2011 - FINANCIAL RESULTS

• 14.2% Increase in Company's Sales

• Increase of Market Shares and Traffic Volumes in the North Adriatic Market in all Traffic Categories

• Increase of Market Shares and Traffic Volumes on the Heraklion – Piraeus route in Passengers & Private Vehicles

• Dramatic Increase of Fuel Cost

 Financial Results

 The financial results of the company for the year 2011 were negatively affected by the combination of the adverse macroeconomic environment, increased public deficit and imposition of austerity measures (high taxation, reduction in wages-pensions) which led Greece to high negative growth rates. Hence, all the above played an important role on the fall in the total market volumes on all routes the company operates.

Additionally, the record high prices of fuel cost and the intensive competition in the sector have had unfavorable effects in the financial results of the year.

 Despite the economic downturns and the stressed economic environment, Minoan Lines succeeded in retaining its healthy condition and status. Having followed over the past years a bank loan reduction approach as well as a cost cut strategy, the company has substantially strengthened its overall financial position and has the available resources to face the difficulties and uncertainties associated with the financial crisis. 

 The company's revenue for the 12-month period of 2011 stood at € 193.2 million, recording a considerable improvement of 14.2% compared to 2010 while the operating result (EBITDA) was shaped at € -13.3 million. The net results of Minoan Lines stood at € -39.4 million.

On the Group's level, the revenue was shaped at € 193.3 million while the operating results (ΕBITDA) and net results stood at the same level with that of the parent company.

 Traffic Volumes – Market Shares

North Adriatic Routes

In the North Adriatic market (International routes / Ancona & Venice) Minoan Lines, having as a guiding principle the achievement of the most efficient economic operation of its fleet, succeeded in obtaining higher traffic volumes and market shares in all traffic categories compared to the respective period of 2010.  Moreover, the company's market shares stood at 48.2%, 46.8% and 45.9% for passengers, private cars and trucks respectively with Minoan Lines accomplishing the 38.4% of trips in the North Adriatic market. 

Moreover, during the financial period of 2011, Minoan lines carried 640,000 passengers, 165,000 private cars and 87,000 freight units.

Deployment of new vessels

In October 2009 the new building vessel Cruise Europa was deployed on the route Patras – Igoumenitsa – Ancona while on July 2010 the sister vessel Cruise Olympia was deployed on the same route.

With carrying capacity of 3,000 passengers and a 3,000 linear meters garage (each vessel can carry 180 international transport trucks and 250 cars or alternatively 1,000 private cars approximately) both Cruise Europa and Cruise Olympia are signalling a new era in the sea connection between Greece and Italy.

It should be noted that in 2011 the Cruise Ferries operate together for the entire year on the route, having developed a significant commercial dynamic, increasing Minoan Lines' volumes and market shares in all traffic categories on Patras – Igoumenitsa – Ancona route. Despite the decrease on the total traffic of the route, in 2011 Minoan Lines recorded a considerable improvement in all traffic categories.

More precisely, during 2011 in comparison with the respective period of 2010 the company carried 448,000 passengers (+15.1%), 110,000 private cars (+22.4%) and 69,000 freight units (+16.8%).

Domestic Market

On the route “Heraklion-Piraeus”, Minoan Lines retained its leading position during the 12-month period of 2011 while it improved its market share in both categories of passengers and private cars in comparison with 2010.

The market shares on the specific route reached 61.9% for passengers, 56.9% for private cars and 39.9% for freight units, with the company having realized 44.2% of the trips. Moreover, the company carried 917,000 passengers, 121,000 private cars and 51,000 freight units.