FINANCIAL RESULTS OF THE 9MONTH PERIOD 2012

• Decline of the Net Result Loss
• Current on its bond loan agreement payment obligations
• Increase of Market Shares in all Traffic Categories on all routes the company operates  

Financial Results

 During the first nine months of 2012, the Greek economy continued building on the recessionary cycle without showing any signs of recovery. The escalation of the credit crisis in combination with the stationary development of the recapitalization of the banking system, have caused the negative review of the predictions related to the financial results and the reduction of Greece's public deficit.

 The vast unemployment rise in Greece (24.4% in June) in combination with the newly imposed austerity measures, intensified the recession which recorded values of -7.2% for the third three month period of 2012 (source: EUROSTAT).

 Due to the unforeseen economic environment and the stabilization of fuel prices at extremely high levels, the financial results of the shipping industry were hardly hit. Despite the fact that the third quarter of the year is traditionally the most prosperous regarding the revenue of the ferry shipping sector; the limited cash liquidity in the market has been a dampening factor for Minoan Lines.

 Despite the economic downturns and the stressed economic environment the company succeeded in retaining its healthy position and status by taking a series of cost cutting reforms. In 2012, Minoan Lines took a number of very important decisions which are expected to yield significant benefits. Specifically, after the withdrawal of the company's vessels from the Patras-Igoumenitsa-Venice route from the 01 April 2012, the company proceeded in July with the chartering of the vessels H/S/F Europa Palace and H/S/F Olympia Palace to the Italian firm Compagnia Italiana di Navigazione (C.I.N). The up to date results seem positive while the strengthening of the company's cash position and the improvement of the net results of the forthcoming periods, are expected.

 All the aforementioned have not only helped Minoan Lines face the difficulties arising from the financial crisis, but also enabled the company being current on its bond loan agreement obligations.

The company's revenue for the 9-month period of 2012 stood at € 121.33 million while the operating result (EBITDA) was shaped at € -1.73 million. The net results of Minoan Lines stood at € -19.94 million.

Traffic Volumes – Market Shares

Ancona Route

On Ancona route, Minoan Lines, having as a guiding principle the achievement of the most efficient economic operation of its fleet, succeeded in retaining high market shares in all traffic categories. Specifically, during the first nine months of 2012 the company accomplished 45.4% of total trips while was preferred by 46.9% of the passengers, 46.1% of private vehicles and 53.2% of trucks.

Moreover, during the same financial period, Minoan lines carried 269,000 passengers, 68,000 private cars and 51,000 freight units.

Domestic Market

On the route “Heraklion-Piraeus”, Minoan Lines retained its leading position during the 9-month period of 2012 while it improved significantly its market share in all three categories of passengers, private cars and trucks.

The market shares on the specific route reached 65.3% for passengers, 61.2% for private cars and 44.8% for freight units. Moreover, the company carried 565,000 passengers, 69,000 private cars and 36,000 freight units.