Signifi cados atribuidos

The valuation criteria used for the Consolidated Financial Statements are as follows:

- The Fleet is booked at the purchase cost; extraordinary charges, increasing the productivity of the vessels, are capitalised on same.

For vessels ordered directly from shipbuilders, the purchase cost consists of the contractual price, agreed extra costs, costs for directly purchased

start-up equipment, cost of personnel employed during fitting out, and interest charges on advance instalments paid to the Shipbuilders

before delivery of the vessel.

Fleet depreciation is based on the cost of each unit less estimated scrap value (assumed as the estimated recoverable value at the end of the useful life), divided by the years of residual life, generally based in the past on the assumption of a working lifetime of twenty-five years for tankers and of twenty years for bulk carriers. Starting from the Annual Report 2009, for the recent bulk carriers (as well as for the units under construction) having considered the statistics on the age of scrapped vessels, we decided to assume an useful life of twenty-five years. The effects of such a change will progressively increase in connection with the deliveries of new vessels. The cost component of vessels undergoing repairs during routine drydock

is amortised over the time until the subsequent drydock (usually 30 months).

- Real estate are stated at purchase cost and amortized on a straight-line basis over 33 years.

- Fixtures, furniture, machinery, office equipment and motor vehicles are stated at purchase cost. Amortization is calculated on a straight-line basis according to the estimated useful life shown below:

furniture and furnishings machinery and office equipment motor vehicles

Assets carrying an artistic, but non-significant, value are stated at purchase cost. - 8 years - 5 years - 4 years Valuation criteria

- Associated companies are those in which the Group exercises significant influence, but not control, over the financial and operating policies.

Investments in associates (even if jointly controlled) are initially recognised at cost and, subsequently, at equity. The value is increased/decreased to reflect all changes after acquisition. Other investments are stated at cost, reduced in case of losses and where no profits are expected in the near

future in amounts that would make it possible to cover such losses; the original value is reinstated in subsequent years only if the reasons for

the impairment loss on such investments cease to exist.

- Long-term investments include receivables entered at their recoverable value.

- Fixed assets are subject to periodical valuation so as to detect any indicators of impairment losses. If such indicators exist, the recoverable value is determined, equalling the higher between the market value and the value in use. The latter is determined by discounting the expected cash flows at a rate reflecting market evaluations of cost of money and the specific risk of shipping activity. When the recoverable value is below the book value, the impairment is recognised in Profit & Loss. Should the

reason for impairment of an asset (other than goodwill) cease to exist (or reduce its effect), the asset value is restored to the newly-assessed

recoverable value, which cannot exceed the book value of that asset at the same date, should no impairment have been recorded. A restored value is immediately recognised in Profit & Loss.

- Bare-Boat and Time-Charter contracts are usually regarded as operating leases. If their contractual terms define them as financial leases, pursuant to IAS 17, vessels are entered as lease assets. The vessels would be considered and entered into the financial statements as owned by the lessee and the corresponding liability to the lessor would be classified under financial liabilities. Charter rates referred to operating leases are charged to Profit & Loss throughout the duration of the contract.

- Accruals and prepayments are determined on an accrual basis. - Owned shares are recorded in the impaired Shareholders’ Equity.

- Inventories are valued using the FIFO method (first in, first out) taking market value into account.

Costs for voyages not yet completed at the closing date are booked as “voyages in progress”, net of the whole loss (if negative) and including the pro-rata profit (if positive). Each voyage begins (conventionally) once cargo offloading operations under the preceding voyage is completed; includes the ballast leg to the next loading port and is deemed to be completed at the end of the subsequent cargo offloading.

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- Cash and Cash Equivalent include mainly cash, short-term bank deposits and other financial investments, highly liquid. Bank overdrafts are reported as current liabilities.

- The provision for staff severance indemnity (TFR) up to 31 December 2006 is regarded as a liability arising from defined benefit plan for employees and is booked according to IAS 19 (employee benefits) taking into consideration (amongst other factors) the estimated working life and the wages earned by the employees during a certain working period. The termination benefit liability is determined by independent consultants, using actuarial techniques and applying the “Projected Unit Credit Method”. Actuarial gains and losses are charged to Profit & Loss.

As a result of changes to legislation by Italian Law No. 296 of 27 December 2006 (the “2007 Budget”) and subsequent Decrees and Regulations issued in the early months of 2007, the termination benefit accrued from 1st January 2007 is considered a Defined Contribution Plan, both if an option is taken for a complementary pension and if it is paid into the INPS Treasury Fund, and therefore recognised like any other social security contribution. Due to this change, the actuarial valuation from 2007 excludes any expected future salary increase.

- Provisions for risks and charges are allocated to cover losses and debts, existing or probable, but whose amounts and/or date of occurrence were not ascertainable at the balance sheet date.

- Trade payables are booked at their par value.

- Income from services is recognised when the services are rendered. Income from services in progress is calculated according to the stage of progress. Income from ship operating leases (time-charter and bare-boat) contracts is calculated on the basis of the charter period accrual. Income from asset disposal is recognised once the risks and benefits linked to the asset are transferred to the buyer.

- Maintenance costs include all expenses incurred during the year for the on-going maintenance of the relevant fleet class. Costs relating to periodical maintenance of vessels are capitalised and depreciated during the period until the next drydock.

- Other costs are determined on an accrual basis. - Dividends are entered when they become payable.

- Taxes are entered in compliance with the tax laws in force in the country where the Group operates (in Italy and the U.K. under the so-called “Tonnage Tax”). The tax effects on the timing differences between the taxable result and the economic result, where significant, are noted under deferred and prepaid tax, in accordance with the provisions of IAS 12. Tax effects related to items directly entered in net equity (without affecting Profit & Loss) are directly entered in net equity too.

- Transactions in foreign currency are booked at the exchange rate of the date of the relevant transaction. Exchange rate differences arising from collection of credits and payment of debts denominated in foreign currency are charged to Profit & Loss. Receivables and Payables originally shown in a foreign currency are converted to Euro at the end-of-period exchange rates. Exchange rate differences arising out of the above conversion are charged to Profit & Loss, whereby net profits resulting from such differences, when positive, are not available for distribution. Exchange differences on monetary items qualified as hedging instruments of future cash flow are directly recognised in net equity, provided the hedge proves to be effective (cash flow hedge). The Group qualified certain long term loans as hedge of the exchange risk on cash flow in US$ coming from long term charter contracts of certain vessels.

- If the Parent Company, or any Group company, has entered monetary assets or liabilities to or from other Group companies in their financial statements, and there is no regulation and no regulation is expected to be put in place in the near future, they are considered part of the Parent Company’s net, direct or indirect investment in that company.

Exchange rate differences relating to the financial assets and liabilities which are part of the Parent Company's net investment in the subsidiary company are entered in the Profit & Loss statement of the individual financial

statements. These differences are reclassified in a separate item of the net equity in the consolidated financial statements and entered in

the Profit & Loss statement when they are divested from the controlled company’s investment.

- Loans are measured at fair value, net of acquisition costs, which are charged to Profit & Loss using the amortised cost method.

- Group assets and liabilities are exposed to financial risks related to

exchange rate and interest rate fluctuations. The Group’s policy tries to minimize such risks by way of hedging with financial instruments, usually

resulting from forward purchase/sale of foreign currencies and swap transactions from floating to fixed loan rates. Derivatives are originally entered at cost, and afterwards adjusted to the “fair value”. Changes in the “fair value” of hedging derivatives that prove to be effective pursuant to IAS 39 are directly booked to Shareholders’ Equity. Their potential ineffective portion, as well as changes in the fair value of other derivatives is charged to Profit & Loss.

- Risks connected with future fluctuations of the “fair value” of commitments related to chartering-in third-party vessels may be covered by “Forward Freight Agreement” (FFA). For such coverage, if effective, the “fair value hedge” is applied, booking in the Financial Statements the “fair value” valuation of both the hedging instrument and the hedged item, charging to Profit & Loss the relevant effects.

- Financial items include interest paid on financial payables (booked applying the “effective interest” method), interest income, exchange differences, gains and losses on derivatives (if not offset by hedging transactions).

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- The basic profit per share is calculated by dividing the net result for the year by the weighted average of Parent Company shares in circulation during the year.

- The net financial position included in the cash-flow statement includes cash and cash equivalents reported in the balance sheet.

- Preparing the financial statements and their related notes in accordance with the international accounting standards requires Management to provide estimates and assumptions which may have an impact on certain accounting items. Actual results may differ from these estimates. The estimates are used to measure property, plant and equipment and intangible assets subject to impairment tests and to calculate provisions for risks, impairment of assets, the useful life of corporate assets, employee benefits, income tax and insurance claims as well as the fair value of derivative instruments. Measurements are reviewed on a periodical basis and the related effects are immediately recognised in the accounts.

On this basis it is worth noting that, due to the contingent financial and economic crisis, our assumptions on future development are characterized by a significant uncertainty and we can’t exclude future results which may differ from estimates and which may require to rectify some balance sheet items, particularly the fleet value and the recoverable amount of commercial credits and insurance recoveries.

- All assets entered in the Balance Sheet have never been revaluated.

- Stock option plans are recognised in accordance with the provisions of IFRS 2. The current plan involves exclusively a cash settlement (and not

the physical transfer of shares) and it is therefore recognised as a liability based on the fair value of the options at each reporting date, among personnel costs.

- Amounts shown in these Notes are in thousand of euros.

- Dealings with related parties are listed in appendix 2, including

supplementary sheets as per the Consob resolution no. 15519 of 27 July 2006.