Consolidated Financial Statements - Minoan Lines

Minoan Lines Shipping S.A. and Subsidiaries
Consolidated
Financial Statements
As of December 31,1999 and June 30, 2000 (Unaudited)
and for the six month period ended
June 30, 1999 and June 30, 2000 (Unaudited)

ASSETS
Non-current assets
MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
Consolidated Balance Sheet
As at December 31,1999 and June 30, 2000
(Amounts expressed in thousands of drachmae unless otherwise stated)
Notes
December 31,
1999
Unaudited
June 30,
2000
Advances for vessels under construction 2 23,280,361 28,555,454
Vessels 2 87,200,200 86,639,698
Property, plant and equipment 3 1,345,626 1,470,751
Deferred charges 4 210,087 209,581
Investments in associates 5 37,034,017 42,770,531
Other investments 6 1,500,000 5,407,368
Other financial assets 3,226 3,633
Current assets
150,573,517 165,057,046
Inventories 1,214,942 1,377,000
Trade accounts and other receivables 7 6,107,213 13,325,943
Prepayments 411,547 272,241
Other investments 6 17,510,137 18,530,272
Cash and cash equivalents 8 36,274,722 9,453,605
61,518,561 42,959,061
Total assets 212,092,078 208,016,107
The accompanying notes are integral parts of these consolidated financial statements.
1

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
Consolidated Balance Sheet
As at December 31,1999 and June 30, 2000
(Amounts expressed in thousands of drachmae unless otherwise stated)
EQUITY AND LIABILITIES
Capital and Reserves
Notes
December 31,
1999
Unaudited
June 30,
2000
Issued capital 14 39,895,875 53,194,500
Share premium 14 64,301,436 51,002,811
Reserves 15 5,912,938 5,912,938
Retained earnings 23,890,784 17,060,847
134,001,033 127,171,096
Minority Interest 791,421 689,277
Non-current liabilities
Long-term debt 11 53,693,292 60,382,598
Long-term provisions 12 1,442,873 1,459,109
Deferred income 13 4,371,518 4,273,996
Current liabilities
59,507,683 66,115,703
Trade accounts and other payables 9 3,707,043 5,810,421
Short-term borrowings 10 7,985,807 640,947
Current portion of long term debt 11 5,873,771 4,474,344
Dividends payable 225,320 3,114,319
17,791,941 14,040,031
Total equity and liabilities 212,092,078 208,016,107
The accompanying notes are integral parts of these consolidated financial statements.
2

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
Consolidated Income Statements
For the six month period ended June 30, 1999 and 2000
(Amounts expressed in thousands of drachmae unless otherwise stated)
Revenues
Notes
Unaudited
June 30,
1999
Unaudited
June 30,
2000
Revenue from vessels 19 24,005,213 20,741,508
Commissions (2,023,648) (1,821,118)
Net Revenue 21,981,565 18,920,390
Cost of revenue (15,324,478) (14,727,753)
Gross profit 6,657,087 4,192,637
Depreciation and amortization 2, 3, 4, 13 (2,375,168) (1,372,257)
General and administrative expenses (3,060,733) (2,155,191)
Profit from operations 19 1,221,186 665,189
Other income, net 269,720 156,075
Finance cost, net 20 (1,784,182) 374,234
Gains from sale of vessels 2 1,239,537 -
Income (loss) from associates 5 21,668 (1,138,513)
Foreign exchange losses (536,607) (1,669,616)
Income (loss) before tax 431,322 (1,612,631)
Income tax expense - -
Income (loss) after tax 431,322 (1,612,631)
Minority interest 172,481 102,144
Net income (loss) for the period 603,803 (1,510,487)
The accompanying notes are integral parts of these consolidated financial statements.
3

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the year ended December 31, 1999 and for the six month period ended June 30, 2000
(Amounts expressed in thousands of drachmae unless otherwise stated)
Share Share Other Retained
Capital Premium Reserves Earnings Total
Balance as at December 31, 1998 17,731,500 11,483,700 2,403,758 13,739,636 45,358,000
Capitalization of share premium 8,865,750 (8,865,750) - - -
Issue of share capital for loss 13,298,625 64,082,861 - - 77,381,486
Net profit - - - 13,660,328 13,660,328
Transfers to other reserves - - 3,509,180 (3,509,180) -
Share issue expenses - (2,399,381) - - (2,399,381)
Balance as at December 31,1999 39,895,875 64,301,436 5,912,938 23,890,784 134,001,033
Net loss for the period ended
(unaudited) - - - (1,510,487) (1,510,487)
Capitalisation of share premium
(unaudited) 13,298,625 (13,298,625) - - -
Dividends (unaudited) - - - (5,319,450) (5,319,450)
Closing Balance at June 30, 2000
(unaudited) 53,194,500 51,002,811 5,912,938 17,060,847 127,171,096
The accompanying notes are integral parts of these consolidated financial statements.
4

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the six month period ended June 30, 1999 and 2000
(Amounts expressed in thousands of drachmae unless otherwise stated)
Operating Activities
Unaudited
June 30,
1999
Unaudited
June 30,
2000
Net loss before minority interest 431,322 (1,612,631)
Adjustments for:
Depreciation and amortization 2,375,168 1,372,257
Other provisions 53,618 -
(Income) loss from associates (21,668) 1,138,513
Interest and other financing expenses 1,784,182 621,371
Gain from sale of marketable securities net - (995,605)
Gain from sale of vessels (1,239,537) -
Unrealized exchange losses 176,046 1,686,100
Operating Profit before working capital changes 3,559,131 2,210,005
Change in current assets and liabilities:
(Increase)/decrease in prepayments (322,788) 139,306
(Increase) in inventories (125,906) (162,058)
(Increase) in trade accounts and other receivable (4,642,199) (7,048,986)
Increase in trade accounts payable and accruals 3,509,193 3,091,989
Cash from operations 1,977,431 (1,769,744)
Interest and other financing expenses paid (1,766,770) (1,420,110)
Taxation paid (132,098) (180,371)
Net cash from (used in) operating activities 78,563 (3,370,225)
Investing Activities
Advances for vessels under construction (6,046,810) (5,275,093)
Vessel acquisitions and improvements (11,947,017) (788,529)
Proceeds from vessel disposal 2,439,200 -
Purchase of property, plant and equipment (471,765) (196,821)
Acquisition of subsidiary, net of cash acquired (1,089,359) -
Purchase of other investments including associates (280,000) (10,782,395)
Increase in other financial assets 21,248 (437)
(Purchase) of other investments (128,366) (24,530)
Net cash used in investing activities (17,502,869) (17,067,805)
5

Financing Activities
MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the six month period ended June 30, 1999 and 2000
(Amounts expressed in thousands of drachmae unless otherwise stated)
Unaudited
June 30,
1999
Unaudited
June 30,
2000
Contributions by Minority 6,567,757 -
Repayment of capital by Minority (1,827,592) -
Net change in short-term borrowings 19,277,177 (7,363,473)
Proceeds from long-term borrowings 12,354,502 7,379,120
Repayment of long-term borrowings (10,218,702) (3,919,737)
Net change of deferred charges (515,127) (48,546)
Dividends paid (29,035) (2,430,451)
Net cash from (used in) financing activities 25,608,980 (6,383,087)
Net increase/(decrease) in cash and cash equivalents 8,184,674 (26,821,117)
Cash and cash equivalents at beginning of the year 3,433,389 36,274,722
Cash and cash equivalents at end of period 11,618,063 9,453,605
The accompanying notes are integral parts of these consolidated financial statements.
6

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
General Business Information
The Company, Minoikes Grammes A.N.E. ("Minoan Lines Shipping Societe Anonyme") was established on
May 15, 1972 as a "popular based" company under Greek law. The Company started operations by acquiring
and operating one vessel (ferryboat) on the Piraeus-Heraklion route. Currently the Company is engaged in a
number of different activities either directly, or through subsidiaries and associated companies.
The Company's principal activities comprise the operation of four conventional ferries and three High Speed
ferries in two principal markets: the Adriatic Sea routes between Italy and Greece and the domestic routes
connecting the Island of Crete with two major parts of the mainland, Piraeus and Thessaloniki.
The Company's other activities include one day cruises through its subsidiary, Minoan Cruises S.A.,
telecommunications network services including internet provider services through its associated company,
Forthnet S.A., purchasing and selling of currencies to passengers on board the Company’s ferries through its
wholly owned subsidiary, Minoan Change S.A., and operation of private air couriers through its associated
company Aegean Airlines S.A.
In 1999, the Company’s associate, Minoan Flying Dolphins S.A., acquired the majority of the ferry operators of
the Aegean Sea thus becoming the biggest ferry operator in the world. It owns 76 vessels including
29 hydrofoils, 8 fast ferries (Catamarans), 4 Ro-Ro vessels and 35 conventional ferries. Minoan Flying Dolphins
is preparing its application for an initial public offering on the Athens Stock Exchange.
The Company has been listed on the Athens Stock Exchange since May 1998.
1. Significant Accounting Policies
The financial statements have been prepared in accordance with International Accounting Standards. The most
significant accounting policies adopted are as follows:
(a) Basis of preparation
The financial statements are presented in drachmae, rounded to the nearest thousand.
The consolidated financial statements are prepared on the historical cost basis except that the investment
held for trading purposes and investments available for sale are stated at fair value.
The accounting policies have been consistently applied by and are consistent with those used in the previous
year.
(b) Basis of consolidation
(i)
Subsidiaries
Subsidiaries are those enterprises controlled by the Company. Control exists when the Company has
the power, directly or indirectly, to govern the financial and operating policies of an enterprise so as to
obtain benefits from its activities. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control effectively commences until the date that
control effectively ceases (refer to Note 18).
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MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
(ii)
(iii)
(iv)
Associates
Associates are those enterprises in which the Group has significant influence, but not control, over the
financial and operating policies. The consolidated financial statements include the Group’s share of the
total recognised gains and losses of associates on an equity accounted basis, from the date that
significant influence effectively commences until the date that significant influence effectively ceases
(refer to Note 5).
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions,
are eliminated in preparing the consolidated financial statements. Unrealised gains arising from
transactions with associates are eliminated to the extent of the Company’s interest in the enterprise.
Unrealised gains resulting from transactions with associates are eliminated against the investment in
the associate. Unrealised losses are eliminated in the same way as unrealised gains except that they
are eliminated to the extent that there is no evidence of impairment.
Other Non-Current Investments
Other non-current investments held by the Company are stated at cost.
(c) Significant subsidiaries
Country of
Incorporation
Ownership Interest
1999
Ownership Interest
June 30,2000
Minoan Cruises S.A. Greece 53.71% 53.71%
Minoan Change S.A. Greece 100% 100%
Minoan Lines High Speed Ferries S.A. Greece 57.46% 57.46%
Cretan Philoxenia S.A. Greece 99.95% 99.99%
(d) Foreign currency translation
The Company's functional currency is the Greek drachma. Transactions involving other currencies are
converted into Greek drachmae using the exchange rates, which are in effect at the time of the
transactions. Monetary assets and liabilities, which are denominated in foreign currencies at the balance
sheet date are translated to drachmae at the exchange rate ruling at that date. Non-monetary assets and
liabilities denominated in foreign currencies, which are stated at historical cost, are translated to drachmae at
the exchange rate ruling at the dates of the transaction. Gains or losses resulting from foreign currency
transactions are reflected in the accompanying consolidated statements of income.
(e) Vessels and related depreciation
Vessels are stated at historical cost, which consists of the contract price, any material expenses incurred
upon acquisition, reconstruction costs and borrowing costs incurred during construction or reconstruction
periods. Subsequent expenditures for conversions and improvements are also capitalised when they
appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels.
Otherwise they are charged to operations as incurred.
Depreciation is calculated using the straight-line method over the estimated useful life of the vessels (thirtyfive
years) after taking into consideration the estimated salvage value of the vessels (calculated at 20% of
the original cost of the vessel).
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MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
(f) Property, plant and equipment and related depreciation
Property, plant and equipment are stated at cost. Depreciation is computed based on the straight-line
method over the estimated useful lives. The estimate useful lives are as follows:
Buildings
Transportation equipment
Furniture and fittings
(g) Goodwill
20 years
7 – 8 years
5 years
Goodwill arising on acquisition represents the excess of the cost of the acquisition over the fair value of the
net identifiable assets acquired. In respect of associates, the carrying amount of goodwill is included in the
carrying amount of the investment in associate.
(h) Impairment
The carrying amounts of the Company’s assets, other than inventories, are reviewed to determine whether
there is any indication of impairment. If any such indication exists, the assets' recoverable amount is
estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cashgenerating
unit exceeds its recoverable amount.
(i) Deferred charges
Deferred charges mainly consist of the cost of the operating licenses of the vessels and other costs, such as
formation expenses (legal fees, etc.) are being amortised on a straight-line basis over a maximum period of
five years.
(j) Inventories
Inventories consist of bunkers, lubricants, engine spares and stores, deck stores, duty free goods, and
consumables on board. Inventories are reflected at the lower of cost and net realisable value cost being
determined by the first-in, first-out method and are expensed in the period of consumption.
(k) Other investments
Investments held for trading are classified as current assets and are stated at fair value, with any resultant
gain or loss recognised in the consolidated income statement. Other investments held by the Group are
classified as being available-for-sale are stated at fair value, with any resultant gain or loss recognised in the
consolidated income statement.
The fair value of investments held for trading is their quoted price, excluding disposal costs, at the balance
sheet date.
(l) Cash and cash equivalents
All highly liquid investments with an ordinary maturity of three months or less as of the date of purchase are
considered to be cash equivalents.
(m) Government grants
Government grants in respect of capital expenditures are credited to a deferred income account and are
released to profit over the expected remaining useful lives of the relevant assets by equal annual
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MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
instalments. The annual amount released is credited against depreciation and amortisation in the
consolidated statements of income.
(n) Dividends
Dividends are recognised as a liability in the period in which they are declared.
(o) Provision for termination indemnities
Greek labour law requires that, upon reaching retirement age, employees must be paid an amount as a
retirement benefit, which is determined by reference to a formula based on employees' remuneration and
years of service. The Company has based its provision for retirement benefits on actuarial valuations.
(p) Provisions
A provision is recognised in the balance sheet when the Company has a legal or constructive obligation as a
result of a past event, and it is probable that an outflow of economic benefits will be recognised to settle the
obligation.
(q) Revenue recognition
Revenue from vessels is recognised upon the completion of the voyage.
(r) Net financing costs
Net financing costs comprise interest payable on borrowings, interest income on funds invested, dividend
income and gains from disposal of other investments.
Interest income is recognised in the consolidated income statement as it accrues. Dividend income is
recognised in the income statement on the date the dividend is declared.
All interest and other costs incurred in connection with borrowings are expensed as incurred as part of net
financing costs.
(s) Financial instruments
The estimated fair values of cash, inventories, trade and other receivables, prepayments, trade and other
payables and short term borrowings approximate their carrying value because of the short term maturity of
these instruments. The long term debt approximates its fair value as interest is at floating rates.
(t) Taxation
The Company's income tax is determined on the basis of a fixed tax rate per ton on its vessels payable
annually. The amount of tax payable per ton varies according to age of ship and its gross registered
tonnage and is increased annually by 4%.
The Company is subject to Greek income taxation in respect of its non-shipping activities.
(u) Segment reporting
A segment is a distinguishable component of the Company that is engaged in providing services (business
segment), or in providing services in a particular economic environment (geographical segment), which is
subject to risks and rewards that are different from those of other segments.
10

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
2. Vessels
Advances for vessels under construction
Name of Vessel 1999 2000
Knossos Palace 6,115,820 8,173,707
Festos Palace 3,747,872 5,563,350
Prometheus 2,126,670 3,405,752
Oceanus 2,134,708 2,159,001
Olympia Palace 3,407,673 3,425,897
Europa Palace 3,407,673 3,426,737
Ariadne 2,289,045 2,290,010
Other 50,900 111,000
Advances for vessels under construction 23,280,361 28,555,454
Refer to note on commitments for details on vessels under construction.
Vessels
Cost
1999
Unaudited
2000
Opening balance 121,599,088 102,539,753
Additions 1,058,381 788,529
Disposals (20,117,716) -
Ending balance 102,539,753 103,328,282
Accumulated depreciation
Opening balance 15,948,338 15,339,553
Charge for the year/period 2,993,094 1,349,031
Disposals (3,601,879) -
Ending balance 15,339,553 16,688,584
Net book value, beginning of period 105,650,750 87,200,200
Net book value, end of period 87,200,200 86,639,698
During the year ended December 31, 1999, vessels Agia Galini (sold on August 12, 1999), Fedra and Erotokritos
(sold on December 24, 1999), Ariadne (sold on March 2, 1999) and Highspeed I (sold on March 2, 1999) were
sold to an associate, Minoan Flying Dolphins, for GRD 22,290,432. A gain on the sale of the vessels of
GRD 5,774,595 was recorded in the accompanying consolidated statement of income for the year ended
December 31, 1999. During the six months ended June 30, 1999 vessel Ariadni was sold and a gain of
GRD 1,239,537 was recorded in the consolidated statement of income for the six months ended June 30, 1999.
On April 24, 2000 the vessel Agia Galini was purchased from Minoan Flying Dolphins for GRD 609,624.
11

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
3. Property, Plant and Equipment
Cost
Land Buildings Other Total
Ending balance, December 31, 1998 330,384 1,013,263 615,967 1,959,614
Additions 44,636 96,043 98,952 239,631
Ending balance, December 31, 1999 375,020 1,109,306 714,919 2,199,245
Additions (unaudited) - 101,553 95,439 196,992
Disposals (unaudited) - - (1,857) (1,857)
Ending Balance, June 30, 2000 (unaudited)
375,020 1,210,859 808,501 2,394,380
Accumulated depreciation
Ending balance, December 31, 1998 - 287,738 414,225 701,963
Charge for the year - 49,343 102,313 151,656
Ending balance, December 31, 1999 - 337,081 516,538 853,619
Charge for the Period (unaudited) - 24,110 47,586 71,696
Disposals (unaudited) - - (1,686) (1,686)
Ending Balance, June 30, 2000 (unaudited) - 361,191 562,438 923,629
Net book value, December 31, 1999 375,020 772,225 198,381 1,345,626
Net book value, June 30, 2000 (unaudited) 375,020 849,668 246,063 1,470,751
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MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
4. Deferred Charges
Cost
1999
Unaudited
2000
Opening balance 515,878 562,213
Additions 96,047 48,546
Write offs (49,712) (7,023)
Ending balance 562,213 603,736
Accumulated amortisation
Opening balance 269,979 352,126
Charge for the year 90,885 49,052
Write offs (8,738) (7,023)
Ending balance 352,126 394,155
Net book value, beginning of period 245,899 210,087
Net book value, end of period (unaudited) 210,087 209,581
5. Investments in Associates
The Company has the following investments in associates:
Country of
Incorporation
Ownership Interest
1999
Ownership Interest
2000
FORTHnet S.A. Greece 33.33% 35.46%
Aegean Airlines S.A. Greece 28% 29.03%
Minoan Flying Dolphins S.A. Greece 31.344% 31.598%
Refer to note 18 regarding acquisitions and disposals.
The movement in the investments is analysed as follows:
FORTHnet S.A.
Minoan Flying
Dolphins S.A.
Aegean
Airlines S.A.
Balance, December 31, 1998 447,641 - - 447,641
Additional investment 280,000 31,180,615 4,686,153 36,146,768
Share of income (loss) from associated
undertaking 37,600 766,008 (364,000) 439,608
Balance, December 31, 1999 765,241 31,946,623 4,322,153 37,034,017
Additional investment (unaudited) 946,790 5,728,233 200,004 6,875,027
Share of income (loss) from associated
undertaking (unaudited) 79,259 (552,970) (664,802) (1,138,513)
Balance, June 30, 2000 (unaudited) 1,791,290 37,121,886 3,857,355 42,770,531
Total
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MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
6. Other Investments
These are analysed as follows:
Non-current investments
1999
Unaudited
2000
Other investments 1,500,000 5,407,368
In March 2000, the Company purchased 15,000 common shares for GRD 15 million of FORTH-CRS
representing 10% of the share capital. The newly formed company’s main target is to develop a pioneering
computerised reservation system covering the whole phasma of the transport and tourism business. The
investment is recorded at cost.
In March 2000, the Company purchased 1,300 common shares for GRD 3.9 billion of Club Hotel Loutraki
Kazino S.A. representing 1.32% of the share capital. The Hotel-Kazino has been very profitable and it has filed
for an initial public offering on the Athens Stock Exchange. The Company anticipates that the value of the
shares will increase when the Company becomes public but it is also considering a potential alliance in the future
business activities. The investment is recorded at cost.
Current investments
1999
Unaudited
2000
Equity securities held for trading 17,510,137 18,530,272
The quoted market price of the investments as at June 30, 2000 was GRD 14,204,323. The Company has not
recorded the unrealised loss of GRD 4,325,949.
7. Trade Accounts and Other Receivables
Trade accounts and other receivables at December 31, 1999 and June 30, 2000 are analysed as follows:
1999
Unaudited
2000
Trade accounts receivable 4,879,233 8,729,860
Claims receivable 827,162 4,163,489
VAT and taxes receivable 380,512 400,478
Personnel loans 42,264 47,290
Other 3,739 10,523
6,132,910 13,351,640
Less: Provision for doubtful debts (25,697) (25,697)
6,107,213 13,325,943
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MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
8. Cash and Cash Equivalents
Cash and cash equivalents at December 31, 1999 and June 30, 2000 are analysed as follows:
Unaudited
1999
2000
Cash in hand 159,164 165,588
Time deposits 23,930,921 3,110,994
Bank balances 12,184,637 6,177,023
9. Trade Accounts and Other Payables
36,274,722 9,453,605
Trade accounts and other payables at December 31, 1999 and June 30, 2000 are analysed as follows:
Unaudited
1999
2000
Trade accounts payable 949,138 3,250,457
Advances from customers 75,933 5,228
Taxes payable 1,133,130 923,796
Social security contributions payable 153,113 81,241
Insurance premiums payable 318,365 -
Other creditors 665,025 1,123,504
Deferred income 65,457 131,670
Accrued interest 256,294 247,618
Accrued liabilities 90,588 46,907
10. Short Term Borrowings
3,707,043 5,810,421
Short-term borrowings are draw-downs under various credit facilities maintained by the Company with several
banks. Such borrowings were based on various currency denominations such as USD, EURO and JPY. The
outstanding balances at December 31, 1999 and June 30, 2000 are analysed as follows:
1999
Unaudited
2000
USD 7,379,120 -
EURO 240,187 250,525
Japanese Yen (JPY) 366,500 390,422
7,985,807 640,947
15

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
The weighted average interest rates on the loan were USD 5.6%, JPY 2.93% and EURO 4.75%, for the year
ended December 31, 1999 and JPY 1.33% and EURO 2.76% for the six months ended June 30, 2000. Such
credit facilities as at December 31, 1999 are secured by first preferred shipping mortgages on the vessels
"Artemis" and “Minoan Prince" and by first legal assignment of all insurance regarding these vessels. Of the
above noted short term borrowings, the maximum credit available as at December 31, 1999 was USD 22.40
million, EURO 6.48 million and GRD 530 million (convertible) to JPY and for June 30, 2000 the maximum credit
available was GRD 250 million (convertible to EURO) and GRD 300 million (convertible to JPY).
11. Long Term Debt
Loans denominated in:
1999
Unaudited
2000
Japanese Yen 11,321,050 11,697,136
US Dollar 7,903,504
Deutschemark 5,913,258 5,683,206
EURO 42,332,755 39,573,096
59,567,063 64,856,942
Less: current portion 5,873,771 4,474,344
53,693,292 60,382,598
On May 12, 1995, the Company obtained a loan of approximately DEM 83 million with a multi-currency option to
provide capital of up to 60.65% of the contract price for the purpose of the construction and subsequent
purchase of the vessel "Aretousa". The loan was drawn down in three currencies on June 7, 1995: DEM 49.67
million, JPY 986 million, JPY 986 million anf FRF 58 million. Also during 1995, the FRF denominated portion of
the loan was converted into JPY 1.186 million. The loan bears interest at Libor plus 1% per annum and is
payable in 34 consecutive semi-annual and quarterly instalments beginning on June 11, 1996 and a balloon
payment for the remaining unpaid balance due on June 15, 2005. The balances outstanding of the DEM
denominated portion at December 31, 1999 and June 30, 2000 was GRD 5,913,258 and GRD 5,683,206. The
weighted average rate of interest on the loan was JPY 1.75%, DEM 4.385%, EURO 4.527 % for the six months
ended June 30, 2000 respectively.
On May 24, 1995, the subsidiary Minoan Cruises S.A. obtained a loan of USD 6.5 million or its equivalent in
another foreign currency to partly finance the acquisition cost of the vessel "Minoan Prince". The loan was
drawn down in two currencies, DEM 4.45 million and FRF 15.86 million bearing interest at Libor plus 1.25%.
On September 11, 1996 the remaining portion of the loan denominated in FRF was converted into JPY and on
May 11, 1998 the remaining portion in DEM was converted in EURO. The balances outstanding of the JPY
denominated portion at June 30, 2000 were GRD 443,648, while the balance outstanding of the EURO
denominated portion was GRD 299,138. The weighted average rate of interest on the loan was JPY 0.73%, and
EURO 2.5% for the six months ended June 30, 2000.
16

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
On June 4, 1997, the Company entered into a loan agreement for EURO 125 million with a multi-currency option
to partly finance the acquisition and delivery cost of the vessels "Pasiphae" and "Ikarus". The loan was obtained
via three drawdowns: a) EURO 60.5 million on December 5, 1997, b) EURO 12.5 million on December 29, 1997,
and c) EURO 52 million on June 6, 1998. The loan bears interest at Libor plus 1.125% per annum with respect
to the single repayment installments and Libor plus 1.1875% per annum with respect to the balloon payments.
The first advance is payable in 20 consecutive semi-annual installments beginning on June 1998 with a balloon
payment of EURO 17.5 million due on December 7, 2007 together with the final installment. The second and
third advances are payable in 23 consecutive semi-annual installments beginning on June14, 1998 with a balloon
payment of EURO 19.8 million due on December 7, 2008 together with the final installment. The balances
outstanding at December 31, 1999 and June 30, 2000 were GRD 36,862,849 and GRD 36,249,104 respectively.
The weighted average rate of interest on the loan was 4.31% for 1999 and 4.51% for the six months ended June
30, 2000.
On June 12, 1998, the Company obtained a loan for EURO 8 million with a multi-currency option to provide
corporate liquidity to fund part of the predelivery and/or delivery payments in respect of the vessel "Pasiphae".
The loan bear interest at Libor plus 1.125% per annum which was payable in 8 consecutive quarterly
installments of EURO 1 million beginning on September 14, 1999 with a balloon payment of EURO 4 million
payable together with the final installment on June 15, 2001. The weighted average interest rate on the loan for
the six months ended June 30, 2000 was 2.12%. The loan was fully repaid on June 15, 2000.
On September 12, 1998, the Company obtained a loan for EURO 11.15 million with a multi-currency option to
refinance part of the existing indebtedness of the Company under the loan in DEM mentioned above for the
construction of the vessel "Aretousa". The loan bears interest at Libor plus 1% per annum with respect to the
single repayment installments and Libor plus 1.1875% per annum with respect to the balloon payment. The loan
is repayable in 28 consecutive semi-annual and quarterly installments of EURO 549,000 beginning on
December 14, 1998 and a balloon payment of EURO 4,014,000 due on June 15, 2005. The balance outstanding
at December 31, 1999 and June 30, 2000 was GRD 3,148,809 and GRD 3,024,855 respectively. The weighted
average rate of interest on the loan was 4.04% for 1999 and 4.42% for the six months ended June 30, 2000.
On December 8, 1999, the Company converted an existing overdraft facility of JPY 600 million to a long-term
loan. The loan bears interest at Libor plus 1% per annum and the principal is fully repayable on April 2002. The
balance outstanding of the JPY at June 30, 2000 was GRD 2,015,550. The weighted average interest rate on the
loan was 0.6% for the six months ended June 30, 2000.
On December 9, 1999 the Company converted an existing overdraft facility of JPY 1,800 million to a long-term
loan. The loan bears interest at Libor plus 1.25% per annum and the principal is fully repayable on December 9,
2002. The balance outstanding at the JPY at June 30, 2000 was GRD 6,046,650. The weighted average interest
rate on the loan was 0.64% for the six months ended June 30, 2000.
On December 23, 1999 the Company converted an existing overdraft facility of JPY 300 million to a long-term
loan. The loan bears interest at Libor plus 1.25% per annum and the principal is fully repayable on
December 23, 2001. The balance outstanding of the JPY at June 30, 2000 was GRD 1,007,775. The weighted
average interest rate on the loan was 0.68% for the six months ended June 30, 2000.
On December 30, 1999 the Company converted an existing overdraft facility of JPY 650 million to a long-term
loan. The loan bears interest at Libor plus 0.85% per annum and the principal is fully repayable on December
31, 2001. The balance outstanding of the JPY at June 30, 2000 was GRD 2,183,512. The weighted average
interest rate on the loan was 0.6% for the six months ended June 30, 2000.
On June 6, 2000 the Company converted an existing short-term loan of USD 22.4 million to a long-term loan.
The loan bears interest at Libor plus 1.125% per annum and the principal is fully repayable on August 31, 2002.
The balance outstanding of the USD at June 30, 2000 was GRD 7,903,504. The weighted average interest rate
on the loan was 3.62% for the six months ended June 30, 2000.
17

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
All the loans above are secured as follows based on the vessels to which they relate:
(i)
(ii)
(iii)
(iv)
First preferred mortgages on vessels: "Aretousa", "El Greco", "Daedalus", "Ikarus", "King Minos",
"Pasiphae" and "N. Kazantzakis".
Second preferred mortgages on vessels: "Aretousa" and "Daedalus".
First and second legal assignments of earnings
First and second legal assignments of insurances and requisition compensation
The Company has to meet various covenants in respect to some or all of the loans, the most significant being:
(i)
(ii)
(iii)
(iv)
(v)
The Company may not, without prior written consent of the financing banks, make any declaration or
payment of dividends at an amount in excess of 50% of the net income of each fiscal year.
The Company may not sell, lease, transfer or otherwise dispose of the whole or any part of its revenues or
assets without the prior written consent of the financing banks.
The Company undertakes, depending on the specific terms of each loan, that if the aggregate market
value of the vessels to which the loan relates falls at any time during the security period below 135% of
the aggregate of the loan in question and the existing indebtedness, it shall either provide the financing
banks with such additional security as shall at the opinion of the banks be adequate to make up such
deficiency or prepay such part of the loan as will ensure that the aggregate market value of the vessels
and any such additional security is, after such prepayment, at least 135% of the outstanding amount of the
loan.
The Company, during the life of the loan and so long as an amount of the loan is outstanding, covenants to
ensure that at all times the aggregate of the market value of the mortgaged vessels to which the loan
relates shall be equal to at least 150% of the outstanding amount of the loan.
The Company shall have to effect insurances for the market value of the vessels (free of any charter) for
an amount of up to USD 120 million which shall be readjusted by the financing banks and in any case may
not be lower than the 125% of the total of (a) the remaining unpaid balance of the loan facility in capital,
interest and charges and (b) the total aggregate of all other outstanding loan or credit facilities (together
with interest and charges thereon) which are secured by mortgages on certain of the Company's vessels.
The Company is obliged to renew at its expense the insurance policies effected on the vessels within
fifteen days before their expiration.
The aggregate annual maturity on all long-term debt on June 30, 2000 was GRD 64,856,942.
2001 688,828
2002 8,164,903
2003 12,086,442
2004 4,182,533
Thereafter 39,734,235
64,856,942
18

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
12. Long-term Provisions
Long-term provisions are analysed as follows:
1999
Unaudited
2000
Provision for retirement indemnities 172,775 189,011
Provision for taxes 119,348 119,348
Provision for legal contingency 1,075,750 1,075,750
Other 75,000 75,000
Provision for retirement indemnities
1,442,873 1,459,109
The Company maintains a provision for retirement indemnities for all its employees in conformity with Greek
labour laws. The provision as at December 31, 1998 was based upon the advice of independent actuaries, which
include the following main assumptions:
Rate of Return of Investments 7.12%
Rate of Salary Increases 3%
Mortality Table Greek Model 1980
Age of Retirement
In accordance with labour laws
The anticipated annual cost to build up this provision is approximately 1.2% of administration payroll cost and
0.2% of labour payroll cost.
Income taxes
Greece does not impose any tax on income derived from shipping operations. Income tax is imposed on income
from non-shipping (mainly bank interest earned). In accordance with fiscal rules, the Company’s books, records
and tax returns are subject to tax audits. The unaudited financial years are 1997, 1998 and 1999. In common
practice in Greece, additional taxes are assessed following tax audits and additional tax assessments may vary
from the amounts accrued, however management of the Company believes that any additional tax liability over
and above the amount accrued would not have a material adverse impact on the results of operations or financial
position.
Legal contingency
The Directorate General IV for Competition of the European Commission has determined that the Company,
together with eight other ferry operations have infringed Article 85 of the European Community Treaty. The
fine imposed on the Company is EURO 3.26 million. ? he Company has recorded in the 1997 accounts the full
provision of GRD 1,075,750 for the penalty. The Company is contesting this decision and believes that the
outcome of this decision will not have a material adverse effect on the Company’s results of operations or
financial position since the penalty has been fully provided for.
19

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
13. Deferred Income
Deferred income represents government grants received from the Greek and Norwegian Governments for the
construction of vessels and is analysed as follows:
Unaudited
1999
2000
Cost:
Opening balance 5,585,547 5,585,547
Additions - -
Closing balance 5,585,547 5,585,547
Accumulated amortization:
Opening balance 1,018,982 1,214,029
Released to profit 195,047 97,522
Closing balance 1,214,029 1,311,551
Net unamortised balance 4,371,518 4,273,996
14. Share Capital and Earnings per Share
The Company's share capital at December 31, 1999 and June 30, 2000 consisted of:
1999
Unaudited
2000
Number of shares outstanding 53,194,500 70,926,000
Nominal value per share 750 750
Total share capital (in GRD thousands) 39,895,875 53,194,500
During 1998, the Company was successful in selling 4,728,500 shares on the Athens Stock Exchange and
236,100 shares by a private placement to Company’s employees and to investment institutions. Both the public
and the private placement were sold at a premium of GRD 2,350 per share or GRD 11,666,810.
In May, 1999 the Company's share capital increased by GRD 8,865,750 through the issuance of 11,821,000
bonus shares of a nominal value of GRD 750 each by capitalizing GRD 8,865,750 of the share premium account.
In July 1999 the Company's share capital increased by GRD 13,298,625 through the issuance of 17,731,500
shares. Shares of 10,638,900 and 224,619 were sold to investment institutions at a premium of GRD 4,350 per
share or GRD 47,256,308. Shares of 6,867,981 were sold to the old shareholders (three new shares for every
ten old shares) at a premium of GRD 2,450 per share or GRD 16,826,553.
Following the annual general meeting of shareholders on May 28, 2000, the Company's share capital increased
(in June 2000) by GRD 13,298,625 through the issuance of 17,731,500 bonus shares (one bonus share for every
three existing shares) of a nominal value of GRD 750 each by capitalising GRD 13,298,625 of the share premium
account.
20

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
Earnings per share
Basic and diluted earnings per share
The calculation of basic earning per share is based on the net profit attributable to ordinary shareholders and a
weighted average number of ordinary shares outstanding during the period.
The weighted average number of ordinary shares as at December is computed as follows:
1999
Unaudited
2000
Ordinary shares at beginning of the year 23,642,000 53,194,500
Effect of shares issued in July 1999 (bonus) 11,821,000 -
Effect of shares issued in July 1999 (rights) 7,388,125 -
Effect of shares issued in June 2000 (bonus) 14,283,708 17,731,500
Weighted average number of ordinary shares 57,134,833 70,926,000
The effect of the bonus shares issued in 1999 and 2000 has been adjusted retrospectively.
The basic earnings per share and diluted earnings per share are equal as the Company does not have dilutive
securities outstanding as at June 30, 2000.
15. Reserves
Reserves are analysed as follows:
1999
Unaudited
2000
Statutory reserve 3,017,559 3,017,559
Tax free and other reserves 2,895,379 2,895,379
Total share capital (in GRD thousands) 5,912,938 5,912,938
Under Greek corporate law, corporations are required to transfer a minimum of 5% of their annual net profit as
reflected in their statutory books to a statutory reserve, until such reserve equals one-third of the outstanding
share capital. The above reserve cannot be distributed during the existence of the Company.
16. Dividends
In accordance with Greek law, the Company is required to declare, in each year, a dividend of at least 6% of the
Company’s paid in share capital or 35% of the Company’s net after tax profit, whichever is greater. These
requirements may be varied or completely waived by a vote of the shareholders taken by majorities ranging from
80% to 100% of the paid in share capital (unanimous vote) in the case of a complete waiver of the dividend
requirement.
Dividends not claimed by beneficiaries within five years after the year of declaration are payable to the Inland
Revenue.
The Annual General Meeting of Shareholders, which took place on May 28, 2000, approved the recommendation
of the Directors for the distribution of dividends of GRD 5,319,450. The distribution period started on June 26,
2000.
21

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
17. Related Party Transactions
Transactions with shareholders or directors
The Company and some of its subsidiaries purchase services from related companies in the ordinary course of
business. Such related companies consist of companies, which are controlled by individuals who are either
shareholders or members of the Board of Directors of certain subsidiaries. The Company believes that all
agreements, on the basis of which such transactions are rendered and invoiced, have been entered into on terms
which are favourable to the Company and at least comparable to those that would have been attained in the
ordinary course of business from unaffiliated third parties under similar circumstances. Such related party
transactions can be analysed as follows:
Unaudited Fees and Commissions
Accounts Receivable
Six months ended
June 30, 1999
Six months ended
June 30, 2000
As at December
31, 1999
As at June 30,
2000
(unaudited)
Naftiliakes Metaforikes Touristikes
Epichirisis - 1,998 24,590 24,286
Ferries Services Practorevsis - 2,872 87,624 100,314
European Trust Agencies 85,029 92,452 18,152 777,318
European Thallasic Agencies 408,149 451,263 2,129,316 6,502,895
Associates
493,178 548,585 2,259,682 7,404,813
The Company charters the vessels Erotokritos and Fedra from its associate, Minoan Flying Dolphins S.A. for a
fee of GRD 1,370 per day and GRD 1,096 per day, respectively. The vessel Agia Galini was also chartered from
Minoan Flying Dolphins at a rate of GRD 5 million per month up to the date of its purchase (April 24, 2000). The
expense for the year ended December 31, 1999 amounted to approximately GRD 42,893. The expense for the
six months ended June 30, 2000 amounted to GRD 467,767 (unaudited).
18. Acquisitions and Disposals of Subsidiaries and Associates
Acquisitions
On March 16, 1999 the Company acquired a 51.522% interest of Air Greece S.A., a private air carrier for a
consideration of GRD 1.1 billion, satisfied in cash. The acquisition was accounted for using the purchase method
and goodwill arising on this acquisition amounted to GRD 774,318. In October 1999 the Company acquired a
further 33.20% interest of Air Greece, increasing its participation to 84.72%, for a consideration of
GRD 1,725,430 satisfied in cash. The acquisition was not accounted for using the purchase method and goodwill
was not determined, as financial statements at the date of the transaction were not prepared.
On December 28,1999 the Company acquired a 28% interest in Aegean Airlines S.A., a private air carrier, for a
total consideration of GRD 4,686,153, satisfied by the exchange of shares in Air Greece of GRD 2,825,430 and
cash of GRD 1,860,723. In April 2000 the Company acquired a further 1.03% stake increasing its participation
to 29.03%, for a consideration of GRD 200,004. The 29.03% interest in Aegean Airlines S.A. has been
accounted for as an associate.
22

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
On November 25, 1999 Cretan Philoxenia S.A. was formed with the Company contributing 99.95% of the initial
share capital of GRD 20,000. This wholly owned company was established in order to materialise the planned
entrance in wider hotel sector strategically positioning the Company into the two most competitive areas of the
Greek economy. On June 30, 2000 the share capital was increased by GRD 1,300,000 with the company fully
contributing the amount and thus increasing its stake to 99.99% (refer to Note 1(c)).
Disposals
On December 28, 1999 the Company disposed of its interest in Air Greece for a total consideration of
GRD 2,825,430. The disposal of this subsidiary was a result of the above acquisition, of Aegean Airlines S.A.
(see above). It was also agreed that contingent tax or labour charges that will arise up until October 31, 1999
would burden the Company.
Throughout 1999 and 2000 the Company did not fully participate in the share capital increases of Minoan Flying
Dolphins S.A. consequently reducing its interest from 70% as at January 1, 1999 to 31.598% as at June 30,
2000. The Company’s interest in Minoan Flying Dolphins throughout the year is as follows:
Month
Interest
January 1999 70%
March 1999 58.627%
August 1999 52.124%
December 1999 31.344%
June 2000 31.598%
19. Segmental Analysis
Segment information is presented in respect of the Company’s business and geographical segments. The
primary format, business segment, is based on the Group’s management and internal reporting structure.
Inter-segment pricing is determined on an arm’s length basis.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Unallocated items mainly comprise income-earning assets and revenue,
interest-bearing loans, borrowing and expenses, and corporate assets and expenses.
The Company has two main business segments ferries and cruises. The ferries operate in two principal
geographical areas (domestic and international). In presenting the information on the basis of geographical
segments, segment revenue is based on the geographical location of customers. Segment assets are based on
the geographical location that the vessels travel.
23

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
Unaudited
June 30, 1999
Unaudited
June 30, 2000
Revenue
By business:
Ferries 21,712,610 20,156,254
Cruises 602,134 585,254
Airlines 1,690,469 -
24,005,213 20,741,508
Operating profit (loss)
By business:
Ferries 2,055,064 803,604
Cruises (47,053) (138,415)
Airlines (786,825) -
Operating profit (loss)
By geographical area:
International routes
Domestic routes
1,221,186 665,189
- 530,267
- 134,922
1,221,186 665,189
Revenue
By geographical area:
International routes 13,654,165 15,293,959
Domestic routes 10,351,048 5,447,549
24,005,213 20,741,508
Vessel cost net of depreciation is disclosed below. Other net operating assets have not been apportioned on
grounds of materiality and of not being readily available.
Unaudited
Unaudited
December 31, 1999 June 30, 2000
By Operating Asset
By geographical area:
International routes 81,549,183 80,565,245
Domestic routes 5,651,017 6,074,453
20. Net Financing Costs
Net financing costs are analysed as follows:
87,200,200 86,639,698
Unaudited
June 30, 1999
Unaudited
June 30, 2000
Interest expense (1,590,178)
Interest income 968,807
Revenue from trading investments 995,605
(1,784,182) 374,234
24

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
21. Commitments
On December 10, 1999 Minoan Lines obtained a long term loan of EURO 250 million to finance 70% of the
purchase of the vessels Knossos Palace, Festos Palace, Prometheus and Oceanus. The loan bears interest at
Libor plus 1.25% per annum and it will be drawndown in four advances according to the table of instalments of
each vessel. First drawdown will take place in November 2000.
The Company has entered into a number of shipbuilding contracts which are summarized below:
(a) Contract dated September 14, 1998 with Fincantieri (Italian shipyard) for Hull No. 6059 to be renamed
"Knossos Palace", the contract price is EURO 115 million and the Company intends to pay 30% of this out
of own funds and 70% through the above mentioned long term loan. Up to June 30, 2000 the Company had
made advance payments to the shipyard, as per the terms of the contract, amounting to EURO 23 million
leaving outstanding a balance of EURO 92 million due on delivery of the vessel which is scheduled for
November, 2000.
(b) Contract dated September 28, 1998 with Fincantieri (Italian shipyard) for Hull No. 6060 to be renamed
"Festos Palace", the contract price is EURO 103 million and the Company intends to pay 30% of this out of
own funds and 70% through the above mentioned long term loan. Up to June 30, 2000 the Company had
made advance payments to the shipyard, as per the terms of the contract amounting to EURO 15.45 million
leaving outstanding a balance of EURO 87.55 million the major portion of the amount (EURO 82.4 million)
is due on delivery of the vessel which is scheduled for April, 2001.
(c) Contract dated November 20, 1998 with Samsung Heavy Industries Co. Limited (Korean shipyard) for
Hull No. 1279 to be renamed "Prometheus", the contract price is USD 70 million and the Company intends
to pay 30% of this out of own funds and 70% through the above mentioned long term loan. Up to June 30,
2000 the Company had made advance payments to the shipyard, as per the terms of the contract, amounting
to USD 10.5 million leaving outstanding a balance of USD 59.5 million the major portion of which (USD 56
million) is due on delivery of the vessel which is scheduled for February, 2001.
(d) Contract dated November 20, 1998 with Samsung Heavy Industries Co. Limited (Korean shipyard) for Hull
No. 1280 to be renamed "Oceanus", the contract price is USD 70 million and the Company intends to pay
30% of this out of own funds and 70% through the above mentioned long term loan. Up to June 30, 2000
the Company had made no advance payments to the shipyard as per the terms of the contract amounting to
USD 7.0 million leaving outstanding a balance of USD 63 million the major portion of which (USD 56
million) is due on delivery of the vessel which is scheduled for June, 2001.
(e) Contract dated October 15, 1999 with Fincantieri (Italian shipyard) for Hull 6073 to be renamed "Olympia
Palace", the contract price is EURO 103 million and the Company intends to pay 30% of this out of own
funds and 70% through long term bank borrowings. Up to June 30, 2000 the Company had made advance
payments to the shipyard as per the terms of the contract amounting to EURO 10.3 million leaving
outstanding a balance of EURO 92.7 million the major portion of which (EURO 82.4 million) is due on
delivery of the vessel which is scheduled for October, 2001.
(f) Contract dated October 15, 1999 with Fincantieri (Italian shipyard) for Hull 6074 to be renamed "Europa
Palace", the contract price is EURO 103 million and the Company intends to pay 30% of this out of own
funds and 70% through long term bank borrowings. Up to June 30, 2000 the Company had made advance
payments to the shipyard as per the terms of the contract amounting to EURO 10.3 million leaving
outstanding a balance of EURO 92.7 million the major portion of which (EURO 82.4 million) is due on
delivery of the vessel which is scheduled for March 2002.
25

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
(g) Contract dated October 12, 1999 with Samsung Heavy Industries Co. Limited (Korean Shipyard) for Hull
1281 to be renamed "Ariadne", the contract price is USD 74.65 million and the Company intends to pay
30% of this out of own funds and 70% through long term bank borrowings. Up to June 30, 2000 the
Company had made advance payments to the shipyard as per the terms of the contract amounting to
USD 11.2 million leaving outstanding a balance of USD 63.45 million the major portion of which
(USD 59.72 million) is due on delivery of the vessel which is scheduled for April 2002.
22. Contingent Liabilities
The Company is contingently liable for additional taxes of GRD 602 million being, contested in the courts.
Based on advice by the Company’s legal counsel, Management is of the opinion that the outcome of the pending
court case will be favourable for the Company, the additional taxes will be substantially reduced or eliminated in
any case. The provision recorded up to June 30, 2000 will be more than sufficient to cover the liability, if any, for
additional taxes that may be eventually determined by the court.
23. Subsequent Events
On August 11, 2000 the Company contracted with Samsung Heavy Industries Co. Limited (Korean Shipyard)
for the building of a high-speed vessels the fourth under construction on behalf of the Company in the Korean
shipyard. The price and terms for the new vessels are similar to the ones already under construction.
On July 5, 2000 Cretan Philoxenia S.A. purchased the 100% of the inactive company "Athena A.V.E.E." using
part of the funds from the share capital increase which took place on June 30, 2000. The total cost of the
acquisition reached GRD 1.1 billion. "Athena A.V.E.E. " owned a building located at Herakleon, Crete that will
be used by the Company for expansion of its offices. On August 23, 2000, the share capital of Cretan Philoxenia
S.A. was increased by GRD 500,000 with the Company fully contributing the amount.
FORTHnet S.A., following its strategic expansion, filed an application for an Initial Public Offering in the Athens
Stock Exchange. FORTHnet will issue 3,701,250 new shares at a price of GRD 4,400. The total number of
shares to be listed on A.S.E. will be 14,805,000 and the total proceeds from the offering will reach GRD
16,285,500. The subscription period will start on September 20, 2000 and will end on September 25, 2000.
Minoan Lines’ stake in FORTHnet, following its IPO, will be diluted to 26.6%.
26