Anek Lines S.A

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Anek Lines S.A ANEK LINES S.A. PRESS RELEASE FINANCIAL RESULTS FOR THE FULL YEAR 2009 ANEK LINES deploys the increasing shares in its market segments as well as the boosting traffic of both passengers and vehicles in FY 2009 in order to best cope with the adverse economic conditions and the rising competition Traffic increase: Passengers (+7.2%), Vehicles (+8.2%), Trucks (unchanged) Boost of Parent company turnover: € 254.3 mil. (+1.0%) Group EBITDA: € 24.2 mil. ANEK LINES S.A. (ANEK) announces its financial results for the full year from January 1 st to December 31st 2009 (FY 2009), in accordance with the International Financial Reporting Standards (IFRS): During 2009, ANEK Group operated in the Cretan, Aegean, Adriatic Sea & North Africa routes through a total of 16 vessels under operation (13 of which are own). In spite of the adverse conditions stemming from the ongoing economic recession, the slide of economic activity and demand, the intense competition in most routes and destinations, ANEK Group intensified its efforts in order to provide constant and high quality services having as aim the increase of market share via the increase of both traffic of passengers and vehicles. Moreover the Group has expanded its state subsidized routes by servicing the traffic demand between the Aegean islands after being awarded these routes by the Ministry of Finance, Competition and Marine. In 2009 the Company established full activity in the North Aegean route, where it had been servicing as of mid 2008, increasing effectively its transportation activity while covering several routes of the Cyclades and the Dodecanese islands via the state serviced routes. Overall, within 2009, ANEK has serviced 2.5 million passengers (versus 2.3 million in 2008), 421 thousand vehicles (versus 389 thousand in 2008) and 256 thousand trucks (versus 256 thousand as well in 2008) In addition the agreement for the acquisition of a 33.35% stake in Hellenic Seaways (HSW) is expected to substantially contribute to the increase of the Group’s activity. Turnover More specifically, Group turnover in FY 2009 amounted to euro 274.5 mil. over euro 282.4 mil. in FY 2008. As mentioned above the decrease is primarily attributed to the decrease in the cargo transportation stemming from the recession and the global financial crisis. Noteworthy is the fact that the Group in 2009 sustained high market share in the Adriatic sea routes by servicing 32% of the passengers, 34% of the ANEK LINES S.A. COMP.REG.NO. 11946/06/B/86/07 KARAMANLI AVE., 73100 CHANIA, CRETE TEL :+30 28210 24000, FAX: +30 28210 36200 e-mail: [email protected] 1 www.anek.gr vehicles and 33% of the truck transportation by servicing 34% of the total trips of the Ancona and Venice routes. The transportation in the domestic lines was enhanced mainly through the penetration in new routes of the North Aegean. As regards the Parent Company’s figures, its turnover amounted to euro 254.3 mil. over euro 252.1 mil. in FY of 2008 marking a 1.0% increase. Gross Profit Consolidated gross profit stood at euro 49.5 mil. versus euro 54.4 mil. in FY 2008. Respectively, gross profit margin formed at 18.0% of consolidated turnover versus 19.3% in FY 2008. This outcome is attributed to the rising cost of operations and the increasing amount of depreciation stemming from the rising fleet size. Respectively, the Parent Company’s gross profit stood at euro 47.1 mil. versus euro 52.3 mil. in FY 2008. EBITDA Group EBITDA marked similar performance in FY 2009 and amounted to 24.2 mil. versus euro 26.9 mil. in FY 2008. Company EBITDA stood at euro 24.1 mil. versus euro 27.3 mil. in FY 2008, as a result of the decreasing gross margin as the Groups overhead expenses (selling and administration) remained unchanged. Net results Finally, consolidated net after taxes and minority rights results in FY 2009 amounted to losses euro 5.8 mil., versus losses euro 5.9 mil. in FY 2008, while the Company’s net after taxes results formed at losses euro 3.8 mil. versus losses euro 3.5 mil. in FY 2008. As mentioned above the final results were affected by the decreasing gross margin. Moreover, it is worth noting that ANEK group financial cost decreased to euro 14.2 mil. versus euro 17.9 mil. in FY 2008 while the corresponding Parent Company’s cost eased to euro 13.9 mil. from euro 17.4 mil. in FY 2008 respectively, due to the lower cost of borrowing as well as the repayment of bank loans. Key developments during 2009 • Within the first months of 2009 ANEK Lines and its subsidiary LANE participated in the competitive tenders organized by the Ministry of Mercantile Marine, The Aegean and Island Policy for the service of routes through subsidized routes’ contracts regarding the transportation between various islands of the Aegean Sea. Both companies were successful tenderers and as a result, the vessel “ARTEMIS” (chartered) started serving the route of the Cyclades islands, the vessels “IERAPETRA” and “PREVELIS” served the routes between the Dodecanese islands, Crete, Cyclades islands and Piraeus and the vessel “V. KORNAROS” started serving the route between Crete, Kithira and Peloponnisos. Moreover, the vessel “HIGHSPEED 1” (chartered) served the route between the Sporadic Islands and Ag. Constantinos. ANEK LINES S.A. COMP.REG.NO. 11946/06/B/86/07 KARAMANLI AVE., 73100 CHANIA, CRETE TEL :+30 28210 24000, FAX: +30 28210 36200 e-mail: [email protected] 2 www.anek.gr • In April 2009 the Company signed with the insurance company INTERAMERICAN the pioneer agreement - group insurance contract "Safely Together" that provides, medical assistance during the journey and 7 days after, to all ANEK passengers free of charge. ANEK Lines is the only company in the passenger ferry shipping sector that provides medical coverage to its passengers and this program has already proven the human-oriented character of the Company. • During May 2009 ANEK Lines signed an agreement with MINOAN LINES shipping company for the acquisition of 33.35% of HELLENIC SEAWAYS SA. • Finally, the chartering of the vessels “ARIADNI” and “EL. VENIZELOS” to foreign companies continued during the 3 rd quarter. • ANEK’s high quality services were acknowledged during 2009 after receiving several awards and distinctions by world renowned institutions such as Lloyd’s List, and participated in several international tourist exhibitions and conferences. Moreover, ANEK LINES received the “Ferry Conversion” award from the ShipPax Award for F/B “ELYROS” while the “Seafarer of the Year” award by the Lloyd’s List Greek Shipping Awards 2009 was offered to two of ANEK’s captains. Last, ANEK was also honored by the Prefecture Authorities of Lesbos after completing one year of servicing this route. The impact of the economic recession, the intense competition in the passenger ferries shipping industry and the cost of fuel are the key features that will shape the outlook in 2010. ANEK has deployed its vast experience and knowhow, its patience and devotion as its ammunition against the prevailing adverse conditions and aims to enhance market share of the existing market while also aims to exploit any arising opportunities in order to expand its operations into new and promising markets. Chania, March 26 th , 2010 THE BOARD OF DIRECTORS ANEK LINES S.A. COMP.REG.NO. 11946/06/B/86/07 KARAMANLI AVE., 73100 CHANIA, CRETE TEL :+30 28210 24000, FAX: +30 28210 36200 e-mail: [email protected] 3 www.anek.gr .
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