1.

General Information

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

of its own. 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 2 for the parent company and 1,596 for the Group, while

as at 31.12.2021 it was 2 and 1,552 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 215,805,843. As at 31.12.2022, the total market capitalization

of Attica Holdings S.A. was approximately Euro 500,670 k.

The financial statements of Attica Holdings S.A. Group are included, under the full consolidation method, in the

consolidated financial statements of MIG HOLDINGS S.A., domiciled in Greece, whose total participation in the

company (direct & indirect) stands at 79.38% as at 31.12.2022.

The annual financial statements of the Group for the period ending at 31 December, 2022 were approved by the

Board of Directors on 29.3.2023

and are subject to the approval of the Annual Shareholders' Meeting.

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

2.

Significant accounting policies applied by the Group

The key accounting policies used by the Group for the period 1.1.2022 - 31.12.2022 are the same as those used

for the preparation of the financial statements for the year ended 31.12.2021 except for the changes in the

Standards and Interpretations, effective as from 1

st

January 2022.

2.1.

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 2.1.1.

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 accrual basis

principle, the consistency principle, the materiality principle and the accrual basis of accounting principle.

In preparing its financial statements for the period ending as at 31.12.2022, 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.

2.1.1.

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, on an annual basis the Management examines the following items, 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 effect

on the stated assets and liabilities values, concern as follows:

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

to arise from the 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 31.12.2022.

2.2.

Consolidation

2.2.1.

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.

2.2.2. 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.

2.2.3.

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.

Acquisition of a subsidiary by the Group is accounted for by using the purchase method.

Acquisition cost of 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.

2.3.

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 any gains or losses are recorded in equity until they are disposed or impaired. When

these investments are disposed or impaired, gains or losses are recognized in the income statement

.

2.4.

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 invested 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

accumulated 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 between the Group and its associates are eliminated unless the transaction provides evidence

of an impairment of the transferred asset. The accounting policies of associates are adjusted to be consistent with

those used by the Group.

2.5.

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 on the legal structure of the joint arrangement.

Regarding joint agreements, 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.

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.

2.6.

Tangible assets

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

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

Subsequent costs, extensive additions and improvements, as well as large-scale maintenance expenses which

are incurred in order to increase the expected vessels’ revenue are considered as a separate asset and are

depreciated up to 5 years.

Vessel’s adjustment costs to comply 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 9 years further.

The residual value of the vessels according to management estimates is about 20% of the acquisition cost while

for high-speed and flying dolphins at 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.

2.7.

Intangible Assets

2.7.1.

Goodwill

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

/ associate at the acquisition date. At the time of the 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 with.

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 any difference as profit.

2.7.2.

Trademarks

Trademarks are recorded at 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.

2.7.3.

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.

 

2.8.

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. (At every reporting date the assets are assessed for potential impairment indications.)

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 be generated 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 the Group’s vessels in particular, when such indications exist, they are assessed for potential impairment.

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

valuators, less their costs of disposal and their value in use, which is estimated by calculating the expected

discounted cash flows.

For all assets other than goodwill, an impairment loss reversal up to the initial acquisition cost occurs when there

is a change in the estimates used to determine the asset’s recoverable amount since an impairment loss was

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

 

2.9.

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.

2.10.

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.

2.11.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, sight deposits and term bank deposits of high liquidity maturing

within three months.

2.12.

Share Capital

Share capital consists of common bearer or nominal shares and is included in equity.

Costs directly attributable to the issuance of shares are recorded, less the related income tax, as a deduction from

the issuance product, from the share premium account.

Costs directly attributable to the issuance of shares for the equities acquisition are included in the acquisition cost

of the acquired entity.

2.13.

Distribution of dividends / optional reserves

Dividends payable are recognized as a liability in the financial statements of the parent company and the Group

when approved by the General Meeting of shareholders.

2.14.

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.

2.14.1. Revenue from passengers and vehicle fares

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

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

2.14.2. 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.

 

2.14.3. Interest income

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

withhold income tax.

 

2.14.4. Income from dividends

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

dividends.

2.14.5. Income from chartering

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

2.14.6. 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.

2.15.

Government Grants – Government Assistance

2.15.1. Asset related grants

Government grants that relate to assets are those that are provided to entities subject to the condition that the

entity will purchase or construct long-term assets.

Government grants are recognized when it is certain that:

a) The entity will comply with the conditions attached to these grants.

b) The grants will be received.

Government grants related to assets are recognized as deferred income and are recorded on a systematic basis

in revenue during the useful life of the asset.

2.15.2. Income related grants

Government grants related to income are recognized as income over the accounting periods, on a systematic

basis, in order to match the relevant costs.

2.16.

Operating segments

The Group applies IFRS 8 "Operating Segments”, which requires the definition of operating segments to be based

on the "management approach". In addition, financial information is required to be reported on the same basis as

is used internally. The Board of Directors is the main decision maker of the Group's business decisions.

For operating segments presentation purposes, it is to be noted that the Group operates in passenger shipping in

different geographical areas.

The Group has decided to provide information based on the geographical segmentation of its operations.

The Group operates in:

a) Greek Domestic Routes, and

b) Internaitonal routes.

The Group’s vessels provide transportation services to passengers, private vehicles and freight.

The Group’s sales are highly seasonal. The highest traffic for passengers and vehicles is observed during the

months July, August and September while the lowest traffic for passengers and vehicles is observed between

November and February. In contrast, freight sales are equally divided within the year, presenting very lower

seasonality.

Operating segments that have not met the requirements set out in IFRS 8 are not disclosed separately if the

Management considers that the information related to the separate segment is not useful to users of its financial

statements.

2.17.

Expenses

2.17.1. Recognition of expenses

Expenses are recognized based on the accrual principle.

 

2.17.2. Financial expenses

Financial Expenses are recognized based on the accrual principle.