REG - Intl Con Airline Grp - Half-year Report <Origin Href="QuoteRef">ICAG.L</Origin> - Part 3
28/07/2017 07:05
- Part 3: For the preceding part double click ID:nRSb3657Mb
Purchases from associates 24 23
Purchases from significant shareholders 42 29
Period end balances arising from sales and purchases of goods and services:
E million June 30, 2017 December 31, 2016
Receivables from related parties
Amounts owed by associates 1 2
Amounts owed by significant shareholders 1 1
Payables to related parties
Amounts owed to associates 3 4
Amounts owed to significant shareholders 1 -
For the six months to June 30, 2017 the Group has not made any provision for
doubtful debts arising relating to amounts owed by related parties (2016:
nil).
Board of Directors and Management Committee remuneration
Compensation received by the Group's key management personnel is as follows:
Six months to June 30
E million 2017 2016
Base salary, fees and benefits
Board of Directors' remuneration 2 2
Management Committee remuneration 3 3
19. RELATED PARTY TRANSACTIONS continued
At June 30, 2017 the Board of Directors includes remuneration for two
Executive Directors (June 30, 2016: two Executive Directors). The Management
Committee includes remuneration for ten members (June 30, 2016: nine
members).
The Company provides life insurance for all Executive Directors and the
Management Committee. For the six months to June 30, 2017 the Company's
obligation was E16,000 (2016: E25,000).
At June 30, 2017 the transfer value of accrued pensions covered under defined
benefit obligation schemes, relating to the Management Committee totalled E4
million (2016: E4 million).
No loans were outstanding with Directors or officers of the Group at June 30,
2017 (2016: nil).
20. POST BALANCE SHEET EVENTS
There are no post balance sheet events.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
LIABILITY STATEMENT OF COMPANY 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 July 27, 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 six
months to June 30, 2017, prepared in accordance with the applicable set of
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and of the companies that
fall within the consolidated group taken as a whole, and that the interim
management report includes a fair review of the information required.
July 27, 2017
Antonio Vázquez RomeroChairman William Matthew WalshChief Executive Officer
Marc Jan Bolland Patrick Jean Pierre Cescau
Enrique Dupuy de Lôme Chávarri 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 3 of the unaudited condensed
consolidated interim 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.
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 June 30,2017 June 30,2016
Earnings attributable to equity holders of the parent 557 544
Exceptional items 62 (65)
Earnings attributable to equity holders of the parent before exceptional items 619 479
Interest expense on convertible bonds 9 22
Adjusted earnings 628 501
Weighted average number of shares used for diluted earnings per share (million) 2,202 2,210
Weighted average number of shares used for basic earnings per share (million) 2,111 2,030
Adjusted earnings per share (E cents) 28.5 22.7
Basic earnings per share before exceptional items (E cents) 29.3 23.6
EBITDAR
EBITDAR is calculated as the rolling four quarter operating profit before
exceptional items, depreciation, amortisation and impairment and aircraft
operating lease costs.
June 30,2017 December 31,2016 June 30,2016
E million
Operating profit before exceptional items 2,800 2,535 2,490
Depreciation, amortisation and impairment 1,232 1,287 1,345
Aircraft operating lease costs 868 759 691
EBITDAR 4,900 4,581 4,526
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. June 2016 has been adjusted to include
annualised results from Aer Lingus.
E million June 30,2017 December 31,2016 June 30,2016
Interest-bearing long-term borrowings 8,024 8,515 8,819
Cash and cash equivalents (4,074) (3,337) (3,068)
Other current interest-bearing deposits (3,870) (3,091) (3,493)
Net debt 80 2,087 2,258
Aircraft operating lease costs multiplied by 8 6,944 6,072 5,632
Adjusted net debt 7,024 8,159 7,890
EBITDAR 4,900 4,581 4,636
Adjusted net debt to EBITDAR 1.4 1.8 1.7
ALTERNATIVE PERFORMANCE MEASURES continued
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 June 30,2017 December 31,2016 June 30,2016
Adjusted net debt 7,024 8,159 7,890
Equity 5,063 5,664 4,787
IAS 19 cumulative charge to reserves (post-tax) 2,077 2,077 2,077
Adjusted equity 7,140 7,741 6,864
Adjusted net debt plus adjusted equity 14,164 15,900 14,754
Adjusted gearing 50% 51% 53%
AIRCRAFT FLEET
Number in service with Group companies
Onbalancesheet fixedassets Offbalancesheetoperatingleases TotalJune 30,2017 TotalDecember 31, 2016 Changes sinceDecember 31,2016 Futuredeliveries Options
Airbus A318 2 - 2 2 - - -
Airbus A319 22 43 65 65 - - -
Airbus A320 69 153 222 227 (5) 92 128
Airbus A321 26 25 51 47 4 20 -
Airbus A330-200 7 9 16 14 2 2 4
Airbus A330-300 5 10 15 14 1 1 -
Airbus A340-600 7 10 17 17 - - -
Airbus A350 - - - - - 43 52
Airbus A380 12 - 12 12 - - 7
Boeing 747-400 36 - 36 37 (1) - -
Boeing 757-200 1 2 3 3 - - -
Boeing 767-300 8 - 8 8 - - -
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 16 - 2 18
Boeing 787-10 - - - - - 12 -
Embraer E170 6 - 6 6 - - -
Embraer E190 9 5 14 14 - - -
Group total 275 274 549 548 1 176 209
As well as those aircraft in service the Group also holds 6 aircraft (2016: 9) not in service.
This information is provided by RNS
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