asset
since its initial recognition:
▪ Stage 1: When the credit risk has not increased significantly since initial recognition, the Group accounts
expected losses over the next 12 months and recognizes interest on a gross basis;
▪ Stage 2: When the credit risk has increased significantly since initial recognition and is not considered as
low, the Group accounts expected losses over the lifetime of the asset and recognizes interest on a gross
basis;
▪ Stage 3: In case of a credit deterioration that threatens its recoverability, the Group accounts expected
losses over the lifetime of the asset and present interest on a net basis (i.e. on the gross carrying amount
less credit allowance).

Consolidated financial statements CMA CGM / 47

Year ended December 31, 2021
 6.3.1 Other non-current financial assets

Other non-current financial assets are analyzed as follows:

As at December 31, 2021 As at December 31,2020

Gross 387.4 231.4

Impairment (14.8) (7.9)
Net investments in non consolidated
companies 372.5 223.5

Gross 47.7 56.0

Impairment (18.6) (19.5)
Loans 29.1 36.5

Gross 81.0 102.4

Impairment (14.0) (26.0)
Deposits 67.0 76.4

Gross 98.9 58.0

Impairment (42.2) (29.7)
Receivable from associates & joint ventures 56.7 28.3

Gross 305.5 215.5

Impairment (16.8) (7.1)
Other financial assets 288.7 208.4

Gross 920.5 663.2

Impairment (106.4) (90.1)
Total other non-current financial assets, net 814.1 573.0

Change in other non-current financial assets is presented within “Cash flow resulting from other financial
assets” in the consolidated statement of cash flows.

Investments in non-consolidated companies

“Investments in non-consolidated companies” mainly relate to stakes in (i) Global Ship Lease for USD 69.9
million, (ii) Fransabank El Djazair for USD 60.4 million, (iii) Fenix Marine Services for USD 171.5 million (see
Notes 3.8 and 4.4 for the revaluation of such investment) and to (iv) various other stakes individually not
significant, mainly classified as assets at fair value through profit and loss (see Note 6.1.5).

Loans and receivables from associates and joint ventures

“Loans” and “receivables from associates and joint ventures” mainly relate to funds borrowed by certain
terminal joint ventures of certain related parties (see Note 7.4).

Deposits

“Deposits” correspond to USD 67.0 million of cash deposits which do not qualify as cash and cash equivalents
as at December 31, 2021 (USD 76.4 million as at December 31, 2020).

Other financial assets

As at December 31, 2021, “Other financial assets” mainly include USD 157.2 million (USD 105.6 million as at
December 31, 2020) financial tax benefit to be received at the maturity of the tax financing period.

CMA CGM / 48 Consolidated financial statements

Year ended December 31, 2021
 6.3.2 Securities and other current financial assets

“Securities and other current financial assets” as at December 31, 2021 include:
▪ securities at fair value for an amount of USD 530.2 million corresponding to the investment of a
portion of the group’s liquidity into a specific quoted instrument allowing exit options (USD 35.7
million as at December 31, 2020);
▪ Other current financial assets for USD 344.3 million (USD 129.6 million as at December 31, 2020).
Other current financial assets mainly include (i) the current portion of the financial assets, (ii) some
short term loans to joint-ventures or associates, (iii) as well as certain cash deposits which do not
qualify as cash and cash equivalents since their inception.

6.3.3 Classification of financial assets and liabilities

Set out below is a breakdown by category of carrying amounts and fair values of the Company’s financial
instruments that are carried in the financial statements as at December 31, 2021:

Assets As at December 31, Financial Financial assets Financial Derivative

2021 assets at at fair value assets at fair instruments
amortised cost through other value through
comprehensive profit and loss
income

Derivative financial instruments 2.7 - - - 2.7

Other financial assets 814.1 430.2 - 383.8 -
Trade and other receivables 4,504.2 4,504.2 - - -
Contract assets 2,404.1 2,404.1
Securities and other financial assets (current) 874.5 874.5 - (0.0) -
Cash and cash equivalents 10,130.9 10,130.9 - - -
Total financial instruments - Assets 18,730.4 18,344.0 - 383.8 2.7

Liabilities As at December 31, Financial Derivative

2021 liabilities at instruments
amortized cost

Borrowings and lease liabilities 18,201.5 18,201.5 -

Derivative financial instruments 41.0 - 41.0
Trade and other payables 7,939.7 7,939.7 -
Total financial instruments - Liabilities 26,182.2 26,141.2 41.0

6.4 Cash and cash equivalents, and liquidity

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less and margin calls related to the Company’s
derivative financial instruments. Those financial assets are classified as amortized cost and valued as described
above. Bank overdrafts are presented within borrowings on the Statement of Financial Position.

Consolidated financial statements CMA CGM / 49

Year ended December 31, 2021
 6.4.1 Cash and cash equivalents

Cash and cash equivalents can be analyzed as follows:

As at December 31, As at December 31,

2021 2020

Cash on hand 1,880.8 1,349.0

Short term deposits 8,070.9 235.9
Restricted cash 179.3 295.5
Cash and cash equivalents as per statement of financial position 10,130.9 1,880.4
Bank overdrafts (57.4) (31.4)
Cash and cash equivalents and bank overdrafts, as per cash flow
10,073.5 1,849.0
statement

Restricted Cash (179.3) (295.5)

Marketable securities 530.2 35.7
Group available cash 10,424.5 1,589.2
Undrawn committed facilities 1,880.2 1,111.3
Total Group Liquidity 12,304.6 2,700.5

The group holds USD 25.7 million of net funds deposited in a number of Lebanese banks as short-term dollar
denominated deposit accounts (USD 205.1 million as at December 31, 2020). Such net investment is reported
in restricted cash and hence excluded from the group liquidity, due to the restrictions of the use of these funds
out of the country, as a consequence of the economic situation in Lebanon. The decrease of the value of the
deposits is mainly due to a revaluation of either the value of the related funds or the investments made with
such funds, driven by the continued depressed economic situation in the country (see Note 4.6).

The remaining portion of the restricted cash balance mainly corresponds to some funds held by the Group in
Algeria which cannot be used out of the country due to the transfer restrictions in Algeria as well as to some
funds held in other specific countries with transfer restrictions.

The Group invested in short term deposits of various maturities for a net amount of USD 8,070.9 million, which
have been qualified as cash and cash equivalents since inception.

6.4.2 Undrawn committed credit facilities and liquidity position

As at December 31, 2021, the Group has access to undrawn committed credit facilities amounting to USD
1,880.2 million (USD 1,111.3 million as at December 31, 2020) granted by various financial institutions.

6.5 Share capital, other reserves and earnings per share

Share capital and other reserves

Incremental costs directly attributable to the issue of new shares are presented in equity as a deduction from
the proceeds, net of tax.

The share capital is constituted of (i) 11,031,714 ordinary shares held by MERIT France SAS, its shareholders
and related persons, (ii) 3,626,865 ordinary shares held by Yildirim and (iii) 453,358 ordinary shares and 1
preferred share held by the Banque Publique d’Investissement (Bpifrance formerly FSI) for a total of 15,111,938
ordinary shares.

Yildirim holds 24% of the Company’s ordinary shares since the conversion of bonds subscribed in 2011 and
2013 into ordinary shares on December 31, 2017.

CMA CGM / 50 Consolidated financial statements

Year ended December 31, 2021
In June 2013, Bpifrance subscribed for USD 150 million to bonds which have been redeemed in Company’s new
ordinary shares as at December 31, 2020, representing 6% of the Company’s ordinary shares. In April 2021,
Merit France SAS, the main shareholder of CMA CGM SA, acquired 453,359 shares from Bpifrance, increasing
its shareholding to 72.61% while Bpifrance was diluted to a 3.0% ownership.

No share option plans or dilutive equity instruments have been issued.

Other comprehensive income / (Loss) reclassifiable to profit and loss break down as follows:

As at As at
December 31, December 31,
2021 2020

Cash flow hedge (3.1) 32.7

Share of other comprehensive income / (Loss) of
11.9 (0.5)
associates and joint ventures
Deferred tax on reserve 1.4 2.1
Net investment hedge (23.4) (84.9)
Currency translation adjustments (258.9) (149.4)

Total Other Comprehensive Income / (Loss) (272.2) (200.0)

6.6 Borrowings and lease liabilities

Financial liabilities

Financial liabilities within the scope of IFRS 9 “Financial instruments” are classified as financial liabilities at
amortized cost or at fair value through profit and loss (when they are held for trading). The Group determines
the classification of its financial liabilities at initial recognition. The Group does not hold over the period
presented financial liabilities at fair value through profit and loss except derivative instruments.
Financial liabilities are recognized initially at fair value, less directly attributable costs in case of liabilities that
are not measured at fair value through profit and loss. The Group’s financial liabilities include trade and other
payables, bank overdrafts, loans and borrowings and derivatives.

Except for obligations recognized under IFRS16, borrowings are recognized initially at fair value, net of
transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the
proceeds (net of transaction costs) and the redemption value is recognized in the Statement of Profit & Loss
over the period of the borrowings using the effective interest method.

Borrowings also comprise obligations recognized under IFRS16.

Lease liabilities under IFRS 16

IFRS 16 requires to recognize a lease liability (and a right-of-use) representing its obligation to make lease
payments for leases. At the commencement date, the lease liability should be measured at the present value
of the lease payments that are not paid at date, discounted using incremental borrowing rates.

Under IFRS 16, the amount recognized as lease liabilities relating to leases contracts largely depends on
assumptions used in terms of discount rates and lease terms. Renewal, extension and early termination
options are also taken into consideration when calculating the lease liability if the lessee is reasonably certain
to exercise those options.

In-substance purchase

The IASB decided not to provide requirements in IFRS 16 to distinguish a lease from a sale or purchase of an
asset. Whereas, in accordance with the Basis for conclusions BC139, the IASB observed that:

Consolidated financial statements CMA CGM / 51

Year ended December 31, 2021
▪ The accounting for leases that are similar to the sale or purchase of the underlying asset would be similar
to that for sales and purchases applying the respective requirements of IFRS 15 and IAS 16; and
▪ The accounting for a transaction depends on the substance of that transaction and not its legal form.

Consequently, if a contract grants rights that represent the in-substance purchase of an item of property, plant
and equipment, those rights meet the definition of property, plant and equipment in IAS 16 and would be
accounted for applying that Standard, regardless of whether legal title transfers. If the contract grants rights
that do not represent the in-substance purchase of an item of property, plant and equipment but that meet
the definition of a lease, the contract would be accounted for applying IFRS 16.

As a consequence, due to the substance of certain transactions having the legal form of a lease and due to the
fact that the tax incentive was the primarily objective of the lease arrangement or due to the “in-substance
purchase” nature of certain leases, such contracts have not been considered as lease arrangements. Hence,
the corresponding assets are presented as owned assets and the related liabilities as bank borrowings.

Discount rate

The Group uses the incremental borrowing rates method to determine the discount rates for all the leases.
These rates are determined according to several criteria including mainly the asset category, the duration (for
the avoidance of doubt, different from lease term), the age of the assets, the lease currency etc… The discount
rates are updated quarterly.

6.6.1 Maturity schedule, variations and detail of borrowings

Borrowings and lease liabilities are presented below and include bank overdrafts, long-term bank borrowings,
lease liabilities (including ex finance leases and similar arrangements) and have the following maturities:

As at December Non Maturity schedule : December 31,

Current
31, 2021 current
portion
portion 2023 2024 2025 2026 Onwards

Senior notes 659.8 (7.0) 666.8 (7.4) 87.3 (4.7) 591.7 -

Bank borrowings - Asset financing 2,727.0 338.7 2,388.3 307.2 358.8 363.4 273.7 1,085.2
Bank borrowings - Corporate 37.9 42.9 (5.0) (2.9) (2.1) (0.0) (0.0) -
Bank overdrafts 57.4 57.4 - - - - - -
Securitization programs 1,754.5 (3.0) 1,757.5 (3.0) 1,760.5 - - -
Other borrowings 87.2 60.8 26.4 8.4 5.0 0.2 - 12.7

Total excluding lease liabilities 5,323.8 489.8 4,834.0 302.3 2,209.5 358.9 865.3 1,097.9
Lease liabilities 12,877.7 3,062.3 9,815.5 2,298.4 1,796.1 1,358.7 1,044.1 3,318.2
Total including lease liabilities 18,201.5 3,552.1 14,649.4 2,600.7 4,005.6 1,717.6 1,909.4 4,416.2

Variations in borrowings and lease liabilities can be analyzed as follows:

Bank Lease Bank Securitization Other

Senior notes Total
borrowings liabilities overdrafts programs borrowings

Balance as at January 1, 2021 2,429.2 4,709.3 8,783.9 31.4 2,243.0 315.6 18,512.5
Proceeds from new borrowings, net of issuance costs 0.0 158.0 - - 413.7 319.0 890.7
Repayment of financial borrowings (1,655.0) (2,631.0) (2,249.1) - (865.5) (480.5) (7,881.2)
Other increase/decrease in borrowings and lease liabilities 5.6 552.2 7,162.7 30.2 - (2.1) 7,748.5
Exercise of purchase options of vessels and containers - - (774.7) - - - (774.7)
Accrued interests and fees amortization 11.8 57.0 17.1 - 4.9 (56.7) 34.1
Reclassification - (37.0) - - - - (37.0)
Acquisition of subsidiaries - 1.3 21.8 1.0 - (1.7) 22.4
Foreign currency translation adjustments (131.9) (44.9) (84.0) (5.1) (41.6) (6.4) (313.8)

Balance as at December 31, 2021 659.8 2,764.9 12,877.7 57.4 1,754.5 87.2 18,201.5

The line item “Exercise of purchase options of vessels and containers” relates to the exercise of purchase
options of leases for USD (346.5) million for vessels and USD (428.3) million for containers.

The line item “Other increase / decrease in borrowings and lease liabilities” corresponds to variation in
borrowings and lease liabilities which did not have any cash impact for the Group either because (i) the asset is
financed through a lease contract under IFRS16, (ii) the drawdown was directly made by the bank to the
benefit of the shipyard or (iii) variation in overdraft has an opposite impact in cash and cash equivalents.

CMA CGM / 52 Consolidated financial statements

Year ended December 31, 2021
Borrowings and lease liabilities relate to the following assets and their respective average interest rates are as
follows:
Average Interest rate after
hedging, amortized cost and
"PPA"
Other
borrowings,
Bank Lease Excluding Including
Senior notes securitizatio
borrowings liabilities leases leases
n and
overdrafts
Vessels - 2,631.5 7,845.0 - 2.96% 5.45%
Containers - - 3,320.3 - - 8.61%
Land and buildings - 70.7 1,544.1 - 0.32% 5.25%
Terminal concession - 15.4 108.2 - 3.00% 8.38%
Other tangible assets - 9.3 60.2 - 2.47% 7.75%
Other secured borrowings - 2.4 - 1,756.0 1.81% 1.81%
General corporate purposes 659.8 35.5 - 143.1 7.39% 7.39%

Total 659.8 2,764.9 12,877.7 1,899.1

Secured borrowings (either affected to a tangible asset or included in “other secured borrowing” in the table
above) corresponds to financial borrowings secured by tangible assets or other kind of assets (for instance but
not limited to pledges over shares, bank account or receivables). Borrowings included in “General corporate
purposes (unsecured)” are fully unsecured.

Financial cash-flows on borrowings including repayment of principal and financial interests have the following
maturities (as required by IFRS 7, these cash-flows are not discounted):

As at December Non current Maturity schedule : December 31,

31, 2021 Current portion
portion 2023 2024 2025 2026 Onwards
Senior notes 909.4 52.2 857.1 52.2 143.9 44.6 616.5 -
Bank borrowings - Asset financing 3,230.1 441.9 2,788.1 395.3 450.9 448.4 321.2 1,172.3
Bank borrowings - Corporate 49.6 47.9 1.7 1.1 0.6 0.1 - -
Bank overdrafts 60.8 60.8 - - - - - -
Securitization programs 1,850.4 36.9 1,813.4 36.9 1,776.5 - - -
Other borrowings excl. accrued interests 50.4 19.4 31.0 9.5 5.8 1.0 0.7 14.0

Total excluding lease liabilities 6,150.5 659.1 5,491.4 495.0 2,377.7 493.9 938.4 1,186.4
Lease liabilities 16,444.9 3,835.7 12,609.2 2,970.4 2,303.3 1,772.2 1,342.5 4,220.8
Total including lease liabilities 22,595.4 4,494.8 18,100.6 3,465.4 4,681.0 2,266.1 2,280.9 5,407.2

6.6.2 Details of Senior Notes

As at December 31, 2021, the Group has 2 unsecured Senior Notes outstanding which can be detailed as
follows:
▪ USD 116.5 million of nominal amount, originally issued by APL Limited and transferred to APL
Investments America, maturing in January 2024;
▪ EUR 525 million of nominal amount, issued by CMA CGM and maturing in January 2026.

In March and April 2021, the Group fully repaid the EUR 650 million note issued by CMA CGM and initially
maturing in July 2022, for EUR 300 million and EUR 350 million, respectively.

In October 2021, the EUR 750 million note issued by CMA CGM and initially maturing in January 2025 was also
fully early repaid.

Finally, in December 2021, the company proceeded to bond buybacks on the market for an amount of USD 21
million, thereby reducing the outstanding notional of the notes held by APL Investments America and
maturing in January 2024, from USD 116.5 million to USD 95.5 million.

6.6.3 Bank borrowings

The full remaining amount of the PGE facility has been repaid during the first quarter of 2021 for an amount of
EUR 950 million.

Consolidated financial statements CMA CGM / 53

Year ended December 31, 2021
In the year ended December 31, 2021, the Group also early repaid :
▪ the residual outstanding portion of CEVA’s RCF for EUR 175 million;
▪ vessel secured borrowings for USD 736 million.

In the third quarter of 2021, the Group refinanced and upsized CMA CGM and CEVA’s former RCFs, merged in
a single USD 1.4 billion revolving credit facility at the level of CMA CGM, with a 3-year tenor. Such facility is
fully undrawn to date.

6.6.4 Lease liabilities

The sharp increase in lease liabilities is related to the tense situation in the chartering and container
equipment markets, combining assets shortages and price increases, resulting in conditions of new or
amended leases being far more expensive and with longer average duration compared to historical trends.

6.6.5 Securitization program

During the year ended December 31, 2021, the global amount drawn under the receivables securitization
programs decreased by USD 488.5 million as a result of several drawdowns and repayments.

In March 2021, the Group closed a USD 2.1 billion trade receivables securitization facility with a three-year
commitment from five banks. This program fully refinanced the existing CMA CGM and CMA CGM ASIA
PACIFIC (formerly know as NOL) receivables securitization facilities initially maturing in July and March 2021,
respectively. As of December 31, 2021, the outstanding drawn amount under the new facility, classified as
non-current, was USD 1,296.7 million.

In December 2021, CEVA renegotiated the terms of its exisiting receivables’ securitization program, extending
its maturity from November 2022 to December 2024. As of December 31, 2021, the outstanding drawn
amount under CEVA Global securitization program, classified as non-current, was USD 457.8 million.

6.6.6 Other borrowings

As at December 31, 2021, other borrowings include USD 42.7 million of accrued interests (USD 100.8 million as
at December 31, 2020).

6.7 Cash flow from financing activities

Cash flow from financing activities amounts to USD (9,851.6) million for the year ended December 31, 2021.
The financing cash flows mainly consisted in drawdown of borrowings for USD 924.9 million, more than
compensated by the repayment of borrowings for USD (5,632.1) million, the payment of financial interests for
USD (287.5) million, the cash payments related to IFRS 16 leases for USD (2,992.4) million, dividends
payments for USD (869.0) million and other cash flow from financing activities for USD (995.5) million mainly
impacted by the exercise of vessels and containers’ purchase options for USD (774.7) million.

CMA CGM / 54 Consolidated financial statements

Year ended December 31, 2021
Note 7 - Scope of consolidation
7.1 Accounting principles and judgments used in determining the scope of
consolidation
The control analysis, as defined by IFRS 10 “Consolidated Financial Statements”, involves judgment as certain
situations are not obviously conclusive. Management has based its conclusion based on the following
principles and on all the facts and circumstances, as well as existing contractual agreements.

Subsidiaries

Subsidiaries are all entities (including special purpose entities) over which the Company has control.

The control over an entity is effective only if the following elements are reached:
▪ Power, i.e. the investor has existing rights that give it the ability to direct the relevant activities (the
activities that significantly affect the investee's returns);
▪ Exposure, or rights, to variable returns from its involvement with the entity;
▪ The ability to use its power over the entity to affect the amount of the investor's returns.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date that such control ceases.

All intra-group balances, income and expenses and unrealized gains or losses resulting from intra-group
transactions are fully eliminated.

The financial statements of subsidiaries have been prepared for the same reporting period as the parent
company, using consistent accounting policies.

Non-controlling interests represent the portion of profit and loss and net assets that is not held by the Group.
They are presented within equity and in the income statement, respectively separately from Group
shareholders’ equity and Group profit for the year.

Transactions with non-controlling interests

When purchasing non-controlling interests, the difference between any consideration paid and the relevant
share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on
disposals to non-controlling interests are also recorded in equity.

When the Group ceases to have control or significant influence, any retained interest in the entity is
remeasured to its fair value, with the change in carrying amount recognized in consolidated income
statement. The fair value subsequently represents the initial carrying amount of the retained interest as an
associate, joint venture or financial asset.

Interests in joint-venture & significant influence

Companies on which the Group has no control alone can be part of a joint arrangement. A joint arrangement is
defined as an arrangement of which two or more parties have joint control.

Joint control exists when decisions about the relevant activities require the unanimous consent of the parties
that collectively control the arrangement. The requirement for unanimous consent means that any party with
joint control of the arrangement can prevent any of the other parties, or a group of the parties, from making
unilateral decisions (about the relevant activities) without its consent.

Consolidated financial statements CMA CGM / 55

Year ended December 31, 2021
A joint venture is an arrangement whereby the parties that have joint control of the arrangement have rights
to the net assets of the arrangement. A joint venture recognizes its interest in a joint venture as an investment
and shall account for that investment using the equity method (in accordance with IAS 28 Investments in
Associates and Joint Ventures).

The significant influence is the power to participate in the financial and operating policy decisions of the
investee without granting control or joint control on the investee:
• A party that participates in, but does not have joint control of a joint venture, accounts for its interest in
the arrangement in accordance with IFRS 9,
• Unless it has significant influence over the joint venture, in which case it accounts for it in accordance with
IAS 28.

Under the equity method, equity interests are accounted for at cost, adjusted for by the post-acquisition
changes in the investor’s share of net assets of the associate, and reduced by any distributions (dividends).

The carrying amount of these equity interests is presented in the line item "Investments in associates and joint
ventures" on the Statement of Financial Position (see Note 7.2).

“Share of profit of associates and joint ventures” is presented within EBIT as it was concluded that the business
of these entities forms part of the Company’s ongoing operating activities and that such entities cannot be
considered as financial investments. This line item includes impairment of goodwill, financial income and
expense and income tax related to associates and joint ventures.

An associate’s losses exceeding the value of the Group's interest in this entity are not accounted for, unless the
Group has a legal or constructive obligation to cover the losses or if the Group has made payments on the
associate’s behalf.

Any surplus of the investment cost over the Group's share in the fair value of the identifiable assets and
liabilities of the associate company on the date of acquisition is accounted for as goodwill and included in the
carrying amount of the investment.

Any remaining investment in which the Group has ceased to exercise significant influence or joint control is no
longer accounted for under the equity method and is valued at fair value.

CMA CGM / 56 Consolidated financial statements

Year ended December 31, 2021
7.2 Investments in associates and joint ventures
7.2.1 Investments in associates and joint ventures – Variation in the Consolidated Statement of
Financial Position

Investments in associates and joint ventures can be analyzed as follows:

As at December 31, As at December 31,

2021 2020

Beginning of the year 545.1 805.9

Reclassification following loss of significant influence - (69.4)
New investments in associates and joint ventures 28.6 -
Effect of disposal to a joint-venture - (68.3)
Waiver of equity share rights treated as a price adjustment - (82.8)
Capital increase / decrease 24.6 12.3
Share of (loss) / profit (42.9) (28.7)
Dividend paid or payable to the Company (20.0) (17.8)
Other comprehensive income / (expense) 3.2 43.6
Reclassification to / from assets held-for-sale 37.0 3.8
Reclassification from / to other items (0.0) (53.1)
Other 0.0 (0.4)

Closing balance 575.7 545.1

The line item “New investments in associates and joint ventures” mainly corresponds to the investment in
Total Terminal International Algeciras (TTIA) port terminal (see Note 3.8).

The line item “Capital increase / decrease” corresponds to the subscriptions to share capital increases of
Terminal Link. There is no change to the ownership in Terminal Link.

The line item “Share of (loss) / profit” corresponds to the Company’s share in the profit or loss of its associates
and joint ventures, which includes impairment losses recognized by associates and joint ventures where
applicable. In 2021, this includes a non-recurring expense of USD (34.0) million corresponding to :
▪ Our share in the net result of Terminal Link for USD (23.4) million mostly related to an impact related
to the dividends guarantee that the Group is expected to waive to the benefit of CMP and interests of
the financing of the transaction supported by Terminal Link,
▪ An impairment of a specific terminal investment for USD (10.6) million.

In 2020, the line item “Share of (loss) / profit” included an impairment of our investment in Global Ship lease of
USD (28.6) million, the investment being reclassified as a financial asset at fair value through profit and loss
from March 31, 2020 onwards.

The line item “Reclassification to / from assets held-for-sale” relates to the reclassification of the stakes in 2
terminals as disclosed in Notes 3.6 and Note 5.5.

As at December 31, 2021, the main contributors to investments in associates and joint ventures are as follows:
▪ 51% of Terminal Link Group for USD 240.6 million (USD 269.1 million as at December 31, 2020);
▪ 50% of Anji-CEVA for USD 212.5 million (USD 203.0 million as at December 31, 2020).

Consolidated financial statements CMA CGM / 57

Year ended December 31, 2021
 7.2.2 Additional disclosures related to associates

The contribution of our investments in associates can be presented as follows, no of which being individually
significant:

December December
31, 2021 31, 2020
% of shareholding n.a. n.a.
% of voting rights n.a. n.a.

Equity method Balance sheet contribution 49.2 43.4

Equity method P&L contribution (6.6) (34.8)
Equity method OCI contribution (2.5) 3.2
Equity method total comprehensive income contribution (9.1) (31.6)
Fair value (for listed entities) n.a. n.a.
Distributed dividends for CMA CGM 11.6 2.6

7.2.3 Additional disclosures related to joint ventures

in million of USD TERMINAL LINK GROUP ANJI CEVA OTHER ENTITIES

December December December December December December
31, 2021 31, 2020 31, 2021 31, 2020 31, 2021 31, 2020
% of shareholding 51.0% 51.0% 50.0% 50.0% n.a. n.a.
% of voting rights (if different from above) n.a. n.a. n.a. n.a. n.a. n.a.

Equity method Balance sheet contribution 240.6 269.1 212.5 203.0 73.3 29.7
Equity method P&L contribution (51.6) (3.6) 8.4 8.7 6.9 1.0
Equity method OCI contribution (1.3) 42.3 7.6 4.0 (0.6) (5.9)
Equity method total comprehensive income contribution (52.9) 38.7 16.0 12.7 6.3 (4.9)
Fair value (for listed entities) n.a. n.a. n.a. n.a. n.a. n.a.
Distributed dividends to CMA CGM (0.0) (0.0) 6.4 11.4 2.0 0.0

Data based on a 100% basis

Non-current assets 2,075.6 2,105.8 210.0 235.6
Other current assets 137.5 226.3 799.4 680.6
Cash & cash equivalents 98.6 178.5 181.3 266.4
Total Assets 2,311.7 2,510.6 1,190.8 1,182.6

Shareholders equity 1,160.8 1,309.9 252.2 239.7

Minority interest 18.7 10.5 (3.1) (2.7)
Non-current borrowings 946.8 983.2 32.9 52.1
Other non-current liabilities 11.5 10.4 19.3 15.4
Current borrowings 47.1 80.9 15.5 22.9
Other current liabilities 126.8 115.8 874.0 855.1
Total Liabilities 2,311.7 2,510.6 1,190.8 1,182.6

Reconciliation of 100% figures to investments in joint ventures

Equity of the joint venture excluding mandatory convertible bond 766.8 916.0 252.2 239.7
Equity attributable to the joint venturer (375.8) (448.8) (126.1) (119.9)
Purchase Price Allocation - - 101.7 101.7
Waiver of equity share rights (86.0) (121.3) - -
Elimination of internal disposal gain (68.8) (68.8) - -
Other 4.3 (8.0) (15.3) (18.6)
Equity method balance sheet contribution 240.6 269.1 212.5 203.0

Revenue 347.4 299.1 1,498.6 1,320.0

Depreciation & amortization (48.0) (33.4) (46.6) (60.7)
Financial result (56.0) (50.8) 0.2 (0.6)
Income tax (9.7) (18.0) 15.9 15.0

Profit / Loss) for the year (49.4) (9.5) 43.2 36.9

Other comprehensive income / Loss) 22.5 6.8 15.1 7.9

Total comprehensive income / Loss) (26.9) (2.7) 58.4 44.8

Reconciliation of 100% figures to share of profit / (loss) from joint venture

Share of profit / (loss) for the year (49.4) (9.5) 43.2 36.9
Non-controlling interests - - (21.2) (17.0)
Share of profit for the year for the joint venturer 24.2 4.6 (11.0) (9.9)
Waiver of equity share rights as part of guaranteed dividends (26.4) - -
Other - 1.3 (2.6) (1.2)
Equity method P&L contribution (51.6) (3.6) 8.4 8.7

CMA CGM / 58 Consolidated financial statements

Year ended December 31, 2021
7.3 List of companies or subgroups included in the consolidation scope
With the objective to improve the relevance of the information, the Group only discloses the material entities
or subgroups by applying the following thresholds:
▪ Fully integrated entities contributing to the Group revenue by more than USD 10 million;
▪ Associates and joint ventures contributing to equity by more than USD 5 million;
▪ Agencies with commercial volumes above TEU 500 thousand;
▪ As well as certain intermediate holding companies.
As at December 31, 2021, 622 entities are fully consolidated or accounted under equity method either directly
or through sub-groups (629 as at December 31, 2020).

Consolidated financial statements CMA CGM / 59

Year ended December 31, 2021
The main entities are detailed below :

Direct and indirect

Legal Entity Country percentage of
interest
CMA CGM SA (parent company) France
Consolidation method - Full
SHIPPING
ANL CONTAINER LINE LTD Australia 100.00%
MERCOSUL Line Navegacao LTD Brazil 100.00%
CMA SHIPS SAS France 100.00%
CONTAINERSHIPS - CMA CGM Germany 100.00%
ANL SINGAPORE Singapore 100.00%
CMA CGM Asia Shipping Pte. Ltd. Singapore 100.00%
CMA CGM Asia Pacific Liner Pte. Ltd. Singapore 100.00%
AMERICAN PRESIDENT LINES LTD United States of America 100.00%
AGENCIES
CMA CGM AGENCES France France 100.00%
CMA CGM AGENCIES INDIA Pvt Ltd India 100.00%
CMA CGM AMERICA LLC United States of America 100.00%
CMA CGM AND ANL TAIWAN LTD Taiwan 100.00%
CMA CGM ANL DUBAI United Arab Emirates 88.00%
CMA CGM GROUP (AUSTRALIA) PTY LTD Australia 100.00%
CMA CGM BELGIUM Belgium 100.00%
CMA CGM BRAZIL Brazil 100.00%
CMA CGM CHINA China 100.00%
CMA CGM DEUTSCHLAND Germany 100.00%
CMA CGM HOLLAND BV The Netherlands 100.00%
CMA CGM IBERICA Spain 100.00%
CMA CGM JAPAN Japan 100.00%
CMA CGM KOREA South Korea 100.00%
CMA CGM MALAYSIA SDN BHD Malaysia 100.00%
CMA CGM DENIZ ACENTELIGI A.S Turkey 95.00%
CMA CGM (THAILAND) LTD Thailand 49.00%
CMA CGM VIETNAM Vietnam 100.00%
HANDLING
INTRAMAR SA France 100.00%
MARSEILLE MANUTENTION France 100.00%
SOMARIG France (Guyane) 100.00%
GMM France (Martinique) 100.00%
SOCIETE D'ACCONAGE ET DE MANUTENTION DE LA REUNION France (Réunion) 69.99%
LATTAKIA INT. CONT. TERMINAL LLC Syria 100.00%
OTHER ACTIVITIES
CMA CGM AIR CARGO France 100.00%
CCIS France France 100.00%
CMA CGM INLAND SERVICES INDONESIA Indonesia 49.00%
CC TERMINAL CONTENEURS DAKAR (TCD) Senegal 100.00%
CMA CGM DEPOT SERVICES (THAILAND) LIMITED Thailand 73.99%
LOGISTICS & SUPPLY CHAIN
CEVA Freight Shanghai Ltd. East China 99.99%
CEVA Freight LLC United States of America 100.00%
CEVA Logistics U.S., Inc. United States of America 100.00%
CEVA Logistics Netherlands B.V. incl. Showfreight Netherlands 100.00%
CEVA Logistics Ltd. Dedicated United Kingdom 100.00%
CEVA Logistics (Australia) Pty. Ltd. Australia 100.00%
CEVA Logistics Italia S.r.l. Italy 100.00%
CEVA Freight (India) Pte. Ltd. India 100.00%
CEVA Lojistik Limited Sirketi Turkey 100.00%
CEVA Freight (Thailand) Ltd. Thailand 100.00%
CEVA Logistics Singapore Pte. Ltd. Singapore 100.00%
CEVA Logistics (Vietnam) Company Ltd. Vietnam 100.00%
CEVA Logistics (Hong Kong) Ltd. Hong Kong 100.00%
CC Logistics (China) Co, Ltd (CN) China 100.00%
CEVA Logistics Korea, Inc. Korea 100.00%
CEVA Logistics GmbH Germany 100.00%
CEVA Freight Management Mexico, S.A. de C.V. Mexico 100.00%
CEVA Freight Management France S.A.S. France 100.00%
CEVA Logistics Ltda. Brasil 100.00%
CEVA Freight (UK) Ltd. United Kingdom 100.00%
CEVA Ulusiararasi Tasimacilik A.S. Turkey 100.00%

CMA CGM / 60 Consolidated financial statements

Year ended December 31, 2021
 LOGISTICS & SUPPLY CHAIN (continuation)
CEVA Logistics Poland Sp.zo.o Poland 100.00%
CEVA Freight Germany GmbH Germany 100.00%
CEVA Freight Management do Brasil Ltda. Brasil 100.00%
CEVA Freight Holdings (Malaysia) Sdn. Bhd. Malaysia 100.00%
CEVA Logistics Japan, Inc. Japan 100.00%
CEVA Freight Canada Corp Canada 100.00%
CEVA Freight Italy S.r.l. Italy 100.00%
CEVA Logistics España, S.L. Spain 100.00%
CEVA Freight Holland B.V. Netherlands 100.00%
CEVA Logistics (Taiwan) Co. Ltd. Taiwan 100.00%
CEVA Logistics Canada, ULC Canada 100.00%
CEVA Logistics Belgium N.V. Belgium 100.00%
CEVA Freight (España), S.L. Spain 100.00%
CEVA Logistics (Philippines) Inc. Philippines 100.00%
CEVA Freight (Australia) Pty. Ltd. Australia 100.00%
CEVA Logistics (Thailand) Ltd. Thailand 100.00%
CEVA Freight Management Logistica de Chile Ltda. Chile 100.00%
AVEC Logistics (Ireland) Ltd. Ireland 100.00%
CEVA Freight (Shenzhen) Ltd. North China 99.99%
CEVA Logistics (Malaysia) Sdn. Bhd. Malaysia 100.00%
CEVA Freight (Poland) Sp. z.o.o. Poland 100.00%
CEVA Logistics (New Zealand) Pty. Ltd. New Zealand 100.00%
CEVA Freight (Bangladesh) Co. Ltd. Bangladesh 40.00%
CEVA&MELI Joint venture Italy 50.00%
CEVA Freight Management Argentina S.R.L. Argentina 100.00%
CEVA Freight Belgium N.V. Belgium 100.00%
PT CEVA Freight Indonesia Indonesia 94.99%
CEVA Ground Europe United Kingdom 100.00%
CEVA Logistics Ivory Coast Ivory Cost 75.00%
CEVA Logistics (U.A.E.) L.L.C. United Arab Emirates 49.00%
CEVA Logistics South Africa (Proprietary) Ltd. South Africa 100.00%
Dubai Contract Logistics United Arab Emirates 49.00%
CARGEX S.A. Colombia 99.99%
CEVA Freight (Cambodia) Co., Ltd. Cambodia 59.99%
CEVA Vehicle Logistics (Thailand) Ltd. Thailand 100.00%
CEVA Logistics Peru S.R.L. Peru 100.00%
CC Logistics (Russia) (RU Russia 100.00%
CEVA Logistics Hungary Kft. Hungary 100.00%
CEVA Logistica de Mexico, S.A. de C.V. Mexico 100.00%
PT CEVA Logistik Indonesia Indonesia 100.00%
CEVA Freight Management de Colombia S.A.S. Colombia 100.00%
CEVA Saudi Logistics & Freight Co. Saudi Arabia 99.99%
CEVA logistics S.r.l. Romania 100.00%
CEVA Freight (India) Pte. Ltd. (CL) India 100.00%
CEVA Logistics Myanmar Company Limited Myanmar 99.99%
CEVA Contract Logistics Kft Hungary 100.00%
CEVA Freight Czech Republic s.r.o. Czech Republic 99.99%
CEVA Freight Austria GmbH Austria 100.00%
CEVA Logistics Finland OY Finland 99.99%
FINANCIAL HOLDING
CMA CGM AGENCIES WORLDWIDE France 100.00%
CMA TERMINALS HOLDING France 100.00%
CMA TERMINALS France 100.00%
CMA CGM & ANL Securities B.V. The Netherlands 99.99%
CMA CGM Asia Pacific Limited Singapore 100.00%

Consolidation method - Equity

Associates and joint ventures are disclosed in the table below
ANJI CEVA China 50.00%
TERMINAL LINK GROUP France 51.00%
PACIFIC MARITIME SERVICE United States of America 10.00%
LOGOPER LLC Russia 50.00%
CMA MUNDRA TERMINAL PVT LTD India 50.00%
GEMALINK Vietnam 25.00%
Total Terminal International Algeciras (TTIA) Spain 25.50%

Consolidated financial statements CMA CGM / 61

Year ended December 31, 2021
7.4 Related party transactions
For the purposes of this note, the following group of related parties have been identified:

▪ Terminal activities handled through associates and joint ventures which mainly include Terminal Link and
its subsidiaries, as well as other terminals under associates and joint ventures or recorded as non
consolidated investment (Fenix Marine Services, Kribi, Mundra).

▪ Global Ship Lease, Inc. (“GSL”) a ship-owner listed in the U.S., owning a fleet of 65 vessels of which 17
time chartered to CMA CGM under agreements ranging from October 2022 till November 2026.

▪ Anji-CEVA, a joint venture operating in the logistics division.

▪ Some shipping agencies, either non consolidated or associated companies.

▪ Management and / or shareholder’s related entities which mainly include:

 Merit CC SAL, incorporated in Lebanon, whose ultimate shareholders are the Saadé family and
members of his immediate family, who owns a large part of the ordinary shares of the Company;
 Certain subsidiaries of Merit CC SAL, including Merit SAL, a service company providing CMA
CGM with cost and revenue control and internal audit support, MERIT invest SAL, a Company to
which the Group lent some funds for real estate investments, CMA Liban, a shipping agent and
Investment and Financing Corp. Ltd, a container leasing company;
 Yildirim, incorporated in Turkey, owner of 24% of CMA CGM ordinary shares since December 31,
2017 (see Note 6.5), and with whom the Group entered into another agreement in 2011 regarding
the sale of 50% of the shareholding in Malta Freeport Terminals Limited for a cash amount of
EUR 200.0 million (USD 289.0 million at that time);
 The Banque Publique d’Investissement (Bpifrance formerly FSI), owner of 3.0% of CMA CGM
ordinary shares since April 2021 (see Note 6.5);
 A non-profit foundation “Fondation d’Entreprise CMA CGM” which promotes certain not-for-
profit activities.

▪ Other activities which mainly include following Traxens, which is developing a breakthrough technology
for “smart” containers in which CMA holds 32.6% ownership.

The related party transactions included in the Statement of Profit & Loss, excluding the share of income /
(loss) from associates and joint ventures can be analysed as follows:

Total related parties Terminal activities GSL Agencies Management / Others

Shareholder's related
entities

For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended
December 31, December 31, December 31, December 31, December 31, December 31,
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Revenue 34.8 44.5 2.3 2.1 0.5 0.2 0.2 - 5.3 4.4 26.4 37.8
Operating expenses (327.1) (361.8) (122.9) (135.2) (129.0) (136.0) (2.7) (7.8) (24.9) (46.1) (47.6) (36.7)
Other income and expenses (29.8) 1.4 (29.8) 1.4 - - - - - - - -
Financial result (30.4) 10.6 (5.4) (14.0) 35.9 25.0 8.1 10.9 (58.1) (1.1) (10.8) (10.2)

The Statement of Financial Positions corresponding to the related parties listed above, excluding the
investments in associates and joint ventures and non consolidated shares, are:

Total related parties Terminal activities GSL Agencies Management / Others

Shareholder's related
entities

For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended
December 31, December 31, December 31, December 31, December 31, December 31,
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Non current assets 31.1 80.9 10.9 80.3 - - - 0.0 17.0 0.0 3.3 0.6
Current assets 210.2 186.3 83.0 53.9 0.9 2.6 66.4 52.2 42.3 46.8 17.6 30.8
Non current liabilities 29.0 128.4 29.0 128.4 - - 0.0 0.0 - - - -
Current liabilities 39.4 47.4 12.9 4.2 0.6 0.0 11.1 31.9 3.4 6.9 11.2 4.4

CMA CGM / 62 Consolidated financial statements

Year ended December 31, 2021
Besides, the following items are not included in the table above:
▪ the Group is committed towards INVESTMENT AND FINANCING CORP. LIMITED (IFCO), in relation
to leases payables for an amount of USD 66.0 million as at December 31, 2021, recognized as a lease
liability under IFRS 16 (USD 144.8 million as at December 31, 2020);
▪ the Group is committed towards GLOBAL SHIP LEASE, INC, in relation to leases payables for an
amount of USD 292.2 million as at December 31, 2021, recognized as a lease liability under IFRS 16
(USD 95.4 million as at December 31, 2020);
▪ the Group acts as sponsor to Kingston Freeport Terminal Limited (KFTL), a subsidiary of Terminal
Link.

Key management compensations for a total amount of USD 7.3 million for the year ended December 31, 2021
(USD 5.1 million for the year ended December 31, 2020) are included in “Employee benefits” in the
Consolidated Statement of Profit & Loss.

Consolidated financial statements CMA CGM / 63

Year ended December 31, 2021
Note 8 - Other Notes
8.1 Provisions, employee benefits and contingent liabilities
The Group recognizes provisions when:
▪ It has a present legal or constructive obligation as a result of past events;
▪ It is more likely than not that an outflow of resources will be required to settle the obligation; and
▪ The amount can be reliably estimated.

Judgments and estimates made in determining the risk related to cargo and corporate claims and related
accounting provisions:

The Group evaluates provisions based on facts and events known at the closing date, from its past experience
and to the best of its knowledge. Certain provisions may also be adjusted as a consequence of a post
Statement of Financial Position adjusting event. Provisions mainly cover litigation with third parties such as
shipyards, restructuring and cargo claims.
Certain provision may require a certain level of judgment and estimates (see below disclosures).

Provisions can be analyzed as follows:

of which of which

Other risks
Employee
Litigation and Provisions
non current current benefits non current current
obligations portion portion portion portion

As at December 31, 2019 158,2 301,5 459,7 304,8 154,9 290,5 289,2 1,3
Additions for the period 48,1 158,0 206,1 38,1
Reversals during the period (unused) (8,9) (30,9) (39,8) (0,0)
Reversals during the period (used) (10,7) (107,8) (118,5) (31,0)
Reclassification 3,1 (2,8) 0,3 (1,5)
Acquisition of subsidiaries 0,1 0,8 0,9 1,0
Actuarial (gain) / loss recognized in the OCI - - - 33,9
Foreign currency translation adjustment (1,9) (1,0) (2,8) 18,9
As at December 31, 2020 188,0 317,7 505,7 324,0 181,7 349,7 347,7 2,1
Additions for the period 70,0 188,7 258,7 41,3
Reversals during the period (unused) (14,3) (21,2) (35,5) (2,0)
Reversals during the period (used) (18,6) (80,7) (99,3) (34,5)
Reclassification 3,0 5,8 8,7 (2,2)
Acquisition of subsidiaries 0,5 0,1 0,7 1,0
Actuarial (gain) / loss recognized in the OCI - - - (41,7)
IAS 19 IFRS IC Decision - Employee benefits - - - (11,8)
Foreign currency translation adjustment (2,4) (3,6) (6,0) (19,9)
As at December 31, 2021 226,2 406,9 633,1 405,1 228,0 279,9 278,0 1,8

8.1.1 Provisions for litigation and other risks and obligations

Litigation

Provisions for litigation as at December 31, 2021 corresponds to cargo related and other claims incurred in the
normal course of business, including for CEVA (same as at December 31, 2020). None of these claims taken
individually represents a significant amount.

While the outcome of these legal proceedings is uncertain, the Company believes that it has provided for all
probable and estimable liabilities arising from the normal course of business, and therefore does not expect
any un-provisioned liability arising from any of these legal proceedings to have a material impact on the
results of operations, liquidity, capital resources or the statement of financial position.

Other risks and obligations

Provisions for other risks and obligations mainly include:

▪ Insurance provisions (mainly at CEVA) related to self-insurance schemes which represent estimates,
based on historical experience, of the ultimate cost of settling outstanding claims and claims incurred
but not reported at the balance sheet date on risks retained by the Group;

CMA CGM / 64 Consolidated financial statements

Year ended December 31, 2021
 ▪ Restructuring provisions including staff redundancy costs, and site closure costs;
▪ Provisions for onerous contracts, notably in contract logistics business where contracts and related
commitments can last several years;
▪ Provisions for dismantling costs in relation to lease contracts amounting to USD 118.4 million (USD
89.0 million as at December 31, 2020) reflecting obligations liable to the lessee in certain container
lease contracts to restore the leased asset before redelivering it to the lessor;
▪ A provision amounting to USD 18.0 million related to the estimated future cash-outflows in relation
to the minimum dividend guaranteed to CMP over 7 years (USD 8.9 million as at December 31, 2020).
The waiver of the Group’s dividend rights in favor of CMP is recorded as a reduction of the value of
Terminal Link and amounts to USD 85.9 million (USD 76.2 million as at December 31, 2020). These
items are based on the estimated level of Terminal Link dividend distribution capacity which may
require a certain level of judgement.

8.1.2 Provisions related to employee benefits

Significant judgment and estimates

The valuation of provisions for pensions and similar obligations is based on, among other things, assumptions
regarding discount rates, anticipated future increases in salaries and pensions and mortality tables. These
assumptions may diverge from the actual figures due to changes in external factors such as economic
conditions or the market situation as well as mortality rates.

Group companies operate in various jurisdictions and provide various pension schemes to employees. The
Company has both defined benefit and defined contribution pension plans.

A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will
receive on retirement, usually dependent on one or more factors such as age, years of service and
compensation. The post-employment benefit paid to all employees in the Group’s home country qualifies as a
post-employment defined benefit plan.

A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate
entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold
sufficient assets to pay all employees the benefits relating to employee service in the current and prior
periods.

The Group's obligations in respect of defined benefit schemes are calculated using the projected unit credit
method, taking into consideration specific economic conditions prevailing in the various countries concerned
and actuarial assumptions. These obligations might be covered by plan assets. The Company obtains an
external valuation of these obligations annually.

Measurement

In accordance with IAS 19 “Employee benefits”, the liability recognized in the Statement of Financial Position
in respect of defined benefit pension plans is the present value of the defined benefit obligation at the
Statement of Financial Position date less the fair value of plan assets. Actuarial gains and losses resulting from
changes in actuarial assumptions or from experience adjustments are recognized as other items of
comprehensive income, together with the return on assets excluding the interest income.

Payments made by the Company for defined contribution plans are accounted for as expenses in the
Statement of Profit & Loss in the period in which the services are rendered.

The service cost of the periodic pension cost is presented in employee benefits included in operating expenses.
The interest component is presented within other financial income and expenses, net.

Past service costs are recognized immediately in the consolidated income statement.

Consolidated financial statements CMA CGM / 65

Year ended December 31, 2021
In France, certain companies operating in terminal activities, as part of collective bargaining agreements,
participate together with other enterprises – so called multi-employer plans – in the funding of plans deemed
to cover pension obligations and asbestos programs. These plans are by their nature difficult to value as they
require detailed information which is only available at the beneficiary’s request and for their individual pension
calculation. In addition, the regime brings together the assets of several employers and the individual
obligation of each employer in the plan is therefore difficult to precisely determine as it varies from one year to
another based on activity levels. As per IAS 19 paragraph 34, where sufficient information is not available to
use defined benefit accounting for defined benefit multi-employer plans, the plans are treated as defined
contribution plans.

Description of the Company’s plans

The Company’s employees are generally entitled to pension benefits, in accordance with local regulations:
▪ Retirement and medical benefits, paid by the Company on retirement (defined benefit plan); and
▪ Pension payments from outside institutions, financed by contributions from employers and employees
(defined contribution plan).

In accordance with the regulatory environment and collective agreements, the Group has established both
defined contribution and defined benefit pension plans (company or multi-employer) to provide such benefit
to employees.

Defined contribution plans

Defined contribution plans are funded through independent pension funds or similar organizations.

Contributions are fixed (e.g. based on salary) and are paid to these outside institutions. These institutions are
responsible for maintaining and distributing employee benefits. The Company has no legal or constructive
obligation to pay further contributions if any of the funds does not hold sufficient assets to pay all employees
the benefits relating to contributions in the current and prior financial years. The employer contributions are
recognized as employee benefit expense in the financial year to which they relate.

Certain subsidiaries of CMA CGM, CMA CGM ASIA PACIFIC and CEVA also contribute to a number of
collectively bargained, multi-employer plans that provide pension benefits to certain union-represented
employees. These plans are treated as defined contribution plans in accordance with IAS 19.34.

The Group contributed USD 83.9 million to its defined contribution plans in 2021 (USD 66.6 million in 2020)
which are recorded as employee benefits together with defined benefit service cost.

Defined benefit plans

Major defined benefit plans can be described as follows:

Retirement Indemnities (France)

French retirement indemnity plans provide a lump sum benefit paid by the company to the employees when
they retire. The amount of this benefit depends on the length of service of the employee and salary at the
retirement date and is prescribed by collective bargaining agreements (“CBA”). Those agreements are
negotiated by Union representatives of the employer and of the employees, by sector of activity and at a
national level. Their application is compulsory. The retirement indemnities are not linked to other standard
French retirement benefits, such as pensions provided by Social Security or complementary funds (ARRCO
and AGIRC).

Article 23 (France)

The benefits consist of an annuity payable to a closed group of beneficiaries. All the beneficiaries are retired.
This plan has been partially funded through a contribution to an insurer, but the annuities are currently directly
paid by the employer.

CMA CGM / 66 Consolidated financial statements

Year ended December 31, 2021
Pensions are indexed each year based on the general salary increase of the company. The surviving spouse of
a retiree is entitled to a pension equal to 60% of the pension benefit paid at time of death.

Jubilee Awards (France)

The benefits consist of a lump sum payable to employees when they reach various service anniversaries.

Asbestos/hardness indemnities (France)

In Terminal activities operated by certain of the Group’s subsidiaries in France, employees having spent the
required number of years under hardness qualifying extreme work conditions and/or having been exposed to
asbestos while working at the terminal are eligible to early retire 2 to 5 years ahead of normal retirement age.

The early retirement pensions are financed through state program (asbestos) and/or multi-employer program.
As mentioned above, where sufficient information is not available to use defined benefit accounting for
defined benefit multi-employer plans, the plans are treated as defined contribution plans.

Nevertheless, at early retirement leave, the indemnity lump sum payable by the employer differs from the
retirement indemnity, and have been set by a local collective bargaining agreement. These specific lump sum
indemnities are taken into account to value the appropriate retirement indemnity of employees concerned.

Retirement Indemnities (Morocco)

Retirement indemnity benefits in our subsidiaries in Morocco are lump sums paid by the company to the
employees when they retire. The amount of this benefit depends on the length of service of the employee and
salary at the retirement date and is prescribed by collective bargaining agreements.

Medical insurance (Morocco)

The benefits provide continuous medical coverage to retirees and their dependent subject to conditions. The
program is a top up plan supplementing the Assurance Maladie Obligatoire reimbursements and is insured
through an insurance contract with a local insurer.

This estimated yearly reimbursment cost is indexed by 2.5% per year in order to reflect the medical
consumption and cost inflation.

Superannuation Plan (Australia)

Retirement indemnity benefits at Company subsidiaries in Australia are lump sums paid by the Company to
the employees when they retire or resignate from the Company. The amount of this benefit depends on the
length of service of the employee and salary at the retirement or resignation. This plan is closed to new
members.

Annual leave plans and long service leave plans (Australia)

These unfunded plans provide a right to annual leave to employees depending of the length of service.

CMA CGM ASIA PACIFIC’s defined benefit plans

CMA CGM ASIA PACIFIC’s employee benefits provisions mainly relate to defined benefits for employees which
are generally based on the final pensionable salary and years of service. Most plans cover employees located in
the US and Taiwan. In the US, all non-union plans are frozen to future accruals.
CEVA’s defined benefit plans

CEVA operates a number of pension plans around the world, most of which are defined contribution plans.
CEVA has a small number of defined benefit plans of which the main ones are based in Italy, the United

Consolidated financial statements CMA CGM / 67

Year ended December 31, 2021
Kingdom and the United States. The plans in Italy, the United Kingdom and the United States are closed to
new members.

The majority of benefit payments are from trustee-administered funds; however, there are also a number of
unfunded plans where the Company meets the benefit payment as it falls due. The pension plan in the
Netherlands changed to a career average plan with no indexation as from 1 January 2013. The new plan is
treated as a defined contribution plan for accounting purposes.

Italian pension plan for the Group’s activities

In accordance with the Trattamento di Fine Rapporto (“TFR”) legislation in Italy, employees are entitled to a
termination payment on leaving the Company. The TFR regulation changed from 1 January 2007 and
employees were given the option to either remain under the prior regulation or to transfer the future accruals
to external pension funds. The funded provision for TFR maturing after 1 January 2007 is treated as a defined
contribution plan under both options.

The IFRS IC decision published in May 2021 led to a change in the valuation methodology of certain plans,
pursuant to which the service prorate should now reflect the intermediate caps (instead of the full years of
service). The effect of this change was recognized as at December 31, 2021, leading to a decrease of the
defined benefit obligation of USD 11.8 million. The impact was recorded in equity.

Actuarial assumptions

The actuarial assumptions used for the principal countries are as follows:

As at December 31, 2021 As at December 31, 2020

United United United United
Euro Zone Morocco Australia Euro Zone Morocco Australia
Kingdom States Kingdom States
Discount rate 1.05% 2.40% 2.60% 1.80% 2.61% 0.43% 2.50% 1.10% 1.40% 2.25%

Future salary increase 2.76% 3.00% 3.80% 3.00% 2.50% 2.63% 2.50% 3.50% 2.30% 2.50%

Long-term inflation 1.50% 2.00% n.a. 3.53% 2.50% 1.50% 2.00% n.a. 3.10% 2.50%

The future salary increase mentioned in the table above includes the impact of inflation.

Discount rates determination

Euro zone: The Company used as a reference rate the IBoxx Corporate AA 10+.

Morocco: The Company used a state bonds average rate due to a lack of liquidity on corporate market,
reflecting the average duration of plans (around 13 years).

Australia: The Company used a corporate bonds average rate reflecting the average duration of plans (around
5 years).

United Kingdom: The company used as a reference rate the iboxx AA rated corporate bond yield curve
adjusted to remove the effect of bonds issued by universities which are included in the construction of the
curve.

United States: The discount rates in the US are usually based on each individual plan. Hence, as it is common
in the US, the discount rate is determined using the actual plan cashflows and applying a full yield curve (in this
case the Mercer Yield Curve) to determine a weighted average discount rate. The discount rate presented
above is a DBO-weighted average discount rate.

Evolution of rates

Due to the increase of interest rates in all regions except Morocco, the discount rate being used to evaluate
the Company’s liability regarding pension and employee benefits were down in most countries from

CMA CGM / 68 Consolidated financial statements

Year ended December 31, 2021
December 31, 2020 to December 31, 2021. Taking into account all the impact recognized in OCI, the overall
positive impact of remeasurement of defined pension and medical plans recorded in other comprehensive
income amounts to USD 41.7 million.

Variation of obligations, plan assets and provisions

The net liability recognized in the Statement of Financial Position breaks down as follows:

As at December 31, As at December 31,

2021 2020
Present value of unfunded obligations (217.0) (247.9)
Present value of funded obligations (337.6) (418.7)
Fair value of plan assets 274.7 316.9
Net present value of obligations (279.9) (349.7)

Variations in the defined benefit obligations over the year are as follows:

As at December 31, As at December 31,

2021 2020

Beginning of year 666.6 576.2

Plan amendment - past service cost 1.1 (7.2)
Service cost 36.1 38.6
Interest cost 8.7 11.5
Actuarial losses/(gains) (38.7) 61.3
Benefits paid (49.3) (40.7)
Employee contributions 0.3 0.1
Expenses Paid (0.0) (0.0)
Taxes paid (0.1) (0.0)
Premiums paid (0.0) (0.0)
Acquisition / disposal of subsidiaries and other (5.4) (0.6)
Plan curtailments (40.1) (0.9)
Exchange differences (24.6) 28.4
End of year 554.5 666.6

Plan assets vary as follows:

As at December 31, As at December 31,

2021 2020

Beginning of year 316.9 285.7

Interest on assets 4.6 6.5
Actuarial (losses)/gains 4.0 26.9
Benefits paid and interest income (19.1) (22.3)
Employer contributions 5.9 11.7
Employee contributions 0.3 0.1
Acquisition of subsidiaries and other 7.6 -
Expenses paid (1.3) (1.3)
Taxes paid (0.1) (0.0)
Premiums paid (0.0) (0.0)
Plan settlement (39.8) -
Exchange differences (4.3) 9.6
End of the year 274.7 316.9

Consolidated financial statements CMA CGM / 69

Year ended December 31, 2021
The plan assets are invested as follows:

As at December 31,
2021 2020
Cash and cash equivalents 4.4% 2.1%
Equity instruments 19.6% 15.5%
Debt instruments 9.0% 8.0%
Real estate 0.2% 0.2%
Derivatives 0.0% 3.2%
Investment funds 41.0% 36.3%
Assets held by insurance
11.1% 21.5%
company
Other 14.6% 13.2%

The amounts recognized in the Statement of Profit & Loss are as follows:

For the year ended December 31,

2021 2020

a. Current service cost excluding taxes, expenses, employees contributions

36.1 38.6
and premiums
b. Administrative expenses and taxes 1.1 1.1
c. Employees contributions - -
d. Past service cost/curtailment 1.1 (7.2)
e. Non-routine settlements - -
Total service cost 38.3 32.5
a. Interest on the DBO (gains) / losses 8.7 11.5
b. Interest on Assets gains /(losses) (4.6) (6.5)
c. Interest on Assets ceiling (gains) / losses - -
d. Interest on reimbursement rights (gains) / losses (0.0) (0.0)
Total net interest 4.1 5.0
Remeasurements of Other Long Term Benefits (1.0) 0.5
Benefit expense recognized in the income statement 41.3 38.0
Remeasurements (recognized in other comprehensive income) (41.7) 33.9

Total defined benefit cost recognized in P&L and OCI (0.5) 72.0

The amounts recognized in the Statement of Financial Position in the net liability are as follows:

As at December 31, As at December 31,

2021 2020

Net liability as of beginning of year (349.8) (290.4)

Benefit expense recognized in the income statement (41.3) (38.0)
Remeasurements (recognized in other comprehensive income) 41.7 (34.0)
Employer contributions 5.9 11.7
Benefits paid directly 30.6 19.3
Acquisition / disposal of subsidiaries and other 13.0 0.6
Others 0.0 (0.1)
Exchange differences 19.9 (18.9)
Net liability as of end of year (279.9) (349.8)

CMA CGM / 70 Consolidated financial statements

Year ended December 31, 2021
The defined benefit obligation, the plan assets and the accumulated actuarial gains and losses for the current
year and previous four periods are as follows:
Variation of actuarial gains and losses
Defined Benefit On Defined Benefit
Plan Assets Funded Status On Plan Assets
Obligation Obligation
As at December 31, 2017 (380.0) 189.8 (190.2) (4.4) 15.2
As at December 31, 2018 (351.7) 167.1 (184.6) (8.0) (11.3)
As at December 31, 2019 (576.2) 285.7 (290.5) 45.2 32.1
As at December 31, 2020 (666.6) 316.9 (349.7) 61.3 26.9
As at December 31, 2021 (554.5) 274.7 (279.9) (38.7) 4.0

Sensitivity analysis

The sensitivity of the defined benefit obligation to the following changes of discount rates and long term
inflation is as follows (in USD million):

Discount Long-term
As at December 31, 2021
rate inflation

- 25 basis points 15.8 (3.9)

+25 basis points (16.7) 3.8

8.1.3 Contingent liabilities

The Group is involved in a number of legal and tax disputes in certain countries, including but not limited to
alleged breaches of competition rules. Some of these may involve significant amounts, the outcome of which
being subject to a high level of uncertainty, that cannot be accurately quantified at the closing date.

Certain of the Group’s entities are involved in tax audits and tax proceedings in various jurisdictions relating to
the normal conduct of its business. While the outcome of these audits and proceedings is uncertain and can
involve material amounts, Management recorded liabilities for uncertain income tax treatments and other non
income tax risks; Management therefore does not expect any liability arising from these audits to have a
material impact on its results.

Some companies in France are currently subject to tax inspections. No provision are recognized in this regard
when, based on strong arguments and external advice, management believes that there should be no or
limited final cash and/or accounting impacts of such inspections.

In all cases, the Group fully cooperates with the authorities.

The main contingent liabilities are as follows:

Belgium customs

In February 2018, CMA CGM was informed by the Belgian customs of the discovery of cigarettes in 2 of the 7
containers shipped by a freight forwarder through CMA CGM’s agency in Istanbul for a carriage from Gebze
(Turkey) to Rotterdam, while the goods were mentioned as glassware.

In January 2020, the State of Belgium and the Belgian customs summoned the companies CMA CGM
BELGIUM, CMA CGM SA et CMA CGM Turkey to appear before the criminal tribunal of Antwerp for illegal
import of cigarettes. The Administration requires the condemnation to pay fines, taxes and penalties for a
significant amount. The part that would be supported by CMA CGM if the group is declared liable cannot be
reliably assessed at this stage.

A preliminary decision in favor of CMA CGM was rendered in June 2021, followed by and appeal made by the
Belgian authorities. Management and its advisors will continue to closely monitor the situation.

Given the above and as reinforced by the recent decision, no provision was recorded within these CFS.

Consolidated financial statements CMA CGM / 71

Year ended December 31, 2021
CIL Related Proceedings (CEVA)

CIL Limited (formerly CEVA Investments Limited), the former parent of CEVA Group Plc, is involved in a
consensually filed liquidation proceeding in the Cayman Islands and an involuntary Chapter 7 proceeding in the
Bankruptcy Court for the Southern District of New York. The Trustee in the Chapter 7 proceeding filed a claim
against CIL Limited’s former directors, CEVA Group Plc, and affiliated entities relating mostly to CEVA’s
recapitalization in 2013. In 2015 the defendants filed motions to dismiss certain of the claims asserted by the
Trustee, and in January 2018, the Bankruptcy Court issued an order granting in part and denying in part the
defendants’ motions including dismissing the disputed payable claim against one of the defendants for lack of
personal jurisdiction. In July 2018, the Trustee filed an amended complaint as well as a new action in the
Netherlands related to the disputed payable claim against the entity that had been dismissed from the
Bankruptcy Court action, and other CEVA-affiliated entities. The defendants and the Trustee have filed
motions for summary judgment in the Bankruptcy Court action, which have been fully briefed and argued to
the court. One of the creditors in the bankruptcy proceeding has also filed a claim against CEVA Logistics AG
in New York state court related to CEVA’s 2013 recapitalization. The Company cannot provide assurances
regarding the outcome of these matters and it is possible that if the Trustee or the creditor were to prevail on
their claims, the Company could incur a material loss in connection with those matters, including the payment
of substantial damages and/or with regard to the matter in the bankruptcy court, the unwinding of the
recapitalization in 2013.

In July 2021, the court denied the motion for summary judgment, though CEVA Group has sought
reconsideration of that decision. The case has otherwise not proceeded past the pleadings stage. Although
there is uncertainty with respect to the outcome and the potential cash-outflow related to this matter, CEVA
believe the claim is without merit and intends to vigorously defend itself.

On December 31, 2021, the Group (through CEVA) reports a net payable to CIL Limited, amounting to USD 13
million. This mainly relates to intercompany cash pooling arrangements and is included within trade and other
payables in the Consolidated Statement of Financial Position.

8.2 Other current liabilities

As at December 31, 2020, this line item included the liability (USD 62.8 million) corresponding to the future
cash-outflows in relation to the minimum dividend guaranteed to CMP as part of the disposal of the 49% stake
in Terminal Link in June 2013. The payment of such liability has been done in January 2021, partly through cash
payment and through the release of funds previously transferred to Terminal Link in an escrow account
recorded in Other financial assets (USD 35.0 million).

8.3 Commitments
8.3.1 Commitments on assets

Lease commitments

The Group applied IFRS 16 Leases from January 1, 2019. Under IFRS 16, the Group recognizes right-of-use
assets and lease liabilities for most of these leases, except where the lease term is below one year or where the
leased asset is not made available for use to the lessee.

The Group leases vessels, containers, terminal premises, various offices and warehouses under non-
cancellable operating lease agreements. The Group also leases various motor vehicles, trailers and equipment
under operating lease agreements.

The total amount of operating lease expenses related to leased assets outside the scope of IFRS 16 was USD
941.9 million in 2021 (USD 1,035.9 million for the year ended December 31, 2020).

CMA CGM / 72 Consolidated financial statements

Year ended December 31, 2021
Besides, the service component related to leased assets within the scope of IFRS 16, mainly related to running
costs, amounted to USD 510.7 million (USD 257.4 million for the year ended December 31, 2020).

Some of the Group’s lease contracts (mainly related to vessels, containers, warehouses) recognized under
IFRS 16 include purchase, renewal or termination options which are not systematically included in the
calculation of the lease liability as such options are not reasonably certain to be exercised. Such management
intentions to exercise or not these options are regularly reviewed by Management.

Vessels operated under time charters (or bareboat charters) and container leases

As at December 31, 2021 the Group operates 374 leased vessels of which 331 have been recorded under IFRS
16.

The Group is committed to pay time chart (including running costs) in relation to 43 vessels leases with a
residual lease term of 12 months or less for an amount of USD 132.2 million (USD 245.9 million as at December
31, 2020).

The Group is committed to pay leases in relation to container leases with a residual lease term of 12 months or
less for an amount of USD 52.2 million (USD 16.3 million as at December 31, 2020).

Commitments related to ordered vessels

In 2021, the Group ordered 38 owned vessels and committed to 5 vessels to be delivered under long term
bareboats and 26 vessels to be delivered under long term charters.

The owned vessels orderbook corresponds to six TEU 7,300 vessels, ten TEU 2,000 LNG-fuelled vessels, ten
TEU 5,500 vessels, six TEU 15,000 LNG-fuelled vessels and six TEU 13,000 vessels. None of the vessels included
in this orderbook has committed financing (see below).

The contractual commitments related to the vessel orderbook can be detailed as follows (in USD million):

As at December 31, As at December 31,

2021 2020
Owned vessels Orderbook
- units 38 7
- Remaining commitments, net of prepayments * 3,270.6 625.3
- Commited financings - 546.9

* of which payable in:

2021 - 625.3
2022 637.6 -
2023 994.4
2024 1,638.6
Total 3,270.6 625.3

Besides, the Group committed to long-term bareboats (three TEU 15,000 LNG vessels and two TEU 15,000
scrubber-equipped vessels) for which the undiscounted amount of lease payments amounts to USD 1,059.8
million (not included in the lease liabilities as the vessels are not available for use yet).

The group is also committed to pay time chart in relation to 26 vessels (not included in the lease liabilities as
the vessels are not available for use yet) concerning five TEU 7,000 vessels (8 years), three TEU 5,800 vessels
(10 years), twelve TEU 6,000 vessels (10 years) and six TEU 15,000 vessels (15 years) for which the
undiscounted amount of lease payments (excluding running costs) amounts to USD 2,768.1 million.

During the construction of the vessels, the Company obtains refund guarantees from the shipyards’ banks
covering the amount of prepayments made by the Company until the completion of the delivery. These
guarantees relate to the construction of 38 vessels as at December 31, 2021 and amount to USD 394.8 million
(USD 223.2 million as at December 31, 2020 for 7 vessels).

Consolidated financial statements CMA CGM / 73

Year ended December 31, 2021
Commitments relating to concession fees

The Group carries out certain stevedoring activities under long-term concession arrangements, most of which
are being recognized as a lease liability within the scope of IFRS 16 when the operating subsidiary is controlled
by the Company.

Regarding commitments of associates and joint ventures, the Group issued guarantees amounting to USD
888.4 million on a discounted basis as at December 31, 2021 for the payment of concession fees by certain of
its associates or joint ventures (USD 828.1 million as at December 31, 2020).

Commitments relating to airplanes

The Group ordered four Airbus A350F and two additional Boeing 777F aircrafts for which the Group is
committed to pay the remaining purchase price under certain conditions at delivery, for a total amount of USD
288,4 million.

8.3.2 Other financial commitments

In the normal course of our business, we provide bank guarantees or letters of credit to various customs
authorities, landlords, port authorities, suppliers and insurance underwriters.

Most of the Group’s subsidiaries credit facilities are unconditionally guaranteed by the Group’s main legal
entities, such as CMA CGM, CEVA Logistics SA or CMA CGM ASIA PACIFIC.

As at December 31, 2021, guarantees on behalf of CEVA’s subsidiaries amounting to USD 206.0 million (USD
178.0 million as at December 31, 2020) were issued.

Other financial commitments primarily relate to the following:

Other financial commitments given

As at
As at December
December 31,
31, 2020
2021
Bank guarantees 43.4 52.6
Guarantees on terminal financing 66.6 84.0
Customs guarantees 8.8 14.4
Port authorities and administration 9.6 9.0
Others guarantees granted for non-current assets 321.4 411.8
Mortgage on share of associates and Joint Ventures 420.9 420.9
Other 702.0 715.5

The financial commitments included in the table above relate to guarantees or pledges granted to third-
parties in addition to recognized liabilities. However, there is no indication to date that any significant item out
of these commitments may require a cash outflow, apart from the items disclosed below.

“Other guarantees granted for non-current assets” mainly correspond to the CAPEX commitment in relation
to the information system.

The line item “Mortgage on share of associates and joint ventures” in the table above corresponds to the
commitments undertaken by the Group towards CMP and Terminal Link, a joint-venture, as part of the CMP
loan subscribed by Terminal Link in 2020 to finance the acquisition of 8 terminals.

"Other" line item primarly includes (i) the commitment related to the guaranted dividends to CMP which
should not result in a cash outflow since it should be covered by the Terminals' dividend distribution capacity
and (ii) other guarantees mainly provided in the context of the financing of terminals' associates and joint
ventures.

CMA CGM / 74 Consolidated financial statements

Year ended December 31, 2021
As at December 31, 2021, the Group transferred USD 6,788.8 million of trade receivables as collateral under its
securitization programs (USD 3,704.8 million as at December 31, 2020).

Other financial commitments received

As at
As at December
December 31,
31, 2020
2021
Guarantees received from independent shipping agents 0.6 0.9
Guarantees received from customers 45.0 0.5
Other financial commitments received 13.2 4.0

8.4 Significant subsequent events

Business combinations

Fenix Marine Services

On January 4, 2022, the Group closed the acquisition of 90% of Fenix Marine Services (FMS) terminal in Los
Angeles from investment fund EQT Infrastructure III for an equity value of USD 1.8 billion. With the 10% stake
kept by the Group since the disposal transaction occurred in 2017, CMA CGM is again the sole owner of the
FMS facility. Apart from side effects disclosed in Note 4.4, the acquisition will be recognized in 2022 CFS.

Colis Privé & Ingram

CEVA Logistics continues to execute its development plan in line with CMA CGM Group's strategy to
strengthen its position as a global leader in shipping and logistics. In this context, the following transactions
have been announced:
▪ Signing of an agreement to acquire Ingram Micro’s CLS business, specialized in eCommerce contract
logistics and omni-channel fulfillment, including Shipwire, a cloud-based logistics technology
platform. Such business represents estimated annual revenues of USD 1.7 billion in 2021 and employs
11,500 staff members worldwide across 59 warehouses, with a strong presence in the U.S. and in
Europe. This acquisition will further complement CEVA Logistics offering in the contract logistics
industry and support its objective to become a Top 5 global third-party logistics player. The
transaction will also expand CEVA Logistics' existing eCommerce business and accelerate its growth
in key market segments, such as technology, retail and fashion.
▪ Signing of a preliminary agreement to take the control of Colis Privé, a leading platform for last-mile,
B-to-C parcel delivery in France and in Europe. The agreement includes path to full ownership within
short to medium term horizon.

The closings of such transactions are expected to occur before summer 2022.

Ocean Alliance D6

The Group announced the signature of Ocean Alliance Day 6 Product, which will start in April 2022 with 42
services and an annual capacity of 22.4 million TEUs on the world’s major trade routes. Capacity will increase
to meet demand from the Group’s customers amid strong demand for shipping services. As part of its
commitment to the shipping industry’s energy transition, 26 dual-fuel, LNG-powered CMA CGM vessels will
be assigned to Ocean Alliance by year-end 2022.

Accord Ferrari

CEVA Logistics, part of the CMA CGM Group, becomes Team Partner of Scuderia Ferrari. CEVA will also
provide support services for Scuderia Ferrari, Ferrari Challenge and other GT race series as Official Logistics
Partner.

Consolidated financial statements CMA CGM / 75

Year ended December 31, 2021
Port of Beirut

On February 17, 2022, CMA Terminals, a fully-owned subsidiary of the Group, has been awarded the
concession to run the Beirut Port Container Terminal, the only dedicated container facility in the capital of
Lebanon. The Group will start operations in March under the terms of a ten-year lease agreement.

Healthy global trade since the onset of 2022, but with geopolitical uncertainties

Tensions in global supply chains have continued to weigh on the effective capacity of the global fleet since the
start of 2022, and on the Group's operations. As a result, the Group has further increased its fleet capacity, and
plans to allocate nearly USD 9 billion to enhancing its portfolio of assets (including owned and chartered
containers and vessels, excluding acquisitions). Following the acquisition of Fenix Marine Services on January
4, the Group expects to close the Ingram CLS and Colis Privé transactions by the summer of 2022 in order to
strengthen its logistics solutions, particularly in the of e-commerce space.

Moreover, the Group is closely monitoring developments in the current geopolitical landscape and has taken
the decision to suspend all bookings to/from Russia, Ukraine and Belarus. The Group also ensures that it
complies with applicable sanctions. Energy prices have been impacted by the geopolitical events.

Although the decisions taken thus far have no material impact on the Group's performance, it is difficult to
assess yet the impact of a further deterioration in the geopolitical environment, the potential macro-economic
consequences and the implications of the measures that may have to be taken by the Group.

CMA CGM / 76 Consolidated financial statements

Year ended December 31, 2021
Note 9 - Glossary
BAF
“Bunker Adjustment Factor” is a surcharge assessed by carrier which is applied to freight rates and invoiced to
customers in order to compensate unexpected fuel oil price variations.

CGU
A “Cash-Generating Unit” is the smallest identifiable group of assets that generates cash inflows that are
largely independent of the cash inflows from other assets or group of assets.

EBIT - Core EBIT

EBIT, as presented in the consolidated statement of Profit & Loss, means “Earning Before Interests and Taxes”
and corresponds to Operating profit.
Core EBIT, as presented in the consolidated statement of Profit & Loss, corresponds to EBIT, as defined above,
less certain unallocated items as defined in Note 4.1 Operating segments.

EBITDA
EBITDA, as presented in the consolidated statement of Profit & Loss, means “Earning Before Interests, Taxes,
Depreciation and Amortization” and corresponds to revenue less operating expenses.

IASB
“International Accounting Standards Board” is the principal body within the IFRS foundation and is in charge
of establishing (i.e. develop and issue) IFRS as defined below.

IFRIC or IFRS Interpretations Committee (IFRS IC)

The Interpretations Committee’s responsibilities are to interpret the application of the IFRS, report to the IASB
and obtain IASB approval for final interpretations.

IFRS & IAS

“International Financial Reporting Standards” & “International Accounting Standards” are designed as a single
set of accounting standards, developed and maintained by the IASB with the intention of those standards
being capable of being applied on a globally consistent basis by developed, emerging and developing
economies, thus providing investors and other users of financial statements with the ability to compare the
financial performance of publicly listed companies on a like-for-like basis with their international peers.

LIBOR
“London Inter-Bank Offer Rate” is used as a reference rate for many financial instruments in both financial
markets and commercial fields.

NPV
“Net Present Value” is the worth at the present date of an expected cash flow of an asset or a liability,
determined by applying a discount rate to these cash flows.

WACC
The “Weighted Average Cost of Capital” is a calculation of a firm's cost of capital in which each category of
capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds and
any other long-term debt, are included in a WACC calculation.

Consolidated financial statements CMA CGM / 77

Year ended December 31, 2021