REG - Ryanair Holdings PLC - Annual Financial Report <Origin Href="QuoteRef">RYA.I</Origin> - Part 14
06/09/2014 22:39
- Part 14: For the preceding part double click ID:nRSd7552Nm
233.6 240.8 286.0 227.7 1,322.4 2,310.5
Floating rate
Secured long-term debt............... 238.5 245.9 251.4 230.0 1,127.6 2,093.4
Debt swapped from floating to fixed......................................... (154.7) (159.0) (161.5) (140.2) (675.2) (1,290.6)
Secured long-term debt after swaps....................................... 1.47% 83.8 86.9 89.9 89.8 452.4 802.8
Finance leases............................. 2.43% 51.0 53.4 55.8 67.5 284.2 511.9
Total floating rate debt............... 1.85% 134.8 140.3 145.7 157.3 736.6 1,314.7
Total financial liabilities.............. 368.4 381.1 431.7 385.0 2,059.0 3,625.2
67.5
284.2
511.9
Total floating rate debt...............
1.85%
134.8
140.3
145.7
157.3
736.6
1,314.7
Total financial liabilities..............
368.4
381.1
431.7
385.0
2,059.0
3,625.2
All of the above debt maturing after 2016 will mature between fiscal 2016 and fiscal 2024.
The following provides an analysis of changes in borrowings during the year:
At March 31,
2014 2013 2012
EM EM EM
Balance at start of year.................................................................................. 3,498.3 3,625.2 3,649.4
Loans raised to finance aircraft acquisitions- denominated in euro............... - 82.8 292.3
Loans raised to finance aircraft acquisitions- denominated in U.S. dollars... - 151.8 -
Repayments of amounts borrowed............................................................... (390.8) (366.4) (329.7)
Foreign exchange gain/(loss) on conversion of U.S. dollar loans.................... (23.9) 4.9 13.2
Balance at end of year................................................................................ 3,083.6 3,498.3 3,625.2
Less than one year......................................................................................... 467.9 399.9 368.4
More than one year....................................................................................... 2,615.7 3,098.4 3,256.8
3,083.6 3,498.3 3,625.2
3,098.4
3,256.8
3,083.6
3,498.3
3,625.2
The maturities of the contractual undiscounted cash flows (including estimated future interest payments on debt) of the
Company's financial liabilities are as follows:
Total Carrying Value Total Contractual Cash flows 2015 2016 2017 2018 Thereafter
EM EM EM EM EM EM EM
At March 31, 2014
Long term debt and finance leases:-
-Fixed rate debt (excluding Swapped debt)...................... 945.1 1,020.7 148.7 108.2 154.9 165.8 443.1
-Swapped to fixed rate debt 1,098.9 1,109.7 178.4 153.9 139.5 207.3 430.6
- Fixed rate debt................... 3.23% 2,044.0 2,130.4 327.1 262.1 294.4 373.1 873.7
- Floating rate debt............... 1.03% 1,039.6 1,088.6 175.0 148.9 167.1 172.8 424.8
3,083.6 3,219.0 502.1 411.0 461.5 545.9 1,298.5
Derivative financial instruments
- Interest rate swaps ............ 72.4 51.0 22.0 17.6 9.2 1.6 0.6
- U.S dollar currency forward ............................................ 66.4 66.7 64.6 (0.3) 0.4 0.3 1.7
Trade payables..................... 150.0 150.0 150.0 - - - -
Accrued expenses................. 397.8 397.8 397.8 - - - -
Total at March 31, 2014..... 3,770.2 3,884.5 1,136.5 428.3 471.1 547.8 1,300.8
Total Carrying Value Total Contractual Cash flows 2014 2015 2016 2017 Thereafter
EM EM EM EM EM EM EM
At March 31, 2013
Long term debt and finance leases:-
-Fixed rate debt (excluding Swapped debt)........................ 1,025.3 1,131.3 105.9 107.1 148.9 109.3 660.1
-Swapped to fixed rate debt 1,293.3 1,329.2 182.1 180.6 156.2 141.8 668.5
- Fixed rate debt..................... 3.29% 2,318.6 2,460.5 288.0 287.7 305.1 251.1 1,328.6
- Floating rate debt................ 0.95% 1,179.7 1,226.3 154.8 156.7 166.1 166.6 582.1
3,498.3 3,686.8 442.8 444.4 471.2 417.7 1,910.7
Derivative financial instruments:-
-Interest rate swaps ............ 81.9 72.3 27.1 22.0 14.6 7.3 1.3
Trade payables....................... 138.3 138.3 138.3 - - - -
Accrued expenses................... 431.6 431.6 431.6 - - - -
Total at March 31, 2013....... 4,150.1 4,329.0 1,039.8 466.4 485.8 425.0 1,912.0
Total Carrying Value Total Contractual Cash flows 2013 2014 2015 2016 Thereafter
EM EM EM EM EM EM EM
At March 31, 2012
Long term debt and finance leases:-
-Fixed rate debt (excluding Swapped debt)........................ 1,019.9 1,133.9 98.9 99.9 140.7 101.8 692.6
-Swapped to fixed rate debt 1,290.6 1,329.4 170.2 170.6 168.7 143.7 676.2
- Fixed rate debt..................... 3.49% 2,310.5 2,463.3 269.1 270.5 309.4 245.5 1,368.8
- Floating rate debt................ 1.85% 1,314.7 1,436.9 158.3 161.3 164.4 173.3 779.6
3,625.2 3,900.2 427.4 431.8 473.8 418.8 2,148.4
Derivative financial instruments:-
- Interest rate swaps ........... 80.3 70.5 22.7 23.7 14.4 7.4 2.3
-Carbon swaps..................... 1.5 1.5 1.5 - - - -
Trade payables....................... 181.2 181.2 181.2 - - - -
Accrued expenses................... 327.0 327.0 327.0 - - - -
Total at March 31, 2012....... 4,215.2 4,480.4 959.8 455.5 488.2 426.2 2,150.7
80.3
70.5
22.7
23.7
14.4
7.4
2.3
-Carbon swaps.....................
1.5
1.5
1.5
-
-
-
-
Trade payables.......................
181.2
181.2
181.2
-
-
-
-
Accrued expenses...................
327.0
327.0
327.0
-
-
-
-
Total at March 31, 2012.......
4,215.2
4,480.4
959.8
455.5
488.2
426.2
2,150.7
Interest rate re-pricing
Floating interest rates on financial liabilities are generally referenced to European inter-bank interest rates (EURIBOR).
Secured long-term debt and interest rate swaps typically re-price on a quarterly basis with finance leases re-pricing on a
semi-annual basis. We use current interest rate settings on existing floating rate debt at each year-end to calculate
contractual cash flows.
Fixed interest rates on financial liabilities are fixed for the duration of the underlying structures (typically between 10
and 12 years).
The Company holds significant cash balances that are invested on a short-term basis. At March 31, 2014, all of the
Company's cash and liquid resources had a maturity of one year or less and attracted a weighted average interest rate of
0.37% (2013: 0.39%; 2012: 1.07%).
March 31, 2014 March 31, 2013 March 31, 2012
Financial assets Within 1 year Total Within 1 year Total Within 1 year Total
EM EM EM EM EM EM
Cash and cash equivalents.......................................................................... 1,730.1 1,730.1 1,240.9 1,240.9 2,708.3 2,708.3
Cash > 3 months........................................................................................ 1,498.3 1,498.3 2,293.4 2,293.4 772.2 772.2
Restricted cash........................................................................................... 13.3 13.3 24.7 24.7 35.1 35.1
Total financial assets.................................................................................. 3,241.7 3,241.7 3,559.0 3,559.0 3,515.6 3,515.6
35.1
35.1
Total financial assets..................................................................................
3,241.7
3,241.7
3,559.0
3,559.0
3,515.6
3,515.6
Interest rates on cash and liquid resources are generally based on the appropriate EURIBOR, LIBOR or bank rates dependant
on the principal amounts on deposit.
(d) Foreign currency risk
The Company has exposure to various foreign currencies (principally U.K. pounds sterling and U.S. dollars) due to the
international nature of its operations. The Company manages this risk by matching U.K. pound sterling revenues against U.K.
pound sterling costs. Any remaining unmatched U.K. pound sterling revenues are used to fund U.S. dollar currency exposures
that arise in relation to fuel, maintenance, aviation insurance and capital expenditure costs or are sold for euro. The
Company also sells euro forward to cover certain U.S. dollar costs. Further details of the hedging activity carried out by
the Company are disclosed in Note 5 to the consolidated financial statements.
The following table shows the net amount of monetary assets of the Company that are not denominated in euro at March 31,
2014, 2013 and 2012. Such amounts have been translated using the following year-end foreign currency rates in 2014: E/£:
0.8282; E/$: 1.3788 (2013: E/£: 0.8456; E/$: 1.2805; 2012: E/£: 0.8339; E/$: 1.3356).
March 31, 2014 March 31, 2013 March 31, 2012
GBP U.S.$ euro GBP U.S.$ euro GBP U.S.$ euro
equiv. equiv. equiv.
£M $M EM £M $M EM £M $M EM
Monetary assets
U.K. pounds sterling cash and liquid resources............................................. 79.0 - 95.4 73.6 - 87.1 38.9 - 46.7
U.S. Dollar cash and liquid resources............................................. - 9.3 6.7 - 206.9 161.6 - - -
79.0 9.3 102.1 73.6 206.9 248.7 38.9 - 46.7
73.6
206.9
248.7
38.9
-
46.7
The following table shows the net amount of monetary liabilities of the Company that are not denominated in euro at March
31, 2014, 2013 and 2012. Such amounts have been translated using the following year-end foreign currency rates in 2014:
E/$: 1.3788.
March 31, 2014 March 31, 2013 March 31, 2012
U.S.$ euro U.S.$ euro U.S.$ euro
equiv. equiv. equiv.
$M EM $M EM $M EM
Monetary liabilities
U.S dollar long term debt................................ 411.1 298.1 450.0 351.4 282.8 211.7
411.1 298.1 450.0 351.4 282.8 211.7
211.7
411.1
298.1
450.0
351.4
282.8
211.7
The Company has entered into cross currency interest rate swap arrangements to manage exposures to fluctuations in foreign
exchange rates on these U.S. dollar denominated floating rate borrowings, together with managing the exposures to
fluctuations in interest rates on these U.S. dollar denominated floating rate borrowings. The fair value of these cross
currency interest rate swap instruments at March 31, 2014 was E8.5 million, (2013: E5.2 million; 2012: E7.4 million) which
has been classified within current liabilities, specifically derivative liabilities falling due within one year (see Note 5
to the consolidated financial statements).
The following table gives details of the notional amounts of the Company's currency forward contracts as at March 31, 2014,
2013 and 2012:
March 31, 2014 March 31, 2013 March 31, 2012
Currency forward contracts U.S.$ euro U.S.$ euro U.S.$ euro
equiv. equiv. equiv.
$M EM $M EM $M EM
U.S. dollar currency forward contracts
- for fuel and other purchases........................................................ 3,216.4 2,385.9 2,417.8 1,836.2 2,657.0 1,907.9
- for aircraft purchases................................................................... 919.3 683.2 - - 191.7 136.9
4,135.7 3,069.1 2,417.8 1,836.2 2,848.7 2,044.8
March 31, 2014 March 31, 2013 March 31, 2012
Currency forward contracts Stg £ euro Stg £ euro Stg £ euro
equiv. equiv. equiv.
£M EM £M EM £M EM
U.K pounds sterling currency forward contracts.......................... 22.5 27.4 - - 10.0 12.0
22.5 27.4 - - 10.0 12.0
£M
EM
£M
EM
U.K pounds sterling currency forward contracts..........................
22.5
27.4
-
-
10.0
12.0
22.5
27.4
-
-
10.0
12.0
(e) Equity risk
The Company has exposure to equity price risk primarily in relation to its 29.8% investment in Aer Lingus. The Company does
not have significant influence over Aer Lingus and accordingly, this investment is classified as an available-for-sale
financial asset rather than an investment in an associate. Additional information in relation to the available-for-sale
financial asset can be found in Note 4 to the consolidated financial statements.
(f) Credit risk
The Company holds significant cash balances, which are invested on a short-term basis and are classified as either cash
equivalents or liquid investments. These deposits and other financial instruments (principally certain derivatives and
loans as identified above) give rise to credit risk on amounts due from counterparties. Credit risk is managed by limiting
the aggregate amount and duration of exposure to any one counterparty through regular review of counterparties'
market-based ratings, Tier 1 capital level and credit default swap rates and by taking into account bank counterparties'
systemic importance to the financial systems of their home countries. The Company typically enters into deposits and
derivative contracts with parties that have a long term Standard and Poors "A" category rating or equivalent credit rating.
The maximum exposure arising in the event of default on the part of the counterparty is the carrying value of the relevant
financial instrument. The Company is authorised to place funds on deposit for periods up to 18 months. The Board of
Directors monitors the return on capital as well as the level of dividends to ordinary shareholders on an ongoing basis.
The Company's revenues derive principally from airline travel on scheduled services, internet income and in-flight and
related sales. Revenue is primarily derived from European routes. No individual customer accounts for a significant portion
of total revenue.
At March 31, 2014, E1.4 million (2013: E1.1 million; 2012: E1.0 million) of our total accounts receivable balance were past
due, of which E0.1 million (2013: E0.1 million; 2012: E0.1 million) was impaired and provided for and E1.3 million (2013:
E1.0 million; 2012: E0.9 million) was past due but not impaired. See Note 8 to the consolidated financial statements.
(g) Liquidity and capital management
The Company's cash and liquid resources comprise cash and cash equivalents, short-term investments and restricted cash. The
Company defines the capital that it manages as the Company's long-term debt and equity. The Company's policy is to maintain
a strong capital base so as to maintain investor, creditor and market confidence and to maintain sufficient financial
resources to mitigate against risks and unforeseen events.
The Company finances its working capital requirements through a combination of cash generated from operations, bank loans
and debt capital market issuances for the acquisition of aircraft. The Company had cash and liquid resources at March 31,
2014 of E3,241.7 million (2013: E3,559.0 million; 2012: E3,515.6 million). During the year, the Company funded E505.8
million in purchases of property, plant and equipment (2013: E310.7 million; 2012: E317.6 million). Cash generated from
operations has been the principal source for these cash requirements, supplemented primarily by aircraft-related financing
structures.
The Board of Directors periodically reviews the capital structure of the Company, considering the cost of capital and the
risks associated with each class of capital. The Board approves any material adjustments to the capital structure in terms
of the relative proportions of debt and equity.
Ryanair has generally been able to generate sufficient funds from operations to meet its non-aircraft acquisition-related
working capital requirements. Management believes that the working capital available to the Company is sufficient for its
present requirements and will be sufficient to meet its anticipated requirements for capital expenditures and other cash
requirements for the 2014 fiscal year.
(h) Guarantees
Details of the Company's guarantees and the related accounting have been disclosed in Note 23 to the consolidated financial
statements.
(i) Sensitivity analysis
(i) Interest rate risk: Based on the levels of and composition of year-end interest bearing assets and
liabilities, including derivatives, at March 31, 2014, a plus or minus one-percentage-point movement in interest rates
would result in a respective increase or decrease of E18.0 million (net of tax) in net interest income and expense in the
income statement (2013: E18.3 million; 2012: E18.3 million) and E16.7 million in equity (2013: E28.8 million: 2012: E36.9
million). All of the Group's interest rate swaps are used to swap variable rate debt to fixed rate debt; consequently any
changes in interest rates would have an equal and opposite income statement effect for both the interest rate swaps and the
debt.
(ii) Foreign currency risk: A plus or minus change of 10% in relevant foreign currency exchange rates, based on
outstanding foreign currency-denominated financial assets and financial liabilities at March 31, 2014 would have a
respective positive or negative impact on the income statement of E3.0 million (net of tax) (2013: E2.6 million; 2012: E1.8
million) and on equity of E288.2 million (net of tax) (2013: E183.1 million; 2012: E176.3 million).
(iii) Equity price risk: An increase/decrease of 10% in the Aer Lingus share price as of March 31, 2014 would
result in an increase/decrease of E26.0 million in the fair value of the available-for-sale financial assets (2013:E22.1
million; 2012: E15.0 million). The increase/decrease would be recognised in other comprehensive income.
12 Deferred and current taxation
The components of the deferred and current taxation in the balance sheet are as follows:
At March 31,
2014 2013 2012
EM EM EM
Current tax (assets)/liabilities
Corporation tax (prepayment)/provision........................................................... (1.1) 0.3 (9.3)
Total current tax (assets)/liabilities.................................................................. (1.1) 0.3 (9.3)
Deferred tax liabilities
Origination and reversal of temporary differences on property, plant and 368.6 346.5 324.4
equipment, derivatives, pensions and available-for-sale securities..............
Total deferred tax liabilities........................................................................... 368.6 346.5 324.4
Deferred tax (assets)
Net operating losses...................................................................................... - - (5.0)
Total deferred tax assets................................................................................ - - (5.0)
Total deferred tax liabilities (net)............................................................ 368.6 346.5 319.4
Total tax liabilities (net)............................................................................ 367.5 346.8 310.1
368.6
346.5
319.4
Total tax liabilities (net)............................................................................
367.5
346.8
310.1
At March 31,
2014 2013 2012
EM EM EM
Reconciliation of current tax
At beginning of year............................................................................................ 0.3 (9.3) (0.5)
Corporation tax charge in year............................................................................ 31.1 34.1 4.9
Adjustment in respect of prior-year under/(over) provision............................. - 1.3 (0.1)
Tax paid............................................................................................................... (32.5) (25.8) (13.6)
At end of year..................................................................................................... (1.1) 0.3 (9.3)
0.3
(9.3)
At March 31,
2014 2013 2012
EM EM EM
Reconciliation of deferred tax
At beginning of year................................................................................... 346.5 319.4 267.7
Release of deferred tax asset for prior-year net operating losses............... - 5.0 26.4
New temporary differences on property, plant and equipment, derivatives, pensions and other items......................................................... 22.1 22.1 25.3
At end of year............................................................................................. 368.6 346.5 319.4
346.5
319.4
The charge in the year to March 31, 2014 consisted of temporary differences of a charge of E37.5 million for property,
plant and equipment recognised in the income statement and a credit of E15.2 million for derivatives and a credit of E0.2
million for pensions, all recognised in other comprehensive income. The charge in the year to March 31, 2013 consisted of
temporary differences of a charge of E41.3 million for property, plant and equipment recognised in the income statement, a
credit of E19.0 million for derivatives and a credit of E0.2 million for pensions, all recognised in other comprehensive
income. New temporary differences arising in the year to March 31, 2012 consisted of temporary differences of a charge of
E41.4 million for property, plant and equipment recognised in the income statement, a credit of E15.2 million for
derivatives and a credit of E0.9 million for pensions, all recognised in other comprehensive income.
The components of the tax expense in the income statement were as follows:
Year ended Year ended Year ended
March 31, 2014 March 31, 2013 March 31, 2012
EM EM EM
Corporation tax charge in year......................................................................... 31.1 35.4 4.9
Deferred tax charge relating to origination and reversal of 37.5 46.2 67.7
temporary differences..............................................................................
68.6 81.6 72.6
72.6
The following table reconciles the statutory rate of Irish corporation tax to the Company's effective corporation tax
rate:
Year ended Year ended Year ended
March 31, 2014 March 31, 2013 March 31, 2012
% % %
Statutory rate of Irish corporation tax.............................................................. 12.5 12.5 12.5
Adjustments for earnings taxed at higher rates................................................. - 0.1 0.2
Adjustments for earnings taxed at lower rates.................................................. (0.5) (0.7) (1.1)
Other differences.............................................................................................. (0.4) 0.6 (0.1)
Total effective rate of taxation.......................................................................... 11.6 12.5 11.5
11.6
12.5
11.5
Deferred tax applicable to items charged or credited to other comprehensive income were as follows:
At March 31,
2014 2013 2012
EM EM EM
Defined benefit pension obligations.......................................................... (0.2) (0.2) (0.9)
Derivative financial instruments................................................................ (15.2) (19.0) (15.2)
Total tax charge in other comprehensive income....................................... (15.4) (19.2) (16.1)
(19.2)
(16.1)
The majority of current and deferred tax recorded in each of fiscal 2014, 2013 and 2012 relates to domestic tax charges and
there is no expiry date associated with these temporary differences. In fiscal 2014, the Irish corporation tax rate
remained at 12.5%.
The principal components of deferred tax at each year-end were:
At March 31,
2014 2013 2012
EM EM EM
Arising on capital allowances and other temporary differences.......... 385.7 348.2 306.9
Arising on net operating losses carried forward.................................. - - (5.0)
Arising on derivatives..................................................................................................... ( (16.9) - 19.0
Arising on pension.............................................................................. (0.2) (1.7) (1.5)
Total.................................................................................................... 368.6 346.5 319.4
346.5
319.4
At March 31, 2014, 2013 and 2012, the Company recognised all required deferred tax assets and liabilities. No deferred tax
has been provided for on the un-remitted earnings of overseas subsidiaries because there is no intention to remit these to
Ireland.
13 Provisions
At March 31,
2014 2013 2012
EM EM EM
Provision for aircraft maintenance on operating leased aircraft (a)............ 132.2 122.4 91.3
Provision for pension obligation (b).......................................................... 1.7 13.5 11.9
133.9 135.9 103.2
At March 31,
2014 2013 2012
EM EM EM
(a) Provision for aircraft maintenance on operating leased aircraft
At beginning of year................................................................................... 122.4 91.3 84.7
Increase in provision during the year......................................................... 38.0 41.9 33.1
Utilisation of provision upon the hand-back of aircraft............................ (28.2) (10.8) (26.5)
At end of year............................................................................................ 132.2 122.4 91.3
(28.2)
(10.8)
(26.5)
At end of year............................................................................................
132.2
122.4
91.3
During the 2014 fiscal year, the Company returned 8 aircraft held under operating lease to the lessors.
The expected timing of the outflows of economic benefits associated with the provision at March 31, 2014, 2013 and 2012 are
as follows:
Carrying Value 2015 2016 2017 2018 Thereafter
EM EM EM EM EM EM
At March 31, 2014
Provision for leased aircraft maintenance 132.2 1.4 49.0 44.5 22.2 15.1
Carrying Value 2014 2015 2016 2017 Thereafter
EM EM EM EM EM EM
At March 31, 2013
Provision for leased aircraft maintenance 122.4 52.0 10.4 20.7 23.3 16.0
Carrying Value 2013 2014 2015 2016 Thereafter
At March 31, 2012 EM EM EM EM EM EM
Provision for leased aircraft maintenance 91.3 4.3 44.3 8.0 14.9 19.8
EM
EM
EM
EM
EM
Provision for leased aircraft maintenance
91.3
4.3
44.3
8.0
14.9
19.8
At March 31,
2014 2013 2012
EM EM EM
b) Provision for pension obligation
At beginning of year.............................................................................. 13.5 11.9 4.9
Settlement on closure of Irish defined benefit plan........................... (12.5) - -
Movement during the year.................................................................... 0.7 1.6 7.0
At end of year......................................................................................... 1.7 13.5 11.9
At end of year.........................................................................................
1.7
13.5
11.9
See Note 21 to the consolidated financial statements for further details.
14 Other creditors
This consists of deferred gains arising from the sale and leaseback of aircraft. During fiscal year 2014, Ryanair returned
8 sale-and-leaseback aircraft but did not enter into sale-and-leaseback arrangements for any new Boeing 737-800 "next
generation" aircraft (2013: 4; 2012: 11). Total sale-and-leaseback aircraft at March 31, 2014 was 51.
15 Issued share capital, share premium account and share options
(a) Share capital
At March 31,
2014 2013 2012
EM EM EM
Authorised:
1,680,000,000 ordinary equity shares of 0.635 euro cent each...................................................................................................... 0 10.7 10.7 10.7
Allotted, called-up and fully paid:
1,383,237,668 ordinary equity shares of 0.635 euro cent each............................................................................................. 8.8 - -
1,447,051,752 ordinary equity shares of 0.635 euro cent each............................................................................................. - 9.2 -
1,455,593,261 ordinary equity shares of 0.635 euro cent each............................................................................................. - - 9.3
1,455,593,261 ordinary equity shares of 0.635 euro cent
each.............................................................................................
-
-
9.3
The movement in the share capital balance year-on-year principally relates to 5.7 million (2013: 6.5 million; 2012: 2.5
million) new shares issued due to the exercise of share options, less the cancellation of 69.5 million shares relating to
share buy-backs (2013: 15.0 million; 2012: 36.5 million).
The share capital of Ryanair consists of one class of stock, the ordinary equity shares. The ordinary equity shares do not
confer on the holders thereof the specific right to be paid a dividend out of profits.
(b) Share premium account
At March 31,
2014 2013 2012
EM EM EM
Balance at beginning of year.................................................... 687.8 666.4 659.3
Share premium arising from the exercise of 5.7 million options in fiscal 2014, 6.5 million options in fiscal 2013 and 2.5 million options in fiscal 2012............................... 16.4 21.4 7.1
Balance at end of year................................................................ 704.2 687.8 666.4
Balance at end of year................................................................
704.2
687.8
666.4
(c) Share options and share purchase arrangements
The Company has adopted a number of share option plans, which allow current or future employees or executive directors to
purchase shares in the Company up to an aggregate of approximately 5% (when aggregated with other ordinary shares over
which options are granted and which have not yet been exercised) of the outstanding ordinary shares of Ryanair Holdings
plc, subject to certain conditions. All grants are subject to approval by the Remuneration Committee. These are exercisable
at a price equal to the market price of the ordinary shares at the time options are granted. The key terms of these option
plans include the requirement that certain employees remain in employment with the Company for a specified period of time
and that the Company achieves certain net profit targets and/or share price targets. These share options schemes are cash
settled.
Details of the share options outstanding are set out below:
Share Options M Weighted Average Exercise Price
Outstanding at March 31, 2011................................................................................. 23.4 E3.07
Exercised.................................................................................................................... (2.5) E2.81
Expired....................................................................................................................... (0.8) E3.40
Forfeited.................................................................................................................... (2.1) E3.08
Outstanding at March 31, 2012................................................................................. 18.0 E3.11
Exercised.................................................................................................................... (6.5) E3.32
Outstanding at March 31, 2013................................................................................. 11.5 E2.97
Exercised.................................................................................................................... (5.7) E2.90
Outstanding at March 31, 2014................................................................................. 5.8 E3.04
xercised....................................................................................................................
(5.7)
E2.90
Outstanding at March 31, 2014.................................................................................
5.8
E3.04
The mid-market price of Ryanair Holdings plc's ordinary shares on the Irish Stock Exchange at March 31, 2014 was E7.61
(2013: E5.95; 2012: E4.48). The highest and lowest prices at which the Company's shares traded on the Irish Stock Exchange
in the 2014 fiscal year were E7.70 and E5.33, respectively (2013: E6.16 and E3.83, respectively; 2012: E4.48 and E2.82,
respectively). There were 5.8 million options exercisable at March 31, 2014 (2013: 2.1 million; 2012: 6.2 million). The
average share price for the year was E6.59 (2013: E4.65; 2012: E3.58).
The weighted average share price (as of the dates of exercises) for all options exercised during the 2014 fiscal year was
E6.67 (2013: E4.94; 2012: E3.69).
At March 31, 2014 the range of exercise prices and weighted average remaining contractual life of outstanding and
exercisable options was as follows:
Options outstanding Options exercisable
Range of exercise Number outstanding M Weighted-average remaining contractual life (years) Weighted-average exercise Number exercisable M Weighted-average remaining contractual life (years) Weighted-average exercise price (E)
price (E) price (E)
2.59-4.99 5.8 1.24 3.04 5.8 1.24 3.04
2.59-4.99
5.8
1.24
3.04
5.8
1.24
3.04
The Company has accounted for its share option grants to employees at fair value, in accordance with IFRS 2, using a
binomial lattice model to value the option grants. This has resulted in a charge of E1.9 million to the income statement
(2013: E1.9 million charge; 2012: E0.7 million credit) being recognised within the income statement in accordance with
employee services rendered.
16 Other equity reserve
The total share based payments reserve at March 31, 2014 was E9.1 million (2013: E14.2 million; 2012: E21.6 million). The
available-for-sale financial asset reserve at March 31, 2014 was E180.6 million (2013: E141.5 million; 2012: E70.0
million). The total cash-flow hedge reserve amounted to negative E83.2 million at March 31, 2014 (2013: E0.5 million; 2012:
E138.6 million). Further details of the group's derivatives are set out in Notes 5 and 11 to the consolidated financial
statements.
17 Analysis of operating revenues and segmental analysis
The Company is managed as a single business unit that provides low fares airline-related services, including scheduled
services, internet and other related services to third parties across a European route network. The Company operates a
single fleet of aircraft that is deployed through a single route scheduling system.
The Company determines and presents operating segments based on the information that internally is provided to Michael
O'Leary, CEO, who is the Company's Chief Operating Decision Maker (CODM). When making resource allocation decisions the
CODM evaluates route revenue and yield data, however resource allocation decisions are made based on the entire route
network and the deployment of the entire aircraft fleet, which are uniform in type. The objective in making resource
allocation decisions is to maximise consolidated financial results, rather than results on individual routes within the
network.
The CODM assesses the performance of the business based on the consolidated adjusted profit/(loss) after tax of the Company
for the year. This measure excludes the effects of certain income and expense items, which are unusual, by virtue of their
size and incidence, in the context of the Company's ongoing core operations, such as the impairment of a financial asset
investment, accelerated depreciation related to aircraft disposals and one off release of ticket sale revenue.
All segment revenue is derived wholly from external customers and, as the Company has a single reportable segment,
inter-segment revenue is zero.
The Company's major revenue-generating asset class comprises its aircraft fleet, which is flexibly employed across the
Company's integrated route network and is directly attributable to its reportable segment operations. In addition, as the
Company is managed as a single business unit, all other assets and liabilities have been allocated to the Company's single
reportable segment.
There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since the
prior year.
Reportable segment information is presented as follows:
Year ended Year ended Year ended
March 31, 2014 March 31, 2013 March 31, 2012
EM EM EM
External revenues................................................................................................. 5,036.7 4,884.0 4,390.2
Reportable segment adjusted
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