Notes to Financial Statements

1.

General Information

ATTICA HOLDINGS S.A. (“ATTICA GROUP”) is a Holding Company and as such does not have trading activities

of its own until 22.11.2023. On 22.11.2023, by decision of the General Meeting of shareholders, article 2 (Purpose)

of the company's articles of association was amended and added the acquisition and operation of vessels and

real estate. The Company, through its subsidiaries, operates in passenger shipping and in the hospitality industry.

The headquarters of the Company are located in the Municipality of Kallithea, 1-7 Lysikratous & Evripidou Street,

P.C. 17674.

The number of headcount, at the current period end, was 187 for the parent company and 2,297 for the Group,

while as at 31.12.2022 it was 2 and 1,596 respectively.

Attica Holdings S.A. shares are listed in the Athens Stock Exchange under the ticker symbol ATTICA. The

corresponding ticker symbol for Bloomberg is ATTICA GA and for Reuters - EPAr.AT.

The total number of common registered shares is 243,164,193. As at 31.12.2023, the total market capitalization

of ATTICA S.A. was approximately Euro 482,681 k.

On 12.5.2023 the following transfer of shares to "STRIX HOLDINGS L.P." was completed: a. 22,241,173 shares

directly held by MARIFN INVESTMENT GROUP which corresponded to approximately 10.3061% of share capital

and b. all the shares of the 100% subsidiary "MIG SHIPPING S.A.", which owns 149,072,510 shares

corresponding to 69.0771% of the Company’s share capital. On 31.12.2023 the total investment of "STRIX

HOLDINGS L.P." in the Company stood at 86.71%.

The annual financial statements of the Group for the period ending at 31 December, 2023 were approved by the

Board of Directors on 3.4.2024 and are subject to approval by the Annual Regular General Meeting of

Shareholders.

Due to rounding there may be minor differences in some amounts.

2.

Significant accounting policies applied by the Group

2.1

Accounting policies

The key accounting policies used by the Group for the period 1.1.2023 - 31.12.2023 are the same as those used

for the preparation of the financial statements for the year ended 31.12.2022 except for the changes in the

Standards and Interpretations, effective as from 1

st

January 2023.

2.2.

Basis for preparation of financial statements

The Group applies all the International Accounting Standards (IAS), the International Financial Reporting

Standards (IFRS) and the Interpretations which apply to its activities. The relevant accounting policies, whose

summary is presented below, have been applied consistently in all presented periods.

Cases which concern a greater degree of judgement and complexity or cases where the accounting estimates

and assumptions could materially affect the consolidated financial statements are provided in Note 2.3.

The Group has prepared the financial statements in compliance with the historical cost principle, with the

exception of investments in subsidiaries and financial derivatives measured at fair value, the consistency principle,

the materiality principle and the accrual basis of accounting principle.

As at 31.12.2023, the Group has negative working capital as current liabilities exceed current assets by Euro

86.21mln. The most significant component of the current liabilities relates to the Company's common bond loan

of Euro 175mln, which is listed on the Stock Exchange and matures in 2024, for which the Company has received

a binding refinancing offer from a banking institution before 31.12.2023, with terms that are considered acceptable.

The refinancing of the borrowings is reasonably expected by the Management to be completed in following period,

which will ensure the Company’s and the Group’s going concern.

In preparing its financial statements for the period ending as at 31.12.2023, the Group has chosen to apply the

accounting policies which ensure that the financial statements comply with all the requirements of every applicable

Standard or Interpretation.

The Management considers that the current financial statements present fairly the entity’s financial position,

financial performance and cash flows. The General Meeting of Shareholders has the right to modify the financial

statements, approved by the company’s Board of Directors.

2.3.

Significant accounting policies and main sources of uncertainty of accounting estimates

The Management must make judgements and estimates regarding the value of assets and liabilities which are

uncertain. Estimates and related assumptions are based mainly on past experience.

Actual results may differ from these estimates. Estimates and related assumptions are reviewed on an on-going basis.

The accounting estimates that the Management has adopted in implementing the Company’s accounting policies

and have the most significant effect on the Company’s financial statements are as follows:

The Company measures investments in subsidiaries at fair value. In order to define fair value of subsidiaries, the

present value of the estimated future cash flows expected to arise from them is defined. This method is based on

estimates and underlying assumptions. The most significant of these estimates relate to the companies’

transportation performance, international fuel prices, capital expenses and discount rate.

In addition, the Management examines the following items annually, on the basis of assumptions and estimates:

-

useful lives and recoverable values of the vessels

-

the amount of provisions for staff retirement compensation, for disputes in litigation and for labor law disputes.

On the financial statements preparation date, the sources of uncertainty for the Company, which may have an

effect on the stated assets and liabilities values, are related to the:

- Tax unaudited years of the Company, to the extent that it is possible for additional taxes and surcharges to arise

from future tax audits.

- Estimates on the recoverability of doubtful debts.

- Potential losses from pending litigations.

The above estimates are based οn the knowledge and the information available to the Management of the Group

until the date of approval of the financial statements for the period ended as at 31.12.2023.

2.4.

Implementation of New Standards

2.4.1.

New Standards, Interpretations, Revisions and Amendments to existing Standards that are effective

and have been adopted by the European Union

The following new Standards, Interpretations and amendments of IFRSs have been issued by the International

Accounting Standards Board (IASB), are adopted by the European Union, and their application is mandatory from

or after 01/01/2023.

•

IFRS 17 “Insurance Contracts” (effective for annual periods starting on or after 01/01/2023)

In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an interim Standard, IFRS 4. The aim of

the project was to provide a single principle-based standard to account for all types of insurance contracts,

including reinsurance contracts that an insurer holds. A single principle-based standard would enhance

comparability of financial reporting among entities, jurisdictions and capital markets. IFRS 17 sets out the

requirements that an entity should apply in reporting information about insurance contracts it issues and

reinsurance contracts it holds. Furthermore, in June 2020, the IASB issued amendments, which do not affect the

fundamental principles introduced when IFRS 17 has first been issued. The amendments are designed to reduce

costs by simplifying some requirements in the Standard, make financial performance easier to explain, as well as

ease transition by deferring the effective date of the Standard to 2023 and by providing additional relief to reduce

the effort required when applying the Standard for the first time. The amendments affect/ do not affect the

consolidated/ separate Financial Statements. (to be adapted in respect of every Group/Company). The above

have been adopted by the European Union with effective date of 01/01/2023.

•

Amendments to IAS 1 “Presentation of Financial Statements” (effective for annual periods starting on or after

01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that pertain to accounting policy disclosures. The

objective of these amendments is to improve accounting policy disclosures so that they provide more useful information

to investors and other primary users of the financial statements. More specifically, companies are required to disclose

their material accounting policy information rather than their significant accounting policies. The amendments affect/ do

not affect the consolidated/ separate Financial Statements. (to be adapted in respect of every Group/Company).

The

above have been adopted by the European Union with effective date of 01/01/2023.

•

Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors: Definition of

Accounting Estimates” (effective for annual periods starting on or after 01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that clarify how companies should distinguish changes

in accounting policies from changes in accounting estimates. That distinction is important because changes in

accounting estimates are applied prospectively only to future transactions and other future events, but changes in

accounting policies are generally also applied retrospectively to past transactions and other past events. The

amendments affect/ do not affect the consolidated/ separate Financial Statements. (to be adapted in respect of every

Group/Company). The above have been adopted by the European Union with effective date of 01/01/2023.

•

Amendments to IAS 12 “Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single

Transaction” (effective for annual periods starting on or after 01/01/2023)

In May 2021, the IASB issued targeted amendments to IAS 12 to specify how companies should account for

deferred tax on transactions such as leases and decommissioning obligations – transactions for which companies

recognise both an asset and a liability. In specified circumstances, companies are exempt from recognising

deferred tax when they recognise assets or liabilities for the first time. The amendments clarify that the exemption

does not apply and that companies are required to recognise deferred tax on such transactions. The amendments

affect/ do not affect the consolidated/ separate Financial Statements. (to be adapted in respect of every

Group/Company).

The above have been adopted by the European Union with effective date of 01/01/2023.

•

Amendments to IFRS 17 “Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative

Information” (effective for annual periods starting on or after 01/01/2023)

In December 2021, the IASB issued a narrow-scope amendment to the transition requirements in IFRS 17 to

address an important issue related to temporary accounting mismatches between insurance contract liabilities

and financial assets in the comparative information presented when applying IFRS 17 “Insurance Contracts” and

IFRS 9 “Financial Instruments” for the first time. The amendment aims to improve the usefulness of comparative

information for the users of the financial statements. The amendments affect/ do not affect the consolidated/

separate Financial Statements. (to be adapted in respect of every Group/Company).

The above have been

adopted by the European Union with effective date of 01/01/2023.

•

Amendments to IAS 12 “Income taxes”: International Tax Reform – Pillar Two Model Rules (effective

immediately and for annual periods starting on or after 01/01/2023)

In May 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 12 “Income Taxes”:

International Tax Reform—Pillar Two Model Rules. The amendments introduced a) a temporary exception to the

requirements to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income

taxes and b) targeted disclosure requirements for affected entities. Companies may apply the temporary exception

immediately, but disclosure requirements are required for annual periods commencing on or after 1 January 2023. The

amendments affect/ do not affect the consolidated/ separate Financial Statements. (to be adapted in respect of every

Group/Company). The above have been adopted by the European Union with effective date of 01/01/2023.

•

Amendments to IFRS 16 “Leases: Lease Liability in a Sale and Leaseback” (effective for annual periods

starting on or after 01/01/2024)

In September 2022, the IASB issued narrow-scope amendments to IFRS 16 “Leases” which add to requirements

explaining how a company accounts for a sale and leaseback after the date of the transaction. A sale and

leaseback is a transaction for which a company sells an asset and leases that same asset back for a period of

time from the new owner. IFRS 16 includes requirements on how to account for a sale and leaseback at the date

the transaction takes place. However, IFRS 16 had not specified how to measure the transaction when reporting

after that date. The issued amendments add to the sale and leaseback requirements in IFRS 16, thereby

supporting the consistent application of the Accounting Standard. These amendments will not change the

accounting for leases other than those arising in a sale and leaseback transaction. The Group/ Company will

examine the impact of the above on its Financial Statements, though it is not expected to have any (Τo be adapted

in respect of each Group/Company. The phrase “though it is not expected to have any” shall be included only in

cases that it has been assessed and no impact is expected from the adoption of the amendment). The above

have been adopted by the European Union with effective date of 01/01/2024.

•

Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” (effective for annual periods

starting on or after 01/01/2024)

In January 2020, the IASB issued amendments to IAS 1 that affect requirements for the presentation of liabilities.

Specifically, they clarify one of the criteria for classifying a liability as non-current, the requirement for an entity to

have the right to defer settlement of the liability for at least 12 months after the reporting period. The amendments

include: (a) specifying that an entity’s right to defer settlement must exist at the end of the reporting period; (b)

clarifying that classification is unaffected by management’s intentions or expectations about whether the entity

will exercise its right to defer settlement; (c) clarifying how lending conditions affect classification; and (d) clarifying

requirements for classifying liabilities an entity will or may settle by issuing its own equity instruments.

Furthermore, in July 2020, the IASB issued an amendment to defer by one year the effective date of the initially

issued amendment to IAS 1, in response to the Covid-19 pandemic. However, in October 2022, the IASB issued

an additional amendment that aim to improve the information companies provide about long-term debt with

covenants. IAS 1 requires a company to classify debt as non-current only if the company can avoid settling the

debt in the 12 months after the reporting date. However, a company’s ability to do so is often subject to complying

with covenants. The amendments to IAS 1 specify that covenants to be complied with after the reporting date do

not affect the classification of debt as current or non-current at the reporting date. Instead, the amendments

require a company to disclose information about these covenants in the notes to the financial statements. The

amendments are effective for annual reporting periods beginning on or after 1 January 2024, with early adoption

permitted. The Group/ Company will examine the impact of the above on its Financial Statements, though it is not

expected to have any (Τo be adapted in respect of each Group/Company. The phrase “though it is not expected

to have any” shall be included only in cases that it has been assessed and no impact is expected from the adoption

of the amendment). The above have been adopted by the European Union with effective date of 01/01/2024.

2.4.2. New Standards, Interpretations, Revisions and Amendments to existing Standards that have not been

applied yet or have not been adopted by the European Union

The following new Standards, Interpretations and amendments of IFRSs have been issued by the International

Accounting Standards Board (IASB), but their application has not started yet or they have not been adopted by

the European Union.

•

Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures”: Supplier

Finance Arrangements (effective for annual periods starting on or after 01/01/2024)

In May 2023, the International Accounting Standards Board (IASB) issued Supplier Finance Arrangements, which

amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The IASB issued Supplier

Finance Arrangements to require an entity to provide additional disclosures about its supplier finance arrangements.

The amendments require additional disclosures that complement the existing disclosures in these two standards. They

require entities to provide users of financial statements with information that enable them a) to assess how supplier

finance arrangements affect an entity’s liabilities and cash flows and to understand the effect of supplier finance

arrangements on an entity’s exposure to liquidity risk and how the entity might be affected if the arrangements were no

longer available to it. The amendments to IAS 7 and IFRS 7 are effective for accounting periods on or after 1 January

2024. The Group/ Company will examine the impact of the above on its Financial Statements, though it is not expected

to have any (Τo be adapted in respect of each Group/Company. The phrase “though it is

not expected to have any”

shall be included only in cases that it has been assessed and no impact is expected from the adoption of the

amendment). The above have not been adopted by the European Union.

•

Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability

(effective for annual periods starting on or after 01/01/2025)

In August 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 21 The Effects

of Changes in Foreign Exchange Rates that require entities to provide more useful information in their financial

statements when a currency cannot be exchanged into another currency.

The amendments introduce a definition

of currency exchangeability and the process by which an entity should assess this exchangeability. In addition,

the amendments provide guidance on how an entity should estimate a spot exchange rate in cases where a

currency is not exchangeable and require additional disclosures in cases where an entity has estimated a spot

exchange rate due to a lack of exchangeability.

The amendments to IAS 21 are effective for accounting periods

on or after 1 January 2025. The Group/ Company will examine the impact of the above on its Financial Statements,

though it is not expected to have any (Τ

o be adapted in respect of each Group/Company. The phrase “though it

is not expected to have any” shall be included only in cases that it has been assessed and no impact is expected

from the adoption of the amendment). The above have not been adopted by the European Union.

3.

Accounting Policies

3.

1.

Significant Information on Accounting Policies

3.1.

Consolidation

3.1.1.

Consolidated financial statements

Subsidiaries are fully consolidated (full consolidation) using the purchase method from the date when control is

acquired and cease to be consolidated from the date when such control ceases to exist.

The acquisition of subsidiaries by the Group is accounted for by using the purchase method.

Acquisition cost of a subsidiary is the fair value of the assets given, the shares issued and the liabilities assumed

at the date of the exchange, plus any costs directly attributable to the transaction.

Specific assets, liabilities and contingent liabilities acquired in a business combination are measured at acquisition

at their fair values irrespective of the participating interest percentage. Acquisition cost exceeding the fair value

of the separate assets acquired is recorded as goodwill. If the total cost of the purchase is less than the fair value

of the separate assets acquired, the balance is recognized directly in the income statement.

Intercompany transactions, balances and unrealized gains on transactions between Group companies are

eliminated.

Unrealized losses are also eliminated, unless the transaction provides evidence of impairment, of the transferred

asset. The accounting policies of subsidiaries are amended where necessary to be consistent with those adopted

by the Group.

3.1.2. Subsidiaries

Subsidiaries are the entities which are controlled by another Company. An investor controls an investee when the

investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to

affect those returns through its power over the investee.

Investments in subsidiaries are initially recognized at cost, while they are subsequently measured at fair value

and the differences are recognized in other comprehensive income. If impairment is effective, it burdens the

income statement for the current year in compliance with IFRS 9.

3.1.3.

Accounting Policy in accordance with the presentation of ANEK S.A. - SUPERFAST in the financial

statements of the Group

IFRS 11 replaced IAS 31 “Interests in Joint Ventures” and SIC 13 “Jointly Controlled Entities – Non-Monetary

Contributions by Venturers”. International Financial Reporting Standard 11 aligns the accounting for these

investments, as well as the rights and obligations of joint ventures.

The objective of

"Joint Venture ΑΝΕΚ S.A. & SUPERFAST”

is to generate revenue and distribute them to the joint

ventures as defined in the contractual arrangement. The Group interest in “

Joint Venture ΑΝΕΚ S.A. &

SUPERFAST ENDEKA HELLAS INC & Co” has been classified, under the provisions of IFRS 11 as a “joint

operation”. In compliance with this classification, the Group recognizes in its consolidated financial statements:

a) its assets, including its share of any assets held jointly;

b) its liabilities, including its share of any liabilities incurred jointly;

c) its share of the revenue from the sale of the output from the joint operation; and

d) its expenses, including its share of any expenses incurred jointly.

3.1.4.

Investments

The investments are classified according to their scope as follows:

a) Long-term investments

These investments are recognized at cost and are recorded as non-current assets.

Subsequently, investments

in subsidiaries are measured at fair value.

At the end of the administrative period, it is reviewed whether there is an indication of impairment of the

investment. In case the investment has to be impaired, the amount of the impairment is transferred to equity.

b) Investments held for sale

These investments are initially recorded at cost plus any cost directly attributable to the investment. These

investments are measured at fair value and gains or losses are recorded in equity until they are disposed of or

considered impaired. When these investments are disposed or considered impaired, gains or losses are

recognised in the income statement.

3.1.5.

Associates

Associates are companies on which the Group can exert significant influence but which do not fulfil the conditions

to be classified as subsidiaries or joint ventures. Investments in associates are initially recognized at cost and are

subsequently consolidated using the equity method. At the end of each period, the cost increases by the

proportion of the investing company in the changes in equity of the investing company and decreases by the

dividends received from the associate.

The Group’s share in the profits or losses of associated companies after the acquisition is recognized in the

income statement, while the share of changes in reserves after the acquisition is recognized in the reserves. The

cumulated changes affect the book value of the investments in associated companies. When the Group’s share

in the losses of an associate is greater than or equal to its participation in the associate, including any other

doubtful debts, the Group does not recognize any further losses, unless it has covered liabilities or made payments

on behalf of the associate or those that arise from ownership.

Unrealized gains on transactions between the Group and its associates are eliminated according to the

percentage of the Group’s participation in the associates.

Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset

transferred. The accounting policies of associates are adjusted to be consistent with those used by the Group.

3.1.6.

Joint arrangements

Investments in joint arrangements are classified as either joint operations or joint ventures depending on the

contractual rights and obligations each investor has rather than the legal structure of the joint arrangement.

The Group recognizes in its consolidated financial statements regarding joint arrangements:

a) its assets, including its share of any assets held jointly;

b) its liabilities, including its share of any liabilities incurred jointly;

c) its share of the revenue from the sale of the output from the joint operation; and

d) its expenses, including its share of any expenses incurred jointly.

Joint ventures are accounted for using the equity method. According to the equity method, participating interest

in joint ventures is initially recognized at cost and then adjusted to the Group's share in profits or losses and other

comprehensive income of the joint ventures. When the Group's share in losses of a joint venture is equal to or

exceeds its interest in that joint venture, the Group does not recognize any further losses unless it has undertaken

commitments or has made payments on behalf of the joint venture.

Unrealized gains on transactions between the Group and joint ventures are eliminated by the Group's share

interest in joint ventures.

The accounting principles of joint ventures are consistent with those adopted by the Group.

3.1.7.

Tangible assets

Tangible assets are stated at acquisition cost less accumulated depreciation and any impairment loss.

Acquisition cost includes expenses that are directly attributable to the acquisition of the assets.

Subsequent costs which are incurred in order to increase the expected vessels’ revenue or extensive additions

and improvements as well as large-scale maintenance expenses are considered as a separate asset and are

depreciated up to 5 years.

The vessels’ adjustment cost with safety regulations and safe management are considered as a separate asset

and are depreciated in accordance with the remaining life of the vessel.

All other expenses are charged to the income statement when incurred, as they are considered as repairs and

maintenance costs.

Land is not depreciated.

Depreciation is calculated on a straight line basis over the estimated useful life of every asset.

The estimated useful lives are as follows:

1. Conventional vessels

35 years

2. High speed vessels

25 years

3.

Ηydrofoil

-flying dolphins

15 years

4. Buildings

30-40 years

5. Harbor establishments

10 years

6. Motor Vehicles

5 years

7. Furniture and fixtures

5 years

8. Hardware equipment

3 years

Useful life of vessels, whose maturity exceeded 30 years at the date of their acquisition by the Group, is extended

for further 9 years.

The residual value of the vessels according to management estimates is estimated about at 20% of the acquisition

cost while for high-speed and flying dolphins to 15% and 10% respectively.

For the other fixed assets, no residual value is calculated.

The residual value and the useful life of fixed assets are reviewed annually.

For buildings undergoing extensive renovation, the useful life is determined according to management estimates

of its remaining use.

Once the sale of a tangible asset is completed, the difference between the selling price and the net book value

less any expenses related to the sale, is recognized as gain or loss in the income statement.

3.1.8.

Intangible Assets

3.1.8.1. Goodwill

Goodwill is the difference between the acquisition cost and the fair value of the asset and liability of the subsidiary

/ associate as at the acquisition date. At the time of acquisition, the company recognizes the goodwill arising from

the acquisition as an asset and records it in the cost. This cost is equal to the amount at which the consolidation

cost exceeds the company’s share, assets, liabilities and contingent liabilities of the acquired company.

After the initial recognition, goodwill is measured at the cost less the accumulated losses due to a decrease in its

value. Goodwill is not depreciated, but is examined annually for any reduction in its value pursuant to IAS 36.

To implement impairment tests, the amount of goodwill is allocated to cash flow generation units. The cash flow

unit is the smallest identifiable group of assets that generates independent cash flows and represents the level at

which the Group collects and presents financial data for internal reporting purposes. The impairment for goodwill

is determined by measuring the recoverable amount from the cash flow units to which goodwill is associated.

Impairment losses related to goodwill cannot be reversed in future periods.

If the acquisition cost is less than the share of the company in the equity of the acquired company, then the former

remeasures the acquisition cost, evaluates the assets, liabilities and contingent liabilities of the acquired company

and directly recognizes profit or loss as a gain any difference remains after remeasurement.

3.1.8.2. Trademarks

Trademarks are recorded acquisition cost less accumulated depreciation and any impairment loss.

The useful life

of trademarks is 15 years and depreciation is calculated on a straight line basis.

The cost of trademarks includes expenses related to the development and registration of the trademarks in Greece

and abroad.

Business combination trademarks are valued at acquisition costs and the useful life has been determined as

indefinite. The Group has recognized the trademark of Hellenic Seaways Maritime S.A. since its acquisition. The

trademark is reviewed for impairment on an annual basis.

3.1.8.3. Software

Computer software programs are recognized at cost less accumulated amortization and any impairment loss.

The initial cost includes, in addition to the licenses, all installation, customizing and development expenses.

The expenses which enhance or extend the performance of computer software programs beyond their original

specifications are recognized as capital expenditure and are added to the original cost of the software. Useful life

of computer software is 8 years and amortization is calculated on a straight line basis.

3.1.9.

Impairment of assets/ Reversal of tangible assets impairment

At every reporting date the assets are assessed as to whether there is any indication that an asset may be impaired.

If any such indication exists, the entity estimates the recoverable amount of the asset, namely the present value

of the estimated future cash flows that are expected to flow into the entity by the use of the asset.

The recoverable amount of an asset or a cash generating unit is the higher of its fair value less associated costs

of selling the asset and its value when used by the entity.

Impairment losses are recognized as expenses in the income statement.

For Group’s vessels, in particular, when such indications exist, they are assessed for potential impairment. In such

case their recoverable amount is determined as the higher of their fair value, estimated by independent valuators, less

costs of disposal, and their value in use is estimated by calculating the expected discounted cash flows.

When for an impairment loss recognized in prior periods for an asset other than goodwill, there has been a change

in the estimates used to determine the asset’s recoverable amount since the impairment loss was recognized,

and those impairment loss indicators may no longer exist or may have been decreased, an impairment loss

reversal occurs up to the initial acquisition cost.

3.1.10.

Inventories

Inventories are stated at the lower value between cost and net realizable value. Net realizable value is the

estimated selling price less applicable variable selling expenses. The cost of inventories is determined using the

monthly weighted average market price.

3.1.11. Trade receivables

Trade receivables are short-term receivables to be collected in less than 12 months from the date of recognition

and are initially recognized at fair value.

Subsequently, if the collection is delayed, trade receivables are measured at amortized cost using the effective

interest rate, less any impairment loss.

Regarding trade receivables and contractual assets, the Group applies the simplified approach to the calculation

of expected credit losses.

Therefore, at every reporting date, provisions for loss for a financial instrument is measured at an amount equalling

the expected credit losses over its lifetime.

The amount of the provision is recorded in the income statement.

3.1.12. Revenue

The revenue of the Group is derived mainly from cargo, passengers and vehicles fares, from chartering and from on

board sales of goods and services. The Group also has income from credit interest and the Company – from dividends.

3.1.12.1.

Revenue from passengers and vehicle fares

Revenue from fares is recognised when the customer travels. Government subsidies for subsidized routes are

recognised in the relevant period and are included in “Sales”.

3.1.12.2.

Revenue from on board sales of goods and services

Revenue from sales of goods and services on board is recognized upon delivery of goods or services.

Regarding the services provided by the Group through concessions, revenue is recognized when the invoice is

issued for services relating to the period.

All the above revenue is recognized when the collection of the related receivables is reasonably assured.

3.1.12.3.

Interest income

Interest income is recognised on an accrual basis using the effective interest method without offsetting any

withhold income tax.

3.1.12.4.

Income from dividends

Dividends are recognized as income when approved from the authorized body of the company that distributes the

dividends.

3.1.12.5.

Income from chartering

Income from chartering vessels is recognized based on the accrual principle, according to the relevant contracts.

3.1.12.6.

Revenue from sales of hotel services

Under IFRS 15, revenue is recognized at a given point in time when the obligation to perform the service is met. Under

the existing revenue recognition accounting policy, the Group recognize revenue for services when they are rendered.

3.1.13.

Financial liabilities

The basic financial instruments of the Group are as follows:

a) Bank loans

Loans are initially recorded at cost, which is the actual value of the received consideration, plus potentially arising

related expenses. Subsequently, they are valued at the carrying amount based on the effective interest rate.

b) Hedging financial instruments

All financial derivatives are recognized and measured at fair value. Financial derivatives are presented separately

as assets when the fair value is positive and separate as liabilities when the fair value is negative.

The method of recognition of profit or loss depends on whether a derivative has been identified as a hedged item

and by the nature of the item which is hedged.

Using cash flows hedging, the Group intends to cover the risks that cause a change in cash flows, which will affect

the income statement, and arise from an asset or a liability or a future transaction. Examples of the Group's cash

flow hedging include future transactions in the shipping fuel market, subject to changes in market prices.

The Group uses hedge accounting when at the commencement of the hedging transaction and the subsequent

use of the financial derivatives, it may also document the relationship between the hedged item and the hedging

instrument regarding the risk management and strategy of the hedging decision. Moreover, hedge accounting is

applied only when it is expected to be effective and can be reliably measured on an ongoing basis for every

reporting period.