1 JANUARY - 31 DECEMBER 2004 - Minoan Lines

Cost of revenue - gross profit margin
The completion of the investment program and the renewal of the fleet paired with the optimal deployment of the
vessels delivered the targeted results. Operating margins increased in the Adriatic as well as in the Heraklion -
Piraeus routes.This improvement largely depended on the cost containment efforts maximised in 2004.
In 2004, while revenues decreased by 1.1% over the previous year, cost of operation decreased significantly by 7.8%
resulting to a higher gross profit which reached € 86.93 million over € 80.07 million while the respective margin
increased to 45.4% versus 41.4% in 2003.
COST OF REVENUE (before depreciation) (in ú million)
Cost elements 2002 2003 2004
Crew 33.39 34.42 32.56
Bunkers - Lubricants 46.38 44.73 39.91
On board supplies 10.06 11.22 11.57
Port expenses 7.66 8.63 7.56
Maintenance 4.52 3.95 5.16
Insurance premiums 3.32 3.42 3.04
Deck supplies 1.34 0.89 1.01
Other 3.52 6.26 3.80
Total 110.19 113.52 104.61
Revenues 179.56 193.59 191.54
Gross profit margin 38.6% 41.4% 45.4%
COST TO SALES RATIO
Cost elements 2002 2003 2004
Crew 30.3% 30.3% 31.1%
Bunkers - Lubricants 42.1% 39.4% 38.1%
On board supplies 9.1% 9.9% 11.1%
Port expenses 6.9% 7.6% 7.2%
Maintenance 4.1% 3.5% 4.9%
Insurance premiums 3.0% 3.0% 2.9%
Deck supplies 1.2% 0.8% 1.0%
Other 3.3% 5.5% 3.7%
Total 100.0% 100.0% 100.0%
General operating costs
The administrative and sales expenses remained in the 2003 levels, following the broad cost cutting efforts.
ADMINISTRATIVE EXPENSES (before depreciation, in ú million)
Cost elements 2002 2003 2004
Staff costs 4.84 5.07 5.25
Other 3.29 3.23 3.46
Total 8.13 8.30 8.71
as % on Turnover 4.5% 4.3% 4.5%
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