REG - Intl Con Airline Grp - Final Results <Origin Href="QuoteRef">ICAG.L</Origin> - Part 7
24/02/2017 07:10
- Part 7: For the preceding part double click ID:nRSX7399Xf
Limited*Waterside, PO Box 365, Harmondsworth, UB7 0GB IT, finance andprocurementservices England 100%
IAG GBS Poland sp z.o.o.*ul. Opolska 114, Krakow, 31 -323 IT, finance andprocurementservices Poland 100%
IB Opco Holding, S.L.Calle Martínez Villergas 49, Madrid, 28027 Holdingcompany Spain 100%2
Iberia México, S.A.*Ejército Nacional 436, 9th Floor, Colonia Chapultepec-Morales, Mexico City, 11570 Storage andcustodyservices Mexico 100%
Iberia Tecnología, S.A.*Calle Martínez Villergas 49, Madrid, 28027 Holdingcompany Spain 100%
Iberia Líneas Aéreas de España, S.A. Operadora*Calle Martínez Villergas 49, Madrid, 28027 Airlineoperations andmaintenance Spain 100%2
Illiad IncSuite 1300, 1105 N Market Street, PO Box 8985, Wilmington, Delaware, 19899 USA 100%
Openskies SASU*3 Rue le Corbusier, Rungis, 94150 Airlineoperations France 100%
Overseas Air Travel LimitedWaterside, PO Box 365, Harmondsworth, UB7 0GB England 100%
Remotereport Trading LimitedWaterside, PO Box 365, Harmondsworth, UB7 0GB England 100%
Santain Developments LimitedDublin Airport, Dublin Republic of Ireland 100%
Shinagh LimitedDublin Airport, Dublin Republic of Ireland 100%
Speedbird Insurance Company Limited*Canon's Court, 22 Victoria Street, Hamilton, HM 12 Insurance Bermuda 100%
Teleflight LimitedWaterside, PO Box 365, Harmondsworth, UB7 0GB England 100%
The Plimsoll Line Limited*Waterside, PO Box 365, Harmondsworth, UB7 0GB Holdingcompany England 100%
Veloz Holdco, S.L.Pla de l'Estany 5, Parque de Negocios Mas Blau II, El Prat de Llobregat, Barcelona, 08820 Spain 100%
Vueling Airlines, S.A.*Pla de l'Estany 5, Parque de Negocios Mas Blau II, El Prat de Llobregat, Barcelona, 08820 Airlineoperations Spain 99%
British Mediterranean Airways LimitedWaterside, PO Box 365, Harmondsworth, UB7 0GB England 99%
Compañía Auxiliar al Cargo Exprés, S.A.*Centro de Carga Aérea, Parcela 2-5 Nave 6, Madrid, 28042 Cargotransport Spain 75%
Iberia Desarrollo Barcelona, S.L.*Torre Tarragona, Planta 15, Calle Tarragona 161, Barcelona, 08014 Airportinfrastructuredevelopment Spain 75%
Auxiliar Logística Aeroportuaria, S.A.*Centro de Carga Aérea, Parcela 2-5 Nave 6, Madrid, 28042 Airportlogistics andcargo terminalmanagement Spain 75%
* Principal subsidiaries
1 The Group holds 49.9% of the total number of voting rights and 99.65% of the total nominal share capital in
British Airways Plc, such stake having almost 100% of the economic rights. The remaining nominal
share capital and voting rights, representing 0.35% and 50.1% respectively, correspond to a trust established for the
purposes of implementing the British Airways nationality structure.
2 The Group holds 49.9% of the total nominal share capital and the total number of voting rights in IB Opco
Holding, S.L. (and thus, indirectly, in Iberia Líneas Aéreas de España, S.A. Operadora), such stake having almost 100% of
the economic rights in these companies. The remaining shares, representing 50.1% of the total nominal share capital and the
total number of voting rights belong to a Spanish company incorporated for the purposes of implementing the Iberia
nationality structure.
Associates
Name and address Country of Incorporation Percentage of equity owned
Handling Guinea Ecuatorial S.A.Malabo Bioko Norte International Airport, Apartado de Correos 92, Malabo EquatorialGuinea 51%
Empresa Hispano Cubana de Mantenimiento de Aeronaves, Ibeca, S.A.Avenida de Vantroi y Final, Aeropuerto de Jose Martí, Ciudad de la Habana Cuba 50%
Empresa Logística de Carga Aérea, S.A.Carretera de Wajay km 15, Aeropuerto de Jose Martí, Ciudad de la Habana Cuba 50%
Multiservicios Aeroportuarios, S.A.Avenida de Manoteras 46, 2nd Floor, 28050, Madrid Spain 49%
Dunwoody Airline Services (Holdings) LimitedBuilding 70, Argosy Road, East Midlands Airport, Castle Donnington, Derby, DE74 2SA England 40%
Sociedad Conjunta para la Emisión y Gestión de Medios de Pago EFC, S.A.José Ortega y Gasset 22, 3rd Floor, 28006, Madrid Spain 43.5%
Serpista, S.A.Cardenal Marcelo Spínola 10, 28016, Madrid Spain 39%
Air Miles España, S.A.Avenida de Bruselas 20, Alcobendas, 28108, Madrid Spain 25%
Joint ventures
Name and address Country of Incorporation Percentage of equity owned
Propius Holding LimitedPO Box 309, Ugland House, Grand Cayman, K41-1104 CaymanIslands 33.3%
Available-for-sale financial assets
The Group's principal available-for-sale financial assets are as follows:
Name and address Country of Incorporation Percentage of equity owned Currency Shareholder's funds (million) Profit/(loss) before tax (million)
Servicios de Instrucción de Vuelo, S.L.Camino de la Muñoza 2, Madrid, 28042 Spain 19.9% Euro 45 2
The Airline Group LimitedBrettenham House South, 5th Floor, Lancaster Place, London, WC2N 7EN England 16.68% Poundsterling 287 32
Comair Limited1 Marignane Drive, Bonaero Park, 1619, Johannesburg South Africa 11.5% South Africanrand 1,330 294
Adquira España, S.A.Plaza Cronos, 1 - 4th Floor, Madrid, 28037 Spain 10.0% Euro 7 1
Statement of directors' responsibilities
LIABILITY STATEMENT OF DIRECTORS FOR THE PURPOSES ENVISAGED UNDER ARTICLE 11.1.B OF SPANISH ROYAL DECREE 1362/2007 OF 19
OCTOBER (REAL DECRETO 1362/2007).
At a meeting held on February 23, 2017, the Directors of International Consolidated Airlines Group, S.A. (the "Company")
state that, to the best of their knowledge, the condensed consolidated financial statements for the year to December 31,
2016, prepared in accordance with the applicable international accounting standards, offer a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the
consolidation taken as a whole, and the interim consolidated management report includes a fair review of the required
information.
February 23, 2017
Antonio Vázquez RomeroChairman William Matthew WalshChief Executive Officer
Marc Jan Bolland Patrick Jean Pierre Cescau
Enrique Dupuy de Lôme Chávarri Denise Patricia Kingsmill
James Arthur Lawrence María Fernanda Mejía Campuzano
Kieran Charles Poynter Emilio Saracho Rodríguez de Torres
Marjorie Morris Scardino Alberto Terol Esteban
Alternative performance measures
The performance of the Group is assessed using a number of Alternative Performance Measures (APMs). The Group's results are
presented both before and after exceptional items. Exceptional items are those that in management's view need to be
separately disclosed by virtue of their size and incidence. Exceptional items are disclosed in note 5 of the consolidated
financial statements. In addition, the Group's results are described using certain measures that are not defined under IFRS
and are therefore considered to be APMs. These measures have been used to identify the Group's long-term planning goals on
'Profitability', 'Efficient growth' and 'Balance sheet and cash flow', and to monitor performance towards these goals. The
definition of each APM presented in this report, together with a reconciliation to the nearest measure prepared in
accordance with IFRS is presented below.
Operating profit and adjusted operating margin
Operating profit is the Group operating result before exceptional items.
Adjusted operating margin is operating profit adjusted for leases as a percentage of revenue. The lease adjustment reduces
the fleet rental charge to 0.67 of the annual reported charge.
E million 2016 2015
Operating profit before exceptional items 2,535 2,335
Aircraft operating lease costs 759 659
Aircraft operating lease costs multiplied by 0.67 (509) (442)
2,785 2,552
Revenue 22,567 22,858
Adjusted operating margin 12.3% 11.2%
Adjusted earnings per share
Earnings are based on results before exceptional items after tax and adjusted for earnings attributable to equity holders
and interest on convertible bonds, divided by the weighted average number of ordinary shares, adjusted for the dilutive
impact of the assumed conversion of the bonds and employee share schemes outstanding.
E million 2016 2015
Earnings attributable to equity holders of the parent 1,931 1,495
Exceptional items 38 23
Earnings attributable to equity holders of the parent before exceptional items 1,969 1,518
Interest expense on convertible bonds 26 25
Adjusted earnings 1,995 1,543
Weighted average number of shares used for diluted earnings per share 2,210,990 2,159,937
Weighted average number of shares used for basic earnings per share 2,075,568 2,034,197
Adjusted earnings per share (E cents) 90.2 71.4
Basic earnings per share before exceptional items (E cents) 94.9 74.6
EBITDAR
EBITDAR is calculated as operating profit before exceptional items, depreciation, amortisation and impairment and aircraft
operating lease costs.
E million 2016 2015
Operating profit before exceptional items 2,535 2,335
Depreciation, amortisation and impairment 1,287 1,307
Aircraft operating lease costs 759 659
EBITDAR 4,581 4,301
Return on Invested Capital
Return on Invested Capital (RoIC) is defined as EBITDAR, less adjusted aircraft operating lease costs, fleet depreciation
charge adjusted for inflation, and the depreciation charge for other property, plant and equipment, divided by invested
capital. It is expressed as a percentage.
The lease adjustment reduces aircraft operating lease costs to 0.67 of the annual reported charge. The inflation adjustment
is applied to the fleet depreciation charge and is calculated using a 1.5 per cent inflation rate over the average age of
the fleet to allow for inflation and efficiencies of new fleet.
Invested capital is the fleet net book value at the balance sheet date, excluding progress payments and adjusted for
inflation, plus the net book value of the remaining property, plant and equipment plus annual aircraft operating lease
costs multiplied by 8. Intangible assets are excluded from the calculation.
In 2015, the definition of invested capital excluded all progress payments. 2015 comparatives have not been restated. 2015
comparatives include annualised operating profit, rental charges and depreciation charges for Aer Lingus.
E million 2016 2015
EBITDAR 4,581 4,463
Less: Aircraft operating lease costs multiplied by 0.67 (509) (463)
Less: Depreciation charge for fleet assets multiplied by inflation adjustment (1,231) (1,277)
Less: Depreciation charge for other property, plant and equipment (153) (162)
2,688 2,561
Invested capital
Fleet book value excluding progress payments 9,930 11,090
Inflation adjustment(1) 1.21 1.16
12,048 12,883
Net book value of other property, plant and equipment 1,683 1,798
Aircraft operating lease costs multiplied by 8 6,072 5,520
19,803 20,201
Return on Invested Capital 13.6% 12.7%
1 Calculated using a 1.5 per cent inflation rate over the average age of the fleet. Presented to two decimal
places.
Adjusted net debt to EBITDAR
Adjusted net debt is calculated as long-term borrowings, less cash and cash equivalents and other current interest-bearing
deposits, plus annual aircraft operating lease costs multiplied by 8. This is divided by EBITDAR to arrive at adjusted net
debt to EBITDAR. 2015 has been adjusted to include annualised results for Aer Lingus.
E million 2016 2015
Interest-bearing long-term borrowings 8,515 8,630
Cash and cash equivalents (3,337) (2,909)
Other current interest-bearing deposits (3,091) (2,947)
Net debt 2,087 2,774
Aircraft operating lease costs multiplied by 8 6,072 5,736
Adjusted net debt 8,159 8,510
EBITDAR 4,581 4,463
Adjusted net debt to EBITDAR 1.8 1.9
Adjusted gearing
Adjusted gearing is defined as adjusted net debt divided by adjusted net debt and adjusted equity and is expressed as a
percentage. Adjusted equity is reported equity adjusted for the cumulative charge to reserves following the amendment to
IAS 19 'Employee benefits' accounting standard, up to E2,077 million, representing the adjustment to equity on adoption of
the amendment to the standard.
E million 2016 2015
Adjusted net debt 8,159 8,510
Equity 5,664 5,534
IAS 19 cumulative charge to reserves (post-tax) 2,077 1,794
Adjusted equity 7,741 7,328
Adjusted net debt plus adjusted equity 15,900 15,838
Adjusted gearing 51% 54%
Equity free cash flow
Equity free cash flow is EBITDA less cash tax, cash interest paid and received and cash capital expenditure net of proceeds
from sale of property, plant and equipment and intangible assets. EBITDA is calculated as operating profit before
exceptional items, depreciation, amortisation and impairment.
E million 2016 2015
Operating profit before exceptional items 2,535 2,335
Depreciation, amortisation and impairment 1,287 1,307
EBITDA 3,822 3,642
Interest paid (185) (197)
Interest received 37 48
Tax paid (318) (245)
Acquisition of property plant and equipment and intangible assets (3,038) (2,040)
Proceeds from sale of property, plant and equipment and intangible assets 1,737 273
Equity free cash flow 2,055 1,481
Aircraft fleet
Number in service with Group companies
On balance sheet fixed assets Off balance sheet operating leases Total December 31, 2016 TotalDecember 31, 2015 Changes since December 31, 2015 Future deliveries Options
Airbus A318 2 - 2 2 - - -
Airbus A319 22 43 65 68 (3) - -
Airbus A320 69 158 227 222 5 89 128
Airbus A321 26 21 47 43 4 17 -
Airbus A330-200 7 7 14 4 10 3 5
Airbus A330-300 4 10 14 12 2 2 -
Airbus A340-300 - - - 7 (7) - -
Airbus A340-600 6 11 17 17 - - -
Airbus A350 - - - - - 43 57
Airbus A380 12 - 12 10 2 - 7
Boeing 747-400 37 - 37 40 (3) - -
Boeing 757-200 1 2 3 3 - - -
Boeing 767-300 8 - 8 12 (4) - -
Boeing 777-200 41 5 46 46 - - -
Boeing 777-300 9 3 12 12 - - -
Boeing 787-8 8 - 8 8 - 4 -
Boeing 787-9 7 9 16 5 11 2 18
Boeing 787-10 - - - - - 12 -
Embraer E170 6 - 6 6 - - -
Embraer E190 9 5 14 12 2 - 15
Group total 274 274 548 529 19 172 230
As well as those aircraft in service the Group also holds 9 aircraft (2015: 11) not in service.
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on International Consolidated Airlines SA
See all newsREG - Intl Con Airline Grp - Transaction in Own Shares
AnnouncementREG - Intl Con Airline Grp - Total Voting Rights
AnnouncementREG - Intl Con Airline Grp - Director/PDMR Shareholding
AnnouncementREG - Intl Con Airline Grp - Transaction in Own Shares
AnnouncementREG - Intl Con Airline Grp - Director/PDMR Shareholding
Announcement