REG - Ryanair Holdings PLC - Annual Financial Report <Origin Href="QuoteRef">RYA.I</Origin> - Part 16
06/09/2014 22:39
- Part 16: For the preceding part double click ID:nRSd7552No
EM EM EM
Net debt at beginning of year............................................................. 60.7 (109.6) (708.8)
Increase/(decrease) in cash and cash equivalents in year.................... 489.2 (1,467.4) 680.0
(Decrease)/increase in financial assets > 3 months............................. (795.1) 1,521.2 (97.2)
Decrease in restricted cash................................................................. (11.4) (10.4) (7.8)
Net cash flow from decrease in debt.................................................. 414.7 126.9 24.2
Movement in net funds resulting from cash flows............................. 97.4 170.3 599.2
Net funds/(debt) at end of year.......................................................... 158.1 60.7 (109.6)
Analysed as:
Cash and cash equivalents, financial assets and restricted cash......... 3,241.7 3,559.0 3,515.6
Total borrowings*.............................................................................. (3,083.6) (3,498.3) (3,625.2)
Net funds/(debt)................................................................................. 158.1 60.7 (109.6)
Total borrowings*..............................................................................
(3,083.6)
(3,498.3)
(3,625.2)
Net funds/(debt).................................................................................
158.1
60.7
(109.6)
*includes both current and non-current maturities of debt.
25 Dividends and share buy-backs
In the year ended March 31, 2014 the Company bought back 69.5 million ordinary shares (including just over 6.0 million
American Depository Receipts (ADR's) which each represented five ordinary shares) at a total cost of E481.7 million. This
is equivalent to approximately 4.8% of the Company's issued share capital at March 31, 2013. All ordinary shares
repurchased have been cancelled. Accordingly, share capital decreased by 69.5 million ordinary shares with a nominal value
of E0.4 million and the capital redemption reserve increased by a corresponding E0.4 million. The capital redemption
reserve is required to be created under Irish law to preserve permanent capital in the Parent Company.
On June 20, 2013 the Company detailed plans to return up to E1.0 billion to shareholders over the following two years. At
March 31, 2014 E481.7 million has been completed via share buybacks and up to E520 million in special dividends is planned
to be returned in the fiscal year 2015 (subject to profitability and shareholder approval at the AGM on September 25,
2014).
26 Post-balance sheet events
On April 30, 2014, the Company agreed to purchase an additional 5 Boeing 737 800 "Next Generation" aircraft for delivery in
fiscal 2016, bringing the total number of aircraft to be purchased from Boeing to 180 for delivery between fiscal year 2015
and 2019, with a list value of approximately $14.1 billion.
In the first quarter of fiscal year 2015, the Company entered into 8 short-term aircraft leases between May and September
2014 to support the capacity requirements prior to delivery of new aircraft in September 2014.
On May 19, 2014, the Company indicated that it plans to pay a special dividend of up to E520 million in the fourth quarter
of fiscal year 2015, subject to shareholder approval at its annual general meeting on September 25, 2014.
On June 10, 2014, Ryanair issued an unsecured E850.0 million eurobond at a fixed coupon of 1.875%, fixed for 7 years. Under
Ryanair's E3 billion EMTN program Ryanair Holdings guarantees any issuance of notes, including Ryanair's issuance of an
E850.0 million eurobond in June 2014.
27 Subsidiary undertakings and related party transactions
The following is the principal subsidiary undertaking of Ryanair Holdings plc:
Name Effective date of acquisition/incorporation Registered Nature of
Office Business
Ryanair Limited (a)..................... August 23, 1996 Airside Business Park Airline operator
(acquisition) Swords
Co Dublin, Ireland.
(a) Ryanair Limited is wholly owned by Ryanair Holdings plc.
Information regarding all other subsidiaries will be filed with the Company's next Irish Annual Return as provided for by
Section 16(3) of the Irish Companies (Amendment) Act, 1986.
In accordance with the basis of consolidation policy, as described in Note 1 of these consolidated financial statements,
the subsidiary undertaking referred to above has been consolidated in the financial statements of Ryanair Holdings plc for
the years ended March 31, 2014, 2013 and 2012.
The total amount of remuneration paid to senior key management (defined as the executive team reporting to the Board of
Directors) and directors amounted to E7.9 million in the fiscal year ended March 31, 2014, (2013: E7.1 million; 2012: E5.0
million), the majority of which comprises short-term employee benefits.
Year ended Year ended Year ended
March 31, 2014 March 31, 2013 March 31, 2012
EM EM EM
Basic salary and bonus.................................................................. 6.8 6.0 5.9
Pension contributions.................................................................... 0.1 0.1 0.1
Share-based compensation expense (a).......................................... 1.0 1.0 (1.0)
7.9 7.1 5.0
7.9
7.1
5.0
(a) In the year ended March 31, 2012, the net credit to the income statement in the year comprises a reversal of
previously recognised share-based compensation expense for awards that did not vest, offset by a charge for the fair value
of various share options granted in prior periods, which are being recognised within the income statement in accordance
with employee services rendered.
28 Date of approval
The consolidated financial statements were approved by the Board of Directors of the Company on
July 25, 2014.
Company Balance Sheet
At March 31,
2014 2013 2012
Note EM EM EM
Non-current assets
Investments in subsidiaries ........................................ .................................................................... 30 105.3 103.4 101.5
Current assets
Loans and receivables from subsidiaries ........................................ ................................................................................................................................ ……………………………… 31 1,214.1 979.8 1,517.5
Cash and cash equivalents.................... .............................................. 2.6 2.2 2.1
Total assets....................................................................................... 1,322.0 1,085.4 1,621.1
Current liabilities
Amounts due to subsidiaries.............................................................. ........................................ ...................................................................................................... ……………………………………………….. ............................................ ………………………………………… 32 35.2 35.2 35.2
Shareholders' equity
Issued share capital............................................................................ ........................................ .................................................................... 8.8 9.2 9.3
Share premium account...................................................................... ........................................ ...................................................................................................... ……………………………………………….. 704.2 687.8 666.4
Capital redemption reserve................................................................ 1.2 0.8 0.7
Retained earnings................................................................................ ........................................ ................................................................................................................................................................................ 563.6 338.3 888.0
Other reserves ................................................................................... ........................................ ....................................................................................... …………………………………………………………. 9.0 14.1 21.5
Shareholders' equity....................................................................... 1,286.8 1,050.2 1,585.9
Total liabilities and shareholders' equity.................................... 1,322.0 1,085.4 1,621.1
1,050.2
1,585.9
Total liabilities and shareholders' equity....................................
1,322.0
1,085.4
1,621.1
The accompanying notes are an integral part of the financial information.
On behalf of the Board
M. O'Leary D. Bonderman
Director Director
July 25, 2014.
Company Statement of Cash Flows
Year ended March 31, 2014 Year ended March 31, 2013 Year ended March 31, 2012
EM EM EM
Operating activities
Profit for the year............................................................... . 700.0 - 950.0
Net cash provided by operating activities 700.0 - 950.0
Investing activities
(Increase)/decrease in loans to subsidiaries.......................... (234.3) 537.7 (834.5)
Net cash (used in)/from investing activities................... (234.3) 537.7 115.5
Financing activities
Shares purchased under share buy-back programme........... (481.7) (67.5) (124.6)
Dividend paid....................................................................... - (491.5) -
Net proceeds from shares issued......................................... 16.4 21.4 7.1
Net cash (used in)/from financing activities.................. (465.3) (537.6) (117.5)
.....
Increase/(decrease) in cash and cash equivalents.......... 0.4 0.1 (2.0)
Cash and cash equivalents at beginning of year........... 2.2 2.1 4.1
Cash and cash equivalents at end of year....................... 2.6 2.2 2.1
0.4
0.1
(2.0)
Cash and cash equivalents at beginning of year...........
2.2
2.1
4.1
Cash and cash equivalents at end of year.......................
2.6
2.2
2.1
The accompanying notes are an integral part of the financial information.
Company Statement of Changes in Shareholders' Equity
Ordinary IssuedShare Share Premium Retained CapitalRedemption Other
Shares Capital Account Earnings Shares Reserves Total
M EM EM EM EM EM EM
Balance at March 31, 2011…………….. 1,489.6 9.5 659.3 59.6 0.5 25.2 754.1
Comprehensive incomeProfit for the year……..………….…...… - - - 950.0 - - 950.0
Total comprehensive income…………….. - - - 950.0 - - 950.0
Transactions with owners of the Company, recognised directly in equity
Issue of ordinary equity shares…………… 2.5 - 7.1 - - - 7.1
Repurchase of ordinary equity shares…… - - - (124.6) - - (124.6)
Cancellation of repurchased ordinary shares…………………………………… (36.5) (0.2) - - 0.2 - -
Share-based payments……………………. - - - - - (0.7) (0.7)
Transfer of exercised and expired share based awards……………………………... - - - 3.0 - (3.0) -
Balance at March 31, 2012……………... 1,455.6 9.3 666.4 888.0 0.7 21.5 1,585.9
Comprehensive income
Profit for the year……………………....... - - - - - - -
Total comprehensive income…………….. - - - - - - -
Transactions with owners of the Company, recognised directly in equity
Issue of ordinary equity shares…………… 6.5 - 21.4 - - - 21.4
Repurchase of ordinary equity shares…… - - - (67.5) - - (67.5)
Cancellation of repurchased ordinary shares…………………………………… (15.0) (0.1) - - 0.1 - -
Share-based payments……………………. - - - - - 1.9 1.9
Transfer of exercised and expired share based awards……………………………... - - - 9.3 - (9.3) -
Dividend paid……………………………... - - - (491.5) - - (491.5)
Balance at March 31, 2013…………….. 1,447.1 9.2 687.8 338.3 0.8 14.1 1,050.2
Comprehensive income
Profit for the year……………………....... - - - 700.0 - - 700.0
Total comprehensive income…………….. - - - 700.0 - - 700.0
Transactions with owners of the Company, recognised directly in equity
Issue of ordinary equity shares…………… 5.7 - 16.4 - - - 16.4
Repurchase of ordinary equity shares…… - - - (481.7) - - (481.7)
Cancellation of repurchased ordinary shares….………………………………… (69.5) (0.4) - - 0.4 - -
Share-based payments……………………. - - - - - 1.9 1.9
Transfer of exercised and expired share based awards……………………………... - - - 7.0 - (7.0) -
Balance at March 31, 2014…………….. 1,383.3 8.8 704.2 563.6 1.2 9.0 1,286.8
1.9
Transfer of exercised and expired share based awards……………………………...
-
-
-
7.0
-
(7.0)
-
Balance at March 31, 2014……………..
1,383.3
8.8
704.2
563.6
1.2
9.0
1,286.8
The accompanying notes are an integral part of the financial information.
Notes forming part of the Company Financial Statements
29 Basis of preparation and significant accounting policies
The Company financial statements have been prepared in accordance with International Accounting Standards and International
Reporting Standards (collectively "IFRS") as adopted by the European Union (EU), which are effective for the year ended and
as at March 31, 2014. In addition to complying with its legal obligation to comply with IFRS as adopted by the EU, the
consolidated financial statements comply with IFRS as issued by the International Accounting Standards Board ("(IASB").
The consolidated financial statements have also been prepared in accordance with the Companies Acts, 1963 to 2013. On
publishing parent entity financial statements together with group financial statements the Company is taking advantage of
the exemption contained in Section 148(8) of the Companies Act, 1963 not to present its individual income statement,
statement of comprehensive income and related notes that form a part of these approved financial statements.
The Company financial statements are presented in euro millions, being its functional currency. They are prepared on an
historical cost basis except for certain share based payment transactions, which are based on fair values determined at
grant date.
The preparation of financial statements in conformity with IFRS requires management to makejudgements, estimates and
assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses.
These estimates and associated assumptions are based on historical experience and various other factors believed to be
reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of
assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these
estimates. These underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision
and future periods if these are also affected. Principal sources of estimation uncertainty have been set out in the
critical accounting policy section in Note 1 to the consolidated financial statements. Such uncertainties may impact the
carrying value of investments in subsidiaries at future dates.
Statement of compliance
The Company financial statements have been prepared in accordance with IFRS as adopted by the EU. In addition to complying
with its legal obligation to comply with IFRS as adopted by the EU, the Company financial statements comply with IFRS as
issued by the IASB. The Company financial statements have also been prepared in accordance with the Companies Acts, 1963
to 2013.
The directors have reviewed all new or revised IFRS standards and IFRIC interpretations, effective for future financial
years, as set forth in Note 1 to the consolidated financial statements, and have concluded their adoption will not have a
significant impact on the parent entity financial statements.
Share-based payments
The Company accounts for the fair value of share options granted to employees of a subsidiary as an increase in its
investment in that subsidiary. The fair value of such options is determined in a consistent manner to that set out in the
Group share-based payment accounting policy and as set out in Note 15 (c) to the consolidated financial statements.
Income taxes
Income taxes are accounted for by the Company in a manner consistent to that set out in the Group income tax accounting
policy.
Financial assets
The Company holds investments in subsidiary companies, which are carried at cost less any impairments.
Guarantees
The Company occasionally guarantees certain liabilities of subsidiary companies. These are considered to be insurance
arrangements and are accounted for as such i.e. a contingent liability until such time as it becomes probable that the
Company will be required to make a payment under the guarantee. Additional details are provided in Note 34 to the company
financial statements.
Loans and borrowings
All loans and borrowings are initially recorded at the fair value of consideration received, net of attributable
transaction costs. Subsequent to initial recognition, non-current interest bearing loans are measured at amortised cost,
using the effective interest yield methodology.
30 Investments in subsidiaries
EM EM EM
Balance at start of year 103.4 101.5 102.2
New investments in subsidiaries by way of share option grant to subsidiary employees............................................ 1.9 1.9 1.8
Reversal of unvested cumulative share based expense........ - - (2.5)
Balance at end of year 105.3 103.4 101.5
-
(2.5)
Balance at end of year
105.3
103.4
101.5
31 Loans and receivables from subsidiaries
EM EM EM
Due from Ryanair Limited (subsidiary) ....................... 1,214.1 979.8 1,517.5
1,214.1 979.8 1,517.5
Due from Ryanair Limited (subsidiary) .......................
1,214.1
979.8
1,517.5
1,214.1
979.8
1,517.5
All amounts due from subsidiaries are interest free and repayable upon demand.
32 Amounts due to subsidiaries
EM EM EM
Due to Ryanair Limited....................................................... 35.2 35.2 35.2
35.2 35.2 35.2
Due to Ryanair Limited.......................................................
35.2
35.2
35.2
35.2
35.2
35.2
At March 31, 2014, Ryanair Holdings plc had borrowings of E35.2 million (2013: E35.2 million; 2012: E35.2 million) from
Ryanair Limited. The loan is interest free and repayable on demand.
33 Financial instruments
The Company does not undertake hedging activities on behalf of itself or other companies within the Group. Financial
instruments in the Company primarily take the form of loans to subsidiary undertakings.
Amounts due to or from subsidiary undertakings (primarily Ryanair Limited) in the form of inter-company loans are interest
free and are repayable upon demand and further details of these have been given in Notes 31 and 32 of the parent entity
financial statements. These inter-company balances are eliminated in the group consolidation.
The euro is the functional and presentation currency of the Company's balance sheet and all transactions entered into by
the Company are euro denominated. As such, the Company does not have any significant foreign currency risk.
The credit risk associated with the Company's financial assets principally relates to the credit risk of the Ryanair group
as a whole. During the year ended March 31, 2014, Ryanair received a BBB+ (stable) credit rating from Standard and Poor's
and in June 2014, Fitch Ratings also issued a similar credit rating on the Company. Additionally the Company had guaranteed
certain of its subsidiary company liabilities. Details of these arrangements are given in Note 34 to the company financial
statements.
34 Contingencies
a) The Company has provided E4,803.4 million (2013: E5,973.6 million; 2012: E5,503.4 million) in letters of guarantee to
secure obligations of subsidiary undertakings in respect of loans, bank advances and long dated foreign currency
transactions.
b) In order to avail itself of the exemption contained in Section 17 of the Companies (Amendment) Act, 1986, the holding
company, Ryanair Holdings plc, has guaranteed the liabilities of its subsidiary undertakings registered in Ireland. As a
result, the subsidiary undertakings have been exempted from the provisions of Section 7 of the Companies (Amendment) Act,
1986. Details of the Group's principal subsidiaries have been included at Note 27. The Irish subsidiaries of the Group
covered by the Section 17 exemption are listed at Note 27 to the consolidated financial statements also. Eight additional
Irish subsidiaries covered by this exemption, which are not listed as principal subsidiaries at Note 27 to the consolidated
financial statements, are Airport Marketing Services Limited, FRC Investments Limited, Coinside Limited and Mazine
Limited.
35 Dividends
Please refer to Note 25 of the Consolidated Financial Statements.
36 Post-balance sheet events
Please refer to Note 26 of the Consolidated Financial Statements.
37 Date of approval
The Company financial statements were approved by the Board of Directors of the Company on July 25, 2014.
Directors and Other Information
Directors D. Bonderman Chairman
M. Horgan
C. McCreevy
D. McKeon
K. McLaughlin
D. Milliken
M. O'Leary Chief Executive
J. O'Neill
J. Osborne
L. Phelan
Secretary J. Komorek
Registered Office Airside Business Park
Swords
Co. Dublin
Ireland
Auditors KPMG - Chartered Accountants
1 Stokes Place
St. Stephens Green
Dublin 2
Ireland
Principal Bankers Barclays Bank Plc
2 Park Place
Upper Hatch Street
Dublin 2
Ireland
Bank of Ireland
Dublin Airport
Co. Dublin
Ireland
Solicitors &Attorneys at Law A&L Goodbody - Solicitors
International Financial Services Centre
North Wall Quay
Dublin 1
Ireland
Cleary Gottlieb Steen & Hamilton LLP
One Liberty PlazaNew York, NY 10006, United States
APPENDIX A
GLOSSARY
Certain of the terms included in the section on Selected Operating and Other Data and elsewhere in this annual report on
Form 20-F have the meanings indicated below and refer only to Ryanair's scheduled passenger service.
Available Seat Miles ("ASMs")....................... Represents the number of seats available for passengers multiplied by the number of miles those seats were flown.
Average Booked Passenger Fare..................... Represents the average fare paid by a fare-paying passenger who has booked a ticket.
Average Daily Flight Hour Utilization............. Represents the average number of flight hours flown in service per day per aircraft for the total fleet of operated aircraft.
Average Fuel Cost Per U.S. Gallon.................. Represents the average cost per U.S. gallon of jet fuel for the fleet (including fueling charges) after giving effect to fuel hedging arrangements.
Average Length of Passenger Haul................. Represents the average number of miles traveled by a fare-paying passenger.
Ancillary Revenue per Booked Passenger..... Represents the average revenue earned per booked passenger flown from ancillary services.
Average Yield per ASM.................................... Represents the average flown passenger fare revenue for each available seat mile (ASM).
Average Yield per RPM..................................... Represents the average passenger fare revenue for each revenue passenger mile (RPM), or each mile a revenue passenger has flown.
Baggage Commissions....................................... Represents the commissions payable to airports on the revenue collected at the airports for excess baggage and airport baggage fees.
Booked Passenger Load Factor........................ Represents the total number of seats sold as a percentage of total seat capacity on all sectors flown.
Break-even Load Factor..................................... Represents the number of RPMs at which passenger revenues would have been equal to operating expenses divided by ASMs (based on Average Yield per RPM). For the purposes of this calculation, the number of RPMs at which passenger revenues would have been equal to operating expenses is calculated by dividing operating expenses by Average Revenue per RPM.
Cost Per ASM ("CASM")................................. Represents operating expenses (excluding ancillary costs) divided by ASMs.
Cost Per Booked Passenger.............................. Represents operating expenses divided by revenue passengers booked.
Net Margin........................................................... Represents profit after taxation as a percentage of total revenues.
Number of Airports Served............................... Represents the number of airports to/from which the carrier offered scheduled service at the end of the period.
Number of Owned Aircraft Operated............... Represents the number of aircraft owned and operated at the end of the period.
Operating Margin............................................... Represents operating profit as a percentage of total revenues.
Part 145................................................................. The European regulatory standard for aircraft maintenance established by the European Aviation Safety Agency.
Revenue Passenger Miles ("RPMs").............. Represents the number of miles flown by booked fare-paying passengers.
Revenue Passengers Booked........................... Represents the number of fare-paying passengers booked.
Sectors Flown...................................................... Represents the number of passenger flight sectors flown.
This information is provided by RNS
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