minoan lines shipping sa annual report 2003

Reduction in borrowing - Loan restructuringThe bank borrowing contracted by the company - long and short term - reached in 2002, along withthe completion of the investment plan, the € 630 million. The reduction of bank borrowing to thecurrent size of € 530 million is owing to the repayment of the sinking-fund installments for the meantime however, it is mainly the result of the disposal of certain property assets of the company amongwhich the ships PROMETHEUS and OCEANUS.The reduction in bank borrowing in addition to the restructuring of the loans, that is expected to beconcluded in the near future with the signing of new contracts, makes it possible for the company topay off its loan liabilities without difficulty by the liquidity that flows from its operating profits. Thesuccessful outcome of the negotiations for the restructuring of the loans is to a great degree owing toesteem and confidence that the company enjoys.Hellas Flying DolphinsThe H.F.D., as also stated in the past, constitutes the most significant, by means of quantity andstrategic importance, investment of MINOAN LINES. The great efforts made over the last years forthe organizational update of the company were supported by the rationalization of the fleet andyielded the prospective results by achieving a great improvement of the economic efficiency andrentability of this company.More than pleased we ascertained that the past negative aspects have changed completely thanks tothe slow but firm steps taken towards a successful return on a profitable course that reached in theyear 2003, on a consolidated basis, profits of € 7.1 million, as against losses of € 49.3 million in 2002.This fact gives the possibility to the B. of D. to propose at the G.M. of H.F.D. the distribution ofdividend for a total amount of € 3.9 million, namely 0.05 Euro per share.The stategy planned and followed by H.F.D. that bears the seal of MINOAN LINES was realizedwith great success thanks to the generous efforts made with zeal by the management and the staff ofthe company.The very solid shareholding structure, the firm steps of development and modernization of the tradesales network, the rational management of expenditures and the implementation of a 5-year businessplanning that commenced with the order for the building of one more High-speed ship - which shallbe added to the fleet of the company in June 2005 - constitute the most significant factors that shalllead to a course of further improvement of its profitability.We note that the cash and cash equivalents of H.F.D. amount to € 31.5 million, while the bankborrowing that hardly exceeds € 60 million (reduced by 12.1% as compared to last year), arerecords that make it to be one of the most strong and solid companies of the sector.45 MINOAN LINES S.A. - Annual Report 2003