Ryanair Holdings plc Annual Report 2013

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FY2013 Annual Report · Ryanair Holdings plc

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CONTENTS

2 Financial Highlights

4 Chairman‟s Report

5 Chief Executive‟s Report

8 Summary Operating and Financial Overview

10 Directors‟ Report

14 Corporate Governance Report

27 Report of the Remuneration Committee on Directors‟ Remuneration

28 Statement of Directors‟ Responsibilities

30 Independent Auditor‟s Report

32 Presentation of Financial and Certain Other Information

34 Detailed Index*

36 Key Information

42 Principle Risks and Uncertainties

58 Information on the Company

82 Operating and Financial Review

87 Critical Accounting Policies

102 Directors, Senior Management and Employees

111 Major Shareholders and Related Party Transactions

112 Financial Information

123 Additional Information

134 Quantitative and Qualitative Disclosures About Market Risk

139 Controls and Procedures

144 Consolidated Financial Statements

200 Company Financial Statements

206 Directors and Other Information

207 Appendix
*See Index on page 34 and 35 for detailed table of contents.

Information on the Company is available online via the Internet at our website, www.ryanair.com.
Information on our website does not constitute part of this Annual Report. This Annual Report and our
20-F are available on our website.

Financial Highlights

Operating revenue (i)

Net profit after tax

Adjusted net profit after tax

Basic EPS (in euro cent)

Adjusted basic EPS (in euro cent)

2013
€M

2012
€M

Change

4,884.0

4,324.9

+13%

569.3

39.45

560.4

+2%

502.6

+13%

38.03

+4%

34.10

+16%

(i)Year ended March 31, 2012 excludes a one off release of ticket sales revenue of €65.3 million. See reconciliation of
profit to adjusted profit for the year on pages 8 and 9.

Key Statistics

Scheduled passengers

Year-end Fleet

Average staff

Passengers per staff member (avg.)

2013 2012 Change

79.3m

75.8m

305

9,059

8,753

294

8,438

8,983

+5%

+4%

+7%

-3%

Chairman‟s Report

Dear Shareholders,

I am pleased to report a 13% increase in profit after tax to a new record of €569m. This was an excellent result
despite a €292m increase in fuel costs which we managed to offset by a 6% rise in average fares and strong
growth in ancillary revenues.

During the year Ryanair delivered a number of significant milestones:

 We grew our traffic by 5% to 79.3m passengers.

 We took delivery of 15 new aircraft for a year-end fleet of 305 Boeing 737-800‘s.

 We opened 7 new bases and 217 new routes bringing our route/network operated to over 1,600.

 We improved our industry leading passenger service with better punctuality, fewer lost bags and less

cancellations.

 We completed a share buyback of €67m in April 2012, and paid a special dividend of €492m in

November, 2012.

Fuel costs in fiscal 2013 as a proportion of our total operating costs have risen to 45%. We are 90% hedged for
fiscal 2014, at approximately US$98 per barrel which is almost another €200m increase in our fuel bill. Oil
price rises and high winter charges at certain airports will make it commercially sound to ground up to 60
aircraft next winter (80 aircraft last year) rather than incur losses operating these aircraft at lower winter yields.
Nevertheless, we still expect passenger volumes in fiscal 2014 to grow by approximately 3% to 82m passengers.

At a recent June 2013 EGM shareholders approved our new 175 aircraft order with Boeing. Net of
disposals/lease returns this will enable Ryanair‘s fleet to increase to 410 aircraft and our traffic to grow by 39%
to 110m by fiscal 2019. We see tremendous opportunity in Europe to increase passenger volumes as our
competitors merge/consolidate, cut short-haul capacity and in some cases exit the industry. This new Boeing
order at prices ―not dissimilar‖ to our previous 2005 order will enable us to grow our business while at the same
time locking in advantageous long term ownership costs in our fleet.

We recently announced Ryanair‘s plans to return a further €1bn to shareholders (subject to shareholder approval
at our AGM in September) via share buybacks and special dividends by the end of fiscal 2015. The
combination of a special dividend and buy backs (subject to shareholder approval) and previous
buybacks/special dividends completed will mean that Ryanair will return €2.53bn to shareholders since 2008
which is unprecedented in the airline industry.

I would like to take this opportunity to thank Klaus Kirchberger for his contribution and commitment to Ryanair
as a director over the last eleven years. Klaus resigned from the board at the end of March 2013 and we wish
him much success in the future. I would also like to warmly welcome three new directors Louise Phelan, Julie
O‘Neill and Dick Milliken. Louise and Julie joined the board in December 2012 while Dick joined in July 2013.
They will all stand for election at the AGM in September, 2013.

We look forward to growing Ryanair to 110m passengers and 410 aircraft by fiscal 2019. The outstanding
people at Ryanair continue to work hard on behalf of shareholders to reduce our costs while at the same time
delivering the lowest fares in Europe for the benefit of our 82m passengers.

Yours sincerely,

David Bonderman
Chairman

Chief Executive‟s Report

Dear Shareholders,

Our results emphasise the enduring strength of Ryanair‘s unique ultra-low cost carrier model (ULCC) in
Europe. Ryanair delivered a 13% increase in profits to a record €569m. Our traffic grew 5% to 79.3m, as load
factor remained stable at 82% and average fare (which includes optional checked in bag fees) improved by 6%
to over €48. Turnover rose 13% to €4,884m as ancillary revenues grew by 20% to €1,064m.

Operating costs rose 12% to €4,166m mainly due to a €292m (18%) increase in our fuel bill to €1,886m and
excessive unjustified price increases at Spanish Airports, where the Government owned AENA monopoly
continues to raise airport fees while presiding over record traffic declines. Over the past 5 years, despite
wasting millions on new - and unnecessary - terminals, AENA‘s traffic has declined from 210m in 2007 to less
than 180m currently. Ryanair has made offers to AENA to reverse these declines and create thousands of jobs
in Spanish tourism, but to date these offers have not been accepted.

Ryanair welcomed Manchester Airport Group‘s (MAG) purchase of Stansted Airport in March 2013. We are in
active discussions with MAG about a rapid traffic growth plan and we hope these talks will lead to a growth
deal which will reverse the past 6 years of record traffic falls at Stansted, where the CAA‘s ‗inadequate‘
regulatory regime has allowed prices to double and traffic to decline by 25% from 24m to 18m since 2007. We
believe that competition between airports should now deliver a better deal for Stansted users, where the CAA
has repeatedly failed.

Our recent firm order for 175 Boeing 737-800 aircraft clears the way for Ryanair to resume strong growth in
fleet, routes and traffic over the 5 year period from fiscal 2015 to 2019. The fact that we have secured phased
deliveries over this period at pricing which is ―not dissimilar‖ to our previous (2005) order emphasises the
importance of Ryanair‘s long-term commitment to, and our partnership with, Boeing. We have set up a senior
team to study the B737-MAX and we have tasked them with reporting back before the end of September.
Subject to reaching commercial terms with Boeing we would hope to finalise a follow-on order sometime before
the end of this fiscal year but there is no certainty that an agreement can be reached by that deadline. Ryanair‘s
success to date has been built on our selection of Boeing aircraft, and while we would not rule out a second
aircraft type, we are confident that this new 175 aircraft order will provide a basis for another 5 years of strong
growth in traffic, profits and shareholder returns

Our passengers
Ryanair delivers Europe‘s No. 1 customer service for the benefit of our passengers, our people and our
shareholders. We continue to grow by delivering lower fares, better punctuality, fewer lost bags, which is why
we receive fewer passenger complaints than any other major airline in Europe.

Despite the current EU recession, and the spread of austerity measures, Ryanair‘s lowest fares continue to
encourage passengers to travel, and more importantly to switch to Ryanair‘s low fares. Ryanair beats every
other airline on price on every flight, every route, every day. We have grown to carry over 79.3m passengers
and IATA‘s 2012 traffic statistics confirm that Ryanair carries far more international passengers than any other
scheduled airline, making Ryanair the ―world‘s favourite airline‖. Over the past year, Ryanair welcomed 79.3m
passengers onboard, at an average fare of just €48, which meant that these passengers saved over €7bn
compared to the high fares charged by our competitor‘s including Air France, British Airways, Easyjet and
Lufthansa.

Source IATA (calendar year 2012)

Ryanair‘s growth and profitability is not based solely on price. In addition to the lowest fares in every market
last year, Ryanair also delivered:



The best punctuality

93% of flights on-time (up 2%).



Fewest lost bags



Fewest complaints



Youngest fleet



Rapid complaint responses

We lost less than 1 bag for every 3,000 passengers carried, an
improvement on the prior year

Last year we received less than 1 complaint per 2,000
passengers, an improvement on the prior year

The average age of our 305 aircraft at year end is approximately
4.5 years.
Over 99% replied to within 7 days.



The world‟s greenest airline

Independent
greenest/cleanest airline.

research confirms Ryanair

the world‘s

Our people
Over the past year average staff numbers in Ryanair rose to 9,059. Within this number, more than 350 people
were promoted, as our growth created new opportunities for career progression and development. Our people
know that they can advance their careers by taking advantage of Ryanair‘s commitment to promote from within
wherever possible. At a time when many European airlines are cutting jobs, or cutting pay (as in the case of Air
Berlin, Iberia and SAS in recent months), Ryanair is proud of its long-standing record of job creation, pay
increases and internal promotions and, above all, job security.

Our shareholders
Unlike other airlines, Ryanair continues to deliver substantial returns for shareholders. In Ryanair our Board
and Management team hold a significant stake in the company, which means we think and act like shareholders,
precisely because we are significant shareholders.

Ryanair‘s increased profits and rising cash reserves allowed our Board to make a second special dividend of
€0.34 per share (approx. €492m) to shareholders in November 2012. We have completed a further share
buyback in June 2013 amounting to €177m. As a result of our continued growth, the Board has indicated its
intention to make a further share buyback of up to €223m in fiscal year 2014, as well as return of up to €600.0m
to shareholders through a third special dividend and/or share buyback in fiscal year 2015 representing a €1 bn
return to shareholders over a two year period. This will bring the total Ryanair has returned to shareholders to
more than €2.53bn since fiscal year 2008.

It is a remarkable fact that having raised just €585m from our flotation and four secondary offers between 1997
and 2002 Ryanair will now return almost 5 times this amount (over €2.5bn) to shareholders by the end of 2015.

Ryanair continues to look for opportunities to invest our cash wisely. While we have now finalized a firm 175
aircraft order which will enable us to grow to 110m passengers annually by fiscal year 2019, we hope to
continue to manage this growth in a controlled, safe and profitable manner. Our history has shown that we only
order aircraft when we believe that pricing will make it profitable for our shareholders to do so and we believe
we have achieved this again with our latest order.

Finally, I would like to sincerely thank our Chairman, my fellow Board members, our Managers and all the team
at Ryanair for their hard work and commitment over the past year, which has helped us deliver another year of
low fare traffic growth and record profits for the benefit of our passengers, our people and our shareholders.

Yours sincerely,

Michael O‘Leary
Chief Executive

Summary Operating and Financial Overview

Consolidated Income Statement Data

IFRS

Year

Ended

Mar 31,

2013

€M

Pre

Exceptional

Results

Mar 31,

2012

€M

Items

Mar 31,

2012

€M

IFRS

Year

Ended

Mar 31,

2012

€M

Operating revenues
Scheduled revenues ...........................................................................................
Ancillary revenues .............................................................................................
Total operating revenues- continuing operations

3,819.8
1,064.2
4,884.0

Operating expenses
Staff costs ......................................................................................................... .
Depreciation .......................................................................................................
Fuel and oil ....................................................................................................... .
Maintenance, materials and repairs ....................................................................
Aircraft rentals .................................................................................................. .
Route charges ................................................................................................... .
Airport and handling charges ............................................................................ .
Marketing, distribution & other ........................................................................ .
Total operating expenses
Operating profit – continuing operations

435.6
329.6
1,885.6
120.7
98.2
486.6
611.6
197.9
4,165.8
718.2

Other income / (expense)
Finance income ..................................................................................................
Finance expense .................................................................................................
Foreign exchange gains .....................................................................................
Gain on disposal of property, plant & equipment ..............................................
Total other expense
Profit before tax

27.4
(99.3)
4.6
-
(67.3)
650.9

3,438.7
886.2
4,324.9

415.0
309.2
1,593.6
104.0
90.7
460.5
554.0
180.0
3,707.0
617.9

44.3
(109.2)
4.3
10.4
(50.2)
567.7

65.3
-
65.3

-
-
-
-
-
-
-
-
-
65.3

-
-
-
-
-
65.3

3,504.0
886.2
4,390.2

415.0
309.2
1,593.6
104.0
90.7
460.5
554.0
180.0
3,707.0
683.2

44.3
(109.2)
4.3
10.4
(50.2)
633.0

Tax on profit on ordinary activities .................................................................. ..
Profit for the period - all attributable to equity holders
of parent

(81.6)

569.3

(65.1)

(7.5)

(72.6)

502.6

57.8

560.4

Earnings per ordinary share (in € cent)
Basic ................................................................................................................ ..
Diluted ............................................................................................................. ..

39.45
39.33

34.10

34.03

Weighted avg. no. of ordinary shares (in M‟s)
Basic ................................................................................................................. .
Diluted ............................................................................................................. ..

1,443.1
1,447.4

1,473.7
1,477.0

38.03
37.94

1,473.7
1,477.0

Reconciliation of profit for the year under IFRS to adjusted profit for the financial year

Profit for the financial year – IFRS

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

569.3

560.4

Adjustments
One-off revenue adjustment ................................................................

Adjusted profit for the financial year

569.3

(57.8)

502.6

Exceptional items

The Company presents certain items separately, which are unusual, by virtue of their size and incidence,
in the context of our ongoing core operations, as we believe this presentation represents the underlying
business more accurately and reflects the manner in which investors typically analyse the results. Any
amounts deemed ―exceptional‖ for management discussion and analysis purposes, in the Chairman‘s Report
and Chief Executive‘s Report, have been classified for the purposes of the income statement in the same way
as non-exceptional amounts of the same nature.

There were no exceptional items in the year ended March 31, 2013.

Exceptional items in the year ended March 31, 2012 relate to a one-off release of ticket sales revenue of
€57.8 million, net of tax, due to a change in accounting estimates arising from enhancements to our Revenue
Accounting System.

Profit after tax increased by 13% to €569.3 million compared to adjusted profit after tax excluding
exceptional items of €502.6 million in the year ended March 31, 2012. Including exceptional items the profit
after tax for the year increased by 2% from €560.4 million in the year ended March 31, 2012 compared to a
profit of €569.3 million in the year ended March 31, 2013.

Summary year ended March 31, 2013

Profit after tax increased by 13% to €569.3 million compared to €502.6 million in the year ended
March 31, 2012 primarily due to a 6% increase in average fares and strong ancillary revenues, offset by an
18% increase in fuel costs. Total operating revenues increased by 13% to €4,884.0 million as average fares
rose by 6%. Ancillary revenues grew by 20%, faster than the 5% increase in passenger numbers, to €1,064.2
million due to a combination of improved product mix and the roll out of reserved seating across the network.
Total revenue per passenger, as a result, increased by 8%, whilst Load Factor remained flat at 82%
compared to the year ended March 31, 2012.

Total operating expenses increased by 12% to €4,165.8 million, primarily due to an increase in fuel
prices, the higher level of activity, operating costs associated with the growth of the airline, and the strength
of UK pounds sterling to the euro. Fuel, which represents 45% of total operating costs compared to 43% in the
prior year, increased by 18% to €1,885.6 million due to the higher price per gallon paid and increased activity
in the year. Unit costs excluding fuel increased by 3%, including fuel cost per passenger (―unit costs‖) rose
by 8%. Operating margin increased by 1 point to 15% whilst operating profit increased by 16% to €718.2
million.

Net margin remained flat at 12%, compared to March 31, 2012.

Basic earnings per share for the year were 39.45 euro cent compared to basic earnings per share of

34.10 euro cent at March 31, 2012.

N
UAL REPORT & F INANCIAL STATE MENTS 2007
Introduction

Directors‟ Report

The directors submit their Annual Report, together with the audited financial statements of Ryanair

Holdings plc, for the year ended March 31, 2013.

Review of business activities and future developments in the business

The Company operates an ultra low fares airline business and plans to continue to develop this activity by
expanding its successful low fares formula on new and existing routes. Information on the Company is set out
on pages 58 to 82 of the Annual Report. A review of the Company‘s operations for the year is set out on pages
82 to 92 of the Annual Report.

Results for the year

Details of the results for the year are set out in the consolidated income statement on page 145 of the

Annual Report and in the related notes to the financial statements.

Principle risks and uncertainties

Details of the principle risks and uncertainties facing the Company are set forth on pages 42 to 57 of the

Annual Report.

Key performance indicators

Details of the key performance indicators relevant to the business are set forth on pages 41; 58 to 82; and

82 to 92 of the Annual Report.

Financial risk management

Details of the Company‘s financial risk management objectives and policies and exposures to market risk

are set forth in Note 11 on pages 170 to 180 of the consolidated financial statements.

Share capital

The number of ordinary shares in issue at March 31, 2013 was 1,447,051,752 (2012: 1,455,593,261; 2011:
1,489,574,915). Details of the classes of shares in issue and the related rights and obligations are more fully set
out in Note 15 on pages 183 to 185 of the consolidated financial statements.

Accounting records

The directors believe that they have complied with the requirements of Section 202 of the Companies Act,
1990 with regard to books of account by employing financial personnel with appropriate expertise and by
providing adequate resources to the financial function. The books of account of the Company are maintained at
its registered office, Corporate Head Office, Dublin Airport, Co. Dublin, Ireland.

Company information

The Company was incorporated on August 23, 1996 with a registered number of 249885. It is domiciled in
the Republic of Ireland and has its registered offices at Corporate Head Office, Dublin Airport, Co. Dublin,
Ireland. It is a public limited company and operates under the laws of Ireland.

Staff

At March 31, 2013, the Company‘s personnel numbered 9,137 people. This compares to 8,388 people at

March 31, 2012 and 8,560 people at March 31, 2011.

Substantial interests in share capital

Details of substantial interests in the share capital of the Company which represent more than 3% of the
issued share capital are set forth on page 111 of the Annual Report. At March 31, 2013 the free float in shares
was 96%.

Directors and company secretary

The names of the directors are listed on pages 102 and 103 of the Annual Report. The name of the
company secretary is listed on page 107 of the Annual Report. Details of the appointment and re-election of
directors are set forth on page 15 of the Annual Report.

Interests of directors and company secretary

The directors and company secretary who held office at March 31, 2013 had no interests other than those
outlined in Note 19 on page 188 of the consolidated financial statements in the shares of the Company or other
group companies.

Directors‟ and senior executives‟ remuneration

The Company‘s policy on senior executive remuneration is to reward its executives competitively,
having regard to the comparative marketplace in Ireland and the United Kingdom, in order to ensure that they
are properly motivated to perform in the best interests of the shareholders. Details of total remuneration paid
to senior key management (defined as the executive team reporting to the Board of Directors) is set out in
Note 27 on page 199 of the consolidated financial statements.

Executive director‟s service contract

Ryanair entered into an employment agreement with its only executive director, Michael O‘Leary on
July 1, 2002 for a one year period to June 30, 2003. Thereafter, the agreement continues for successive annual
periods but may be terminated with 12 months notice by either party. Mr. O‘Leary is subject to a covenant not
to compete with the Company within the EU for a period of one year after the termination of his employment
with the Company. Michael O‘Leary‘s employment agreement contains no provisions providing for
compensation on its termination.

Dividend policy

Details of the Company‘s dividend policy are disclosed on page 118 of the Annual Report.

Share buy-back

On March 29, 2012, the Company agreed to buy back 15.0 million ordinary shares at a cost of €67.5
million. This trade settled in early April 2012. This is equivalent to approximately 1.0% of the Company‘s
issued share capital. All ordinary shares repurchased have been cancelled. Accordingly, share capital
decreased by 15.0 million ordinary shares with a nominal value of €0.1 million and the capital redemption
reserve increased by a corresponding €0.1 million. The capital redemption reserve is required to be created
under Irish law to preserve permanent capital in the Parent Company. Further details are set out in the table on
page 119 of the Annual Report.

Accountability and audit

The directors have set out their responsibility for the preparation of the financial statements on page 28 to
29. They have also considered the going concern position of the Company and their conclusion is set out on
page 26. The Board has established an Audit Committee whose principal tasks are to consider financial
reporting and internal control issues. The Audit Committee, which consists exclusively of independent non-
executive directors, meets at least quarterly to review the financial statements of the Company, to consider
internal control procedures and to liaise with internal and external auditors. In the year ended March 31, 2013
the Audit Committee met on six occasions. On a quarterly basis the Audit Committee receives an extensive
report from the internal auditor detailing the reviews performed in the year, and a risk assessment of the
Company. This report is used by the Audit Committee and the Board of Directors, as a basis for determining
the effectiveness of internal control. The Audit Committee regularly considers the performance of internal
audit and how best financial reporting and internal control principles should be applied.

In addition, the Audit Committee has responsibility for appointing, setting compensation and overseeing
the work of the independent auditor. The Audit Committee pre-approves all audit and permissible non-audit
services provided by the independent auditor.

Social, environmental and ethical report

See pages 109 to 110 of the Annual Report for details of employee and labour relations.
See pages 79 to 81 of the Annual Report for details on environmental matters.
See page 141 of the Annual Report for details of Ryanair‘s Code of Ethics.

Air safety

Commitment to air safety is a priority of the Company. See page 69 of the Annual Report for details.

Critical accounting policies

Details of the Company‘s critical accounting policies are set forth on pages 87 to 88 of the Annual

Report.

Subsidiary companies

Details of the principal subsidiary undertakings are disclosed in Note 27 on page 199 of the consolidated

financial statements.

Political contributions

During the financial years ended March 31, 2013, 2012 and 2011 the Company made no political

contributions which require disclosure under the Electoral Act, 1997.

Corporate Governance Statement

The Corporate Governance Statement on pages 14 to 26 forms part of the Directors‘ Report.

Post balance sheet events

Details of significant post balance sheet events are set forth in Note 26 on page 198 of the

consolidated financial statements.

On May 27, 2013 the Company issued a Class 1 circular to shareholders seeking their approval for
the purchase of 175 new Boeing 737-800NG aircraft, with a list value of approximately US$14.2 billion, in
advance of an EGM. The EGM was held June 18, 2013 and shareholders approved the transaction. In
accordance with the terms of the contract entered into with Boeing, the Group made stage payments to Boeing
in April, May and June 2013 in relation to the purchase of these aircraft.

In June 2013 the Company bought back 24.1 million ordinary shares at a total cost of €176.6 million,
for cancellation. Cumulatively these buy-backs are equivalent to 1.7% of the issued share capital of the
Company. Also in June 2013 the Company detailed plans to return up to €1 billion to shareholders over the
next two years with at least €400.0 million (€176.6 million already completed in June 2013) in share buybacks
to be completed in fiscal year 2014 and a further €600.0 million in either special dividends or share buybacks
in fiscal year 2015 subject to current fuel, yields and profitability trends continuing.

Auditor

In accordance with Section 160(2) of the Companies Act 1963, the auditor KPMG, Chartered

Accountants, will continue in office.

Annual General Meeting

The Annual General Meeting will be held on September 20, 2013 at 9a.m. in the Radisson Blu Hotel,

Dublin Airport, Co. Dublin, Ireland.

On behalf of the Board

David Bonderman
Chairman
July 26, 2013

Michael O‟ Leary
Chief Executive

Corporate Governance Report

Ryanair has its primary listing on the Irish Stock Exchange, a standard listing on the London Stock
Exchange and its American Depositary Shares are listed on the NASDAQ. The directors are committed to
maintaining the highest standards of corporate governance and this statement describes how Ryanair has applied
the main and supporting principles of the 2010 Edition of the UK Corporate Governance Code (the 2010 Code).
This Report also covers the disclosure requirements set out in the corporate governance annex to the listing rules
of the Irish Stock Exchange, which supplements the 2010 Code with additional corporate governance provisions
and is also applicable to Ryanair.

A copy of the 2010 Code can be obtained from the FRC‘s website, www.frc.org.uk. The Irish

Corporate Governance Annex is available on the Irish Stock Exchange‘s website, www.ise.ie.

In September 2012, the FRC introduced changes to the UK Corporate Governance Code. The new
edition of the code is to apply to financial periods beginning on or after October 1, 2012, accordingly Ryanair
will apply as appropriate from fiscal year ended March 31, 2013.

The Board of Directors (the Board)

Roles

The Board of Ryanair is responsible for the leadership, strategic direction and overall management of the
Group. The Board‘s primary focus is on strategy formulation, policy and control. It has a formal schedule of
matters specifically reserved to it for its attention, including matters such as appointment of senior management,
approval of the annual budget, large capital expenditure, and key strategic decisions.

The Board has delegated responsibility for the management of the Group to the Chief Executive and

executive management.

There is a clear division of responsibilities between the Chairman and the Chief Executive, which is set out

in writing and has been approved by the Board.

Chairman

David Bonderman has served as the chairman of the Board since December 1996. The Chairman‘s primary
responsibility is to lead the Board, to ensure that it has a common purpose, is effective as a group and at
individual director level and that it upholds and promotes high standards of integrity and corporate governance.
He ensures that Board agendas cover the key strategic issues confronting the Group; that the Board reviews and
approves management‘s plans for the Group; and that directors receive accurate, timely, clear and relevant
information.

The Chairman is the link between the Board and the Company. He is specifically responsible for
establishing and maintaining an effective working relationship with the Chief Executive, for ensuring effective
and appropriate communications with shareholders and for ensuring that members of the Board develop and
maintain an understanding of the views of shareholders.

While David Bonderman holds a number of other directorships (See details on page 102), the Board

considers that these do not interfere with the discharge of his duties to Ryanair.

Senior Independent Director

The Board has appointed James Osborne as the Senior Independent Director. James Osborne is available to
shareholders who have concerns that cannot be addressed through the Chairman, Chief Executive or Chief
Financial Officer and leads the annual Board review of the performance of the Chairman.

Company Secretary

The appointment and removal of the Company Secretary is a matter for the Board. All directors have
access to the advice and services of the Company Secretary, who is responsible to the Board for ensuring that
Board procedures are complied with.

Membership

The Board consists of one executive and nine non-executive directors. It is the practice of Ryanair that a
majority of the Board comprises non-executive directors, considered by the Board to be independent, and that
the Chairman is non-executive. Significant new and relevant experience has been added in the period since the
year ended March 31, 2012 and the Board considers the current size, composition and diversity, of the Board to
be within a range which is appropriate. The composition of the Board and the principal Board Committees are
set out in the table below. Brief biographies of the directors are set out on page 102. The Board, with the
assistance of the Nomination Committee, keeps Board composition under review to ensure that it includes the
necessary mix of relevant skills and experience required to perform its role.

Each director has extensive business experience, which they bring to bear in governing the Company. The
Board considers that, between them, the directors bring the range of skills, knowledge and experience, including
international experience, necessary to lead the Company. The Company has a Chairman with an extensive
background in this industry, and significant public company experience. Historically, the Company has always
separated the roles of Chairman and Chief Executive for the running of the business and implementation of the
Board‘s strategy and policy.

Name

Role

Independent

Years
on
board

Audit Remuneration Nomination

Executive

Air
Safety

David
Bonderman
Michael
Horgan
Charles
McCreevy
Declan
McKeon
Kyran
McLaughlin
Dick
Milliken*
Michael
O‘Leary
Julie
O‘Neill*
James R.
Osborne
Louise
Phelan*

Chairman

Non
Executive
Non
Executive
Non
Executive
Non
Executive
Non
Executive
Chief
Executive
Non
Executive
Senior
Independent
Non
Executive

Yes

Member

Chair

Member

17 Member

Chair

Member

Chair

Member

Chair

* Julie O‘Neill and Louise Phelan were appointed to the Board effective from December 13, 2012 and Dick Milliken was
appointed effective from July 26, 2013.

Appointment

Directors can only be appointed following selection by the Nomination Committee and approval by the
Board and must be elected by the shareholders at the Annual General Meeting following their appointment.
Ryanair‘s Articles of Association require that all of the directors retire and offer themselves for re-election
within a three-year period. One third (rounded down to the next whole number if it is a fractional number) of the
directors (being the directors who have been longest in office) will retire by rotation and be eligible for re-
election at every Annual General Meeting. Accordingly Charles McCreevy and Declan McKeon will be offering
themselves for re-election at the AGM on September 20, 2013. In addition Louise Phelan, Julie O‘Neill and
Dick Milliken will be offering themselves for election.

In accordance with the recommendations of the 2010 Code, Declan McKeon is Chairman of the Audit
Committee and James Osborne, the senior non-executive director, is Chairman of the Remuneration Committee.

Senior Management regularly briefs the Board including new members in relation to operating, financial
and strategic issues concerning the Company. The Board also have direct access to senior management as
required in relation to any issues they have concerning the operation of the Company. The terms and conditions
of appointment of non-executive directors are set out in their letters of appointment, which are available for
inspection at the Company‘s registered office during normal office hours and at the Annual General Meeting of
the Company.

Independence

The Board has carried out its annual evaluation of the independence of each of its non-executive directors,
taking account of the relevant provisions of the 2010 Code, namely, whether the directors are independent in
character and judgement and free from relationships or circumstances which are likely to affect, or could appear
to affect, the directors‘ judgment. The Board regards all of the directors as independent and that no one
individual or one grouping exerts an undue influence on others.

The Board has considered Kyran McLaughlin's independence given his role as Deputy Chairman and Head
of Capital Markets at Davy Stockbrokers. Davy Stockbrokers are one of Ryanair's corporate brokers and provide
corporate advisory services to Ryanair from time to time. The Board has considered the fees paid to Davy
Stockbrokers for these services and believe that they are immaterial to both Ryanair and Davy Stockbrokers
given the size of each organisation's business operations and financial results. Having considered this
relationship, the Board has concluded that Kyran McLaughlin continues to be an independent non-executive
director within the spirit and meaning of the 2010 Code Rules.

The Board has also considered the independence of David Bonderman given his shareholding in Ryanair
Holdings plc. As at March 31, 2013, David Bonderman had a beneficial shareholding in the Company of
9,230,671 ordinary shares, equivalent to 0.64% of the issued share capital. Having considered this shareholding
in light of the number of issued shares in Ryanair Holdings plc and the financial interest of the director, the
Board has concluded that the interest is not so material as to breach the spirit of the independence rule contained
in the 2010 Code.

The Board has further considered the independence of Messrs. David Bonderman, James Osborne, Kyran
McLaughlin and Michael Horgan as they have each served more than nine years on the Board. The Board
considers that each of these directors is independent in character and judgment as each has other significant
commercial and professional commitments and each brings his own level of senior experience gained in their
fields of international business and professional practice. When arriving at this decision, the Board has taken
into account the comments made by the FRC in their report dated December, 2009 on their review of the impact
and effectiveness of the 2010 Code, in particular their comment that independence is not the primary
consideration when assessing the composition of the Board, and that the over-riding consideration should be that
the Board is fit for purpose. For these reasons, and also because each director‘s independence is considered
annually by the Board, the Board considers it appropriate that these directors have not been offered for annual
re-election as is recommended by the 2010 Code. The Nominations Committee have confirmed to the Board
that they consider the directors offering themselves for re-election at the 2013 AGM to be independent and that
they continue to effectively contribute to the work of the Board. The Nominations Committee recommends that
the Company accept the re-election of the directors.

Board Procedures

All directors have access to the advice and services of the Company Secretary and the Board has
established a procedure whereby directors wishing to obtain advice in the furtherance of their duties may take
independent professional advice at the Company‘s expense.

Directors meet with key executives with a particular focus on ensuring non-executive directors are fully
informed on issues of relevance to Ryanair and its operations. Extensive papers on key business issues are
provided to all directors in connection with the Board meetings. All directors are encouraged to update and
refresh their skills and knowledge, for example, through attending courses on technical areas or external
briefings for non-executive directors.

On appointment in December 2012, the directors Louise Phelan and Julie O‘Neill had briefings with the
senior management of the Company, covering a review of the business of the Group and their specific areas of
finance, commercial, personnel and operations. Similar briefings will also be provided to Dick Milliken, the
newly appointed director.

The Company has Directors & Officers liability insurance in place in respect of any legal actions taken
against the directors in the course of the exercise of their duties. New non-executive directors are encouraged
to meet the executive director and senior management for briefing on the Company‘s developments and plans.

Meetings

The Board meets at least on a quarterly basis and in the year to March 31, 2013 the Board convened
meetings on nine occasions. Individual attendance at these meetings is set out in the table on page 22. Detailed
Board papers are circulated in advance so that Board members have adequate time and information to be able
to participate fully at the meeting.

The holding of detailed regular Board meetings and the fact that many matters require Board approval,
show that the running of the Company is firmly in the hands of the Board. The non-executive directors meet
periodically without executives being present. Led by the senior independent director, the non-executive
directors will meet without the chairman present at least annually to appraise the chairman‘s performance and
on such other occasions as are deemed appropriate.

Remuneration

Details of remuneration paid to the directors are set out in Note 19 to the consolidated Financial
Statements on pages 188 to 190. Also, please see the Report of the Remuneration Committee on Directors‘
Remuneration on page 27.

Non-executive directors

Non-executive directors are remunerated by way of directors‘ fees. A number of non-executive directors
have share options. While the 2010 Code notes that the remuneration of the non-executive director should not
include share options, the Board believes that the quantum of options granted to non-executive directors is not
so significant as to raise any issue concerning their independence. Michael Horgan is remunerated on a
consultancy basis on safety issues and also by way of share options.

Full details are disclosed in Note 19(b) and 19(d) on pages 189 to 190 of the consolidated financial

statements.

Executive director remuneration

The Chief Executive of the Company is the only executive director on the Board. In addition to his base
salary he is eligible for a performance bonus of up to 100% of salary and other bonuses dependent upon the
achievement of certain financial targets and a pension. It is considered that the significant shareholding of the
Chief Executive acts to align his interests with those of shareholders and gives him a keen incentive to
perform to the highest levels.

Full details of the executive director‘s remuneration are set out in Note 19(a) on page 189 of the

consolidated financial statements.

Share Ownership and Dealing

Details of the directors‘ interests in Ryanair shares are set out in Note 19(d) on page 190 of the

consolidated financial statements.

The Board has adopted The Model Code, as set out in the Listing Rules of the Irish Stock Exchange and
the UK Listing Authority, as the code of dealings applicable to dealings in Ryanair shares by directors and
relevant Company employees. The code of dealing also includes provisions which are intended to ensure
compliance with US securities laws and regulations of the NASDAQ National market. Under the policy,
directors are required to obtain clearance from the Chairman or Chief Executive before dealing in Ryanair
shares, whilst relevant Company employees must obtain clearance from designated senior management and
are prohibited from dealing in the shares during prohibited periods as defined by the Listing Rules and at any
time at which the individual is in possession of inside information (as defined in the Market Abuse (Directive
2003/6/EC) Regulations 2005).

Board Succession and Structure

The Board plans for its own succession with guidance from the Nomination Committee. The
Nomination Committee regularly review the structure, size and composition (including the skills, knowledge
and experience) required of the Board compared to its current position with regard to the strategic needs of
Ryanair and recommends changes to the Board. There is a formal, thorough and transparent procedure for the
appointment of new directors to the Board. The Nominations Committee identifies and selects candidates on
merit against objective criteria, to ensure that the Board have the skills, knowledge and expertise required.

Three new independent directors, Louise Phelan and Julie O‘Neill were appointed in December 2012
while Dick Milliken was appointed in July 2013. The Board currently comprises of ten directors, Chief
Executive Officer, Michael O‘ Leary, is the only executive director. The nine non-executive directors include
Chairman David Bonderman. Biographies of all current directors are set out on pages 102 of this report. Ryanair
considers that the Board has the correct balance and depth of skills, knowledge, expertise and experience to
optimally lead the Company and that all directors give adequate time to the performance of their duties and
responsibilities.

Ryanair considers that all directors discharge their directorial duties with the objectivity and
impartiality they have demonstrated since commencing their respective roles and has determined that each of the
non-executive directors is independent. In reaching that conclusion, Ryanair considered the character,
judgement, objectivity and integrity of each director and had due regard for the 2010 Code and the new 2012
Code which will apply to Ryanair from April 1, 2013. Ryanair continually endeavors to maintain the quality and
independence of its Board.

Board Committees

The Board of Directors has established a number of committees, including the following:

Executive Committee

The Board of Directors established the Executive Committee in August 1996. The Executive Committee
can exercise the powers exercisable by the full Board of Directors in circumstances in which action by the
Board of Directors is required but it is impracticable to convene a meeting of the full Board of Directors.
Messrs. David Bonderman, Michael O‘Leary, Kyran McLaughlin and James Osborne are the members of the
Executive Committee.

Audit Committee

The Board of Directors established the Audit Committee in September 1996. The Audit Committee
currently comprises three independent non-executive directors, Declan McKeon (Chairman), Charles
McCreevy and James Osborne, considered by the Board to be independent. The Board has determined that
Declan McKeon is the Committee‘s financial expert.

The Committee met six times during the year ended March 31, 2013. Individual attendance at these
meetings is set out in the table on page 22. It can be seen from the director biographies, appearing on page
102, that the members of the Committee bring to it a wide range of experience and expertise. The Chief
Financial Officer, Finance Director, Financial Controller and the Head of Internal Audit normally attend
meetings of the Committee. The external auditors attend as required and have direct access to the Committee
Chairman at all times. The Committee also meets separately at least once a year with the external auditors and
with the Head of Internal Audit without executive management being present.

The role and responsibilities of the Audit Committee are set out in its written terms of reference, which

are available on the Company‘s website www.ryanair.com, and include:

 monitoring the integrity of the financial statements of the Company and any formal announcements
relating to the Company‘s financial performance including profit guidance, and reviewing significant
financial reporting judgments contained in them;

 reviewing the interim and annual financial statements before submission to the Board;

 reviewing the effectiveness of the Group‘s internal financial controls and risk management systems;

 monitoring and reviewing the effectiveness of the Company‘s Internal auditors;

 considering and making recommendations to the Board in relation to the appointment, reappointment

and removal of the external auditors and approving their terms of engagement;

 making recommendations concerning the engagement of independent chartered accountants; reviewing
with the accountants the plans for and scope of each annual audit, the audit procedures to be utilised
and the results of the audit;

 approving the remuneration of the external auditors, whether fees for audit or non audit services, and

ensuring the level of fees is appropriate to enable an adequate audit to be conducted;

 assessing annually the independence and objectivity of the external auditors and the effectiveness of the
audit process, taking into consideration relevant professional and regulatory requirements and the
relationship with the external auditors as a whole, including the provision of any non audit services;
and

 reviewing the Group‘s arrangements for its employees to raise concerns, in confidence, about possible
wrongdoing in financial reporting or other matters and ensuring that these arrangements allow
proportionate and independent investigation of such matters and appropriate follow up action.

These responsibilities of the Committee are discharged in the following ways:

 The Committee reviews the interim and annual reports as well as any formal announcements relating to
the financial statements and guidance before submission to the Board. The review focuses particularly
on any changes in accounting policy and practices, major judgmental areas and compliance with stock
exchange, legal and regulatory requirements. The Committee receives reports at the meeting from the
external auditors identifying any accounting or judgmental issues requiring its attention;

 The Committee also meets with external auditors to review the Annual Report, which is filed annually
with the United States Securities and Exchange Commission and with the Irish Companies Office;

 The Committee regularly reviews Turnbull Risk management reports completed by management;

 The Committee conducts an annual assessment of the operation of the Group‘s system of internal
control based on a detailed review carried out by the internal audit department. The results of this
assessment are reviewed by the Committee and are reported to the Board;

 The Committee makes recommendations to the Board in relation to the appointment of the external
auditor. Each year, the Committee meets with the external auditor and reviews their procedures and the
safeguards which have been put in place to ensure their objectivity and independence in accordance
with regulatory and professional requirements;

 The Committee reviews and approves the external audit plan and the findings from the external audit of

the financial statements;

 On a semi annual basis, the Audit Committee receives an extensive report from the Head of Internal

Audit detailing the reviews performed during the year and a risk assessment of the company;

 The Head of Internal Audit also reports to the Committee on other issues including, in the year under
review, updates in relation to Section 404 of the Sarbanes-Oxley Act 2002 and the arrangements in
place to enable employees to raise concerns, in confidence, in relation to possible wrongdoing in
financial reporting or other matters. (A copy of Section 404 of the Sarbanes-Oxley Act 2002 can be
obtained from the United States Securities and Exchange Commission‘s website, www.sec.gov); and

 The Committee has a process in place to ensure the independence of the audit is not compromised,
which includes monitoring the nature and extent of services provided by the external auditors through
its annual review of fees paid to the external auditors for audit and non-audit work. Details of the
amounts paid to the external auditors during the year for audit and other services are set out in Note
19 on page 188.

In accordance with the recommendations of the 2010 Code, an independent non-executive director,
Declan McKeon, is the chairman of the Audit Committee. All members of the Audit Committee are
independent for purposes of the listing rules of the NASDAQ and the U.S. federal securities laws.

The terms of Reference of the Audit Committee are reviewed annually.

Remuneration Committee

The Board of Directors established the Remuneration Committee in September 1996. This committee
has authority to determine the remuneration of senior executives of the Company and to administer the stock
option plans described below. Senior Management remuneration is comprised of a fixed basic pay and
performance related bonuses which are awarded based on a combination of the achievement of individual
objectives and the Company‘s financial performance. The Board of Directors as a whole determines the
remuneration and bonuses of the Chief Executive Officer, who is the only executive director. James Osborne,
Louise Phelan and Julie O‘Neill are the members of the Remuneration Committee.

The role and responsibilities of the Remuneration Committee are set out in its written terms of reference,
which are available on the Company‘s website www.ryanair.com. The terms of Reference of the
Remuneration Committee are reviewed annually.

Nomination Committee

Messrs. David Bonderman, Michael O‘Leary and Kyran McLaughlin are the members of the Nomination
Committee. The Nomination Committee assists the Board in ensuring that the composition of the Board and its
Committees is appropriate to the needs of the Company by:






assessing the skills, knowledge, experience and diversity, required on the Board and the extent to
which each are represented;
establishing processes for the identification of suitable candidates for appointment to the Board; and
overseeing succession planning for the Board and senior management.

The role and responsibilities of the Nomination Committee are set out in its written terms of reference,
which are available on the Company‘s website www.ryanair.com. The terms of Reference of the Nomination
committee are reviewed annually.

On December 13, 2012, upon recommendations of the Nomination Committee, the Board appointed Louise
Phelan and Julie O‘Neill to the positions of non-executive directors. Similarly Dick Milliken was appointed to
the board upon recommendation of the Nomination Committee on July 26, 2013. Their biographies can be
found on page 103. Their appointment followed a process undertaken by the Nomination Committee which
carefully considered the Board‘s requirements, identified suitable candidates, in terms of quality of individual,
qualification and experience, and made recommendations to the Board. The Nomination Committee used their
extensive business and professional contacts to identify suitable candidates.

Air Safety Committee

The Board of Directors established the Air Safety Committee in March 1997 to review and discuss air
safety and related issues. The Air Safety Committee reports to the full Board of Directors each quarter. The Air
Safety Committee is composed of Michael Horgan (who acts as the chairman), as well as the following
executive officers of Ryanair: Messrs. Ray Conway, Michael Hickey, David O‘Brien and Edward Wilson.

Code of Business Conduct

Ryanair‘s standards of integrity and ethical values have been established and are documented in Ryanair‘s
Code of Business Conduct. This code is applicable to all Ryanair employees. There are established channels for
reporting code violations or other concerns in a confidential manner. The Head of Internal Audit investigates
any instances and reports findings directly to the Audit Committee. The Code is available on the Company‘s
website, www.ryanair.com.

Attendance at Board and Committee meetings during the year ended March 31, 2013:

Board

Audit

Air Safety Remuneration Executive Nomination

David Bonderman

Michael Horgan

Klaus Kirchberger (i)

Charles McCreevy

Declan McKeon

Kyran McLaughlin

Michael O‘Leary

Julie O‘Neill (ii)

James R. Osborne

Louise Phelan (iv)

Paolo Pietrogrande (v)

9/9

7/9

9/9

4/4

8/9

3/4

3/5

6/6

4/4

1/1

8/8

2/2

8/8

7/8

2/2

2/2 (iii)

(i) Klaus Kirchberger retired from the Board of Directors on March 31, 2013
(ii) Julie O‘Neill was appointed to the Board of Directors on December 13, 2012
(iii) James Osborne attended these meetings in his role as the Senior Independent Director
(iv) Louise Phelan was appointed to the Board of Directors on December 13, 2012
(v) Paolo Pietrogrande retired from the Board of Directors on September 21, 2012

Performance Evaluation

The Board has established a formal process to annually evaluate the performance of the Board, that of its
principal Committees, the Audit, Nomination and Remuneration committees, and that of the Chief Executive,
the Chairman and individual non-executive directors. The Board anticipates that the formal evaluation will be
completed yearly. Based on the evaluation process completed, the Board considers that the principal
Committees have performed effectively throughout the year. As part of the Board evaluation of its own
performance, questionnaires are circulated to all directors. The questionnaire is designed to obtain directors‘
comments regarding the performance of the Board, the effectiveness of Board communications, the ability of
directors to contribute to the development of strategy and the effectiveness with which the Board monitors
risk and oversees Ryanair‘s progress. Directors are also invited to make recommendations for improvement.

The Chairman, on behalf of the Board, reviews the evaluations of performance of the non-executive
directors on an annual basis. The non-executive directors, led by the Senior Independent Director, meet
annually without the Chairman present to evaluate his performance, having taken into account the views of the
executive director. The non-executive directors also evaluate the performance of the executive director. These
evaluations are designed to determine whether each director continues to contribute effectively and to
demonstrate commitment to the role.

The Audit, Nomination and Remuneration committees carry out annual reviews of their own
performance and terms of reference to ensure they are operating at maximum effectiveness and recommend
any changes they consider necessary to the Board for approval.

The Board considers the results of the evaluation process and any issues identified. The above
evaluations were conducted in May 2012 and were presented to the Board at the September 2012 Board
meeting in respect of the year under review.

Shareholders

Ryanair recognises the importance of communications with shareholders. Ryanair communicates with all
of its shareholders following the release of quarterly and annual results directly via road shows, investor days
and/or by conference calls. The Chief Executive, senior financial, operational, and commercial management
participate in these events.

During the year ended March 31, 2013 the Company held discussions with a substantial number of

institutional investors.

The Board is kept informed of the views of shareholders through the executive director‘s and executive
management‘s attendance at investor presentations and results presentations. Furthermore, relevant feedback
from such meetings and investor relations analyst reports are provided to the entire Board on a regular basis.
In addition, the Board determines, on a case by case basis, specific issues where it would be appropriate for
the Chairman and/or Senior Independent Director to communicate directly with shareholders or to indicate
that they are available to communicate if shareholders so wish. If any of the non-executive directors wishes to
attend meetings with major shareholders, arrangements are made accordingly.

General Meetings

All shareholders are given adequate notice of the AGM at which the Chairman reviews the results and
comments on current business activity. Financial, operational and other information on the Company is
provided on our website at www.ryanair.com.

Ryanair will continue to propose a separate resolution at the AGM on each substantially separate issue,
including a separate resolution relating to the Directors‘ Report and financial statements. In order to comply
with the 2010 Code, proxy votes will be announced at the AGM, following each vote on a show of hands,
except in the event of a poll being called. The Board Chairman and the Chairmen of the Audit and
Remuneration Committees are available to answer questions from all shareholders.

The Chief Executive makes a presentation at the Annual General Meeting on the Group‘s business and
its performance during the prior year and answers questions from shareholders. The AGM affords
shareholders the opportunity to question the Chairman and the Board.

All holders of Ordinary Shares are entitled to attend, speak and vote at general meetings of the
Company, subject to limitations described under note ―Limitations on the Right to Own Shares‖ on page 124.
In accordance with Irish company law, the Company specifies record dates for general meetings, by which
date shareholders must be registered in the Register of Members of the Company to be entitled to attend.
Record dates are specified in the notes to the Notice convening the meeting.

Shareholders may exercise their right to vote by appointing a proxy/proxies, by electronic means or in
writing, to vote some or all of their shares. The requirements for the receipt of valid proxy forms are set out in
the notes to the Notice convening the Meeting.

A shareholder or group of shareholders, holding at least 5% of the issued share capital has the right to
requisition a general meeting. A shareholder, or a group of shareholders, holding at least 3% of the issued
share capital of the Company, has the right to put an item on the agenda of an AGM or to table a draft
resolution for an item on the agenda of the general meeting provided that such item is accompanied by reasons
justifying its inclusion or the full text of any draft resolution proposed to be adopted at the general meeting. A
request by a member to put an item on the agenda or to table a draft resolution shall be received by the
company in hardcopy form or in electronic form at least 42 days before the AGM to which it relates.

Notice of the Annual General Meeting and the Form of Proxy are sent to shareholders at least twenty-
one working days before the meeting. The Company‘s Annual Report is available on the Company‘s website,
www.ryanair.com. The 2013 Annual General Meeting will be held at 9a.m. on September 20, 2013 in the
Radisson Blu Hotel, Dublin Airport, Co Dublin, Ireland.

All general meetings other than the Annual General Meeting are called Extraordinary General Meetings
(EGMs). An EGM must be called by giving at least twenty-one clear days‘ notice. Except in relation to an
adjourned meeting, three members, present in person or by proxy, entitled to vote upon the business to be
transacted, shall be a quorum. The passing of resolutions at a general meeting, other than special resolution,
requires a simple majority. To be passed, a special resolution requires a majority of at least 75% of the votes
cast. Votes may be given in person by a show of hands, or by proxy.

At the Meeting, after each resolution has been dealt with, details are given of the level of proxy votes
cast on each resolution and the numbers for, against and withheld. This information is made available on the
Company‘s website following the meeting.

Risk Management and Internal Control

The directors have overall responsibility for the Company‘s system of risk management and internal
control and for reviewing its effectiveness. The directors acknowledge their responsibility for the system of
risk management and internal control which is designed to manage rather than eliminate the risk of failure to
achieve business objectives, and can provide only reasonable and not absolute assurance against material
misstatement or loss.

In accordance with the revised FRC (Turnbull) guidance for directors on internal control published in
October 2005, ‗Internal Control: Revised Guidance for Directors on the Combined Code‘, the Board confirms
that there is an ongoing process for identifying, evaluating and managing any significant risks faced by the
Group, that it has been in place for the year under review and up to the date of approval of the financial
statements and that this process is regularly reviewed by the Board.

In accordance with the provisions of the 2010 Code the directors review the effectiveness of the

Company‘s system of internal control including:

 Financial
 Operational
 Compliance
 Risk Management

The Board is ultimately responsible for the Company‘s system of risk management and internal controls
and for monitoring its effectiveness. The key procedures that have been established to provide effective risk
management and internal control include:

 a strong and independent Board which meets at least 4 times a year and has separate Chief Executive

and Chairman roles;

 a clearly defined organisational structure along functional lines and a clear division of responsibility

and authority in the Company;

 a comprehensive system of internal financial reporting which includes preparation of detailed monthly
management accounts, providing key performance indicators and financial results for each major
function within the Company;

 preparation and issue of financial reports to shareholders and the markets, including the Annual Report
and consolidated financial statements, is overseen by the Audit Committee. The Company‘s financial
reporting process is controlled using documented accounting policies and reporting formats,
supplemented by detailed instructions and guidance on reporting requirements. The Company‘s
processes support the integrity and quality of data, including appropriate segregation of duties. The
financial information of the parent entity and all subsidiary entities, which form the basis for the
preparation of the consolidated financial statements are subject to scrutiny by Group level senior
management. The Company‘s financial reports, financial guidance, and Annual Report and
consolidated financial statements are also reviewed by the Audit Committee of the Board in advance of
being presented to the full Board for their review and approval;

 quarterly reporting of the financial performance with a management discussion and analysis of results;

 weekly Management Committee meetings, comprising of heads of departments, to review the

performance and activities of each department in the Company;

 detailed budgetary process which includes identifying risks and opportunities and which is ultimately

approved at Board level;

 Board approved capital expenditure and Audit Committee approved treasury policies which clearly

define authorisation limits and procedures;

 an internal audit function which reviews key financial/business processes and controls, and which has

full and unrestricted access to the Audit Committee;

 an Audit Committee which approves audit plans, considers significant control matters raised by
management and the internal and external auditors and which is actively monitoring the Company‘s
compliance with section 404 of the Sarbanes Oxley Act of 2002;

 established systems and procedures to identify, control and report on key risks. Exposure to these risks

is monitored by the Audit Committee and the Management Committee; and

 a risk management programme in place throughout the Company whereby executive management
reviews and monitors the controls in place, both financial and non financial, to manage the risks facing
the business.

On behalf of the Board, the Audit Committee has reviewed the effectiveness of the Company‘s system of
risk management and internal control for the year ended March 31, 2013 and has reported thereon to the
Board.

The Board has delegated to executive management the planning and implementation of the systems of

internal control within an established framework which applies throughout the Company.

Takeover Bids Directive

Information regarding rights and obligations attached to shares are set forth in Note 15 on pages 183 to 185

of the consolidated financial statements.

Shares in the Ryanair employee share schemes carry no control rights and shares are only issued (and gain

voting rights) when options are exercised by employees.

Ryanair‘s Articles of Association do not contain any restrictions on voting rights. However, there are
provisions in the Articles which allow the directors to (amongst other things) suspend the voting rights of a
share if the Board believes the number of non-qualifying nationals holding shares in Ryanair would put it in
breach of the Air Navigation Acts and licences and permits which allow it to operate. This is not an absolute
restriction and can only occur if the Board designates a number of shares to be so restricted.

Ryanair has not received any notifications from shareholders (as shareholders are obliged to do) regarding

any agreements between shareholders which might result in restrictions on the transfer of shares.

Details of the rules concerning the removal and appointment of the directors are set out above as part of
this Directors‘ Report. There are no specific rules regarding the amendment of the Company‘s Articles of
Association.

Details of the Company‘s share buy-back programme are set forth on page 119 of the Annual Report. The
shareholders approved the power of the Company to buy back shares at the 2006 AGM and at subsequent
AGM‘s.

None of the significant agreements to which the Company is party to, contain change of control provisions.
As referred to above in this Director‘s Report, Michael O‘Leary‘s employment agreement does not contain
provisions providing for compensation on his termination.

Going Concern

After making enquiries, the directors have formed a judgment, at the time of approving the financial
statements, that there is a reasonable expectation that the Company and the Group as a whole have adequate
resources to continue in operational existence for the foreseeable future. For this reason, they continue to
adopt the going concern basis in preparing the financial statements. The directors‘ responsibility for preparing
the financial statements is explained on page 28 and the reporting responsibilities of the auditors are set out in
their report on page 30.

Compliance Statement

Ryanair has complied, throughout the year ended March 31, 2013, with the provisions set out in the UK
Corporate Governance Code and the requirements set out in the Irish Corporate Governance Annex except as
outlined below. The Group has not complied with the following provisions of the 2010 Code, but continues to
review these situations on an ongoing basis:

 A number of non-executive directors participate in the Company‘s share option plans. The 2010 Code
requires that, if exceptionally, share options are granted to non-executive directors that shareholder
approval should be sought in advance and any shares acquired by exercise of the options should be held
until at least one year after the non-executive director leaves the board. In accordance with the 2010 Code,
the Company sought and received shareholder approval to make certain stock option grants to its non-
executive directors and as described above, the Board believes the quantum of options granted to non-
executive directors is not so significant to impair their independence.

 Certain non-executive directors, namely Messrs. David Bonderman, James Osborne, Kyran McLaughlin
and Michael Horgan have each served more than nine years on the Board without being offered for annual
re-election. As described further above, given the other significant commercial and professional
commitments of these non-executive directors, and taking into account that their independence is
considered annually by the Board, the Board does not consider their independence to be impaired in this
regard.

On behalf of the Board

David Bonderman
Chairman
July 26, 2013

Michael O‟ Leary
Chief Executive

Report on the Remuneration Committee on Directors‟ Remuneration

The Remuneration Committee

Details of the Remuneration Committee are set out within the Corporate Governance Statement on page

20 of the Annual Report.

The role and responsibilities of the Remuneration Committee are set out in its written terms of reference,

which are available on the Company‘s website www.ryanair.com.

All members of the Remuneration Committee have access to the advice of the Chief Executive and may,

in the furtherance of their duties, obtain independent professional advice at the Company‘s expense.

Remuneration Policy

The remuneration policy of the Company is to ensure that the executive director and the senior key
management team are rewarded competitively, having regard to the comparative marketplace in Ireland and
the United Kingdom, in order to ensure that they are properly motivated to perform in the best interests of the
shareholders. Details of the total remuneration paid to senior key management (defined as the executive team
reporting to the Board of Directors) are set out in Note 27 of the consolidated Financial Statements.

Non-Executive Directors

Details of the remuneration paid to non-executive directors are set out in Note 19(b) to the consolidated

Financial Statements.

None of the non-executive directors hold a service agreement with the Company that provides for

benefits upon termination.

Executive Director

The Chief Executive of the Company is the only executive director on the Board. Details of the

remuneration paid to the Chief Executive are set out in Note 19(a) to the consolidated Financial Statements.

The Company entered into an employment agreement with the Chief Executive on July 1, 2002 for a one
year period to June 30, 2003. Thereafter, the agreement continues for successive annual periods but may be
terminated with 12 months notice by either party. This employment agreement does not contain provisions
providing for compensation on its termination.

Performance Related Bonuses

The Chief Executive and the key management team of the Company are eligible for a performance bonus

and other bonuses dependent upon the achievement of certain financial targets.

Share Options

Details of the share options granted to executive and non-executive directors are set forth in Note 19(d)

to the consolidated Financial Statements.

Details of employee share option plans are set forth in Note 15(c) to the consolidated Financial

Statements.

Directors Pension Benefits

Details of the Chief Executive‘s pension benefits are set forth in Note 19(c) to the consolidated Financial

Statements.

Directors Shareholdings

The interests of each Director that held office at the end of fiscal 2013, in the share capital of the

Company are set forth in Note 19(d) to the consolidated Financial Statements.

Statement of Directors‟ Responsibilities in respect of the Annual Report and the Financial Statements

The directors are responsible for preparing the Annual Report and the consolidated and Company

financial statements, in accordance with applicable law and regulations.

Company law requires the directors to prepare consolidated and Company financial statements for each
financial year. Under that law, the directors are required to prepare the consolidated financial statements in
accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU)
and have elected to prepare the Company financial statements in accordance with IFRSs as adopted by the EU
and as applied in accordance with the provisions of the Companies Acts, 1963 to 2012. In preparing the
consolidated financial statements the directors have also elected to comply with IFRSs as issued by the
International Accounting Standards Board (IASB).

The consolidated and Company financial statements are required by law and IFRSs as adopted by the
EU, to present fairly the financial position of the Group and the Company and the performance of the Group.
The Companies Acts, 1963 to 2012 provide in relation to such financial statements that references in the
relevant part of these Acts to financial statements giving a true and fair view are references to their achieving a
fair presentation.

In preparing each of the consolidated and Company financial statements, the directors are required to:



select suitable accounting policies and then apply them consistently;

 make judgements and estimates that are reasonable and prudent;



state that the financial statements comply with IFRSs as adopted by the EU as applied in
accordance with the Companies Acts, 1963 to 2012 and IFRSs as issued by the IASB; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the Group and the Company will continue in business.

Under applicable law and the requirements of the Listing Rules issued by the Irish Stock Exchange, the
directors are also responsible for preparing a Directors‘ Report and reports relating to directors‘ remuneration
and corporate governance that comply with that law and those Rules. In particular, in accordance with the
Transparency (Directive 2004/109/EC) Regulations 2007 (the Transparency Regulations), the directors are
required to include in their report a fair review of the business and a description of the principal risks and
uncertainties facing the Group and Company and a responsibility statement relating to those and other matters,
included below.

The directors are responsible for keeping proper books of account that disclose with reasonable accuracy
at any time the financial position of the Group and Company and enable them to ensure that its financial
statements comply with the Companies Acts, 1963 to 2012 and, as regards the consolidated financial
statements, Article 4 of the IAS Regulation. They are also responsible for taking such steps as are reasonably
open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The directors are responsible for the maintenance of integrity of the corporate and financial information
included on the Company‘s website. Legislation in the Republic of Ireland governing the preparation and
dissemination of financial statements may differ from legislation in other jurisdictions.

Responsibility Statement, in accordance with the Transparency Regulations

Each of the directors, whose names and functions are listed on page 102 of the Annual Report confirm

that, to the best of their knowledge and belief:



the consolidated financial statements, prepared in accordance with IFRSs as adopted by the EU,
give a true and fair view of the assets, liabilities and financial position of the Group at March
31, 2013 and of its profit for the year then ended;

the Company financial statements, prepared in accordance with IFRSs as adopted by the EU, as
applied in accordance with the Companies Acts, 1963 to 2012, give a true and fair view of the
assets, liabilities and financial position of the Company at March 31, 2013, and

the Directors‘ Report contained in the Annual Report includes a fair review of the development
and performance of the business and the position of the Group and Company, together with a
description of the principal risks and uncertainties that they face.

Also, as explained in Note 1 on page 150 of the consolidated financial statements, the Group, in
addition to complying with its legal obligation to comply with IFRSs as adopted by the EU, has also prepared
its consolidated financial statements in compliance with IFRSs as issued by the IASB. The directors confirm
that to the best of their knowledge and belief these consolidated financial statements give a true and fair view
of the assets, liabilities and financial position of the Group at March 31, 2013 and of its profit for the year then
ended.

On behalf of the Board

David Bonderman
Chairman
July 26, 2013

Michael O‟ Leary
Chief Executive

Independent Auditor‟s Report to the members of Ryanair Holdings plc

We have audited the consolidated and Company financial statements (‗‗financial statements‘‘) of
Ryanair Holdings plc for the year ended March 31, 2013, which comprise the consolidated and Company
balance sheets, the consolidated income statement, the consolidated statement of comprehensive income, the
consolidated and Company statements of changes in shareholders‘ equity, the consolidated and Company
statements of cash flows and the related notes. The financial reporting framework that has been applied in
their preparation is Irish law and International Financial Reporting Standards (IFRSs) as adopted by the
European Union (EU), and, as regards the parent Company financial statements, as applied in accordance with
the provisions of the Companies Acts, 1963 to 2012.

This report is made solely to the Company‘s members, as a body, in accordance with Section 193 of
the Companies Act, 1990 and in respect of the separate opinion in relation to International Financial Reporting
Standards as issued by the International Accounting Standards Board (IASB), on terms that have been agreed.
Our audit work has been undertaken so that we might state to the Company‘s members those matters we are
required to state to them in an auditor‘s report and in respect of the separate opinion in relation to IFRSs as
issued by the IASB, those matters that we have agreed to state to them in our report, and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company‘s members as a body, for our audit work, for this report, or for the opinions we
have formed.

Respective responsibilities of directors and auditor

As explained more fully in the Statement of Directors‘ Responsibilities on pages 28 and 29 the
directors are responsible for the preparation of the financial statements giving a true and fair view. Our
responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and
International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Ethical
Standards for Auditors issued by the Auditing Practices Board.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements
sufficient to give reasonable assurance that the financial statements are free from material misstatement,
whether caused by fraud or error. This includes an assessment of: whether the accounting policies are
appropriate to the company circumstances and have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the directors; and the overall presentation of the
financial statements. In addition, we read all the financial and non-financial information in the annual report
to identify material inconsistencies with the audited financial statements. If we become aware of any apparent
material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion:



the consolidated financial statements give a true and fair view, in accordance with IFRSs as adopted by
the EU, of the state of the Group‘s affairs as at 31 March 2013 and of its profit for the year then ended;

the Company financial statements give a true and fair view, in accordance with IFRSs as adopted by the
EU, as applied in accordance with the provisions of the Companies Acts, 1963 to 2012, of the state of the
Company‘s affairs as at 31 March 2013; and

the financial statements have been properly prepared in accordance with the Companies Acts, 1963 to
2012 and as regards the consolidated financial statements, Article 4 of the IAS Regulation.

Independent Auditor‟s Report to the members of Ryanair Holdings plc (continued)

Separate opinion in relation to IFRSs as issued by the IASB

As explained in Note 1 on page 150 of the consolidated financial statements, the Group, in addition to
complying with its legal obligation to comply with IFRSs as adopted by the EU, has also prepared its
consolidated financial statements in compliance with IFRSs as issued by the IASB.

In our opinion, the consolidated financial statements give a true and fair view, in accordance with
IFRSs as issued by the IASB, of the state of the Group‘s affairs as at March 31, 2013 and of its profit for the
year then ended.

Matters on which we are required to report by the Companies Acts, 1963 to 2012

We have obtained all the information and explanations which we consider necessary for the purposes

of our audit.

The Company balance sheet is in agreement with the books of account and, in our opinion, proper

books of account have been kept by the Company.

In our opinion the information given in the Directors‘ Report is consistent with the financial
statements and the description in the Corporate Governance Statement of the main features of the internal
control and risk management systems in relation to the process for preparing the consolidated financial
statements is consistent with the consolidated financial statements.

The net assets of the Company, as stated in the Company balance sheet are more than half of the
amount of its called-up share capital and, in our opinion, on that basis there did not exist at 31 March 2013 a
financial situation which under Section 40(1) of the Companies (Amendment) Act, 1983 would require the
convening of an extraordinary general meeting of the company.

Matters on which we are required to report by exception

We have nothing to report in respect of the following:

Under the Companies Acts, 1963 to 2012 we are required to report to you if, in our opinion the

disclosures of directors‘ remuneration and transactions specified by law are not made.

Under the Listing Rules of the Irish Stock Exchange (ISE) we are required to review:



the directors‘ statement, set out on page 26, in relation to going concern;

the part of the Corporate Governance Statement relating to the Company‘s compliance with the nine
provisions of the UK Corporate Governance Code and the two provisions of the ISE‘s Corporate
Governance Annex specified for our review; and

the six specified elements of disclosures in the report to shareholders by the Board of directors‘
remuneration.

Sean O’Keefe

For and on behalf of
KPMG
Chartered Accountants, Statutory Audit Firm
July 26, 2013
1 Stokes Place
St Stephen’s Green
Dublin 2
Ireland

Presentation of Financial and Certain Other Information

As used herein, the term ―Ryanair Holdings‖ refers to Ryanair Holdings plc. The term the ―Company‖
refers to Ryanair Holdings or Ryanair Holdings together with its consolidated subsidiaries, as the context
requires. The term ―Ryanair‖ refers to Ryanair Limited, a wholly owned subsidiary of Ryanair Holdings,
together with its consolidated subsidiaries, unless the context requires otherwise. The term ―fiscal year‖ refers to
the 12-month period ended on March 31 of the quoted year. The term ―Ordinary Shares‖ refers to the
outstanding par value 0.635 euro cent per share common stock of the Company. All references to ―Ireland‖
herein are references to the Republic of Ireland. All references to the ―U.K.‖ herein are references to the United
Kingdom and all references to the ―United States‖ or ―U.S.‖ herein are references to the United States of
America. References to ―U.S. dollars,‖ ―dollars,‖ ―$‖ or ―U.S. cents‖ are to the currency of the United States,
references to ―U.K. pound sterling,‖ ―U.K. £‖ and ―£‖ are to the currency of the U.K. and references to ―€,‖
―euro,‖ ―euros‖ and ―euro cent‖ are to the euro, the common currency of seventeen member states of the
European Union (the ―EU‖), including Ireland. Various amounts and percentages set out in this annual report on
Form 20-F have been rounded and accordingly may not total.

The Company owns or otherwise has rights to the trademark Ryanair® in certain jurisdictions. See
―Item 4. Information on the Company—Trademarks.‖ This report also makes reference to trade names and
trademarks of companies other than the Company.

The Company publishes its annual and interim consolidated financial statements in accordance with
International Financial Reporting Standards as issued by the International Accounting Standards Board
(―IASB‖). Additionally, in accordance with its legal obligation to comply with the International Accounting
Standards Regulation (EC 1606 (2002)), which applies throughout the EU, the consolidated financial statements
of the Company must comply with International Financial Reporting Standards as adopted by the EU.
Accordingly, the Company‘s consolidated financial statements and the selected financial data included herein
comply with International Financial Reporting Standards as issued by the IASB and also International Financial
Reporting Standards as adopted by the EU, in each case as in effect for the year ended and as of March 31, 2013
(collectively referred to as ―IFRS‖ throughout).

The Company publishes its consolidated financial statements in euro. Solely for the convenience of the
reader, this report contains translations of certain euro amounts into U.S. dollars at specified rates. These
translations should not be construed as representations that the converted amounts actually represent such U.S.
dollar amounts or could be converted into U.S. dollars at the rates indicated or at any other rate. Unless
otherwise indicated, such U.S. dollar amounts have been translated from euro at a rate of €1.00 = $1.2816, or
$1.00 = €0.7803, the official rate published by the U.S. Federal Reserve Board in its weekly ―H.10‖ release (the
―Federal Reserve Rate‖) on March 31, 2013. The Federal Reserve Rate for euro on July 19, 2013 was €1.00 =
$1.3142 or $1.00 = €0.7609. See ―Item 3. Key Information—Exchange Rates‖ for information regarding
historical rates of exchange relevant to the Company, and ―Item 5. Operating and Financial Review and
Prospects‖ and ―Item 11. Quantitative and Qualitative Disclosures About Market Risk‖ for a discussion of the
effects of changes in exchange rates on the Company.

Cautionary Statement Regarding Forward-Looking Information

Except for the historical statements and discussions contained herein, statements contained in this
report constitute ―forward-looking statements‖ within the meaning of Section 27A of the U.S. Securities Act of
1933, as amended (the ―Securities Act‖), and Section 21E of the U.S. Securities Exchange Act of 1934, as
amended (the ―Exchange Act‖). Forward-looking statements may include words such as ―expect,‖ ―estimate,‖
―project,‖ ―anticipate,‖ ―should,‖ ―intend,‖ and similar expressions or variations on such expressions. Any filing
made by the Company with the U.S. Securities and Exchange Commission (the ―SEC‖) may include forward-
looking statements. In addition, other written or oral statements which constitute forward-looking statements
have been made and may in the future be made by or on behalf of the Company, including statements
concerning its future operating and financial performance, the Company‘s share of new and existing markets,
general industry and economic trends and the Company‘s performance relative thereto and the Company‘s
expectations as to requirements for capital expenditures and regulatory matters. The Company‘s business is to
provide a low-fares airline service in Europe, and its outlook is predominately based on its interpretation of what
it considers to be the key economic factors affecting that business and the European economy. Forward-looking
statements with regard to the Company‘s business rely on a number of assumptions concerning future events
and are subject to a number of uncertainties and other factors, many of which are outside the Company‘s
control, that could cause actual results to differ materially from such statements. It is not reasonably possible to
itemize all of the many factors and specific events that could affect the outlook and results of an airline
operating in the European economy. Among the factors that are subject to change and could significantly impact
Ryanair‘s expected results are the airline pricing environment, fuel costs, competition from new and existing
carriers, market prices for replacement aircraft and aircraft maintenance services, aircraft availability, costs
associated with environmental, safety and security measures, terrorist attacks, actions of the Irish, U.K., EU and
other governments and their respective regulatory agencies, fluctuations in currency exchange rates and interest
rates, changes to the structure of the euro, airport handling and access charges, litigation, labor relations, the
economic environment of the airline industry, the general economic environment in Ireland, the U.K. and
elsewhere in Europe, the general willingness of passengers to travel, flight interruptions caused by volcanic ash
emissions or other atmospheric disruptions, factors affecting the value of Ryanair‘s investment in Aer Lingus
Group plc and other factors discussed herein. The Company disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.

DETAILED INDEX

Page

PART I

Item 1.

Item 2.

Identity of Directors, Senior Management and Advisers .................................................................. 36

Offer Statistics and Expected Timetable ........................................................................................... 36

Item 3.

Key Information ................................................................................................................................ 36
The Company ................................................................................................................................................ 36
Selected Financial Data ................................................................................................................................. 37
Exchange Rates ............................................................................................................................................. 39
Selected Operating and Other Data ............................................................................................................... 41
Risk Factors ................................................................................................................................................... 42

Item 4.

Information on the Company ............................................................................................................ 58
Introduction ................................................................................................................................................... 58
Strategy .......................................................................................................................................................... 59
Route System, Scheduling and Fares............................................................................................................. 62
Marketing and Advertising ............................................................................................................................ 64
Reservations on Ryanair.Com ....................................................................................................................... 64
Aircraft .......................................................................................................................................................... 65
Ancillary Services ......................................................................................................................................... 67
Maintenance and Repairs .............................................................................................................................. 68
Safety Record ................................................................................................................................................ 69
Airport Operations ......................................................................................................................................... 70
Fuel ................................................................................................................................................................ 72
Insurance ....................................................................................................................................................... 73
Facilities ........................................................................................................................................................ 74
Trademarks .................................................................................................................................................... 75
Government Regulation ................................................................................................................................. 76
Description of Property ................................................................................................................................. 82

Item 4A. Unresolved Staff Comments ............................................................................................................. 82

Item 5.

Operating and Financial Review and Prospects ................................................................................ 82
History ........................................................................................................................................................... 82
Business Overview ........................................................................................................................................ 83
Recent Operating Results .............................................................................................................................. 86
Critical Accounting Policies .......................................................................................................................... 87
Results of Operations .................................................................................................................................... 89
Fiscal Year 2013 Compared with Fiscal Year 2012 ...................................................................................... 89
Fiscal Year 2012 Compared with Fiscal Year 2011 ...................................................................................... 93
Seasonal Fluctuations .................................................................................................................................... 96
Recently Issued Accounting Standards ......................................................................................................... 96
Liquidity and Capital Resources .................................................................................................................... 97
Off-Balance Sheet Transactions .................................................................................................................. 101
Trend Information ....................................................................................................................................... 102
Inflation ....................................................................................................................................................... 102

Item 6.

Directors, Senior Management and Employees .............................................................................. 102
Directors ...................................................................................................................................................... 102
Executive Officers ....................................................................................................................................... 107
Compensation of Directors and Executive Officers .................................................................................... 108
Staff and Labor Relations ............................................................................................................................ 109

Item 7.

Major Shareholders and Related Party Transactions ...................................................................... 111
Major Shareholders ..................................................................................................................................... 111
Related Party Transactions .......................................................................................................................... 111

Item 8.

Financial Information ...................................................................................................................... 112
Consolidated Financial Statements .............................................................................................................. 112
Other Financial Information ........................................................................................................................ 112
Significant Changes ..................................................................................................................................... 119

Item 9.

The Offer and Listing ...................................................................................................................... 120
Trading Markets and Share Prices ............................................................................................................... 120

Item 10. Additional Information ................................................................................................................... 123
Description of Capital Stock........................................................................................................................ 123
Options to Purchase Securities from Registrant or Subsidiaries.................................................................. 123
Articles of Association ................................................................................................................................ 123
Material Contracts ....................................................................................................................................... 125
Exchange Controls....................................................................................................................................... 125
Limitations On Share Ownership By Non-EU Nationals ............................................................................ 126
Taxation ....................................................................................................................................................... 129
Documents on Display ................................................................................................................................ 133

Item 11. Quantitative and Qualitative Disclosures About Market Risk ........................................................ 134
General ........................................................................................................................................................ 134
Fuel Price Exposure and Hedging ............................................................................................................... 134
Foreign Currency Exposure and Hedging ................................................................................................... 135
Interest Rate Exposure and Hedging ........................................................................................................... 136

Item 12. Description of Securities Other than Equity Securities ................................................................... 138

PART II

Item 13. Defaults, Dividend Arrearages and Delinquencies ......................................................................... 139

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds ............................. 139

Item 15.

Controls and Procedures ................................................................................................................. 139
Disclosure Controls and Procedures ............................................................................................................ 139
Management‘s Annual Report on Internal Control Over Financial Reporting ............................................ 140
Changes in Internal Control Over Financial Reporting ............................................................................... 141

Item 16.

Reserved.......................................................................................................................................... 141

Item 16A. Audit Committee Financial Expert ................................................................................................. 141

Item 16B. Code of Ethics ................................................................................................................................. 141

Item 16C. Principal Accountant Fees and Services ......................................................................................... 141

Item 16D. Exemptions from the Listing Standards for Audit Committees ...................................................... 142

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers ......................................... 142

Item 16F. Change in Registrant‘s Certified Accountant.................................................................................. 142

Item 16G. Corporate Governance .................................................................................................................... 142

Item 16H. Mine Safety Disclosure ................................................................................................................... 142

PART III

Item 17.

Financial Statements ....................................................................................................................... 143

Item 18.

Financial Statements ....................................................................................................................... 143

PART I

Item 1. Identity of Directors, Senior Management and Advisers

Not applicable.

Item 2. Offer Statistics and Expected Timetable

Not applicable.

Item 3. Key Information

THE COMPANY

Ryanair operates an ultra-low cost, scheduled airline serving short-haul, point-to-point routes largely in
Europe from its 57 bases in airports across Europe, which together are referred to as ―Ryanair‘s bases of operations‖
or ―Ryanair‘s bases.‖ For a list of these bases, see ―Item 4. Information on the Company—Route System,
Scheduling and Fares.‖ Ryanair pioneered the low-fares operating model in Europe in the early 1990s. As of June
30, 2013, the Company offered over 1,600 scheduled short-haul flights per day serving approximately 180 airports
largely throughout Europe, with an operating fleet of 303 aircraft flying approximately 1,600 routes. The Company
also holds a 29.8% interest in Aer Lingus Group plc (―Aer Lingus‖), which it has acquired through market purchases
following Aer Lingus‘ partial privatization in 2006. Ryanair‘s attempts to acquire the entire share capital of Aer
Lingus have been blocked by the European authorities, with the latest ruling currently under appeal by Ryanair. For
additional information, see ―Item 8. Financial Information—Other Financial Information—Legal Proceedings—
Matters Related to Investment in Aer Lingus.‖ A detailed description of the Company‘s business can be found in
―Item 4. Information on the Company.‖

SELECTED FINANCIAL DATA

The following tables set forth certain of the Company‘s selected consolidated financial

information as of and for the periods indicated, presented in accordance with IFRS. This information should be read
in conjunction with: (i) the audited consolidated financial statements of the Company and related notes thereto
included in Item 18 and (ii) ―Item 5. Operating and Financial Review and Prospects.‖

Income Statement Data:

Fiscal year ended March 31,

2013(a)

2013

2012

2011

2010

2009

(in millions, except per-Ordinary Share data)

Total operating revenues..................

Total operating expenses .................

$6,259.3 €4,884.0 €4,390.2 €3,629.5 €2,988.1
(5,338.9) (4,165.8) (3,707.0) (3,141.3) (2,586.0)

€2,942.0
(2,849.4)

Operating income ............................
Net interest (expense) ......................
Other non-operating (expense)

income .........................................
Profit (loss) before taxation .............
Taxation ...........................................

Profit (loss) after taxation ................
Ryanair Holdings basic earnings
(loss) per Ordinary Share (U.S.
cents)/(euro cent) .........................

Ryanair Holdings diluted earnings
(loss) per Ordinary Share (U.S.
cents)/(euro cent) .........................
Ryanair Holdings dividend paid per
Ordinary Share (U.S. cents)/(euro
cent) .............................................

Balance Sheet Data:

Cash and cash equivalents ...............
Total assets ......................................
Long-term debt, including capital

lease obligations ...........................
Shareholders‘ equity ........................
Issued share capital ..........................
Weighted Average Number of

920.4

(92.1)

718.2

(71.9)

683.2

(64.9)

488.2

(66.7)

402.1

(48.6)

92.6

(55.0)

5.9

4.6

14.7

(0.6)

(12.5)

(218.1)

834.2
(104.6)
$729.6

650.9
(81.6)
€569.3

633.0
(72.6)
€560.4

420.9
(46.3)
€374.6

341.0
(35.7)
€305.3

(180.5)
11.3
€(169.2)

$50.56

€39.45

€38.03

€25.21

€20.68

€(11.44)

$50.41

€39.33

€37.94

€25.14

€20.60

€(11.44)

$43.57

€34.00

n/a

€33.57

n/a

2013(a)

2013

As of March 31,
2012
2011
(in millions)

2010

2009

$1,590.3 €1,240.9 €2,708.3 €2,028.3 €1,477.9 €1,583.2
$11,461.3 €8,943.0 €9,001.0 €8,596.0 €7,563.4 €6,387.9

$4,483.4 €3,498.3 €3,625.2 €3,649.4 €2,956.2 €2,398.4
$4,194.2 €3,272.6 €3,306.7 €2,953.9 €2,848.6 €2,425.1

$11.8

€9.2

€9.3

€9.5

€9.4

Ordinary Shares ...........................

1,443.1

1,473.7

1,485.7

1,476.4

1,478.5

Cash Flow Statement Data:

Net cash inflow from operating activities
Net cash (outflow) from investing

activities ...............................................
Net cash (outflow)/inflow from financing
activities ...............................................

(Decrease)/increase in cash and cash

Fiscal year ended March 31,

2013(a)

2013

2012
(in millions)

2011

2010

2009

$1,311.7

€1,023.5

€1,020.3

€786.3

€871.5

€413.2

$(2,334.4)

€(1,821.5)

€(185.4)

€(474.0)

€(1,549.1)

€(388.3)

$(857.9)

€(669.4)

€(154.9)

€238.1

€572.3

€87.5

equivalents ...........................................

$(1,880.6)

€(1,467.4)

€680.0

€550.4

€(105.3)

€112.4

______________
(a) Dollar amounts are initially measured in euro in accordance with IFRS and then translated to U.S. $ solely for

convenience at the Federal Reserve Rate on March 31, 2013, of €1.00=$1.2816 or $1.00=€0.7803.

EXCHANGE RATES

The following table sets forth, for the periods indicated, certain information concerning the exchange
rate between: (i) the U.S. dollar and the euro; (ii) the U.K. pound sterling and the euro; and (iii) the U.K. pound
sterling and the U.S. dollar. Such rates are provided solely for the convenience of the reader and are not
necessarily the rates used by the Company in the preparation of its consolidated financial statements included in
Item 18. No representation is made that any of such currencies could have been, or could be, converted into any
other of such currencies at such rates or at any other rate.

U.S. dollars per €1.00(a)

Year ended December 31,

End of
Period

Average
(b)

Low

High

2008 .................................................................................................... 1.395
2009 .................................................................................................... 1.433
2010 .................................................................................................... 1.336
2011 .................................................................................................... 1.296
2012 .................................................................................................... 1.319

1.471
1.394
1.326
1.392
1.291

—
—
—
—
—

Month ended
January 31, 2013 ................................................................................. —
February 28, 2013 ............................................................................... —
March 31, 2013 ................................................................................... —
April 30, 2013 ..................................................................................... —
May 31, 2013 ...................................................................................... —
June 30, 2013 ...................................................................................... —
Period ended July 19, 2013 ................................................................. —

—
—
—
—
—
—
—

1.305
1.305
1.278
1.284
1.282
1.301
1.277

—
—
—
—
—

1.358
1.369
1.310
1.317
1.319
1.341
1.314

U.K. pounds sterling per €1.00(c)

Year ended December 31,

End of
Period

Average
(b)

Low

High

2008 .................................................................................................... 0.957
2009 .................................................................................................... 0.887
2010 .................................................................................................... 0.857
2011 .................................................................................................... 0.836
2012 .................................................................................................... 0.811

0.797
0.891
0.858
0.868
0.811

—
—
—
—
—

—
—
—
—
—
—
—

0.810
0.846
0.843
0.842
0.841
0.848
0.851

—
—
—
—
—

0.859
0.872
0.875
0.858
0.856
0.858
0.868

U.K. pounds sterling per U.S.$1.00(d)

Year ended December 31,

End of
Period

Average (b)

Low

High

2008 .............................................................................................................................
0.686
2009 .................................................................................................... 0.627
0.641
2010 .............................................................................................................................
0.645
2011 .............................................................................................................................
0.615
2012 .............................................................................................................................

0.546 —
0.641 —
0.647 —
0.624 —
0.628 —

—
—
—
—
—

______________

—
—
—
—
—
—
—

0.615
0.632
0.656
0.644
0.642
0.637
0.655

0.638
0.662
0.672
0.662
0.665
0.657
0.674

(a) Based on the Federal Reserve Rate for euro.
(b) The average of the relevant exchange rates on the last business day of each month during the

relevant period.

(c) Based on the composite exchange rate as quoted at 5 p.m., New York time, by Bloomberg.
(d) Based on the Federal Reserve Rate for U.K. pound sterling.

As of July 19, 2013, the exchange rate between the U.S. dollar and the euro was €1.00=$1.3142, or
$1.00=€0.7609; the exchange rate between the U.K. pound sterling and the euro was U.K. £1.00=€1.1624, or
€1.00=U.K. £0.8603; and the exchange rate between the U.K. pound sterling and the U.S. dollar was U.K.
£1.00=$1.5260, or $1.00=U.K. £0.6553. For a discussion of the impact of exchange rate fluctuations on the
Company‘s results of operations, see ―Item 11. Quantitative and Qualitative Disclosures About Market Risk.‖

SELECTED OPERATING AND OTHER DATA

The following tables set forth certain operating data of Ryanair for each of the fiscal years
shown. Such data are derived from the Company‘s consolidated financial statements prepared in accordance
with IFRS and certain other data, and are not audited. For definitions of the terms used in this table, see the
Glossary in Appendix A.

Operating Data:

2013

Average Yield per Revenue

Passenger Mile (―RPM‖) (€) ............... 0.064

Average Yield per Available

Seat Miles (―ASM‖) (€) ...................... 0.052

Average Fuel Cost per U.S.

Gallon (€) ............................................ 2.381
Cost per ASM (―CASM‖) (€) ................. 0.056
Operating Margin ................................... 15%
Break-even Load Factor ......................... 70%
Average Booked Passenger

Fare (€) ................................................ 48.20
Cost Per Booked Passenger (€) .............. 52.56
Ancillary Revenue per Booked

Passenger (€) .......................................

13.43

Fiscal Year ended March 31,
2012

2011

2010

0.059

0.048

2.075
0.051
14%
70%

45.36
48.90

11.69

0.053

0.045

1.756
0.049
14%
72%

39.24
43.59

11.12

0.052

0.043

1.515
0.047
13%
73%

34.95
38.88

9.98

2009

0.060

0.050

2.351
0.058
5%
79%

40.02
48.65

10.21

Other Data:
2013
Revenue Passengers Booked ..................
79,256,253
Revenue Passenger Miles .......................

2009
58,565,663
59,865,600,628 58,584,451,085 53,256,894,035 44,841,072,500 39,202,293,374

2010
66,503,999

2012
75,814,551

Fiscal Year ended March 31,
2011
72,062,659

Available Seat Miles ..............................
Booked Passenger Load

72,829,956,243 71,139,686,423 63,358,255,401 53,469,635,740

47,102,503,388

Factor................................................... 82%

82%

83%

82%

81%

Average Length of Passenger

Haul (miles) ......................................... 754
Sectors Flown ......................................... 512,765
Number of Airports Served

at Period End ....................................... 167

Average Daily Flight Hour

Utilization (hours) ............................... 8.24
Staff at Period End ................................. 9,137
Staff per Aircraft at Period

End .....................................................

Booked Passengers per Staff

771
489,759

727
463,460

661
427,900

654
380,915

159

8.47
8,388

158

8.36
8,560

153

8.89
7,168

143

9.59
6,616

8,852

at Period End ....................................... 8,674

9,038

8,418

9,253

RISK FACTORS

Risks Related to the Company

Changes in Fuel Costs and Fuel Availability Affect the Company’s Results and Increase the Likelihood
of Adverse Impact to the Company’s Profitability Jet fuel costs are subject to wide fluctuations as a result of
many economic and political factors and events occurring throughout the world that Ryanair can neither control
nor accurately predict, including increases in demand, sudden disruptions in supply and other concerns about
global supply, as well as market speculation. For example, although they declined in the 2010 fiscal year, oil
prices increased substantially in fiscal years 2011, 2012 and 2013 and remain at elevated levels. As international
prices for jet fuel are denominated in U.S. dollars, Ryanair‘s fuel costs are also subject to certain exchange rate
risks. Substantial price increases, adverse exchange rates, or the unavailability of adequate fuel supplies,
including, without limitation, any such events resulting from international terrorism, prolonged hostilities in the
Middle East or other oil-producing regions or the suspension of production by any significant producer, may
adversely affect Ryanair‘s profitability. In the event of a fuel shortage resulting from a disruption of oil imports
or otherwise, additional increases in fuel prices or a curtailment of scheduled services could result.

Ryanair has historically entered into arrangements providing for substantial protection against
fluctuations in fuel prices, generally through forward contracts covering periods of up to 18 months of
anticipated jet fuel requirements. Ryanair (like many other airlines) has, in more recent periods, entered into
hedging arrangements on a more selective basis. As of July 26, 2013, Ryanair had entered into forward jet fuel
(jet kerosene) contracts covering approximately 90% of its estimated requirements for the fiscal year ending
March 31, 2014 at prices equivalent to approximately $980 per metric ton. In addition, as of July 26, 2013,
Ryanair had entered into forward jet fuel (jet kerosene) contracts covering approximately 75% of its estimated
requirements for the first half of the fiscal year ending March 31, 2015 at prices equivalent to approximately
$935 per metric ton, and had not entered into any jet fuel hedging contracts with respect to its expected fuel
purchases beyond that period. Because of the limited nature of its hedging program, Ryanair is exposed to risks
arising from fluctuations in the price of fuel, and movements in the euro/U.S. dollar exchange rate, especially in
light of the recent volatility in the relevant currency and commodity markets. Any further increase in fuel costs
could have a material adverse effect on Ryanair‘s financial performance. In addition, any strengthening of the
U.S. dollar against the euro could have an adverse effect on the cost of buying fuel in euro. As of July 26, 2013,
Ryanair had hedged approximately 90% of its forecasted fuel-related dollar purchases against the euro at a rate
of approximately $1.31 per euro for the fiscal year ending March 31, 2014 and approximately 85% of its
forecasted fuel related dollar purchases against the euro at a rate of approximately $1.32 per euro for the first 6
months of the fiscal year ending March 31, 2015.

No assurances whatsoever can be given about trends in fuel prices, and average fuel prices for future
years may be significantly higher than current prices. Management estimates that every $10 movement in the
price of a metric ton of jet fuel will impact Ryanair‘s costs by approximately €17.1 million, taking into account
Ryanair‘s hedging programme for the 2014 fiscal year. There can be no assurance, however, in this regard, and
the impact of fuel prices on Ryanair‘s operating results may be more pronounced. There also cannot be any
assurance that Ryanair‘s current or any future arrangements will be adequate to protect Ryanair from increases
in the price of fuel or that Ryanair will not incur losses due to high fuel prices, either alone or in combination
with other factors. Because of Ryanair‘s low fares and its no-fuel-surcharges policy, as well as Ryanair‘s
expansion plans, which could have a negative impact on yields, its ability to pass on increased fuel costs to
passengers through increased fares or otherwise is somewhat limited. Moreover, the anticipated expansion of
Ryanair‘s fleet from September 2014 onwards will result in an increase, in absolute terms, in Ryanair‘s
aggregate fuel costs.

Ryanair Has Decided to Seasonally Ground Aircraft. In recent years, in response to an operating
environment characterized by high fuel prices, typically lower winter yields and higher airport charges and/or
taxes, Ryanair has adopted a policy of grounding a certain portion of its fleet during the winter months (from
November to March). In the winter of fiscal year 2013, Ryanair grounded approximately 80 aircraft and the
Company intends to again ground approximately 60 aircraft in the coming winter. Ryanair‘s adoption of the
policy of seasonally grounding aircraft presents some risks. While Ryanair seeks to implement its seasonal
grounding policy in a way that will allow it to reduce losses by operating flights during periods of high oil prices
to high cost airports at low winter yields, there can be no assurance that this strategy will be successful.

Additionally, Ryanair‘s growth has been largely dependent on increasing summer capacity, and
decreasing winter capacity may affect the overall future growth of Ryanair. Further, while seasonal grounding
does reduce Ryanair‘s variable operating costs, it does not avoid fixed costs such as aircraft ownership costs and
some staff costs, and it also decreases Ryanair‘s potential to earn ancillary revenues. Decreasing the number and
frequency of flights may also negatively affect Ryanair‘s labor relations, including its ability to attract flight
personnel only interested in full-time employment. Such risks could lead to negative effects on Ryanair‘s
financial condition and/or results of operations.

Risks Associated with the Euro. The Company is headquartered in Ireland and its reporting currency is
the euro. As a result of the ongoing uncertainty arising from the Eurozone debt crisis, in 2012 there was
widespread speculation that some member states could exit the Eurozone or that there may be a potential break-
up of the Eurozone currency union, including with regard to Ireland, the country in which the Company is
headquartered. If a Eurozone participating member state were to leave the Eurozone, there is a risk of contagion
spreading to the remaining members. Ryanair predominantly operates to/from countries within the Eurozone
and has significant operational and financial exposures to the Eurozone that could result in a reduction in the
operating performance of Ryanair or the devaluation of certain assets. Ryanair has taken certain risk
management measures to minimize any disruptions, however these risk management measures may fail to
address the potential fall-out from a break-up of the euro or an exit by one, or more, of the Eurozone members.

The Company has cash and aircraft assets and debt liabilities that are denominated in euro on its
balance sheet. In addition, the positive/negative mark-to-market value of derivative-based transactions are
recorded in euro as either assets or liabilities on the Company‘s balance sheet. A potential exit of a member state
or the break-up of the Eurozone could have a materially adverse effect on the value of these assets and
liabilities. In addition to the assets and liabilities on Ryanair‘s balance sheet, the Company has a number of
cross currency risks as a result of the jurisdictions of the operating business including non-euro revenues, fuel
costs, certain maintenance costs and insurance costs. A weakening in the value of the euro primarily against
U.K. pound sterling and U.S. dollar, but also against other non-Eurozone European currencies and Moroccan
Dirhams, could negatively impact the operating results of the Company.

Recession, austerity and the possible breakup of the euro could also mean that Ryanair is unable to
grow. The current European recession and austerity measures introduced within Europe all mean that Ryanair
may be unable to expand its operations due to lack of demand for air travel. Furthermore, the possible breakup
of the euro and resulting financial crisis could also lead to a dampening of demand for air travel.

Currency Fluctuations Affect the Company’s Results. Although the Company is headquartered in
Ireland, a significant portion of its operations are conducted in the U.K. Consequently, the Company has
significant operating revenues and operating expenses, as well as assets and liabilities, denominated in U.K.
pounds sterling. In addition, fuel, aircraft, insurance, and some maintenance obligations are denominated in U.S.
dollars. The Company‘s operations and financial performance can therefore be significantly affected by
fluctuations in the values of the U.K. pound sterling and the U.S. dollar. Ryanair is particularly vulnerable to
direct exchange rate risks between the euro and the U.S. dollar because a significant portion of its operating
costs are incurred in U.S. dollars and none of its revenues are denominated in U.S. dollars.

Although the Company engages in foreign currency hedging transactions between the euro and the
U.S. dollar, between the euro and the U.K. pound sterling, and between the U.K. pound sterling and the U.S.
dollar, hedging activities cannot be expected to eliminate currency risks. See ―Item 11. Quantitative and
Qualitative Disclosures About Market Risk.‖

The Company May Not Be Successful in Increasing Fares and Revenues to Offset Higher Business
Costs. Ryanair operates a low-fares airline. The success of its business model depends on its ability to control
costs so as to deliver low fares while at the same time earning a profit. Ryanair has limited control over its fuel
costs and already has comparatively low operating costs. In periods of high fuel costs, if Ryanair is unable to
further reduce its other operating costs or generate additional revenues, operating profits are likely to fall.
Ryanair cannot offer any assurances regarding its future profitability. Changes in fuel costs and fuel availability
could have a material adverse impact on Ryanair‘s results and could also increase the likelihood that Ryanair
may incur losses. See ―—The Company Faces Significant Price and Other Pressures in a Highly Competitive
Environment‖ below and ―—Changes in Fuel Costs and Fuel Availability Affect the Company‘s Results and
Increase the Likelihood of Adverse Impact to the Company‘s Profitability‖ above.

The Company is Subject to Legal Proceedings Alleging State Aid at Certain Airports. Formal
investigations are ongoing by the European Commission into Ryanair‘s agreements with the Lübeck, Berlin
(Schönefeld), Alghero, Pau, Aarhus, Frankfurt (Hahn), Dusseldorf (Weeze), Zweibrücken, Altenburg,
Klagenfurt, Stockholm (Vasteras), Paris (Beauvais), La Rochelle, Carcassonne, Nimes, Angouleme, Marseille,
Brussels (Charleroi) and Cagliari airports. The investigations seek to determine whether the arrangements
constitute illegal state aid under EU law. The investigations are expected to be completed in late 2013/early
2014, with the European Commission‘s decisions being appealable to the EU General Court. Investigations into
Ryanair‘s agreements with the Bratislava and Tampere airports concluded respectively in 2010 and 2012 with
findings that these agreements contained no state aid. In addition to the European Commission investigations,
Ryanair is facing allegations that it has benefited from unlawful state aid in a number of court cases, including
in relation to its arrangements with Frankfurt (Hahn) and Lübeck airports. The court case regarding Frankfurt
(Hahn) airport has been referred by the German courts to the Court of Justice of the European Union, which will
make a ruling on the discretion national courts have in state aid proceedings running in parallel with European
Commission investigations regarding the same airport. The ruling of the Court of Justice of the European Union
is expected within one year and will be binding on all EU national courts. Adverse rulings in the above state aid
matters could be used as precedents by competitors to challenge Ryanair‘s agreements with other publicly
owned airports and could cause Ryanair to strongly reconsider its growth strategy in relation to public or state-
owned airports across Europe. This could in turn lead to a scaling-back of Ryanair‘s overall growth strategy due
to the smaller number of privately owned airports available for development.

On July 25, 2012, the European Commission decided that Ryanair, along with Aer Lingus and Aer
Arann, had been in receipt of unlawful state aid from the Irish government as a result of being an identified
beneficiary of the two-tier air travel tax in place for flights departing from Irish airports between March 2009
and March 2011. Ryanair was the original complainant to the European Commission, alleging that the air travel
tax favored Aer Arann and Aer Lingus. Ryanair appealed the decision of the European Commission to the EU
General Court on November 14, 2012. Judgment is expected within 18-24 months of the date of filing. The EU
General Court may affirm or annul the European Commission decision. The Irish State is obliged to recover the
unlawful state aid from Ryanair before the Irish courts notwithstanding Ryanair‘s appeal of the EU Commission
decision, and initiated its claim in April 2013. The Irish State is seeking approximately €12 million plus interest
from Ryanair in these proceedings. Ryanair has also issued proceedings before the Irish courts for recovery of
the entire amount of the air travel tax paid during the period March 2009 – March 2011 on the basis of the two-
tier nature of the tax being unlawful under EU law. Ryanair is seeking approximately €88 million from the Irish
State in these proceedings.

No assurance can be given as to the outcome of these legal proceedings, nor as to whether any
unfavorable outcomes may, individually or in the aggregate, have an adverse effect on the results of operations
or financial condition of Ryanair.

For additional
InformationLegal Proceedings.‖

information, please see ―Item 8. Financial

InformationOther Financial

The Company Faces Significant Price and Other Pressures in a Highly Competitive Environment.
Ryanair operates in a highly competitive marketplace, with a number of low-fare, traditional and charter airlines
competing throughout its route network. Airlines compete primarily in respect of fare levels, frequency and
dependability of service, name recognition, passenger amenities (such as access to frequent flyer programmes),
and the availability and convenience of other passenger services. Unlike Ryanair, certain competitors are state-
owned or state-controlled flag carriers and in some cases may have greater name recognition and resources and
may have received, or may receive in the future, significant amounts of subsidies and other state aid from their
respective governments. In addition, the EU-U.S. Open Skies Agreement, which came into effect in March
2008, allows U.S. carriers to offer services in the intra-EU market, which could eventually result in increased
competition in the EU market. See ―Item 4. Information on the Company—Government Regulation—
Liberalization of the EU Air Transportation Market.‖

The airline industry is highly susceptible to price discounting, in part because airlines incur very low
marginal costs for providing service to passengers occupying otherwise unsold seats. Both low-fare and
traditional airlines sometimes offer low fares in direct competition with Ryanair across a significant proportion
of its route network as a result of the liberalization of the EU air transport market and greater public acceptance
of the low-fares model. Although Ryanair‘s average booked passenger fare increased in the 2011, 2012 and
2013 fiscal years, it decreased in the 2010 fiscal year, and there can be no assurance that it will not decrease in
future periods.

Although Ryanair intends to compete vigorously and to assert its rights against any predatory pricing or
other similar conduct, price competition among airlines could reduce the level of fares and/or passenger traffic
on Ryanair‘s routes to the point where profitability may not be achievable.

In addition to traditional competition among airline companies and charter operators who have entered
the low-fares market, the industry also faces competition from ground transportation (including high-speed rail
systems) and sea transportation alternatives, as businesses and recreational travellers seek substitutes for air
travel.

The Company Will Incur Significant Costs Acquiring New Aircraft and Any Instability in the Credit
and Capital Markets Could Negatively Impact Ryanair’s Ability to Obtain Financing on Acceptable Terms.
Ryanair‘s continued growth is dependent upon its ability to acquire additional aircraft to meet additional
capacity needs and to replace older aircraft. Ryanair had 305 aircraft in its fleet by March 31, 2013 and has
ordered an additional 175 new Boeing 737-800 next generation aircraft (the ―New Aircraft‖) for delivery during
fiscal 2015 to fiscal 2019 pursuant to a contract with the Boeing Company (the ―2013 Boeing Contract‖).
Ryanair expects to have approximately 410 aircraft in its fleet by March 31, 2019, depending on the level of
lease returns/disposals. For additional information on the Company‘s aircraft fleet and expansion plans, see
―Item 4. Information on the Company—Aircraft‖ and ―Item 5. Operating and Financial Review and
ProspectsLiquidity and Capital Resources.‖ There can be no assurance that this planned expansion will not
outpace the growth of passenger traffic on Ryanair‘s routes or that traffic growth will not prove to be greater
than the expanded fleet can accommodate. In either case, such developments could have a material adverse
effect on the Company‘s business, results of operations, and financial condition.

As a result of the 2013 Boeing Contract, the Company is expected to raise substantial debt financing to
deliver all of the expected aircraft deliveries over the period from September 2014 to December 2018. This
aircraft order is expected to increase the Company‘s outstanding debt from 2016 onwards. Furthermore,
Ryanair‘s ability to draw down funds under its existing bank-loan facilities to pay for aircraft as they are
delivered is subject to various conditions imposed by the counterparties to such bank loan facilities and related
loan guarantees, and any future financing is expected to be subject to similar conditions. Any failure by Ryanair
to comply with such conditions would have a material adverse effect on its operations and financial condition.

Using the debt capital markets to finance the 2013 Boeing Contract may require the Company to obtain
a credit rating or potentially to obtain a credit rating for specific debt transactions, for example using an
Enhanced Equipment Trust Certificate (―EETC‖), a structured product that is widely used in the U.S. to finance
aircraft deliveries. The requirement for a credit rating depends, amongst other things, on whether Ryanair
finances via secured funding or through general corporate purposes. Other financing structures such as U.S. Ex-
im Bank loan guarantees and capital markets financing, sale and operating leaseback financing and Japanese
operating leases with call options (―JOLCOs‖) will not require the Company to obtain a credit rating and these
sources are widely used in the aviation industry.

Ryanair has also entered into significant derivative transactions intended to hedge its current aircraft
acquisition-related debt obligations. These derivative transactions expose Ryanair to certain risks and could
have adverse effects on its results of operations and financial condition. See ―Item 11. Quantitative and
Qualitative Disclosures About Market Risk.‖

The Company’s Growth May Expose It to Risks. Ryanair‘s operations have grown rapidly since it
pioneered the low-fares operating model in Europe in the early 1990s. Ryanair intends to continue to expand its
fleet and add new destinations and additional flights, with the goal of increasing Ryanair‘s booked passenger
volumes to approximately 110 million passengers per annum by March 31, 2019, an increase of 39% from the
approximately 79 million passengers booked in the 2013 fiscal year. However, no assurance can be given that
this target will in fact be met. If growth in passenger traffic and Ryanair‘s revenues do not keep pace with the
planned expansion of its fleet, Ryanair could suffer from overcapacity and its results of operations and financial
condition (including its ability to fund scheduled purchases of the New Aircraft and related debt) could be
materially adversely affected.

The continued expansion of Ryanair‘s fleet and operations, although somewhat lower in percentage
terms than in previous years, in addition to other factors, may also strain existing management resources and
related operational, financial, management information and information technology systems. Expansion will
generally require additional skilled personnel, equipment, facilities and systems. An inability to hire skilled
personnel or to secure required equipment and facilities efficiently and in a cost-effective manner may adversely
affect Ryanair‘s ability to achieve its growth plans and sustain or increase its profitability.

Ryanair’s New Routes and Expanded Operations May Have an Adverse Financial Impact on its
Results. Currently, a substantial number of carriers operate routes that compete with Ryanair, and the Company
expects to face further intense competition.

When Ryanair commences new routes, its load factors and fares tend to be lower than those on its
established routes and its advertising and other promotional costs tend to be higher, which may result in initial
losses that could have a material negative impact on Ryanair‘s results of operations as well as require a
substantial amount of cash to fund. In addition, there can be no assurance that Ryanair‘s low-fares service will
be accepted on new routes. Ryanair also periodically runs special promotional fare campaigns, in particular in
connection with the opening of new routes. Promotional fares may have the effect of increasing load factors and
reducing Ryanair‘s yield and passenger revenues on such routes during the periods that they are in effect.
Ryanair has other significant cash needs as it expands, including as regards the cash required to fund aircraft
purchases or aircraft deposits related to the acquisition of additional Boeing 737-800 series aircraft. There can
be no assurance that Ryanair will have sufficient cash to make such expenditures and investments, and to the
extent Ryanair is unable to expand its route system successfully, its future revenue and earnings growth will in
turn be limited. Further volcanic ash emissions, similar to those experienced in April and May 2010, could make
consumers less willing and/or able to travel and impact the launch of new routes or bases. See ―—Risks Related
to the Airline Industry—Volcanic Ash Emissions Could Affect the Company and Have a Material Adverse
Effect on the Company‘s Results of Operations.‖ See also ―—The Company Will Incur Significant Costs
Acquiring New Aircraft and Any Instability in the Credit and Capital Markets Could Negatively Impact
Ryanair‘s Ability to Obtain Financing on Acceptable Terms.‖

Ryanair’s Continued Growth is Dependent on Access to Suitable Airports; Charges for Airport Access
are Subject to Increase. Airline traffic at certain European airports is regulated by a system of grandfathered
―slot‖ allocations. Each slot represents authorization to take-off and land at the particular airport during a
specified time period. Although the majority of Ryanair‘s bases currently have no slot allocations, traffic at a
minority of the airports Ryanair serves, including its primary bases, is currently regulated through slot
allocations. There can be no assurance that Ryanair will be able to obtain a sufficient number of slots at slot-
controlled airports that it may wish to serve in the future, at the time it needs them, or on acceptable terms.
There can also be no assurance that its non-slot constrained bases, or the other non-slot constrained airports
Ryanair serves, will continue to operate without slot allocation restrictions in the future. See ―Item 4.
Information on the Company—Government Regulation—Slots.‖ Airports may impose other operating
restrictions such as curfews, limits on aircraft noise levels, mandatory flight paths, runway restrictions, and
limits on the number of average daily departures. Such restrictions may limit the ability of Ryanair to provide
service to, or increase service at, such airports.

Ryanair‘s future growth also materially depends on its ability to access suitable airports located in its
targeted geographic markets at costs that are consistent with Ryanair‘s ultra-low cost strategy. Any condition
that denies, limits, or delays Ryanair‘s access to airports it serves or seeks to serve in the future would constrain
Ryanair‘s ability to grow. A change in the terms of Ryanair‘s access to these facilities or any increase in the
relevant charges paid by Ryanair as a result of the expiration or termination of such arrangements and Ryanair‘s
failure to renegotiate comparable terms or rates could have a material adverse effect on the Company‘s financial
condition and results of operations. For example in Spain, the Spanish government increased airport taxes at the
two largest airports, Barcelona and Madrid, by over 100%, while smaller increases were implemented at other
Spanish airports effective from July 1, 2012. As a result, Ryanair cancelled routes and reduced capacity on
remaining routes from Madrid and Barcelona in response to the Spanish government‘s decision to double airport
taxes at the two airports. For additional information, see ―Item 4. Information on the Company—Airport
Operations—Airport Charges.‖ See also ―—The Company Is Subject to Legal Proceedings Alleging State Aid at
Certain Airports.‖

The Company’s Acquisition of 29.8% of Aer Lingus and Subsequent Failure to Conclude a Complete
Acquisition of Aer Lingus Could Expose the Company to Risk. During the 2007 fiscal year, the Company
acquired 25.2% of Aer Lingus. The Company increased its interest to 29.3% during the 2008 fiscal year, and to
29.8% during the 2009 fiscal year at a total aggregate cost of €407.2 million. Following the acquisition of its
initial stake and upon the approval of the Company‘s shareholders, management proposed to effect a tender
offer to acquire the entire share capital of Aer Lingus. This 2006 offer was, however, prohibited by the
European Commission on competition grounds.

In October 2007, the European Commission reached a formal decision that it would not force Ryanair
to sell its shares in Aer Lingus. This decision has been affirmed on appeal. However, EU legislation may change
in the future to require such a forced disposition. If eventually forced to dispose of its stake in Aer Lingus,
Ryanair could suffer significant losses due to the negative impact on market prices of the forced sale of such a
significant portion of Aer Lingus‘ shares.

The United Kingdom‘s Office of Fair Trading (―OFT‖) wrote to Ryanair in September 2010, advising
that it intends to investigate Ryanair‘s minority stake in Aer Lingus. Ryanair objected on the basis that the
OFT‘s investigation was time-barred. On June 15, 2012, the OFT referred the investigation of Ryanair‘s
minority stake in Aer Lingus to the U.K. Competition Commission (the ―Competition Commission‖).

On June 19, 2012, Ryanair announced its third all cash offer to acquire all of the ordinary shares of Aer
Lingus it did not own at a price of €1.30 per ordinary share and immediately commenced pre-notification
discussions with the European Commission for the purpose of preparing a merger filing. Pending the outcome
of the European Commission‘s review of Ryanair‘s bid, on the basis of the duty of ―sincere cooperation‖
between the EU and the Member States, and under the EU Merger Regulation, the UK Competition
Commission‘s investigation of Ryanair‘s minority stake in Aer Lingus should not have properly proceeded.
Nevertheless, Aer Lingus argued that the investigation should proceed and that Ryanair‘s offer was in breach of
certain provisions of the UK Enterprise Act 2002.

On July 10, 2012, the Competition Commission ruled that Ryanair‘s bid was not in breach of the UK
Enterprise Act, but nevertheless decided that its investigation of the minority stake can proceed in parallel with
the European Commission‘s investigation of Ryanair‘s offer for Aer Lingus. In July 2012, Ryanair appealed the
latter part of the Competition Commission‘s ruling to the UK Competition Appeal Tribunal, and the
Competition Commission‘s investigation became suspended pending the appeal process. On August 8, 2012,
the Competition Appeal Tribunal rejected Ryanair‘s appeal and found that the Competition Commission‘s
investigation could proceed in parallel with the European Commission‘s investigation, but that the Competition
Commission must avoid taking any final decision which could conflict with the European Commission‘s
ultimate conclusion on Ryanair‘s bid. In August 2012, Ryanair appealed the Competition Appeal Tribunal
judgment to the UK Court of Appeal. In December 2012, the Court of Appeal rejected Ryanair‘s appeal and
subsequently the Competition Commission‘s investigation has restarted. On December 13, 2012, Ryanair
applied to the UK Supreme Court for permission to appeal the judgment of the Court of Appeal. The Supreme
Court refused permission to appeal on April 25, 2013.

On February 27, 2013, the European Commission prohibited Ryanair‘s bid to acquire the entire share
capital of Aer Lingus on the claimed basis that it would be incompatible with the EU internal market. Ryanair
appealed this decision to the EU General Court on May 8, 2013. The judgment of the EU General Court is
expected within 18-24 months and may affirm or annul the decision of the European Commission.

Following the European Commission‘s decision to prohibit its offer for Aer Lingus, Ryanair has
actively engaged with the UK Competition Commission‘s investigation of the minority stake. In its provisional
findings on May 30, 2013, the UK Competition Commission (UKCC) stated that Ryanair, through its minority
shareholding in Aer Lingus, ―has influence‖ over Aer Lingus, that this ―could reduce competition‖, and that
Ryanair should be required to divest some or all of its shares in Aer Lingus. Following an extension of the
investigation timetable on June 24, 2013, the UKCC‘s final decision will be published by September 5, 2013.
The UKCC could order Ryanair to divest some or all of its shares in Aer Lingus, as a result of which Ryanair
could suffer losses due to the negative impact on market prices of the forced sale of such a significant portion of
Aer Lingus‘ shares. Ryanair believes that the enforcement of any such decision should be delayed until the
outcome of Ryanair‘s appeal against the European Commission‘s February 2013 prohibition decision of
Ryanair‘s 2012 offer for Aer Lingus, and the conclusion of any appeals against the UKCC‘s decision in the UK
courts. However, it is possible that the UKCC will seek to enforce any such sell-down remedy at an earlier date.
On July 23, 2013 the Company announced that as part of its remedies discussions with the UKCC it had offered
to give an undertaking to unconditionally sell its shareholding in Aer Lingus to any other EU airline that makes
an offer for Aer Lingus and acquires acceptances in respect of more than 50% of Aer Lingus‘ issued share
capital. For more information, see ―Item 8. Financial Information—Other Financial Information—Legal
Proceedings—Matters Related to Investment in Aer Lingus.‖

Labor Relations Could Expose the Company to Risk. A variety of factors, including, but not limited to,
Ryanair‘s profitability and its seasonal grounding policy, may make it difficult for Ryanair to avoid increases to
salary levels and productivity payments. Consequently, there can be no assurance that Ryanair‘s existing
employee compensation arrangements may not be subject to change or modification at any time. These steps
may lead to deterioration in labor relations in Ryanair and could impact Ryanair‘s business or results. Ryanair
also operates in certain jurisdictions with above average payroll taxes and employee-related social insurance
costs, which could have an impact on the availability and cost of employees in these jurisdictions. Ryanair‘s
crew in continental Europe operate on Irish contracts of employment on the basis that those crew work on Irish
Territory, (i.e., on board Irish Registered Aircraft). A number of challenges have been initiated by government
agencies in a number of countries to the applicability of Irish labor law to these contracts, and if Ryanair were
forced to concede that Irish jurisdiction did not apply to those crew who operate from continental Europe then it
could lead to increased salary, social insurance and pension costs and a potential loss of flexibility. In relation to
social insurance costs, the European Parliament implemented amendments to Regulation (EC) 883/2004 which
may impose substantial social insurance contribution increases for either or both Ryanair and the individual
employees. While this change to social insurance contributions relates primarily to new employees, its effect in
the long term may materially increase Company or employee social insurance contributions and could affect
Ryanair‘s decision to operate from those high cost locations, resulting in redundancies and a consequent
deterioration in labor relations. For additional details see — ―Change in EU Regulations in Relation to
Employers and Employee Social Insurance could Increase Costs‖ below.

Ryanair currently conducts collective bargaining negotiations with groups of employees, including its
pilots and cabin crew, regarding pay, work practices, and conditions of employment, through collective-
bargaining units called ―Employee Representation‖. In the U.K., BALPA (the U.K pilots union) unsuccessfully
sought to represent Ryanair‘s U.K.-based pilots in their negotiations with Ryanair in 2001, at which time an
overwhelming majority of those polled rejected BALPA‗s claim to represent them. On June 19, 2009, BALPA
made a request for voluntary recognition under applicable U.K. legislation, which Ryanair rejected. BALPA had
the option of applying to the U.K.‗s Central Arbitration Committee (CAC) to organize a vote on union
recognition by Ryanair‘s pilots in relevant bargaining units, as determined by the CAC, but BALPA decided not
to proceed with an application at that time. The option to apply for a ballot remains open to BALPA and if it
were to seek and be successful in such a ballot, it would be able to represent the U.K. pilots in negotiations over
salaries and working conditions. Limitations on Ryanair‘s flexibility in dealing with its employees or the
altering of the public‘s perception of Ryanair generally could have a material adverse effect on Ryanair‘s
business, operating results, and financial condition. For additional details, see ―Item 6. Directors, Senior
Management and Employees—Staff and Labor Relations.‖ Limitations on Ryanair‘s flexibility in dealing with
its staff or the altering of the public‘s perception of Ryanair generally could have a material adverse effect on
the Company‘s business, operating results, and financial condition.

The Company is Dependent on External Service Providers. Ryanair currently assigns its engine
overhauls and ―rotable‖ repairs to outside contractors approved under the terms of Part 145, the European
regulatory standard for aircraft maintenance established by the European Aviation Safety Agency (―Part 145‖).
The Company also assigns its passenger, aircraft and ground handling services at airports other than Dublin and
certain airports in Spain and the Canary Islands to established external service providers. See ―Item 4.
Information on the Company—Maintenance and Repairs—Heavy Maintenance‖ and ―Item 4. Information on
the Company—Airport OperationsAirport Handling Services.‖

The termination or expiration of any of Ryanair‘s service contracts or any inability to renew them or
negotiate replacement contracts with other service providers at comparable rates could have a material adverse
effect on the Company‘s results of operations. Ryanair will need to enter into airport service agreements in any
new markets it enters, and there can be no assurance that it will be able to obtain the necessary facilities and
services at competitive rates. In addition, although Ryanair seeks to monitor the performance of external parties
that provide passenger and aircraft handling services, the efficiency, timeliness, and quality of contract
performance by external providers are largely beyond Ryanair‘s direct control. Ryanair expects to be dependent
on such outsourcing arrangements for the foreseeable future.

The Company is Dependent on Key Personnel. Ryanair‘s success depends to a significant extent upon
the efforts and abilities of its senior management team, including Michael O‗Leary, the Chief Executive Officer,
and key financial, commercial, operating and maintenance personnel. Mr. O‗Leary‗s current contract may be
terminated by either party upon 12 months‘ notice. See ―Item 6. Directors, Senior Management and
Employees—Compensation of Directors and Senior Management—Employment and Bonus Agreement with
Mr. O‘Leary.‖ Ryanair‘s success also depends on the ability of its executive officers and other members of
senior management to operate and manage effectively, both independently and as a group. Although Ryanair‘s
employment agreements with Mr. O‗Leary and some of its other senior executives contain non-competition and
non-disclosure provisions, there can be no assurance that these provisions will be enforceable in whole or in
part. Competition for highly qualified personnel is intense, and either the loss of any executive officer, senior
manager, or other key employee without adequate replacement or the inability to attract new qualified personnel
could have a material adverse effect upon Ryanair‘s business, operating results, and financial condition.

The Company Faces Risks Related to its Internet Reservations Operations and its Announced
Elimination of Airport Check-in Facilities. Over 99% of Ryanair‘s flight reservations are made through its
website. Although Ryanair has established a contingency program whereby the website is hosted in three
separate locations, each of these locations accesses the same booking engine, located at a single center, in order
to make reservations.

A back-up booking engine is available to Ryanair to support its existing platform in the event of a
breakdown in this facility. Nonetheless, the process of switching over to the back-up engine could take some
time and there can be no assurance that Ryanair would not suffer a significant loss of reservations in the event of
a major breakdown of its booking engine or other related systems, which, in turn, could have a material adverse
effect on Ryanair‘s operating results or financial condition.

Since October 1, 2009, all passengers have been required to use Internet check-in. Internet check-in is
part of a package of measures intended to reduce check-in lines and passenger handling costs and pass on these
savings by reducing passenger airfares. Ryanair has deployed this system across its network. Any disruptions to
the Internet check-in service as a result of a breakdown in the relevant computer systems or otherwise could
have a material adverse impact on these service-improvement and cost-reduction efforts. There can be no
assurance, however, that this process will continue to be successful or that consumers will not switch to other
carriers that provide standard check-in facilities, which would negatively affect Ryanair‘s results of operations
and financial condition.

The Company Faces Risks Related to Unauthorized Use of Information from the Company’s Website.
Screenscraper websites gain unauthorized access to Ryanair‘s website and booking system, extract flight and
pricing information and display it on their own websites for sale to customers at prices which include
intermediary fees on top of Ryanair‘s fares. Ryanair does not allow any such commercial use of its website and
objects to the practice of screenscraping also on the basis of certain legal principles, such as database rights,
copyright protection, etc. Since November 2011, Ryanair has introduced a security screen check on its website
which requires passengers who wish to book flights to enter a screen code to complete their bookings. This has
had a positive impact and reduced the level of screenscraping. Ryanair is also involved in a number of legal
proceedings against the proprietors of screenscraper websites in Ireland, Germany, the Netherlands, France,
Spain, Italy and Switzerland. Ryanair‘s objective is to prevent any unauthorized use of its website, however
Ryanair does allow certain companies who operate fare comparison (i.e. not reselling) websites to access the
website provided they sign a license and use the agreed method to access the data. Ryanair has received
favourable rulings in Ireland, Germany and The Netherlands, and unfavorable rulings in Spain, in its actions
against screenscrapers. However, pending the outcome of these legal proceedings and if Ryanair were to be
ultimately unsuccessful in them, the activities of screenscraper websites could lead to a reduction in the number
of customers who book directly on Ryanair‘s website and consequently to a reduction in Ryanair‘s ancillary
revenue stream. Also, some customers may be lost to Ryanair once they are presented by a screenscraper
website with a Ryanair fare inflated by the screenscraper‗s intermediary fee. This could also adversely affect
Ryanair‘s reputation as a low-fares airline, which could negatively affect Ryanair‘s results of operations and
financial condition.

For additional details, see ―Item 8. Financial Information—Other Financial Information—Legal

Proceedings—Legal Proceedings Against Internet Ticket Touts.‖

The Irish Corporation Tax Rate Could Rise. The majority of Ryanair‘s profits are subject to Irish
corporation tax at a statutory rate of 12.5%. Due to the size and scale of the Irish government‗s budgetary deficit
and the ―bailout‖ of the Irish government by a combination of loans from the International Monetary Fund and
the European Union, there is a risk that the Irish government could increase Irish corporation tax rates above
12.5% in order to repay current or future loans or to increase tax revenues.

At 12.5%, the rate of Irish corporation tax is lower than that applied by most of the other European
Union member states, and has periodically been subject to critical comment by the governments of other EU
member states. Although the Irish government has repeatedly publicly stated that it will not increase corporation
tax rates, there can be no assurance that such an increase in corporation tax rates will not occur.

In the event that the Irish government increases corporation tax rates or changes the basis of calculation
of corporation tax from the present basis, any such changes would result in the Company paying higher
corporate taxes and would have an adverse impact on our cash flows, financial position and results of
operations.

Change in EU Regulations in Relation to Employers and Employee Social Insurance Could Increase
Costs. The European Parliament passed legislation governing the payment of employee and employer social
insurance costs in May 2012. The legislation was introduced in late June 2012. The legislation governs the
country in which employees and employers must pay social insurance costs. Prior to June 2012, Ryanair paid
employee and employer social insurance in the country under whose laws the employee‘s contract of
employment is governed, which is either the UK or Ireland. Under the terms of this new legislation, employees
and employers must pay social insurance in the country where the employee is based. The legislation includes
grandfathering rights which means that existing employees (i.e. those employed prior to the introduction of the
new legislation in June 2012) should be exempt. However, both new and existing employees who transfer from
their present base location to a new base in another EU country may be impacted by the new rules in relation to
employee and employer contributions. Each country within the EU has different rules and rates in relation to the
calculation of employee and employer social insurance contributions. Ryanair estimates that the change in
legislation will not have any initial material impact on its salary costs although it could have an adverse impact
over time.

Ryanair is Subject to Tax Audits. The Company operates in many jurisdictions and is, from time to
time, subject to tax audits, which by their nature are often complex and can require several years to conclude.
While the Company endeavors to be tax compliant in the various jurisdictions in which it operates, there can be
no guarantee, particularly in the current economic environment, that it will not receive tax assessments
following the conclusion of the tax audits. If assessed, the Company will robustly defend its position. In the
event that the Company is unsuccessful in defending its position, it is possible that the effective tax rate,
employment and other costs of the Group could materially increase. See ―—The Irish Corporation Tax Rate
Could Rise‖ above.

Risks Related to the Airline Industry

The Airline Industry Is Particularly Sensitive to Changes in Economic Conditions: A Continued
Recessionary Environment Would Negatively Impact Ryanair’s Result of Operations. Ryanair‘s operations and
the airline industry in general are sensitive to changes in economic conditions. Unfavorable economic conditions
such as government austerity measures, the breakup of the Eurozone, high unemployment rates, constrained
credit markets and increased business operating costs could lead to reduced spending by both leisure and
business passengers. Unfavorable economic conditions, such as the conditions persisting as of the date hereof,
also tend to impact Ryanair‘s ability to raise fares to counteract increased fuel and other operating costs. A
continued recessionary environment, combined with austerity measures by European governments, will likely
negatively impact Ryanair‘s operating results. It could also restrict the Company‘s ability to grow passenger
volumes, secure new airports and launch new routes and bases, and could have a material adverse impact on its
financial results.

The Introduction of Government Taxes on Travel Could Damage Ryanair’s Ability to Grow and Could
Have a Material Adverse Impact on Operations. The U.K. government levies an Air Passenger Duty (APD) of
£13 per passenger. The tax was previously set at £5 per passenger, but it was increased to £10 per passenger in
2007, £11in 2009, £12 in 2010 and subsequently to £13 in April 2012. The increase in this tax is thought to
have had a negative impact on Ryanair‘s operating performance, both in terms of average fares paid and growth
in passenger volumes. In 2008, the Dutch government introduced a travel tax ranging from €11 on short-haul
flights to €45 on long-haul flights (withdrawn with effect from July 1, 2009). On March 30, 2009, the Irish
government also introduced a €10 Air Travel Tax on all passengers departing from Irish airports on routes
longer than 300 kilometers but subsequently reduced it to €3 on March 30, 2011. In Germany, the government
introduced an air passenger tax of €8 in January 2011 which was subsequently reduced to €7.50 in January
2012. In Austria, the government also introduced an ecological air travel levy of €8 in January 2011.

Other governments also have introduced or may introduce similar taxes. See ―Item 4. Information on
the Company—Airport Operations—Airport Charges. ‖The introduction of government taxes on travel has had
a negative impact on passenger volumes, particularly given the current period of decreased economic activity.
The introduction of further government taxes on travel across Europe could have a material negative impact on
Ryanair‘s results of operations as a result of price-sensitive passengers being less likely to travel.

EU Regulation on Passenger Compensation Could Significantly Increase Related Costs. The EU has
passed legislation for compensating airline passengers who have been denied boarding on a flight for which they
hold a valid ticket (Regulation (EC) No. 261/2004). This legislation, which came into force on February 17,
2005, imposes fixed levels of monetary compensation to be paid to passengers in the event of a flight
cancellation if the reason for the cancellation was within the control of the airline. In November 2009, the Court
of Justice of the EU in the Sturgeon case decided that provisions of the legislation in relation to compensation
are not only applicable to flight cancellations but also to delays of over three hours. However, such provisions
do not apply to any cancellation, or any delay over three hours, in circumstances in which the airline is able to
prove that such cancellation or delay was caused by extraordinary circumstances, such as weather, air-traffic
control delays, or safety issues. The Sturgeon case was referred to the Court of Justice of the European Union
for a preliminary ruling from the High Court of Justice (England & Wales), Queen's Bench Division
(Administrative Court) on December 24, 2010. The Opinion of the Advocate General of the European Court of
Justice has reinforced the legitimacy of the Sturgeon judgment. On October 23, 2012, the Court of Justice of the
European Union affirmed its previous Sturgeon judgment. The regulation calls for compensation of €250, €400
or €600 per passenger, depending on the length of the flight. As Ryanair‘s average flight length is less than
1,500 km – the upper limit for short-haul flights – the amount payable is generally €250 per passenger per
occurrence. Passengers subject to long delays (in excess of two hours for short-haul flights) are also entitled to
―assistance,‖ including meals, drinks and telephone calls, as well as hotel accommodation if the delay extends
overnight. For delays of over five hours, the airline is also required to offer the option of a refund of the cost of
the unused ticket. There can be no assurance that the Company will not incur a significant increase in costs in
the future due to the impact of this legislation if Ryanair experiences a large number of cancelled flights, which
could occur as a result of certain types of events beyond its control. See ―—Risks Related to the Airline
Industry—Volcanic Ash Emissions Could Affect the Company and Have a Material Adverse Effect on the
Company‘s Results of Operations.‖

EU Regulation of Emissions Trading Will Increase Costs. On November 19, 2008, the European
Council of Ministers adopted legislation to add aviation to the EU Emissions Trading Scheme (―ETS‖) with
effect from 2012. This scheme, which has thus far applied mainly to industrial companies, is a cap-and-trade
system for CO2 emissions to encourage industries to improve their CO2 efficiency. Under the legislation, airlines
are granted initial CO2 allowances based on historical performance and a CO2 efficiency benchmark. Any
shortage of allowances will have to be purchased in the open market and/or at government auctions. The cost of
such allowances in the context of the Company‘s energy costs are not material at current market prices. There
can be no assurance that Ryanair will be able to obtain sufficient carbon credits or that the cost of the credits
will not have a material adverse effect on the Company‘s business, operating results, and financial condition.

Volcanic Ash Emissions Could Affect the Company and Have a Material Adverse Effect on the
Company’s Results of Operations. Between April 15 and April 20, 2010 and May 4 and May 17, 2010, a
significant portion of the airspace over northern Europe was closed by authorities as a result of safety concerns
presented by emissions of ash from an Icelandic volcano. This closure forced Ryanair to cancel 9,490 flights. In
May 2011, there were further periodic closures of parts of the European airspace due to emissions of ash from
another Icelandic volcano, which resulted in the cancellation of 96 flights.

Under the terms of Regulation (EC) No. 261/2004, described above, Ryanair has certain duties to
passengers whose flights are cancelled. In particular, Ryanair is required to reimburse passengers who have had
their flights cancelled for certain reasonable, documented expenses – primarily for accommodation and food.
The Company to date estimates that the non-recoverable fixed costs associated with the cancellations, the
repositioning costs for aircraft, and other costs associated with cancellations, as well as the aforementioned
reimbursement claims for the initial 20 days of closure of European aerospace will amount to approximately €29
million for such periods of closure. The Company has re-accommodated or refunded fares to approximately 1.5
million passengers due to flight cancellations.

Volcanic emissions may happen again and could lead to further significant flight cancellation costs
which could have a material adverse impact on the Company‘s financial condition and results of operations.
Furthermore, volcanic emissions (whether from current or new sources) or similar atmospheric disturbances and
resulting cancellations due to the closure of airports could also have a material adverse effect on the Company‘s
financial performance indirectly, as a consequence of changes in the public‘s willingness to travel within Europe
due to the risk of flight disruptions.

Any Significant Outbreak of any Airborne Disease, Including Swine Flu or Foot-and-Mouth Disease,
Could Significantly Damage Ryanair’s Business. Worldwide, there has, from time to time, been substantial
publicity in recent years regarding certain potent influenza viruses and other disease epidemics. Publicity of this
type may have a negative impact on demand for air travel in Europe. Past outbreaks of SARS, foot-and-mouth
disease, avian flu and swine flu have adversely impacted the travel industries, including aviation, in certain
regions of the world, including Europe. The Company believes that if any influenza or other pandemic becomes
severe in Europe, its effect on demand for air travel in the markets in which Ryanair operates could be material,
and it could therefore have a significantly adverse impact on the Company. A severe outbreak of swine flu,
SARS, foot-and-mouth disease, avian flu or another pandemic or livestock-related disease also may result in
European or national authorities imposing restrictions on travel, further damaging Ryanair‘s business. A serious
pandemic could therefore severely disrupt Ryanair‘s business, resulting in the cancellation or loss of bookings,
and adversely affecting Ryanair‘s financial condition and results of operations.

The Company is Dependent on the Continued Acceptance of Low-fares Airlines. In past years,
accidents or other safety-related incidents involving certain low-fares airlines have had a negative impact on the
public‘s acceptance of such airlines. Any adverse event potentially relating to the safety or reliability of low-
fares airlines (including accidents or negative reports from regulatory authorities) could adversely impact the
public‘s perception of, and confidence in, low-fares airlines like Ryanair, and could have a material adverse
effect on Ryanair‘s financial condition and results of operations.

Terrorism in the United Kingdom or Elsewhere in Europe Could Have a Material Detrimental Effect
on the Company. On August 10, 2006, U.K. security authorities arrested and subsequently charged eight
individuals in connection with an alleged plot to attack aircraft operating on transatlantic routes. As a result of
these arrests, U.K. authorities introduced increased security measures, which resulted in all passengers being
body-searched, and a ban on the transportation in carry-on baggage of certain liquids and gels. The introduction
of these measures led to passengers suffering severe delays while passing through these airport security checks.
As a result, Ryanair cancelled 279 flights in the days following the incident and refunded a total of €2.7 million
in fares to approximately 40,000 passengers. In the days following the arrests, Ryanair also suffered reductions
in bookings estimated to have resulted in the loss of approximately €1.9 million of additional revenue. As in the
past, the Company reacted to these adverse events by initiating system-wide fare sales to stimulate demand for
air travel.

In addition, reservations on Ryanair‘s flights to London dropped materially for a number of days in the
immediate aftermath of the terrorist attacks in London on July 7, 2005. Although the terrorist attack in Glasgow
on June 30, 2007 and the failed terrorist attacks in London on July 21, 2005 and June 29, 2007 had no material
impact on bookings, there can be no assurance that future such attacks will not affect passenger traffic. In the
2013 fiscal year, 15.9 million passengers were booked on Ryanair‘s flights into and out of London, representing
20.1% of the total passengers booked on all of the Company‘s flights in the fiscal year. Future acts of terrorism
or significant terrorist threats, particularly in London or other markets that are significant to Ryanair, could have
a material adverse effect on the Company‘s profitability or financial condition should the public‘s willingness to
travel to and from those markets decline as a result. See also ―—The 2001 Terrorist Attacks on the United States
Had a Severe Negative Impact on the International Airline Industry‖ below.

The 2001 Terrorist Attacks on the United States Had a Severe Negative Impact on the International
Airline Industry. The terrorist attacks on the United States on September 11, 2001, in which four commercial
aircraft were hijacked, had a severe negative impact on the international airline industry, particularly on U.S.
carriers and carriers operating international services to and from the United States. Although carriers such as
Ryanair that operate primarily or exclusively in Europe were generally spared from such material adverse
impacts on their businesses, the cost to all commercial airlines of insurance coverage for certain third-party
liabilities arising from ―acts of war‖ or terrorism increased dramatically after the September 11 attacks. See
―Item 4. Information on the Company—Insurance.‖ In addition, Ryanair‘s insurers have indicated that the scope
of the Company‘s current ―act of war‖-related insurance may exclude certain types of catastrophic incidents,
such as certain forms of biological, chemical or ―dirty bomb‖ attacks. This could result in the Company‘s
seeking alternative coverage, including government insurance or self-insurance, which could lead to further
increases in costs. Although Ryanair to date has passed on increased insurance costs to passengers by means of a
special ―insurance levy‖ on each ticket, there can be no assurance that it will continue to be successful in doing
so.

Because a substantial portion of airline travel (both business and personal) is discretionary and because
Ryanair is substantially dependent on discretionary air travel, any prolonged general reduction in airline
passenger traffic may adversely affect the Company. Similarly, any significant increase in expenses related to
security, insurance or related costs could have a material adverse effect on the Company. Any further terrorist
attacks in the U.S. or in Europe, particularly in London or other markets that are significant to Ryanair, any
significant military actions by the United States or EU nations or any related economic downturn may have a
material adverse effect on demand for air travel and thus on Ryanair‘s business, operating results, and financial
condition. See also ―—Terrorism in the United Kingdom or Elsewhere in Europe Could have a Material
Detrimental Effect on the Company.‖

The Company Faces the Risk of Loss and Liability. Ryanair is exposed to potential catastrophic losses
that may be incurred in the event of an aircraft accident or terrorist incident. Any such accident or incident could
involve costs related to the repair or replacement of a damaged aircraft and its consequent temporary or
permanent loss from service. In addition, an accident or incident could result in significant legal claims against
the Company from injured passengers and others who experienced injury or property damage as a result of the
accident or incident, including ground victims. Ryanair currently maintains passenger liability insurance,
employer liability insurance, aircraft insurance for aircraft loss or damage, and other business insurance in
amounts per occurrence that are consistent with industry standards.

Ryanair currently believes its insurance coverage is adequate (although not comprehensive). However,
there can be no assurance that the amount of insurance coverage will not need to be increased, that insurance
premiums will not increase significantly, or that Ryanair will not be forced to bear substantial losses from any
accidents not covered by its insurance. Airline insurance costs increased dramatically following the September
2001 terrorist attacks on the United States. See ―—The 2001 Terrorist Attacks on the United States Had a
Severe Negative Impact on the International Airline Industry‖ above. Substantial claims resulting from an
accident in excess of related insurance coverage could have a material adverse effect on the Company‘s results
of operations and financial condition. Moreover, any aircraft accident, even if fully insured, could lead to the
public perception that Ryanair‘s aircraft were less safe or reliable than those operated by other airlines, which
could have a material adverse effect on Ryanair‘s business.

EU Regulation No. 2027/97, as amended by Regulation No. 889/2002, governs air carrier liability. See
―Item 4. Information on the Company—Insurance‖ for details of this regulation. This regulation increased the
potential liability exposure of air carriers such as Ryanair. Although Ryanair has extended its liability insurance
to meet the requirements of the regulation, no assurance can be given that other laws, regulations, or policies
will not be applied, modified or amended in a manner that has a material adverse effect on Ryanair‘s business,
operating results, and financial condition.

Airline Industry Margins are Subject to Significant Uncertainty. The airline industry is capital intensive
and is characterized by high fixed costs and by revenues that generally exhibit substantially greater elasticity
than costs. Although fuel accounted for approximately 45% of total operating expenses in the 2013 fiscal year,
management anticipates that this percentage may vary significantly in future years. See ―—Changes in Fuel
Costs and Fuel Availability Affect the Company‘s Results and Increase the Likelihood of Adverse Impact on the
Company‘s Profitability‖ above. The operating costs of each flight do not vary significantly with the number of
passengers flown, and therefore, a relatively small change in the number of passengers, fare pricing, or traffic
mix could have a disproportionate effect on operating and financial results. Accordingly, a relatively minor
shortfall from expected revenue levels could have a material adverse effect on the Company‘s growth or
financial performance. See ―Item 5. Operating and Financial Review and Prospects.‖ The very low marginal
costs incurred for providing services to passengers occupying otherwise unsold seats are also a factor in the
industry‘s high susceptibility to price discounting. See ―Risks Related to the Company—The Company Faces
Significant Price and Other Pressures in a Highly Competitive Environment‖ above.

Safety-Related Undertakings Could Affect the Company’s Results. Aviation authorities in Europe and
the United States periodically require or suggest that airlines implement certain safety-related procedures on
their aircraft. In recent years, the U.S. Federal Aviation Administration (the ―FAA‖) has required a number of
such procedures with regard to Boeing 737-800 aircraft, including checks of rear pressure bulkheads and flight
control modules, redesign of the rudder control system, and limitations on certain operating procedures.
Ryanair‘s policy is to implement any such required procedures in accordance with FAA guidance and to
perform such procedures in close collaboration with Boeing. To date, all such procedures have been conducted
as part of Ryanair‘s standard maintenance programme and have not interrupted flight schedules nor required any
material increases in Ryanair‘s maintenance expenses. However, there can be no assurance that the FAA or
other regulatory authorities will not recommend or require other safety-related undertakings or that such
undertakings would not adversely impact Ryanair‗s operating results or financial condition.

There also can be no assurance that new regulations will not be implemented in the future that would
apply to Ryanair‘s aircraft and result in an increase in Ryanair‘s cost of maintenance or other costs beyond
management‗s current estimates. In addition, should Ryanair‘s aircraft cease to be sufficiently reliable or should
any public perception develop that Ryanair‘s aircraft are less than completely reliable, Ryanair‘s business could
be materially adversely affected.

Risks Related to Ownership of the Company’s Ordinary Shares or ADRs

EU Rules Impose Restrictions on the Ownership of Ryanair Holdings’ Ordinary Shares by Non-EU
Nationals, and the Company Has Instituted a Ban on the Purchase of Ordinary Shares by Non-EU Nationals.
EU Regulation No. 1008/2008 requires that, in order to obtain and retain an operating license, an EU air carrier
must be majority-owned and effectively controlled by EU nationals. The regulation does not specify what level
of share ownership will confer effective control on a holder or holders of Ordinary Shares. The Board of
Directors of Ryanair Holdings is given certain powers under Ryanair Holdings‘ articles of association (the
―Articles‖) to take action to ensure that the number of Ordinary Shares held in Ryanair Holdings by non-EU
nationals (―Affected Shares‖) does not reach a level that could jeopardize the Company‘s entitlement to
continue to hold or enjoy the benefit of any license, permit, consent, or privilege which it holds or enjoys and
which enables it to carry on business as an air carrier. The directors, from time to time, set a ―Permitted
Maximum‖ on the number of the Company‘s Ordinary Shares that may be owned by non-EU nationals at such
level as they believe will comply with EU law. The Permitted Maximum is currently set at 49.9%. In addition,
under certain circumstances, the directors can take action to safeguard the Company‘s ability to operate by
identifying those Ordinary Shares, American Depositary Shares (―ADSs‖) or Affected Shares which give rise to
the need to take action and treat such Ordinary Shares, the American Depositary Receipts (―ADRs‖) evidencing
such ADSs, or Affected Shares as ―Restricted Shares.‖ The Board of Directors may, under certain
circumstances, deprive holders of Restricted Shares of their rights to attend, vote at, and speak at general
meetings, and/or require such holders to dispose of their Restricted Shares to an EU national within as little as
21 days. The directors are also given the power to transfer such Restricted Shares themselves if a holder fails to
comply. In 2002, the Company implemented measures to restrict the ability of non-EU nationals to purchase
Ordinary Shares, and non-EU nationals are currently effectively barred from purchasing Ordinary Shares, and
will remain so for as long as these restrictions remain in place. There can be no assurance that these restrictions
will ever be lifted. Additionally, these foreign ownership restrictions could result in Ryanair‘s exclusion from
certain stock tracking indices. Any such exclusion may adversely affect the market price of the Ordinary Shares
and ADRs. On April 19, 2012, the Company obtained shareholder approval to repurchase ADRs as part of its
general authority to repurchase up to 5% of the issued share capital in the Company. On June 5, 2013 the
Company repurchased 2,018,800 ADRs equivalent to 10,094,000 ordinary shares at a price of €7.65 per
ordinary share. See ―Item 10. Additional Information—Limitations on Share Ownership by Non-EU Nationals‖
for a detailed discussion of restrictions on share ownership and the current ban on share purchases by non-EU
nationals.

As of June 30, 2013, EU nationals owned at least 55.2% of Ryanair Holdings‘ Ordinary Shares

(assuming conversion of all outstanding ADRs into Ordinary Shares).

Holders of Ordinary Shares are Currently Unable to Convert those Shares into American Depositary
Receipts. In an effort to increase the percentage of its share capital held by EU nationals, on June 26, 2001,
Ryanair Holdings instructed The Bank of New York Mellon, the depositary for its ADR program (the
―Depositary‖), to suspend the issuance of new ADRs in exchange for the deposit of Ordinary Shares until
further notice. Holders of Ordinary Shares cannot convert their Ordinary Shares into ADRs during this
suspension, and there can be no assurance that the suspension will ever be lifted. See also ―—EU Rules Impose
Restrictions on the Ownership of Ryanair Holdings‘ Ordinary Shares by Non-EU nationals and the Company
has Instituted a Ban on the Purchase of Ordinary Shares by Non-EU Nationals‖ above.

The Company’s Results of Operations May Fluctuate Significantly. The Company‘s results of
operations have varied significantly from quarter to quarter, and management expects these variations to
continue. See ―Item 5. Operating and Financial Review and Prospects—Seasonal Fluctuations.‖ Among the
factors causing these variations are the airline industry‘s sensitivity to general economic conditions, the seasonal
nature of air travel, and trends in airlines‘ costs, especially fuel costs. Because a substantial portion of airline
travel (both business and personal) is discretionary, the industry tends to experience adverse financial results
during general economic downturns. The Company is substantially dependent on discretionary air travel.

The trading price of Ryanair Holdings‘ Ordinary Shares and ADRs may be subject to wide fluctuations
in response to quarterly variations in the Company‘s operating results and the operating results of other airlines.
In addition, the global stock markets from time to time experience extreme price and volume fluctuations that
affect the market prices of many airline company stocks. These broad market fluctuations may adversely affect
the market price of the Ordinary Shares and ADRs.

Ryanair Holdings May or May Not Pay Dividends. Since its incorporation as the holding company for
Ryanair in 1996, Ryanair Holdings has only twice declared dividends on its Ordinary Shares. The directors of
the Company declared on June 1, 2010 that Ryanair Holdings intended to pay a special dividend of €500
million, and following shareholder approval at its annual general meeting on September 22, 2010 this special
dividend was paid on October 1, 2010. Directors of the Company also declared on May 21, 2012 that Ryanair
Holdings intended to pay a special dividend of €0.34 per ordinary share (approx. €492 million) and following
shareholder approval at the annual general meeting on September 21, 2012 this special dividend was paid on
November 30, 2012. The Company may pay other dividends from time to time. In June, 2013 the Company
detailed plans to return up to €1 billion to shareholders over the next two years with at least €400.0 million
(€176.6 million already completed in June 2013) in share buybacks to be completed in the fiscal year to March
31, 2014 and up to a further €600.0 million in either special dividends or share buybacks expected in fiscal 2015
(subject to shareholder approval, continuing profitability, the economic environment, capital expenditure and
other commitments). See ―Item 8. Financial Information—Other Financial Information—Dividend Policy.‖ As a
holding company, Ryanair Holdings does not have any material assets other than the shares of Ryanair.

Increased Costs for Possible Future ADR and Share Repurchases. In April 2012, the Company held an
extraordinary general meeting (―EGM‖) to authorize the directors to repurchase Ordinary Shares and ADRs for
up to 5% of the issued share capital of the Company traded on the NASDAQ Stock Market (―NASDAQ‖). Up
until April 2012, shareholders had only authorized the directors to repurchase Ordinary Shares. As the ADRs
typically trade at a premium of 15% to 20% compared to Ordinary Shares, this may result in increased costs in
performing share buy-backs in the future. In June 2013, the Company bought back 2,018,800 ADRs for
cancellation. On June 20, 2013 the Company detailed plans to return up to €1 billion to shareholders over the
next two years with at least €400.0 million (€176.6 million already completed in June 2013) in share buybacks
to be completed in the fiscal year to March 31, 2014 and up to a further €600.0 million in either special
dividends or share buybacks. However, there can be no assurance that the €1 billion will be returned to
shareholders, in whole or in part, as it is subject to shareholder approval, continuing profitability, the economic
environment, capital expenditure and other commitments. At this time the Company has not decided whether it
will conduct these further share repurchases in Ordinary Shares or ADRs or a combination of both.

Item 4. Information on the Company

INTRODUCTION

Ryanair Holdings was incorporated in 1996 as a holding company for Ryanair Limited. The latter
operates an ultra-low cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland,
the U.K., Continental Europe, and Morocco. Incorporated in 1984, Ryanair Limited began to introduce a low-
fares operating model under a new management team in the early 1990s. See ―Item 5. Operating and Financial
Review and ProspectsHistory.‖ As of June 30, 2013, with its operating fleet of 303 Boeing 737-800 ―next
generation‖ aircraft, Ryanair Limited offered over 1,600 scheduled short-haul flights per day serving
approximately 180 airports largely throughout Europe. See ―Route System, Scheduling and FaresRoute
System and Scheduling‖ for more details of Ryanair‘s route network. See ―Item 5. Operating and Financial
Review and ProspectsSeasonal Fluctuations‖ for information about the seasonality of Ryanair‘s business.

Ryanair recorded a profit on ordinary activities after taxation of €569.3 million in the 2013 fiscal year,
as compared to a profit on ordinary activities after taxation of €560.4 million in the 2012 fiscal year. This 1.6%
increase was primarily attributable to an increase in revenues of approximately 11% from €4,390.2 million to
€4,884.0 million, partially offset by an increase in fuel costs of approximately 18% from €1,593.6 million to
€1,885.6 million. Ryanair generated an average booked passenger load factor of approximately 82%, the same
as in fiscal 2012, and average booked passenger fare of €48.20 per passenger in the 2013 fiscal year, up from
€45.36 in the prior fiscal year. The Company has focused on maintaining low operating costs (€52.56 per
passenger in the 2013 fiscal year, an increase from €48.90 in fiscal 2012).

The market‘s acceptance of Ryanair‘s low-fares service is reflected in the ―Ryanair Effect‖ – Ryanair‘s
history of stimulating significant annual passenger traffic growth on the new routes on which it has commenced
service since 1991. For example, on the basis of the ―U.K. Airports Annual Statement of Movements,
Passengers and Cargo‖ published by the U.K. Civil Aviation Authority and statistics released by the
International Civil Aviation Organization (the ―ICAO‖), the number of scheduled airline passengers traveling
between Dublin and London increased from 1.7 million passengers in 1991 to 3.7 million passengers in the
2012 calendar year. Most international routes Ryanair has begun serving since 1991 have recorded significant
traffic growth in the period following Ryanair‘s commencement of service, with Ryanair capturing the largest
portion of such growth on each such route. A variety of factors contributed to this increase in air passenger
traffic, including the relative strength of the Irish, U.K., and European economies in past years. However,
management believes that the most significant factors driving such growth across all its European routes have
been Ryanair‘s low-fares policy and its superiority to its competitors in terms of flight punctuality, levels of lost
baggage, and rates of flight cancellations.

The address of Ryanair Holdings‘ registered office is: c/o Ryanair Limited, Corporate Head Office,
Dublin Airport, County Dublin, Ireland. The Company‘s contact person regarding this Annual Report on Form
20-F is: Howard Millar, Deputy Chief Executive and Chief Financial Officer (same address as above). The
telephone number is +353-1-812-1212 and the facsimile number is +353-1-812-1213. Under its current Articles,
Ryanair Holdings has an unlimited corporate duration.

STRATEGY

Ryanair‘s objective is to firmly establish itself as Europe‘s biggest scheduled passenger airline, through
continued improvements and expanded offerings of its low-fares service. In the highly challenging current
operating environment, Ryanair seeks to offer low fares that generate increased passenger traffic while
maintaining a continuous focus on cost-containment and operating efficiencies. The key elements of Ryanair‘s
long-term strategy are:

Low Fares. Ryanair‘s low fares are designed to stimulate demand, particularly from fare-conscious
leisure and business travelers who might otherwise use alternative forms of transportation or choose not to travel
at all. Ryanair sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on
Ryanair scheduled services. Ryanair sets fares on the basis of the demand for particular flights and by reference
to the period remaining to the date of departure of the flight, with higher fares typically charged on flights with
higher levels of demand and for bookings made nearer to the date of departure. Ryanair also periodically runs
special promotional fare campaigns. See ―—Route System, Scheduling and Fares—Low and Widely Available
Fares‖ below.

Customer Service. Ryanair‘s strategy is to deliver the best customer service performance in its peer
group. According to the data available from the Association of European Airlines (―AEA‖) and airlines‘ own
published statistics, Ryanair has achieved better punctuality, fewer lost bags, and fewer cancellations than its
peer group in Europe. Ryanair achieves this by focusing strongly on the execution of these services and by
primarily operating from un-congested airports. Ryanair conducts a daily conference call with Ryanair and
airport personnel at each of its base airports, during which the reasons for each ―first wave‖ flight delay and
baggage short-shipment are discussed in detail and logged to ensure that the root cause is identified and
rectified. Subsequent (consequential) delays and short shipments are investigated by Ryanair ground operations
personnel. Customer satisfaction is also measured by regular online, mystery-passenger and by passenger
surveys.

Frequent Point-to-Point Flights on Short-Haul Routes. Ryanair provides frequent point-to-point
service on short-haul routes to secondary and regional airports in and around major population centers and travel
destinations. In the 2013 fiscal year, Ryanair flew an average route length of 754 miles and an average flight
duration of approximately 1.75 hours. Short-haul routes allow Ryanair to offer its low fares and frequent
service, while eliminating the need to provide unnecessary ―frills,‖ like free in-flight meals and movies,
otherwise expected by customers on longer flights. Point-to-point flying (as opposed to hub-and-spoke service)
allows Ryanair to offer direct, non-stop routes and avoid the costs of providing ―through service,‖ for
connecting passengers, including baggage transfer and transit passenger assistance.

In choosing its routes, Ryanair primarily favors secondary airports with convenient transportation to
major population centers and regional airports. Secondary and regional airports are generally less congested than
major airports and, as a result, can be expected to provide higher rates of on-time departures, faster turnaround
times (the time an aircraft spends at a gate loading and unloading passengers), fewer terminal delays, more
competitive airport access, and lower handling costs. Ryanair‘s ―on time‖ performance record (arrivals within
15 minutes of schedule) for the 2013 fiscal year was 91%. Faster turnaround times are a key element in
Ryanair‘s efforts to maximize aircraft utilization. Ryanair‘s average scheduled turnaround time for the 2013
fiscal year was approximately 25 minutes.

Low Operating Costs. Management believes that Ryanair‘s operating costs are among the lowest of any
European scheduled-passenger airline. Ryanair strives to reduce or control four of the primary expenses
involved in running a major scheduled airline: (i) aircraft equipment costs; (ii) personnel costs; (iii) customer
service costs; and (iv) airport access and handling costs:

Aircraft Equipment Costs. Ryanair‘s primary strategy for controlling aircraft acquisition costs is
focused on operating a single aircraft type. Ryanair currently operates only ―next generation‖ Boeing
737-800s. Ryanair‘s continuous acquisition of new Boeing 737-800s has already and is expected,
through the end of fiscal 2019, to increase the size of its fleet and thus increase its aircraft equipment
and related costs (on an aggregate basis). However, the purchase of aircraft from a single manufacturer
enables Ryanair to limit the costs associated with personnel training, maintenance, and the purchase
and storage of spare parts while also affording the Company greater flexibility in the scheduling of
crews and equipment. Management also believes that the terms of Ryanair‘s contracts with Boeing are
very favorable to Ryanair. See ―Aircraft‖ below for additional information on Ryanair‘s fleet.

Personnel Costs. Ryanair endeavors to control its labor costs by seeking to continually improve the
productivity of its already highly productive work force. Compensation for personnel emphasizes
productivity-based pay incentives. These incentives include commissions for onboard sales of products
for flight attendants and payments based on the number of hours or sectors flown by pilots and flight
attendants within limits set by industry standards or regulations fixing maximum working hours.

Customer Service Costs. Ryanair has entered into agreements on competitive terms with external
contractors at certain airports for ticketing, passenger and aircraft handling, and other services that
management believes can be more cost-efficiently provided by third parties. Management attempts to
obtain competitive rates for such services by negotiating fixed-price, multi-year contracts. The
development of its own Internet booking facility has allowed Ryanair to eliminate travel agent
commissions and third-party reservation systems costs. Ryanair generates over 99% of its scheduled
passenger revenues through direct sales via its website.

Airport Access and Handling Costs. Ryanair attempts to control airport access and service charges by
focusing on airports that offer competitive prices. Management believes that Ryanair‘s record of
delivering a consistently high volume of passenger traffic growth at many airports has allowed it to
negotiate favorable contracts with such airports for access to their facilities. Secondary and regional
airports also generally do not have slot requirements or other operating restrictions that can increase
operating expenses and limit the number of allowed take-offs and landings. Ryanair further endeavors
to reduce its airport charges by opting, when practicable, for less expensive gate locations as well as
outdoor boarding stairs, rather than jetways, which are more expensive and operationally less efficient
to use. In addition, since October 2009, Ryanair has required all passengers to check-in on the Internet.
This requirement was instituted to reduce waiting times at airports and speed a passenger‘s journey
from arrival at the airport to boarding, as well as significantly reduce airport handling costs. Ryanair
has also introduced a checked-bag fee, which is payable on the Internet at the time of booking and is
aimed at reducing the number of bags carried by passengers in order to further reduce handling costs.
See ―Risk Factors—Risks Related to the Company—The Company Faces Risks Related to its Internet
Reservations Operations and its Announced Elimination of Airport Check-in Facilities.‖

Taking Advantage of the Internet. In 2000, Ryanair converted its host reservation system to a new
system, which it operates under a hosting agreement with Navitaire that was extended in 2011 and will
terminate in 2020. As part of the implementation of the new reservation system, Navitaire developed an Internet
booking facility. The Ryanair system allows Internet users to access its host reservation system and to make and
pay for confirmed reservations in real time through the Ryanair.com website. After the launch of the Internet
reservation system, Ryanair heavily promoted its website through newspaper, radio and television advertising.
As a result, Internet bookings grew rapidly, and have accounted for over 99% of all reservations over the past
several years. In May 2012, Ryanair further upgraded the reservation system, which offers more flexibility for
future system enhancements and to accommodate the future growth of Ryanair.

Commitment to Safety and Quality Maintenance. Safety is the primary priority of Ryanair and its
management. This commitment begins with the hiring and training of Ryanair‘s pilots, flight attendants, and
maintenance personnel and includes a policy of maintaining its aircraft in accordance with the highest European
airline industry standards. Ryanair has not had a single passenger or flight crew fatality as a result of an accident
with one of its aircraft in its 29-year operating history. Although Ryanair seeks to maintain its fleet in a cost-
effective manner, management does not seek to extend Ryanair‘s low-cost operating strategy to the areas of
safety, maintenance, training or quality assurance. Routine aircraft maintenance and repair services are
performed primarily by Ryanair, at Ryanair‘s main bases, but are also performed at other base airports by
maintenance contractors approved under the terms of Part 145. Ryanair currently performs heavy airframe
maintenance, but contracts with other parties who perform engine overhaul services and rotable repairs. These
contractors also provide similar services to a number of other airlines, including Southwest Airlines, British
Airways, Air France and Alitalia.

Enhancement of Operating Results through Ancillary Services. Ryanair distributes accommodation
services and travel insurance primarily through its website. For hotel services, Ryanair has a contract with
Hotelscombined PTY Ltd, and they provide a hotel comparison website to Ryanair which generates
commissions for Ryanair on the number of bookings made. In addition Ryanair has a contract with the Hertz
Corporation (―Hertz‖), pursuant to which Hertz handles all car rental services marketed through Ryanair‘s
website or telephone reservation system. Ryanair also sells bus and rail tickets onboard its aircraft and through
its website. For the 2013 fiscal year, ancillary services accounted for approximately 22% of Ryanair‘s total
operating revenues, as compared to approximately 20% of such revenues in the 2012 fiscal year. See ―—
Ancillary Services‖ below and ―Item 5. Operating and Financial Review and Prospects—Results of
Operations—Fiscal Year 2013 Compared with Fiscal Year 2012—Ancillary Revenues‖ for additional
information.

Focused Criteria for Growth. Building on its success in the Ireland-U.K. market and its expansion of
service to continental Europe and Morocco, Ryanair intends to follow a manageable growth plan targeting
specific markets. Ryanair believes it will have opportunities for continued growth by: (i) initiating additional
routes in the EU; (ii) initiating additional routes in countries party to a European Common Aviation Agreement
with the EU that are currently served by higher-cost, higher-fare carriers; (iii) increasing the frequency of
service on its existing routes; (iv) starting new domestic routes within individual EU countries; (v) considering
acquisition opportunities that may become available in the future; (vi) connecting airports within its existing
route network (―triangulation‖); (vii) establishing new bases; and (viii) initiating new routes not currently served
by any carrier.

Responding to Current Challenges. In recent periods, and with increased effect in the 2011, 2012 and
2013 fiscal years, Ryanair‘s ultra-low cost, low-fares model has faced substantial pressure due to significantly
increased fuel costs and reduced economic growth (or economic contraction) in some of the economies in which
it operates. The Company has aimed to meet these challenges by: (i) grounding (approximately 80 in fiscal 2012
and 2013) aircraft during the winter season; (ii) disposing of aircraft (lease hand backs totaled ten in the 2011
fiscal year, three in the 2012 fiscal year and four in the 2013 fiscal year); (iii) controlling labor and other costs,
including through wage freezes for non-flight crew personnel in 2011 and 2013, selective redundancies and the
introduction of Internet check-in in fiscal 2010; and (iv) renegotiating contracts with existing suppliers, airports
and handling companies. There can be no assurance that the Company will be successful in achieving all of the
foregoing or taking other similar measures, or that doing so will allow the Company to earn profits in any
period. See ―Item 3. Key Information—Risk Factors—Risks Related to the Company—Changes in Fuel Costs
and Fuel Availability Affect the Company‘s Results and Increase the Likelihood of Adverse Impact to the
Company‘s Profitability‖ and ―—The Company May Not Be Successful in Increasing Fares and Revenues to
Offset Higher Business Costs.‖

In recent years, in response to an operating environment characterized by high fuel prices, typically
lower seasonal yields and higher airport charges and/or taxes, Ryanair has adopted a policy of grounding a
certain portion of its fleet during the winter months (from November to March inclusive). In the winter months
of fiscal year 2013, Ryanair grounded approximately 80 aircraft and the Company announced in May 2013 that
it intends to ground approximately 60 aircraft during the winter months of fiscal year 2014. While seasonal
grounding does reduce the Company‘s operating costs, it also decreases Ryanair‘s potential to record both flight
and non-flight revenues. Decreasing the number and frequency of flights may also negatively affect the
Company‘s labor relations, including its ability to attract flight personnel interested in full-time employment.
See ―Item 3. Key Information—Risk Factors—Ryanair Has Decided to Seasonally Ground Aircraft.‖

ROUTE SYSTEM, SCHEDULING AND FARES

Route System and Scheduling

As of July 19, 2013, the Company offered over 1,600 scheduled short-haul flights per day serving
approximately 180 airports largely throughout Europe, and flying approximately 1,600 routes. The following
table lists Ryanair‘s bases of operations:

Alghero
Alicante
Baden-Baden
Barcelona (Girona)
Barcelona (El Prat)
Bari
Billund
Bologna
Bournemouth
Birmingham
Bremen
Brindisi
Bristol
Brussels (Charleroi)
Budapest
Chania
Cagliari
Cork
Dublin

Bases of Operations

Dusseldorf (Weeze)
Edinburgh
Eindhoven
Faro
Fez
Frankfurt (Hahn)
Glasgow (Prestwick)
Gran Canaria
Kaunas
Krakow
Lanzarote
Leeds Bradford
Liverpool
London (Luton)
London (Stansted)
Maastricht
Madrid
Malaga
Malta

Manchester
Marrakech
Milan (Bergamo)
Nottingham East Midlands
Palma Mallorca
Paphos
Pescara
Pisa
Porto
Oslo (Rygge)
Rome (Ciampino)
Seville
Shannon
Stockholm (Skavsta)
Tenerife South
Trapani
Valencia
Wroclaw
Zadar

See Note 17, ―Analysis of operating revenues and segmental analysis,‖ to the consolidated financial
statements included in Item 18 for more information regarding the geographical sources of the Company‘s
revenue.

Management‘s objective is to schedule a sufficient number of flights per day on each of Ryanair‘s
routes to satisfy demand for Ryanair‘s low-fares service. Ryanair schedules departures on its most popular
routes at frequent intervals; normally between approximately 6:00 a.m. and 11:00 p.m. Management regularly
reviews the need for adjustments in the number of flights on all of its routes.

During the 2013 fiscal year, Ryanair announced 208 new routes across its network. See ―Risk
Factors—Risks Related to the Company—Ryanair‘s New Routes and Expanded Operations May Have an
Adverse Financial Impact on Its Results.‖

Low and Widely Available Fares

Ryanair offers low fares, with prices generally varying on the basis of advance booking, seat
availability and demand. Ryanair sells seats on a one-way basis, thus removing minimum stay requirements
from all travel on Ryanair scheduled services. All tickets can be changed, subject to certain conditions,
including fee payment and applicable upgrade charges. However, tickets are generally non-cancelable and non-
refundable and must be paid for at the time of reservation.

Ryanair‘s discounted fares are ―capacity controlled‖ in that Ryanair allocates a specific number of seats
on each flight to each fare category to accommodate projected demand for seats at each fare level leading up to
flight time. Ryanair generally makes its lowest fares widely available by allocating a majority of its seat
inventory to its lowest fare categories. Management believes that its unrestricted fares as well as its advance-
purchase fares are attractive to both business and leisure travelers.

When launching a new route, Ryanair‘s policy is to price its lowest fare so that it will be significantly

lower than other carriers‘ lowest fares, but still provide a satisfactory operating margin.

Ryanair also periodically runs special promotional fare campaigns, in particular in connection with the
opening of new routes, and endeavors to always offer the lowest fare on any route it serves. Promotional fares
may have the effect of increasing load factors and reducing Ryanair‘s yield and passenger revenues on the
relevant routes during the periods they are in effect. Ryanair expects to continue to offer significant fare
promotions to stimulate demand in periods of lower activity or during off-peak times for the foreseeable future.

MARKETING AND ADVERTISING

Ryanair‘s primary marketing strategy is to emphasize its widely available low fares and price
guarantee. In doing so, Ryanair primarily advertises its services in national and regional newspapers, as well as
through controversial and topical advertising, press conferences and publicity stunts. Other marketing activities
include the distribution of advertising and promotional material and cooperative advertising campaigns with
other travel-related entities, including local tourist boards. Ryanair also regularly contacts people registered in
its database to inform them about promotions and special offers via e-mail.

RESERVATIONS ON RYANAIR.COM

Passenger airlines generally rely on travel agents (whether traditional or online) for a significant
portion of their ticket sales and pay travel agents commissions for their services, as well as reimbursing them for
the fees charged by reservation systems providers. In contrast, Ryanair requires passengers to make reservations
and purchase tickets directly through the Company. Over 99% of such reservations and purchases are made
through the website Ryanair.com. Ryanair is therefore not reliant on travel agents. See ―—Strategy—Taking
Advantage of the Internet‖ above for additional information.

In May 2012, Ryanair further upgraded its reservation system in order to facilitate the continued
expansion of the airline. The upgraded system gives the Company the ability to offer more enhancements to
passengers, as the new platform is far more flexible in terms of future development. Under the agreement with
the system provider, Navitaire, the system serves as Ryanair‘s core seating inventory and booking system. In
return for access to these system functions, Ryanair pays transaction fees that are generally based on the number
of passenger seat journeys booked through the system. Navitaire also retains a back-up booking engine to
support operations in the event of a breakdown in the main system. Over the last several years, Ryanair has
introduced a number of Internet-based customer service enhancements such as Internet check-in, priority
boarding service and limited reserved seating since January 2012. Since October 2009, Ryanair has required
Internet check-in for all passengers. These enhancements and changes have been made to reduce waiting time at
airports and speed a passenger‘s journey from arrival at the airport to boarding, as well as significantly reduce
airport handling costs. Ryanair has also introduced a checked-bag fee, which is payable on the Internet and is
aimed at reducing the number of bags carried by passengers in order to further reduce handling costs. See Item
3. Key Information—Risk Factors—Risks Related to the Company—Ryanair Faces Risks Related to
Unauthorized Use of Information from the Company‘s Website.‖

Aircraft

AIRCRAFT

As of June 30, 2013, Ryanair‘s operating fleet was composed of 303 Boeing 737-800 ―next generation‖
aircraft, each having 189 seats. Ryanair‘s fleet totaled 305 Boeing 737-800s at March 31, 2013. The Company
expects to have an operating fleet comprising approximately 410 Boeing 737-800s at March 31, 2019 depending
on the level of lease returns/disposals.

Between March 1999 and March 2013, Ryanair took delivery of 348 new Boeing 737-800 ―next
generation‖ aircraft under its contracts with Boeing and disposed of 43 such aircraft, including 17 lease
handbacks.

Under the terms of the 2013 Boeing Contract, Ryanair has agreed to purchase the 175 New Aircraft
over a five year period from fiscal 2015 to 2019, with delivery beginning in September 2014. The New Aircraft
will benefit from a net effective price not dissimilar to that under the 2005 Boeing Contract which was approved
by Shareholders in 2005 and will be used on new and existing routes to grow Ryanair‘s business.

The Boeing 737-800 represents the current generation of Boeing‘s 737 aircraft. It is a short-to-medium
range aircraft and seats 189 passengers. The Basic Price (equivalent to a standard list price for an aircraft of this
type) for each of the Boeing 737-800 series aircraft is approximately US$78.1 million and the Basic Price will
be increased for certain ―buyer-furnished‖ equipment, amounting to approximately US$2.9 million per New
Aircraft, which Ryanair has asked Boeing to purchase and install on each of the New Aircraft. In addition, an
―Escalation Factor‖ will be applied to the basic price to reflect increases in the Employment Cost Index and
Producer Price Index between the time the basic price was set in the 2013 Boeing Contract and the period 18 to
24 months prior to the delivery of any such New Aircraft.

Boeing has granted Ryanair certain price concessions as part of the 2013 Boeing Contract. These will
take the form of credit memoranda to Ryanair for the amount of such concessions, which Ryanair may apply
toward the purchase of goods and services from Boeing or toward certain payments, other than advance
payments, in respect of the New Aircraft. Boeing and CFMI (the manufacturer of the engines to be fitted on the
New Aircraft) have also agreed to provide Ryanair with certain allowances for promotional and other activities,
as well as providing certain other goods and services to Ryanair on concessionary terms. Those credit
memoranda and promotional allowances will effectively reduce the price of each New Aircraft payable by
Ryanair. As a result, the ―effective price‖ (the purchase price of the New Aircraft net of discounts received from
Boeing) of each New Aircraft will be significantly below the basic price mentioned above. The effective price
applies to all New Aircraft due for delivery from September 2014.

For additional details on the Boeing contracts, scheduled aircraft deliveries and related expenditures
and their financing, as well as the terms of the arrangements under which Ryanair currently leases 57 of the
aircraft in its operating fleet, see ―Item 5. Operating and Financial Review and Prospects—Liquidity and Capital
Resources.‖

The Boeing 737 is the world‘s most widely used commercial aircraft and exists in a number of
generations, the Boeing 737-800s being the most recent. Management believes that spare parts and cockpit
crews qualified to fly these aircraft are likely to be more widely available on favorable terms than similar
resources for other types of aircraft. Management believes that its strategy, to date, of having reduced its fleet to
one aircraft type enables Ryanair to limit the costs associated with personnel training, the purchase and storage
of spare parts, and maintenance. Furthermore, this strategy affords Ryanair greater flexibility in the scheduling
of crews and equipment. The Boeing 737-800s are fitted with CFM 56-7B engines and have advanced CAT III
Autoland capability, advanced traffic collision avoidance systems, and enhanced ground-proximity warning
systems. During fiscal 2012, Boeing announced that it was going to manufacture a variant of the 737 with new,
more fuel-efficient engines called the Boeing 737 MAX aircraft. A senior Ryanair working group is continuing
to evaluate the benefits of the MAX aircraft. This new variant could impact the Company insofar as the residual
value of its aircraft could be reduced when this new variant enters production, currently expected to be in late
2017.

At March 31, 2013, the average aircraft age of the Company‘s Boeing 737-800 fleet was just over 4.5

years.

Training and Regulatory Compliance

Ryanair currently owns and operates four Boeing 737-800 full flight simulators for pilot training, the
first of which was delivered in 2002. The simulators were purchased from CAE Electronics Ltd. of Quebec,
Canada (―CAE‖). The second simulator was delivered in 2004, while the third and fourth simulators were
delivered in the 2008 fiscal year. In September 2006, Ryanair entered into a new contract with CAE to purchase
B737NG Level B flight simulators. Two such simulators were delivered in the 2009 fiscal year.

Management believes that Ryanair is currently in compliance with all applicable regulations and EU
directives concerning its fleet of Boeing 737-800 aircraft and will comply with any regulations or EU directives
that may come into effect in the future. However, there can be no assurance that the FAA or other regulatory
authorities will not recommend or require other safety-related undertakings that could adversely impact the
Company‘s results of operations or financial condition. See ―Item 3. Key Information—Risk Factors—Safety-
Related Undertakings Could Affect the Company‘s Results.‖

ANCILLARY SERVICES

Ryanair provides various ancillary services and engages in other activities connected with its core air
passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of
beverages, food, and merchandise. See ―Item 5. Operating and Financial Review and Prospects—Results of
Operations—Fiscal Year 2013 Compared with Fiscal Year 2012—Ancillary Revenues‖ for additional
information.

As part of its non-flight scheduled and Internet-related services, Ryanair incentivizes ground service
providers at many of the airports it serves to levy correct excess baggage charges for any baggage that exceeds
Ryanair‘s published baggage allowances and to collect these charges in accordance with Ryanair‘s standard
terms and conditions. Excess baggage charges are recorded as non-flight scheduled revenue.

Ryanair primarily distributes accommodation services and travel insurance through its website. For
hotel and accommodation services, Ryanair has a contract with Hotelscombined PTY Ltd. (―Hotelscombined‖),
which operates a price comparison website, pursuant to which Hotelscombined handles all aspects of such
services marketed through Ryanair‘s website and pays a fee to Ryanair. In addition, Ryanair has a contract with
Hertz, pursuant to which Hertz handles all car rental services marketed through Ryanair‘s website or telephone
reservation system.

Ryanair also sells bus and rail tickets onboard its aircraft and through its website. Ryanair also sells car

parking, attractions and activities on its website, with the latter having gone on sale in-flight in spring 2012.

Ryanair sells mobile phone credit for smart phone devices on its website, introduced in December
2012. Ryanair also sells gift vouchers on its website. Such gift vouchers are redeemable online. In May 2009,
Ryanair started to offer its passengers the possibility of receiving an SMS (text message) when booking, at a fee
of £1.50 or €1.50, to inform them of their flight confirmation details.

In April 2009, Ryanair signed a contract with Webloyalty International Ltd, which offers Ryanair‘s
customers who have a UK, German or French billing address a retail discount and cash-back program. In
February 2009, Ryanair introduced Google Adsense to its search results pages in order to monetize the traffic
levels that those pages generate. In March 2009, Ryanair expanded further into the area of third-party Internet
advertising with the introduction of third-party display advertising on the homepages on its website and, more
recently, on the subpages of Ryanair.com. In April 2011, Ryanair began to sell advertising on its boarding cards.
In 2012, a boarding card redesign along with increased passenger volumes allowed for further growth in this
area.

Ryanair has entered into agreements pursuant to which the Company promotes Ryanair-branded credit
and prepaid cards issued by Deutsche Bank, GE Money, Access Prepaid (a Mastercard company) and Banco
Santander on its Internet site. The Deutsche Bank agreement relates to Italian residents only, the GE Money
agreement relates to Swedish and Polish residents only and the Banco Santander agreement relates to UK
residents only. Ryanair generates revenue from Deutsche Bank, GE Capital and Banco Santander on the basis of
the number of cards issued and the revenues generated through the use of the credit cards. The Access Prepaid
Limited prepaid card covers residents in the UK, Ireland, Italy, Spain and Germany.

In fiscal year 2012, Ryanair rolled out handheld Electronic Point of Sale (―EPOS‖) devices across its
route network. These EPOS devices replaced manual and paper based systems on board the aircraft. The EPOS
device enables cabin crew to sell and record their on-board sales transactions more efficiently and generate
vastly improved management sales reporting. The EPOS device also issues bus and rail tickets and tickets for
tourist attractions.

In fiscal year 2011, Ryanair began offering reserved seating in twenty-one extra legroom seats on each
aircraft for a fee on certain routes and this feature was rolled out to all routes in fiscal year 2012. There are
currently 45 reserved seats available for purchase on each flight.

General

MAINTENANCE AND REPAIRS

As part of its commitment to safety, Ryanair endeavors to hire qualified maintenance personnel,
provide proper training to such personnel, and maintain its aircraft in accordance with European industry
standards. While Ryanair seeks to maintain its fleet in a cost-effective manner, management does not seek to
extend Ryanair‘s low-cost operating strategy to the areas of maintenance, training or quality control.

Ryanair‘s quality assurance department deals with oversight of all maintenance activities in accordance
with Part 145. The European Aviation Safety Agency (―EASA‖), which established Part 145, came into being
on September 28, 2003; through the adoption of Regulation (EC) No. 1592/2002 of the European Parliament,
and its standards superseded the previous Joint Aviation Authority (―JAA‖) requirements. See ―Government
RegulationRegulatory Authorities.‖

Ryanair is itself an EASA Part 145-approved maintenance contractor and provides its own routine
aircraft maintenance and repair services. Ryanair also performs certain checks on its aircraft, including pre-
flight, daily, and transit checks at some of its bases, as well as A-checks at its Dublin, London (Stansted),
Glasgow (Prestwick), Bremen and Frankfurt (Hahn) facilities. Since December 2003, Ryanair has operated a
hangar facility at its base at Glasgow (Prestwick) in Scotland, where both A-checks and C-checks are performed
on the fleet of Boeing 737-800 aircraft. The facility performs up to four C-checks per week and Ryanair has
recently opened a new C-check hangar facility in Kaunas, Lithuania where it carries out between one and two
light C-checks per week, enabling Ryanair to perform all of the heavy maintenance that is currently required on
its Boeing 737-800 fleet in-house.

Ryanair opened a five-bay hangar and stores facility at its London (Stansted) airport base in October
2008 to allow Ryanair to carry out additional line maintenance on its expanding fleet. This facility also
incorporates two flight simulator devices with space and provisions for two more, together with a cabin crew
trainer and associated training rooms. Ryanair has completed the building of a separate training facility adjacent
to the hangar to accommodate a full size 737NG training aircraft to allow for cabin crew and engineering
training. Ryanair carries out A-checks and line maintenance in its single-bay aircraft hangar facility in Bremen.
Ryanair has also entered into a 30-year sole-tenancy agreement with Frankfurt (Hahn) airport and has taken
acceptance of a two-bay hangar and stores facility that also incorporates a two-bay simulator-training center.
This facility was completed in January 2011 and allows Ryanair to carry out additional line maintenance
including A-checks.

Maintenance and repair services that may become necessary while an aircraft is located at some of the
other airports served by Ryanair are provided by other Part 145-approved contract maintenance providers.
Aircraft return each evening to Ryanair‘s bases, where they are examined by either Ryanair‘s approved
engineers or by local Part 145-approved companies.

Heavy Maintenance

As noted above, Ryanair currently has sufficient capacity to be able to carry out all of the routine
maintenance work required on its Boeing 737-800 fleet itself. Ryanair opened a new three-bay maintenance
hangar at Glasgow (Prestwick) airport in winter 2010 to accommodate the additional maintenance requirements
arising from its expanding and aging fleet and opened a new C-check facility in Kaunas in January 2013 to carry
out light C -checks.

Ryanair contracts out engine overhaul service for its Boeing 737-800 aircraft to General Electric
Engine Services pursuant to a 10-year agreement with an option for a 10-year extension, signed in 2004. This
comprehensive maintenance contract provides for the repair and overhaul of the CFM56-7B series engines fitted
to the first 155 of Ryanair‘s Boeing 737-800 aircraft, the repair of parts and general technical support for the
fleet of engines. On June 30, 2008, the Company finalized a contract for a similar level of coverage and support
for the engines on all of its aircraft that have been or were scheduled to be delivered over the period through
November 2012. Due to the fact that engines on recently delivered aircraft will not require a scheduled engine
overhaul prior to the expiry of the current contract with GE, Ryanair has decided, at this time, not to take up its
option to have engines delivered with aircraft after October 2010 covered by this contract. General Electric
Engine Services mainly uses its Part 145-approved repair facility in Cardiff, Wales for this work, but also uses
the KLM Part 145-approved facility in Amsterdam, and occasionally its Part 145-approved facility in Celma,

Brazil. By contracting with experienced Part 145-approved maintenance providers, management believes it is
better able to ensure the quality of its aircraft and engine maintenance. Ryanair assigns a Part 145-certified
mechanic to oversee all heavy maintenance and to authorize all engine overhauls performed by third parties.
Maintenance providers are also monitored closely by the national authorities under EASA and national
regulations.

Ryanair expects to be dependent on external service contractors, particularly for engine and component
maintenance, for the foreseeable future, notwithstanding the additional capabilities provided by its maintenance
facilities at Dublin, Glasgow (Prestwick), London (Stansted), Frankfurt (Hahn) and Kaunas. See ―Item 3. Key
Information—Risk Factors—Risks Related to the Company—The Company Is Dependent on External Service
Providers.‖

SAFETY RECORD

Ryanair has not had a single passenger or flight crew fatality in its 29-year operating history. Ryanair
demonstrates its commitment to safe operations through its safety training procedures, its investment in safety-
related equipment, and its adoption of an internal open and confidential reporting system for safety issues. The
Company‘s Board of Directors also has an air safety committee to review and discuss air safety and related
issues. Michael Horgan, a Company director, is the chairman of this committee and reports to the Board of
Directors.

Ryanair‘s flight training is oriented towards accident prevention and covers all aspects of flight
operations. Threat and Error Management (TEM) is at the core of all flight crew training programs. Ryanair
maintains full control of the content and delivery of all of its flight crew training, including initial, recurrent, and
upgrade phases. All training programs are approved by the Irish Aviation Authority (the ―IAA‖), which
regularly audits operation control standards and flight crew training standards for compliance with EU
legislation.

All of the Boeing 737-800s that Ryanair has bought or committed to buy are certified for Category IIIA

landings (automatic landings with minimum horizontal visibility of 200 meters and a 50 feet decision height).

Ryanair has a comprehensive and documented safety management system. Management encourages
flight crews to report any safety-related issues through the Safety Alert Initial Report reporting program or to
use the confidential reporting system, which is available online through Ryanair‘s Crewdock system. The
confidential reporting system affords flight crews the opportunity to report directly to Flight Safety Officer any
event, error, or discrepancy in flight operations that they do not wish to report through standard reporting
channels. The confidential reporting system is designed to increase management‘s awareness of problems that
may be encountered by flight crews in their day-to-day operations. Management uses the information reported
through all reporting systems to modify operating procedures and improve flight operation standards.
Additionally, Ryanair promotes the use of CHIRP, a confidential reporting system that is endorsed by the UK
CAA as an alternative confidential reporting channel.

Ryanair has installed an automatic data capturing system on each of its Boeing 737-800 aircraft which
captures and downloads aircraft performance information for use as part of Operational Flight Data Monitoring
(OFDM) which automatically provides a confidential report on variations from normal operating limitations
detected during the course of each flight. The purpose of this system is to monitor operational trends and inform
management of any instance of an operational limit being exceeded. By analyzing these reports, management is
able to identify undesirable trends and potential areas of operational risk, so as to take steps to rectify such
deviations, thereby ensuring adherence to Ryanair‘s flight safety standards.

In November 2008, a Ryanair aircraft suffered a multiple bird strike during its final approach to Rome
(Ciampino) airport. This incident caused substantial damage to the aircraft, which resulted in an insurance claim
being filed in respect of this aircraft. The damage that it suffered was such that the aircraft was not repaired,
although Ryanair has retained ownership of it for certain parts and for training purposes.

Airport Handling Services

AIRPORT OPERATIONS

Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport.
Third parties provide these services to Ryanair at most other airports it serves. Servisair plc provides Ryanair‘s
ticketing, passenger and aircraft handling, and ground handling services at many of these airports in Ireland and
the U.K. (excluding London (Stansted) Airport where these services are provided primarily by Swissport Ltd.),
while similar services in continental Europe are generally provided by the local airport authorities, either
directly or through sub-contractors. Management attempts to obtain competitive rates for such services by
negotiating multi-year contracts at fixed prices. These contracts are generally scheduled to expire in one to five
years, unless renewed, and certain of them may be terminated by either party before their expiry upon prior
notice. Ryanair will need to enter into similar agreements in any new markets it may enter. See ―Item 3. Key
Information—Risk Factors—Risks Related to the Company—The Company Is Dependent on External Service
Providers.‖

During 2009, Ryanair introduced Internet check-in for all passengers and also introduced kiosks at
certain airports for the provision of other services. The Company has these kiosks in operation at many of its
key bases.

Airport Charges

As with other airlines, Ryanair must pay airport charges each time it lands and accesses facilities at the
airports it serves. Depending on the policy of the individual airport, such charges can include landing fees,
passenger loading fees, security fees and parking fees. Ryanair attempts to negotiate discounted fees by
delivering annual increases in passenger traffic, and opts, when practicable, for less expensive facilities, such as
less convenient gates and the use of outdoor boarding stairs rather than more expensive jetways. Nevertheless,
there can be no assurance that the airports Ryanair uses will not impose higher airport charges in the future and
that any such increases would not adversely affect the Company‘s operations.

As a result of rising airport charges and the introduction of an Air Travel Tax of €10 on passengers
departing from Irish airports on routes longer than 300 kilometers from Dublin Airport (€2 on shorter routes),
Ryanair reduced its fleet at Dublin airport to 13 during winter 2010 (down from 22 in summer 2008 and 20 in
winter 2008). The introduction of the aforementioned €10 tax has likely had a negative impact on the number of
passengers traveling to and from Ireland. The Dublin Airport Authority (―DAA‖) has reported that passenger
volumes declined by 25% from 30 million in 2007 to 23 million in 2012. Ryanair believes that this is partly
reflective of the negative impact of the tax on Irish travel. Ryanair has called for the elimination of the tax to
stimulate tourism during the recession. The Company has cited the example of the Dutch government, which
withdrew its travel tax with effect from July 1, 2009. The Dutch travel tax had ranged from €11 for short-haul
flights to €45 for long-haul flights and had resulted in a significant decline in passenger volumes at Schiphol
Airport, Holland‘s main airport, according to data published by the airport. Ryanair also complained to the
European Commission about the unlawful differentiation in the level of the Irish Air Travel tax between routes
within the EU. From April 2011, a single rate (€3) of the Air Travel Tax has been introduced on all routes. In
May 2011, the Irish Government announced that it would abolish the Air Travel Tax, although no details were
provided as to when this decision would be implemented. No assurance can be given that the tax will be
abolished or indeed that a higher rate of tax will not be applied in the future, which could have a negative impact
on demand for air travel. In June 2011, Ryanair proposed to the Irish Government that it would deliver an
incremental 5 million passengers per annum over a five year period in return for reduced airport charges and the
abolition of the €3 air travel tax. Despite the fact that this offer was renewed in 2012, as of July 19, 2013, the
Company has not yet received a positive response to this proposal. The Company is currently in negotiations
with the DAA in relation to a growth incentive scheme whereby additional traffic will be delivered at Dublin
airport in return for a reduction in airport charges. See ―Item 3. Key InformationRisk FactorsRisks Related
to the Company—The Company Is Subject to Legal Proceedings Alleging State Aid at Certain Airports

The Greek government planned to introduce similar taxes; however, they have now cancelled plans to
introduce these taxes. The German government introduced an €8 passenger tax on January 1, 2011 for all
departing domestic or short-haul passengers and a passenger tax of €25 for all departing passengers on flights
bound for southern Europe and northern Africa. The €8 tax was reduced to €7.50 in January 2012. In addition,
the Austrian government introduced an ecological air travel levy of €8 effective January 1, 2011. In July 2013,
the local Walloon Government in Belgium voted to introduce a €3 passenger travel tax from January 2014.
Ryanair has threatened to cut its services at Charleroi Airport if the tax is introduced.

In March 2007, the discount arrangement formerly in place at London (Stansted) airport terminated,
subjecting Ryanair to an average increase in charges of approximately 100%. The increase in these charges,
which was passed on in the form of higher ticket prices, had a negative impact on yields and passenger volumes
in the winter, resulting in Ryanair‘s decision to ground seven aircraft. Ryanair responded to the increases by
filing complaints with the U.K. Office of Fair Trading (―OFT‖) and the Competition Commission, calling for
the break-up of the British Airports Authority plc (―BAA‖) monopoly and the introduction of competition in the
London airports market. The OFT referred the matter to the Competition Commission, which found that the
common ownership by BAA of the three main airports in London negatively affected competition and that a
―light touch‖ approach to regulating BAA by the Civil Aviation Authority adversely impacted competition. In
March 2009 the Competition Commission ordered the break-up of BAA. In October 2009, London (Gatwick)
was sold to Global Infrastructure Partners for £1.5 billion. Following a delay caused by various appeals by the
BAA, the BAA proceeded to sell Edinburgh Airport in April 2012, and Stansted airport to Manchester Airports
Group plc in March 2013. Following the December 2003 publication of the U.K. government‘s White Paper on
Airport Capacity in the Southeast of England, the BAA in 2004 announced plans to spend up to £4 billion on a
multi-year project to construct a second runway and additional terminal facilities at London (Stansted) airport
with a target opening date of 2013. Ryanair and other airlines using London (Stansted) support the principle of a
second runway at London (Stansted), but are opposed to this development because they believe that the
financing of what they consider to be an overblown project will lead to airport costs approximately doubling
from current levels. In May 2010 the BAA announced that it would not proceed with this £4 billion program. In
April 2013 the UK Civil Aviation Authority proposed that the regulatory regime for airport charges at Stansted
Airport between 2014 and 2019 should operate on the basis that charges can grow annually at half the rate of
inflation. A final decision in this regard will be made by early 2014.

Ryanair announced on July 21, 2009 that, as a result of the U.K. government‘s then £10 APD tourist
tax (as well as the then scheduled increase in APD from £10 to £11, which occurred in November 2009, from
£11 to £12 which occurred in November 2010 and from £12 to £13 in April 2012) and the high costs of
operating at its London (Stansted) base, it would implement a 40% reduction in capacity at such base between
October 2009 and March 2010. In particular, the Company announced its intention to reduce its London
(Stansted)-based aircraft from the then current 40 to 24 during the aforementioned period, and also reduce by
30% the number of weekly Ryanair flights to and from the airport. The Company announced at that time that it
expected these cuts to result in 2.5 million fewer passenger trips during the period. In addition, on June 29,
2010, due to the continuance of the U.K. government‘s £11 APD tourist tax and high charges at London
(Stansted) airport, the Company announced that capacity at London (Stansted) airport would be reduced from
winter 2010 by 17% and the number of aircraft based at London (Stansted) would be reduced to 22. Ryanair
also noted that, as a result of other capacity reductions at its U.K. bases except for the bases at Edinburgh and
Leeds Bradford, its total U.K. capacity fell by 16% in the period from November 1, 2010 to March 31, 2011. In
the 2013 fiscal year capacity to/from the U.K. was flat on the prior year. Capacity was increased in Manchester
following the conclusion of a base agreement. This increase was offset by reductions in capacity in London
(Gatwick) and Edinburgh as a result of cost increases. The Company is currently in negotiations with
Manchester Airports Group plc, the owners of London (Stansted), in relation to an expansion of capacity at
London (Stansted) in return for significant airport charge reductions for the incremental passenger volumes
delivered. See ―Item 3. Risk FactorsRisks Related to the CompanyRyanair‘s Continued Growth is
Dependent on Access to Suitable Airports; Charges for Airport Access are Subject to Increase.‖ See also ―Item
8. Financial
InformationLegal ProceedingsEU State Aid-Related
Proceedings‖ for information regarding legal proceedings in which Ryanair‘s economic arrangements with
several publicly owned airports are being contested.

InformationOther Financial

FUEL

The cost of jet fuel accounted for approximately 45% and 43% of Ryanair‘s total operating expenses in
the fiscal years ended March 31, 2013 and 2012, respectively (in each case, this accounts for costs after giving
effect to the Company‘s fuel hedging activities but excludes de-icing costs, which accounted for approximately
1% of total fuel costs in each of the fiscal years ended March 31, 2013 and 2012). The future availability and
cost of jet fuel cannot be predicted with any degree of certainty, and Ryanair‘s low-fares policy limits its ability
to pass on increased fuel costs to passengers through increased fares. Jet fuel prices are dependent on crude oil
prices, which are quoted in U.S. dollars. If the value of the U.S. dollar strengthens against the euro, Ryanair‘s
fuel costs, expressed in euro, may increase even absent any increase in the U.S. dollar price of jet fuel. Ryanair
has also entered into foreign currency forward contracts to hedge against some currency fluctuations. See ―Item
11. Quantitative and Qualitative Disclosures About Market Risk—Foreign Currency Exposure and Hedging.‖

Ryanair has historically entered into arrangements providing for substantial protection against
fluctuations in fuel prices, generally through forward contracts covering periods of up to 18 months of
anticipated jet fuel requirements. Ryanair (like many other airlines) has, in more recent periods, entered into
hedging arrangements on a much more selective basis. As of July 26, 2013, Ryanair had entered into forward jet
fuel (jet kerosene) contracts covering approximately 90% of its estimated requirements for the fiscal year ending
March 31, 2014 at prices equivalent to approximately $980 per metric ton. In addition, as of July 26, 2013,
Ryanair had entered into forward jet fuel (jet kerosene) contracts covering approximately 75% of its estimated
requirements for the first half of the fiscal year ending March 31, 2015 at prices equivalent to approximately
$935 per metric ton, and had not entered into any jet fuel hedging contracts with respect to its expected fuel
purchases beyond that period. See ―Item 3. Key Information—Risk Factors—Risks Related to the Company—
Changes in Fuel Costs and Fuel Availability Affect the Company‘s Results and Increase the Likelihood of
Adverse Impact to the Company‘s Profitability‖ and ―Item 11. Quantitative and Qualitative Disclosures About
Market Risk—Fuel Price Exposure and Hedging‖ for additional information on recent trends in fuel costs and
the Company‘s related hedging activities, as well as certain associated risks. See also ―Item 5. Operating and
Financial Review and Prospects—Fiscal Year 2013 Compared with Fiscal Year 2012—Fuel and Oil.‖

INSURANCE

Ryanair is exposed to potential catastrophic losses that may be incurred in the event of an aircraft
accident or terrorist incident. Any such accident or incident could involve costs related to the repair or
replacement of a damaged aircraft and its consequent temporary or permanent loss from service. In addition, an
accident or incident could result in significant legal claims against the Company from injured passengers and
others who experienced injury or property damage as a result of the accident or incident, including ground
victims. Ryanair maintains aviation third-party liability insurance, passenger liability insurance, employer
liability insurance, directors and officers liability insurance, aircraft insurance for aircraft loss or damage, and
other business insurance in amounts per occurrence consistent with industry standards. Ryanair believes its
insurance coverage is adequate, although not comprehensive. There can be no assurance that the amount of such
coverage will not need to be increased, that insurance premiums will not increase significantly or that Ryanair
will not be forced to bear substantial losses from accidents. Ryanair‘s insurance does not cover claims for losses
incurred when, due to unforeseen events, airspace is closed and aircraft are grounded, such as the airspace
closures described on page 53, which resulted from volcanic ash in the northern European airspace during April
and May 2010.

The cost of insurance coverage for certain third-party liabilities arising from ―acts of war‖ or terrorism
increased dramatically as a result of the September 11, 2001 terrorist attacks. In the immediate aftermath,
aircraft liability war indemnities for amounts above $50 million were, in the absence of any alternative
coverage, provided by the Irish Government at pre-September 11, 2001 levels of coverage on the basis of a per-
passenger surcharge. In March 2002, once such coverage was again commercially available, Ryanair arranged
coverage to replace that provided by the government indemnity. The replacement insurance coverage operated
on the basis of a per-passenger surcharge with an additional surcharge based on hull values. Ryanair‘s insurers
have indicated that the scope of the Company‘s current war-related insurance coverage may exclude certain
types of catastrophic incidents, which may result in the Company seeking alternative coverage. Ryanair to date
has passed increased insurance costs on to passengers by means of a special ―insurance levy‖ on each ticket.

During the 2006 fiscal year, Ryanair established Aviation Insurance (IOM) Limited (―AIL‖), a wholly
owned insurance company subsidiary, to provide the Company with self-insurance as part of its ongoing risk-
management strategy. AIL underwrites a portion of the Company‘s aviation insurance program, which covers
not only the Company‘s aircraft but also its liability to passengers and to third parties. AIL reinsures virtually all
of the aviation insurance risk it underwrites with recognized third parties in the aviation reinsurance market,
with the amount of AIL‘s maximum aggregate exposure not currently subject to such reinsurance agreements
being equal to approximately $16.5 million. In addition to aviation insurance, AIL has underwritten most of the
single trip travel insurance policies sold on Ryanair.com since February 1, 2011.

Council Regulation (EC) No. 2027/97, as amended by Council Regulation (EC) No. 889/2002, governs
air carrier liability. This legislation provides for unlimited liability of an air carrier in the event of death or
bodily injuries suffered by passengers, implementing the Warsaw Convention of 1929 for the Unification of
Certain Rules Relating to Transportation by Air, as amended by the Montreal Convention of 1999. Ryanair has
extended its liability insurance to meet the appropriate requirements of the legislation. See ―Item 3. Key
Information—Risk Factors—Risks Related to the Airline Industry—The Company Faces the Risk of Loss and
Liability‖ for information on the Company‘s risks of loss and liability.

FACILITIES

The following are the principal properties owned or leased by the Company:

Location

Site Area
(Sq. Meters)

Floor Space
(Sq. Meters)

Tenure

Activity

Dublin Airport .........................
Concourse Building, Airside
Business Park, Swords, Dublin
Dublin Airport (Hangar No.1).
Dublin Airport (Hangar No.2).
Dublin Airport Business Park ..
Phoenix House,
Conyngham Road, Dublin .......
Satellite 3,
Stansted Airport .......................

Stansted Airport (Hangar) .......
Stansted Airport .......................
Stansted Storage Facilities .......
East Midlands Airport .............
East Midlands Airport .............

Bremen Airport ........................
Skavsta Airport (Hangar) ........
Prestwick Airport (Hangar) .....
Frankfurt (Hahn) Airport
(Hangar) ..................................
Kaunas Airport (Hangar) .........
Rygge Airport (Hangar) ..........

1,116

1,395 Leasehold Corporate Headquarters

12,141
1,620
5,200
955

Freehold

9,298
1,620 Leasehold Aircraft Maintenance
5,000 Leasehold Aircraft Maintenance

New Corporate Headquarters

749 Leasehold Administration Offices

2,566

3,899 Freehold

605

605 Leasehold

Administration Offices
Operations Center and
Administrative Offices
Aircraft Maintenance Hangar
and Simulator Training Center
Training Centre

10,301 Leasehold
375 Leasehold
531 Leasehold Aircraft Maintenance

634 Leasehold

2,801 Freehold

Simulator and Training Center
Training Center
Terminal and Aircraft
Maintenance Hangar
5,874 Leasehold
1,936 Leasehold Aircraft Maintenance
10,052 Leasehold Aircraft Maintenance

Aircraft Maintenance Hangar
and Simulator Training Center

5,064 Leasehold
1,700 Leasehold Aircraft Maintenance
1,700 Leasehold Aircraft Maintenance

12,161
375
378
3,890
2,045

5,952
1,936
10,052

5,064
1,700
1,700

Ryanair has agreements with the DAA, the Irish government authority charged with operating Dublin
Airport, to lease bag-drop counters and other space at the passenger and cargo terminal facilities at Dublin
Airport. The airport office facilities used by Ryanair at London (Stansted) are leased from the airport authority;
similar facilities at each of the other airports Ryanair serves are provided by Servisair plc or other service
providers.

TRADEMARKS

Ryanair‘s logo and the slogans ―Ryanair.com The Low Fares Website‖ and ―Ryanair The Low Fares
Airline‖ have been registered as Community Trade Marks (―CTMs‖). Ryanair has also registered the CTM for
the word ―Ryanairhotels.com.‖ A CTM allows a trademark owner to obtain a single registration of its
trademark, which registration affords uniform protection for that trademark in all EU member states. The
registration gives Ryanair an exclusive monopoly over the use of its trade name with regard to similar services
and the right to sue for trademark infringement should another party use an identical or confusingly similar
trademark in relation to identical, or similar services.

Ryanair has not registered either its name or its logo as a trademark in Ireland, as CTM-registration
provides all of the protection available from an Irish registration, and management believes there are therefore
no advantages in making a separate Irish application.

Ryanair‘s trademarks include:

- Community (Word) Trade Mark registration number 004168721 comprised of the word ―Ryanair‖ in

classes 16, 28, 35, 36, 37, 38, 39 and 42 (Nice Classification);

- Community (Figurative) Trade Mark registration number 001493329 comprising the following graphic

representation:

in classes 16, 35, 36, 37, 38, 39 and 42 (Nice Classification) and class 27.5.1 (Vienna classification);

- Community (Figurative) Trade Mark registration number 00446559 comprising the following graphic

representation:

in classes 16, 35, 36, 37, 38, 39 and 42 (Nice Classification) and class 22.1.16 (Vienna classification);

- Community (Figurative) Trade Mark registration number 000338301

comprising the following graphic representation:

in classes 16, 35, 36, 37, 38, 39 and 42 (Nice Classification) and class 22.1.16 (Vienna classification)

Liberalization of the EU Air Transportation Market

GOVERNMENT REGULATION

Ryanair began its flight operations in 1985, during a decade in which the governments of Ireland and
the U.K. liberalized the bilateral arrangements for the operation of air services between the two countries. In
1992, the Council of Ministers of the EU adopted a package of measures intended to liberalize the internal
market for air transportation in the EU. The liberalization included measures that allow EU air carriers
substantial freedom to set air fares, provided EU air carriers greatly enhanced access to routes within the EU,
and also introduced a licensing procedure for EU air carriers. Beginning in April 1997, EU air carriers have
generally been able to provide passenger services on domestic routes within any EU member state outside their
home country of operations without restriction.

Regulatory Authorities

Ryanair is subject to Irish and EU regulation, which is implemented primarily by the Department of
Transport, the IAA, the European Commission, and the EASA. Management believes that the present regulatory
environment in Ireland and the EU is characterized by high sensitivity to safety and security issues, which is
demonstrated by intensive reviews of safety-related procedures, training, and equipment by the national and EU
regulatory authorities.

Commission for Aviation Regulation. The CAR is currently primarily responsible for deciding

maximum airport charges only at Dublin Airport. See ―Airport OperationsAirport Charges‖ above.

The CAR also has responsibility for licensing Irish airlines, subject to the requirements of EU law. It
issues operating licenses under the provisions of EU Regulation 1008/2008 (formerly 2407/92). An operating
license is an authorization permitting the holder to transport passengers, mail and/or cargo by air. The criteria
for granting an operating license include, inter alia, an air carrier‘s financial fitness, the adequacy of its
insurance, and the fitness of the persons who will manage the air carrier. In addition, in order to obtain and
maintain an operating license, Irish and EU regulations require that (i) the air carrier must be owned and
continue to be owned directly or through majority ownership by EU member states and/or nationals of EU
member states and (ii) the air carrier must at all times be effectively controlled by such EU member states or EU
nationals. The CAR has broad authority to revoke an operating license. See ―Item 10. Additional Information––
Limitations on Share Ownership by Non-EU Nationals.‖ See also ―Item 3. Risk Factors––Risks Related to
Ownership of the Company‘s Ordinary Shares or ADRs—EU Rules Impose Restrictions on the Ownership of
Ryanair Holdings‘ Ordinary Shares by Non-EU nationals and the Company has Instituted a Ban on the Purchase
of Ordinary Shares by Non-EU Nationals‖ above.

The CAR is also responsible for deciding whether a regulated airport should be coordinated or fully
coordinated under Council Regulation (EEC) No. 95/93 (as amended by Regulation (EC) No. 793/2004) on
slots and for authorizing ground handling operations under Council Directive 96/67/EC and its implementing
legislation. In April 2005, the CAR announced that Dublin Airport would be fully slot-coordinated beginning in
March 2006. Ryanair successfully challenged this decision in the Irish High Court, and the decision was
overturned in July 2006. In February 2007, the CAR re-imposed full coordination at Dublin Airport. Ryanair
again challenged this decision in the Irish High Court, but subsequently withdrew the challenge. See ―—Slots‖
below for additional information regarding this litigation.

Ryanair‘s current operating license became effective on December 1, 1993, and is subject to periodic
review. The Flight Operations Department is also subject to ongoing review by the Irish Aviation Authority (the
IAA), which reviews the department‘s audits, including flight audits, training audits, document audits, and
quality audits. Ryanair‘s current Air Operator Certificate No IE 7/94 was issued on January 24, 2013.

Irish Aviation Authority. The IAA is primarily responsible for the operational and regulatory function
and services relating to the safety and technical aspects of aviation in Ireland. To operate in Ireland and the EU,
an Irish air carrier is required to hold an operator‘s certificate granted by the IAA attesting to the air carrier‘s
operational and technical competence to conduct airline services with specified types of aircraft. The IAA has
broad authority to amend or revoke an operator‘s certificate, with Ryanair‘s ability to continue to hold its
operator‘s certificate being subject to ongoing compliance with applicable statutes, rules and regulations
pertaining to the airline industry, including any new rules and regulations that may be adopted in the future.

The IAA is also responsible for overseeing and regulating the operations of Irish air carriers. Matters
within the scope of the IAA‘s regulatory authority include: air safety; aircraft certification; personnel licensing
and training; maintenance, manufacture, repair, airworthiness, and operation of aircraft; implementation of EU
legislation; aircraft noise; and ground services. Each of the Company‘s aircraft is required to have a Certificate
of Airworthiness, which is issued by the IAA. The validity of Certificates of Airworthiness is subject to the
review by the IAA. Each certificate is generally valid for a 12-month period. In March 2009, Ryanair received
―Sub-Part (I) approval‖ from the IAA, which gives Ryanair the authority to extend the validity of its certificates,
subject to certain record checks and physical aircraft inspections being performed by Ryanair‘s quality
department. The Company‘s flight personnel, flight and emergency procedures, aircraft, and maintenance
facilities are subject to periodic inspections by the IAA. The IAA has broad regulatory and enforcement powers,
including the authority to require reports; inspect the books, records, premises, and aircraft of a carrier; and
investigate and institute enforcement proceedings. Failure to comply with IAA regulations can result in
revocation of operating certification.

In July 1999, the IAA awarded Ryanair an air operator‘s certificate, which is subject to routine audit
and review, in recognition of Ryanair‘s satisfaction of the relevant EU requirements for the operation of
commercial air transport (―EU OPS 1‖). The requirements of EU OPS 1 have been incorporated into European
law as prescribed in Regulation (EEC) 3922/91 and were applied in full on July 16, 2008. All current regulatory
requirements are addressed in the Ryanair Operations Manual Part A (as amended). The current Manual, Issue 3
Revision 8, was approved by the IAA on May 1, 2012.

Department of Transport. The Department of Transport (―DOT‖) is responsible for implementation of
certain EU and Irish legislation and international standards relating to air transport (e.g., noise levels, aviation
security, etc.).

In June 2005, the Irish Minister for Transport enacted legislation strengthening rights for air passengers
following the enactment of EU legislation requiring compensation of airline passengers who have been denied
boarding on a flight for which they hold a valid ticket (Regulation (EC) No. 261/2004), which came into force
on February 17, 2005. See ―Item 3. Risk Factors—Risks Related to the Airline Industry—EU Regulation on
Passenger Compensation Could Significantly Increase Related Costs.‖

The European Aviation Safety Agency. EASA is an agency of the EU that has been given specific
regulatory and executive tasks in the field of aviation safety. EASA was established through Regulation (EC)
No. 1592/2002 of the European Parliament and the Council of July 15, 2002, repealed by Basic Regulation (EC)
216-2008. The purpose of EASA is to draw-up common standards to ensure the highest levels of safety, oversee
their uniform application across Europe and promote them at the global level. The EASA formally started its
work on September 28, 2003, taking over the responsibility for regulating airworthiness and maintenance issues
within the EU member states.

Eurocontrol. The European Organization for the Safety of Air Navigation (―Eurocontrol‖) is an
autonomous European organization established under the Eurocontrol Convention of December 13, 1960.
Eurocontrol is responsible for, inter alia, the safety of air navigation and the collection of route charges for en
route air navigation facilities and services throughout Europe. Ireland is a party to several international
agreements concerning Eurocontrol. These agreements have been implemented in Irish law, which provides for
the payment of charges to Eurocontrol in respect of air navigation services for aircraft in airspace under the
control of Eurocontrol. The relevant legislation imposes liability for the payment of any charges upon the
operators of the aircraft in respect of which services are provided and upon the owners of such aircraft or the
managers of airports used by such aircraft. Ryanair, as an aircraft operator, is primarily responsible for the
payment to Eurocontrol of charges incurred in relation to its aircraft.

The legislation authorizes the detention of aircraft in the case of default in the payment of any charge
for air navigation services by the aircraft operator or the aircraft owner, as the case may be. This power of
detention extends to any equipment, stores or documents, which may be onboard the aircraft when it is detained,
and may result in the possible sale of the aircraft.

European Commission. The European Commission is in the process of introducing a ―single European
sky policy,‖ which would lead to changes to air traffic management and control within the EU. The ―single
European sky policy‖ currently consists of the Framework Regulation (Reg. (EC) No. 549/2004) plus three
technical regulations on the provision of air navigation services, organization and use of the airspace and the
interoperability of the European air traffic management network. These regulations have recently been amended
by the so-called ―Single European Sky II‖ regulation (EU Regulation 1070/09). The objective of the policy is to
enhance safety standards and the overall efficiency of air traffic in Europe, as well as to reduce the cost of air
traffic control services.

On September 6, 2005, the European Commission announced new guidelines on the financing of
airports and start-up aid to airlines by regional airports based on its February 2004 finding in the Charleroi case,
a decision that the Court of First Instance (―CFI‖) has since annulled in December 2008. The guidelines only
apply to publicly owned regional airports, and place restrictions on the incentives that these airports can offer
airlines to deliver traffic. Ryanair believes that the CFI‘s annulment of the Charleroi decision severely
undermines these guidelines. In April 2011, the European Commission launched a consultation on the revision
of the 2005 guidelines. In May 2013, the European Commission launched a further consultation on the revision
of the 2005 guidelines, a final revised version of which is expected to be published in the second half of 2013.
However, no assurance can be given that the revised guidelines will better reflect the commercial reality of the
liberalized air transport market and consequently allow public airports to offer similar incentives to those
offered by private airports.

The European Union also adopted legislation on airport charges (EU Directive 2009/12), which was
originally intended to address abusive pricing at monopoly airports. However, the legislation includes all
European airports with over five million passengers per year. Management believes that this will likely increase
the administrative burdens on smaller airports and may lead to higher airport charges, while the scope that exists
within this Directive to address abuses of their dominant positions by Europe‘s larger airports is very limited.
See ―Item 7. Major Shareholders and Related-Party Transactions Other Financial InformationLegal
ProceedingsEU State Aid-Related Proceedings.‖

The European Union also passed legislation calling for increased transparency in airline fares, which
requires the inclusion of all mandatory taxes, fees, and charges in advertised prices. Ryanair currently includes
this information in its advertised fares in all markets where it operates. However, certain regulatory authorities
have alleged that some fees applied by airlines, including Ryanair, on an avoidable basis are in fact mandatory.
Ryanair amended its website to include information on fees in June 2012 and incorporated further changes to
meet these requirements on its website in August 2012 and December 2012.

Registration of Aircraft

Pursuant to the Irish Aviation Authority (Nationality and Registration of Aircraft) Order 2002 (the
―Order‖), the IAA regulates the registration of aircraft in Ireland. In order to be registered or continue to be
registered in Ireland, an aircraft must be wholly owned by either (i) a citizen of Ireland or a citizen of another
member state of the EU having a place of residence or business in Ireland or (ii) a company registered in and
having a place of business in Ireland and having its principal place of business in Ireland or another member
state of the EU and not less than two-thirds of the directors of which are citizens of Ireland or of another
member state of the EU. As of the date of this report, nine of the ten directors of Ryanair Holdings are citizens
of Ireland or of another member state of the EU. An aircraft will also fulfill these conditions if it is wholly
owned by such citizens or companies in combination. Notwithstanding the fact that these particular conditions
may not be met, the IAA retains discretion to register an aircraft in Ireland so long as it is in compliance with the
other conditions for registration under the Order. Any such registration may, however, be made subject to
certain conditions. In order to be registered, an aircraft must also continue to comply with any applicable
provisions of Irish law. The registration of any aircraft can be cancelled if it is found that it is not in compliance
with the requirements for registration under the Order and, in particular: (i) if the ownership requirements are
not met; (ii) if the aircraft has failed to comply with any applicable safety requirements specified by the IAA in
relation to the aircraft or aircraft of a similar type; or (iii) if the IAA decides in any case that it is not in the
public interest for the aircraft to remain registered in Ireland.

Regulation of Competition

Competition/Antitrust Law. It is a general principle of EU competition law that no agreement may be
concluded between two or more separate economic undertakings that prevents, restricts or distorts competition
in the common market or any part of the common market. Such an arrangement may nevertheless be exempted
by the European Commission, on either an individual or category basis. The second general principle of EU
competition law is that any business or businesses having a dominant position in the EU common market or any
substantial part of the common market may not abuse such dominant position. Ryanair is subject to the
application of the general rules of EU competition law as well as specific rules on competition in the airline
sector.

An aggrieved person may sue for breach of EU competition law in the courts of a member state and/or
petition the European Commission for an order to put an end to the breach of competition law. The European
Commission also may impose fines and daily penalties on businesses and the courts of the member states may
award damages and other remedies (such as injunctions) in appropriate circumstances.

Competition law in Ireland is primarily embodied in the Competition Act 2002. This Act is modeled on
the EU competition law system. The Irish rules generally prohibit anti-competitive arrangements among
businesses and prohibit the abuse of a dominant position. These rules are enforced either by public enforcement
(primarily by the Competition Authority) through both criminal and civil sanctions or by private action in the
courts. These rules apply to the airline sector, but are subject to EU rules that override any contrary provisions
of Irish competition law. Ryanair has been subject to an abuse-of-dominance investigation by the Irish
Competition Authority in relation to service between Dublin and Cork. The Competition Authority closed its
investigation in July 2009 with a finding in favor of Ryanair.

State Aid. The EU rules control aid granted by member states to businesses on a selective or
discriminatory basis. The EU Treaty prevents member states from granting such aid unless approved in advance
by the EU. Any such grant of state aid to an airline is subject to challenge before the EU or, in certain
circumstances, national courts. If aid is held to have been unlawfully granted it may have to be repaid by the
airline to the granting member state, together with interest thereon. See ―Item 3. Key InformationRisk
FactorsRisks Related to the Company—The Company Is Subject to Legal Proceedings Alleging State Aid at
Certain Airports‖and ―Item 8. Financial InformationOther Financial InformationLegal Proceedings.‖

Environmental Regulation

Aircraft Noise Regulations. Ryanair is subject to international, national and, in some cases, local noise
regulation standards. EU and Irish regulations have required that all aircraft operated by Ryanair comply with
Stage 3 noise requirements since April 1, 2002. All of Ryanair‘s aircraft currently comply with these
regulations. Certain airports in the U.K. (including London Stansted and London Gatwick) and continental
Europe have established local noise restrictions, including limits on the number of hourly or daily operations or
the time of such operations.

Company Facilities. Environmental controls are generally imposed under Irish law through property
planning legislation, specifically the Local Government (Planning and Development) Acts of 1963 to 1999, the
Planning and Development Act 2000 and regulations made there under. At Dublin Airport, Ryanair operates on
land controlled by the DAA. Planning permission for its facilities has been granted in accordance with both the
zoning and planning requirements of Dublin Airport. There is also specific Irish environmental legislation
implementing applicable EU directives and regulations, to which Ryanair adheres. From time to time, noxious
or potentially toxic substances are held on a temporary basis within Ryanair‘s engineering facilities at Dublin
Airport, Glasgow (Prestwick), London (Stansted), Frankfurt (Hahn), Stockholm (Skavsta), Oslo (Rygge) and
Kaunas. However, at all times Ryanair‘s storage and handling of these substances complies with the relevant
regulatory requirements. At Ryanair‘s Glasgow (Prestwick) and London (Stansted) maintenance facilities, all
normal waste is removed in accordance with the Environmental Protection Act of 1996 and Duty of Care Waste
Regulations. For special waste removal, Ryanair operates under the Special Waste Regulations 1998. At all
other facilities Ryanair adheres to all local and EU regulations.

Ryanair’s Policy on Noise and Emissions. Ryanair is committed to reducing emissions and noise
through investments in ―next generation‖ aircraft and engine technologies and the implementation of certain
operational and commercial decisions to minimize the environmental impact of its operations. According to the
Air Travel Carbon and Energy Efficiency Report published by Brighter Planet, Ryanair is the industry leader in
terms of environmental efficiency, and the Company is constantly working towards improving its performance.

In December 2005, Ryanair completed the fleet replacement program it commenced in 1999. All of
Ryanair‘s older Boeing 737-200A aircraft were replaced with Boeing 737-800 ―next generation‖ aircraft, and
Ryanair now operates a single-aircraft-type fleet of Boeing 737-800 ―next generation‖ aircraft with an average
age of just over 4.5 years. The design of the new aircraft is aimed at minimizing drag, thereby reducing the rate
of fuel burn and noise levels. The engines are also quieter and more fuel-efficient. Furthermore, by moving to an
all Boeing 737-800 ―next generation‖ fleet, Ryanair reduced the unit emissions per passenger due to the inherent
capacity increase in the Boeing 737-800 aircraft. The Boeing 737-800 ―next generation‖ aircraft have a
significantly superior fuel-burn to passenger-kilometer ratio than Ryanair‘s former fleet of Boeing 737-200A
aircraft. See ―—Aircraft‖ above for details on Ryanair‘s fleet plan.

Ryanair has also installed winglets on all of its existing aircraft and all future aircraft will also be fitted
with winglets. Winglets reduce both the rate of fuel burn and carbon dioxide emissions by approximately 4%
and also reduce noise emissions.

In addition, Ryanair has distinctive operational characteristics that management believes are helpful to

the general environment. In particular, Ryanair:



operates with a high-seat density of 189 seats and an all-economy configuration, as opposed to the
162 seats and two-class configuration of the Boeing 737-800 aircraft used by traditional network
airlines, reducing fuel burn and emissions per seat-kilometer flown;

has reduced per-passenger emissions through higher load factors;

better utilizes existing infrastructure by operating out of underutilized secondary and regional
airports throughout Europe, which limits the use of holding patterns and taxiing times, thus
reducing fuel burn and emissions and reducing the need for new airport infrastructure;

provides direct services as opposed to connecting flights, in order to limit the need for passengers
to transfer at main hubs and thus reduces the number of take-offs and landings per journey from
four to two, reducing fuel burn and emissions per journey;

has no late-night departures of aircraft, reducing the impact of noise emissions; and

is currently evaluating the benefits of the Boeing 737 MAX aircraft, a variant of the 737, with new
more fuel-efficient engines.

Emissions Trading. On November 19, 2008, the European Council of Ministers adopted legislation to
add aviation to the EU Emissions Trading Scheme as of 2012. This scheme, which has thus far applied mainly
to energy producers, is a cap-and-trade system for CO2 emissions to encourage industries to improve their CO2
efficiency. Under the legislation, airlines were granted initial CO2 allowances based on historical ―revenue ton
kilometers‖ and a CO2 efficiency benchmark. Any shortage of allowances has to be purchased in the open
market and/or at government auctions. Management believes that this legislation is likely to have a negative
impact on the European airline industry. Ryanair takes its environmental responsibilities seriously and intends to
continue to improve its environmental efficiency and to minimize emissions.

Aviation Taxes. Ryanair is fundamentally opposed to the introduction of any aviation taxes, including
any environmental taxes, fuel taxes or emissions levies. Ryanair has and continues to offer the lowest fares in
Europe, to make passenger air travel affordable and accessible to European consumers. Ryanair believes that the
imposition of additional taxes on airlines will not only increase airfares, but will discourage new entrants into
the market, resulting in less choice for consumers. Ryanair believes this would ultimately have adverse effects
on the European economy in general. There is in particular no justification for any environmental taxes on
aviation following the introduction of the Emissions Trading Scheme for airlines.

As a company, Ryanair believes in free market competition and that the imposition of aviation taxation
would favor the less efficient flag carriers – which generally have smaller and older aircraft, lower load factors,
and a much higher fuel burn per passenger, and which operate primarily into congested airports – and reduce
competition. Furthermore, the introduction of a tax at a European level only would distort competition between
airlines operating solely within Europe and those operating also outside of Europe. We believe that the
introduction of such a tax would also be incompatible with international law.

Airport charges

The EU Airport Charges Directive of March 2009 sets forth general principles that are to be followed
by airports with more than five million passenger per annum, and all capital city airports irrespective of their
passenger throughput, when setting airport charges, and provides for an appeals procedure for airlines in the
event they are not satisfied with the level of charges. However, Ryanair does not believe that this procedure will
be effective or that it will constrain those airports that are currently abusing their dominant position, in part
because the legislation was mis-transposed in certain countries, such as Ireland and Spain, so as to deprive
airlines of even the basic safeguards provided for in the Directive. This legislation may in fact lead to higher
airport charges, depending on how its provisions are applied by EU member states and subsequently by the
courts.

Slots

Currently, the majority of Ryanair‘s bases of operations have no ―slot‖ allocation restrictions; however,
traffic at a substantial number of the airports Ryanair serves, including its primary bases, are regulated by means
of ―slot‖ allocations, which represent authorizations to take off or land at a particular airport within a specified
time period. In addition, EU law currently regulates the acquisition, transfer, and loss of slots. Applicable EU
regulations currently prohibit the buying or selling of slots for cash. The European Commission adopted a
regulation in April 2004 (Regulation (EC) No. 793/2004) that made some minor amendments to the current
allocation system, allowing for limited transfers of, but not trading in, slots. Slots may be transferred from one
route to another by the same carrier, transferred within a group or as part of a change of control of a carrier, or
swapped between carriers. In April 2008, the European Commission issued a communication on the application
of the slot allocation regulation, signaling the acceptance of secondary trading of airport slots between airlines.
This is expected to allow more flexibility and mobility in the use of slots and will further enhance possibilities
for market entry at slot constrained airports. Any future legislation that might create an official secondary
market for slots could create a potential source of revenue for certain of Ryanair‘s current and potential
competitors, many of which have many more slots allocated at primary airports at present than Ryanair. The
European Union is currently considering such proposals as part of a review of the slots legislation, which is
currently expected to be completed in 2014. Slot values depend on several factors, including the airport, time of
day covered, the availability of slots and the class of aircraft. Ryanair‘s ability to gain access to and develop its
operations at slot-controlled airports will be affected by the availability of slots for takeoffs and landings at these
specific airports. New entrants to an airport are currently given certain privileges in terms of obtaining slots, but
such privileges are subject to the grandfathered rights of existing operators that are utilizing their slots. While
Ryanair generally seeks to avoid slot-controlled airports, there is no assurance that Ryanair will be able to obtain
a sufficient number of slots at the slot-controlled airports that it desires to serve in the future at the time it needs
them or on acceptable terms.

Other

Health and occupational safety issues relating to the Company are largely addressed in Ireland by the
Safety, Health and Welfare at Work Act, 2005 and other regulations under that act. Although licenses or permits
are not issued under such legislation, compliance is monitored by the Health and Safety Authority (the
―Authority‖), which is the regulating body in this area. The Authority periodically reviews Ryanair‘s health and
safety record and when appropriate, issues improvement notices or prohibition notices. Ryanair has responded
to all such notices to the satisfaction of the Authority. Other safety issues are covered by the Irish Aviation
Orders, which may vary from time to time.

The Company‘s operations are subject to the general laws of Ireland and, insofar as they are applicable
in Ireland, the laws of the EU. The Company may also become subject to additional regulatory requirements in
the future. The Company is also subject to local laws and regulations at locations where it operates and the
regulations of various local authorities that operate the airports it serves.

DESCRIPTION OF PROPERTY

For certain information about each of the Company‘s key facilities, see ―—Facilities‖ above.

Management believes that the Company‘s facilities are suitable for its needs and are well maintained.

Item 4A. Unresolved Staff Comments

There are no unresolved staff comments.

Item 5. Operating and Financial Review and Prospects

The following discussion should be read in conjunction with the audited consolidated financial
statements of the Company and the notes thereto included in Item 18. Those consolidated financial statements
have been prepared in accordance with IFRS.

HISTORY

Ryanair‘s current business strategy dates to the early 1990s, when a new management team, including
the current chief executive, commenced the restructuring of Ryanair‘s operations to become a low-fares airline
based on the low-cost operating model pioneered by Southwest Airlines Co. in the United States. During the
period between 1992 and 1994, Ryanair expanded its route network to include scheduled passenger services
between Dublin and Birmingham, Manchester and Glasgow (Prestwick). In 1994, Ryanair began standardizing
its fleet by purchasing used Boeing 737-200A aircraft to replace substantially all of its leased aircraft. Beginning
in 1996, Ryanair continued to expand its service from Dublin to new provincial destinations in the U.K. In
August 1996, Irish Air, L.P., an investment vehicle led by David Bonderman and certain of his associates at the
Texas Pacific Group, acquired a minority interest in the Company. Ryanair Holdings completed its initial public
offering in June 1997.

From 1997 through June 30, 2013, Ryanair launched service on more than 1,600 routes throughout
Europe and also increased the frequency of service on a number of its principal routes. During that period, in
addition to Dublin, Ryanair established 57 airports as bases of operations. See ―Item 4. Information on the
Company—Route System, Scheduling and Fares‖ for a list of these bases. Ryanair has increased the number of
booked passengers from 4.9 million in the 1999 fiscal year to approximately 79.3 million in the 2013 fiscal year.
Ryanair had 303 Boeing 737-800 aircraft as of June 30, 2013, and now serves approximately 180 airports with a
team of over 9,000 people.

Ryanair expects to have approximately 410 aircraft in its operating fleet by March 31, 2019. This is
subject to lease handbacks and disposals over the period to March 31, 2019 meeting current expectations. See
―Liquidity and Capital Resources‖ and ―Item 4. Information on the CompanyAircraft‖ for additional
details.

BUSINESS OVERVIEW

Since Ryanair pioneered its ultra-low cost operating model in Europe in the early 1990s, its passenger
volumes and scheduled passenger revenues have increased significantly because it has substantially increased
capacity and demand has been sufficient to match the increased capacity. Ryanair‘s annual booked passenger
volume has grown from approximately 945,000 passengers in the calendar year 1992 to approximately 79.3
million passengers in the 2013 fiscal year.

Ryanair‘s revenue passenger miles (―RPMs‖) increased approximately 2% from 58,584.5 million in the
2012 fiscal year to 59,865.6 million in the 2013 fiscal year due primarily to an increase of approximately 2% in
scheduled available seat miles (―ASMs‖) from 71,139.7 million in the 2012 fiscal year to 72,829.9 million in the
2013 fiscal year. Scheduled passenger revenues increased approximately 9% from €3,504.0 million in the 2012
fiscal year to €3,819.8 million in the 2013 fiscal year. Average booked passenger fare increased from €45.36 in
the 2012 fiscal year to €48.20 in the 2013 fiscal year.

Expanding passenger volumes and capacity, high load factors and aggressive cost containment have
enabled Ryanair to continue to generate operating profits despite increasing price competition and increases in
certain costs. Ryanair‘s total break-even load factor was 70% in both the 2012 fiscal year and the 2013 fiscal
year. Cost per passenger was €48.90 in the 2012 fiscal year and €52.56 in the 2013 fiscal year, with the increase
primarily reflecting the higher fuel cost per passenger of €23.79 in the 2013 fiscal year, as compared to €21.02
in the 2012 fiscal year, as well as an increase of approximately 5% in passengers in the 2013 fiscal year. Ryanair
recorded operating profits of €683.2 million in the 2012 fiscal year and €718.2 million in the 2013 fiscal year.
The Company recorded a profit after taxation of €560.4 million in the 2012 fiscal year and profit after taxation
of €569.3 million in the 2013 fiscal year. Ryanair recorded seat capacity growth of approximately 5% in the
2013 fiscal year, compared to approximately 6% in the 2012 fiscal year, and expects capacity to increase by
approximately 3% in the 2014 fiscal year. See ―Item 3. Key Information—Risk Factors—Risks Related to the
Company— Ryanair Has Decided to Seasonally Ground Aircraft.‖

Investment in Aer Lingus

The Company owns 29.8% of Aer Lingus, which it acquired in fiscal years 2007, 2008 and 2009 at a
total cost of €407.2 million. Following the approval of its shareholders, management proposed in the 2007 fiscal
year to effect a tender offer to acquire the entire share capital of Aer Lingus. This 2006 offer was, however,
prohibited by the European Commission on competition grounds in June 2007. Ryanair‘s management viewed
the acquisition of Aer Lingus in the context of the overall trend of consolidation among airlines in Europe and
believed that the acquisition would lead to the formation of one strong Irish airline group able to compete with
large carriers such as Lufthansa, Air France/KLM and British Airways/Iberia (now ―International Airlines
Group‖). During the EU competition review, the Company made a commitment that if the acquisition was
approved, Ryanair would eliminate Aer Lingus‘ fuel surcharges and reduce its fares, which would have resulted
in Aer Lingus passengers saving approximately €100 million per year. The Company was thus surprised and
disappointed by the European Commission‘s decision to prohibit this offer. This decision was the first adverse
decision taken in respect of any EU airline merger and the first-ever adverse decision in respect of a proposed
merger of two companies with less than 5% of the EU market for their services. Ryanair filed an appeal with the
CFI, which was heard in July 2009. On July 6, 2010, the CFI upheld the Commission‘s decision.

In October 2007, the European Commission also reached a formal decision that it would not force
Ryanair to sell its shares in Aer Lingus. Aer Lingus appealed this decision before the CFI. This case was heard
in July 2009 and on July 6, 2010 the court rejected Aer Lingus‘ appeal and confirmed that Ryanair cannot be
forced to dispose of its 29.8% stake in Aer Lingus. However, EU legislation may change in the future to require
such a forced disposition. If eventually forced to dispose of its stake in Aer Lingus, Ryanair could suffer
significant losses due to the negative impact on market prices of the forced sale of such a significant portion of
Aer Lingus‘ shares.

On December 1, 2008, Ryanair made a new offer to acquire all of the ordinary shares of Aer Lingus it
did not own at a price of €1.40 per ordinary share. Ryanair offered to keep Aer Lingus as a separate company,
maintain the Aer Lingus brand, and retain its Heathrow slots and connectivity. Ryanair also proposed to double
Aer Lingus‘ short-haul fleet from 33 to 66 aircraft and to create 1,000 associated new jobs over a five-year
period. If the offer had been accepted, the Irish government would have received over €180 million in cash. The
employee share ownership trust and employees, who owned 18% of Aer Lingus, would have received over €137
million in cash. The Company met Aer Lingus management, representatives of the employee share ownership
trust and other parties, including members of the Irish Government. The offer of €1.40 per share represented a
premium of approximately 25% over the closing price of €1.12 for Aer Lingus shares on November 28, 2008.
As the Company was unable to secure the shareholders‘ support, it decided on January 28, 2009 to withdraw its
offer for Aer Lingus.

The United Kingdom‘s Office of Fair Trading (―OFT‖) wrote to Ryanair in September 2010, advising
that it intended to investigate Ryanair‘s minority stake in Aer Lingus. Ryanair objected on the basis that the
OFT‘s investigation was time-barred. Ryanair maintains that the OFT had the opportunity, which it missed, to
investigate Ryanair‘s minority stake within four months from the European Commission‘s June 2007 decision to
prohibit Ryanair‘s takeover of Aer Lingus. The OFT agreed in October 2010 to suspend its investigation
pending the outcome of Ryanair‘s appeal against the OFT‘s decision that its investigation is within time. On
July 28, 2011, the Competition Appeal Tribunal ruled that the OFT was not time barred when it attempted in
September 2010 to open an investigation into Ryanair‘s 2006 acquisition of a minority non-controlling stake in
Aer Lingus. Ryanair subsequently appealed the Competition Appeal Tribunal‘s decision. On November 24,
2011, the UK Court of Appeal ordered a stay of the OFT‘s investigation pending the Courts review of whether
the OFT‘s investigation was time barred. On May 22, 2012, the Court of Appeal found that the OFT was not
time barred to investigate Ryanair‘s minority stake in Aer Lingus in September 2010. Ryanair subsequently
sought permission to appeal that ruling to the UK Supreme Court, but permission was refused. On June 15,
2012, the OFT referred the investigation of Ryanair‘s minority stake in Aer Lingus to the UK Competition
Commission. The Competition Commission‘s decision is expected by September 05, 2013. The Competition
Commission could order Ryanair to divest some or all of its shares in Aer Lingus, as a result of which Ryanair
could suffer losses due to the negative impact on market prices of the forced sale of such a significant portion of
Aer Lingus‘ shares. On July 23, 2013 the Company announced that as part of its remedies discussions with the
UKCC it had offered to give an undertaking to unconditionally sell its shareholding in Aer Lingus to any other
EU airline that makes an offer for Aer Lingus and acquires acceptances in respect of more than 50% of Aer
Lingus‘ issued share capital.

On June 19, 2012, Ryanair made a third offer to acquire all of the ordinary shares of Aer Lingus it did
not own at a price of €1.30 per ordinary share. The timing of the offer was influenced by: (i) the continued
consolidation of European airlines, and more recently the International Airlines Group (the parent company of
British Airways) takeover of British Midland International, where the No.1 airline at Heathrow was allowed to
acquire the No. 2; (ii) the additional capacity available at Dublin airport following the opening of Terminal 2
and the decline in traffic from 23.3 million passengers per annum in 2007 to 18.7 million in 2011, has resulted
in Dublin airport operating at approximately 50% capacity; (iii) the change in the Irish government policy since
2006 in that the Irish government has decided to sell its stake in Aer Lingus; (iv) the fact that under the terms of
the bailout agreement provided by the European Commission, European Central Bank and the International
Monetary Fund to Ireland, the Irish government has committed to sell its stake in Aer Lingus; (v) the fact that
the ESOT (Employee Share Ownership Trust) which at the time of the unsuccessful 2006 offer controlled 15%
of Aer Lingus, has been disbanded since December 2010 and the shares distributed to the individual members,
with the result that Ryanair‘s new offer was, in Ryanair‘s view, capable of reaching over 50% acceptance either
with or without government acceptance; and (vi) the fact that recently Etihad, an Abu Dhabi based airline, has
acquired a 3% stake in Aer Lingus and has expressed an interest in buying the government‘s 25% stake in Aer
Lingus (the offer therefore provided Etihad or any other potential bidder the opportunity to purchase the
government‘s stake).

Ryanair offered to keep Aer Lingus as a separate company, maintain the Aer Lingus brand, and to grow
its traffic from 9.5 million to over 14.5 million passengers over a five year period post acquisition, by growing
Aer Lingus‘ short haul traffic at some of Europe‘s major airports where Aer Lingus currently operates and
Ryanair does not. Ryanair also intended to increase Aer Lingus‘ transatlantic traffic from Ireland, which has
fallen in recent years, by investing in operations. If the offer was accepted, the Irish government would have
received €173 million in cash. The offer of €1.30 per share represented a premium of approximately 38% over
the closing price of €0.94 for Aer Lingus shares as of June 19, 2012. The offer was conditional on competition
approval by the European Commission. However, on February 27, 2013, the European Commission prohibited

the acquisition by Ryanair of the remaining share capital of Aer Lingus. Ryanair appealed this prohibition to the
EU General Court on May 8, 2013. A judgment in this appeal is expected within 18-24 months of the date of
filing.

The available for sale financial asset balance sheet value of €221.2 million reflects the market value of
the Company‘s stake in Aer Lingus as of March 31, 2013, as compared to a value of €149.7 million as of March
31, 2012. In accordance with the company‘s accounting policy, this investment is held at fair value. This
investment is classified as available-for-sale, rather than as an investment in an associate, because the Company
does not have the power to exercise any influence over Aer Lingus. The increase in the amount of the available
for sale financial asset from €149.7 million at March 31, 2012 to €221.2 million at March 31, 2013 is comprised
of a gain of €71.5 million, recognized through other comprehensive income, reflecting the increase in Aer
Lingus‘ share price from €0.94 per share at March 31, 2012 to €1.39 per share at March 31, 2013. All
impairment losses are required to be recognized in the income statement and are not subsequently reversed,
while gains are recognized through other comprehensive income. The investment had in prior periods been
impaired to €0.50 per share. In fiscal year 2010, the Company recorded an impairment charge of €13.5 million
in the income statement on its Aer Lingus shareholding.

The Company's determination that it does not have control, or even exercise a ―significant influence,‖

over Aer Lingus through its minority shareholding has been based on the following factors:

(i) Ryanair does not have any representation on the Aer Lingus Board of Directors; nor does it have a right to
appoint a director;

(ii) Ryanair does not participate in Aer Lingus policy-making decisions; nor does it have a right to participate in
such policy-making decisions;

(iii) There are no material transactions between Ryanair and Aer Lingus, there is no interchange of personnel
between the two companies and there is no sharing of technical information between the companies;

(iv) Aer Lingus and its significant shareholder (the Irish government: 25.1%) have historically openly opposed
Ryanair‘s investment or participation in the company;

(v) In 2007, 2009 and 2010, Aer Lingus refused Ryanair‘s attempt to assert its statutory right to requisition a
general meeting (a legal right of any 5% shareholder under Irish law).

(vi) On April 15, 2011, the High Court in Dublin ruled that Aer Lingus was not obliged to accede to Ryanair‘s
request that two additional resolutions (on the payment of a dividend and on payments to pension schemes) be
put to vote at Aer Lingus‘ annual general meeting; and

(vii) The European Commission has formally found that Ryanair‘s shareholding in Aer Lingus does not grant
Ryanair ―de jure or de facto control of Aer Lingus‖ and that ―Ryanair‘s rights as a minority shareholder…are
associated exclusively to rights related to the protection of minority shareholders‖ (Commission Decision Case
No. COMP/M.4439 dated October 11, 2007).The European Commission‘s finding has been confirmed by the
European Union's General Court which issued a decision on July 6, 2010 that the European Commission was
justified to use the required legal and factual standard in its refusal to order Ryanair to divest its minority
shareholding in Aer Lingus and that, as part of that decision, Ryanair‘s shareholding did not confer control of
Aer Lingus (Judgment of the General Court (Third Chamber) Case No. T-411/07 dated July 6, 2010).

Historical Results Are Not Predictive of Future Results

The historical results of operations discussed herein may not be indicative of Ryanair‘s future operating
performance. Ryanair‘s future results of operations will be affected by, among other things, overall passenger
traffic volume; the availability of new airports for expansion; fuel prices; the airline pricing environment in a
period of increased competition; the ability of Ryanair to finance its planned acquisition of aircraft and to
discharge the resulting debt service obligations; economic and political conditions in Ireland, the U.K. and the
EU; terrorist threats or attacks within the EU; seasonal variations in travel; developments in government
regulations, litigation and labor relations; foreign currency fluctuations, the impact of the banking crisis and
potential break-up of the euro; competition and the public‘s perception regarding the safety of low-fares airlines;
the value of its equity stake in Aer Lingus; changes in aircraft acquisition, leasing, and other operating costs;
flight interruptions caused by volcanic ash emissions or other atmospheric disruptions; flight disruptions caused
by periodic and prolonged air traffic controller strikes in Europe; the rates of income and corporate taxes paid,
and the impact of the financial and Eurozone crisis. Ryanair expects its depreciation, staff and fuel charges to
increase as additional aircraft and related flight equipment are acquired. Future fuel costs may also increase as a
result of the depletion of petroleum reserves, the shortage of fuel production capacity and/or production
restrictions imposed by fuel oil producers. Maintenance expenses may also increase as a result of Ryanair‘s fleet
expansion and replacement program. In addition, the financing of new Boeing 737-800 aircraft will increase the
total amount of the Company‘s outstanding debt and the payments it is obliged to make to service such debt.
The cost of insurance coverage for certain third-party liabilities arising from ―acts of war‖ or terrorism increased
dramatically following the September 11, 2001 terrorist attacks. Although Ryanair currently passes on increased
insurance costs to passengers by means of a special ―insurance levy‖ on each ticket, there can be no assurance
that it will continue to be successful in doing so. See ―Item 3. Key Information—Risk Factors—The 2001
Terrorist Attacks on the United States Had a Severe Negative Impact on the International Airline Industry.‖

RECENT OPERATING RESULTS

The Company‘s profit after tax for the quarter ended June 30, 2013 (the first quarter of the Company‘s
2014 fiscal year) was €78.1 million, as compared to €98.8 million for the corresponding period of the previous
year. The Company recorded a decrease in operating profit, from €132.0 million in the first quarter of the 2013
fiscal year to €103.3 million in the recently completed quarter. Total operating revenues increased from
€1,283.9 million in the first quarter of 2013 to €1,342.2 million in the first quarter of 2014. The decrease in
operating profit was primarily due to a 4% reduction in average fares and an 8% increase in total operating
expenses, offset by strong ancillary revenues. Operating expenses increased from €1,151.9 million in the first
quarter of 2013 to €1,238.9 million in the first quarter of 2014, due primarily to the 6% increase in fuel costs
and an increase in other operating costs associated with a higher level of activity in line with the growth of the
airline. The Company‘s cash and cash equivalents, restricted cash and financial assets with terms of less than
three months amounted to €3,592.7 million at June 30, 2013 as compared with €3,807.6 million at June 30,
2012.

CRITICAL ACCOUNTING POLICIES

The following discussion and analysis of Ryanair‘s financial condition and results of operations is
based on its consolidated financial statements, which are included in Item 18 and prepared in accordance with
IFRS.

The preparation of the Company‘s financial statements requires the use of estimates, judgments, and
assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the periods presented. Actual results may differ from
these estimates.

The Company believes that its critical accounting policies, which are those that require management‘s
most difficult, subjective and complex judgments, are those described in this section. These critical accounting
policies, the judgments and other uncertainties affecting application of these policies and the sensitivity of
reported results to changes in conditions and assumptions are factors to be considered in reviewing the
consolidated financial statements included in Item 18 and the discussion and analysis below. For additional
detail on these policies, see Note 1, ―Basis of preparation and significant accounting policies,‖ to the
consolidated financial statements included in Item 18.

Long-lived Assets

As of March 31, 2013, Ryanair had €4.9 billion of long-lived assets, virtually all of which were
aircraft. In accounting for long-lived assets, Ryanair must make estimates about the expected useful lives of the
assets, the expected residual values of the assets, and the potential for impairment based on the fair value of the
assets and the cash flows they generate.

In estimating the lives and expected residual values of its aircraft, Ryanair has primarily relied on its
own and industry experience, recommendations from Boeing, the manufacturer of all of the Company‘s aircraft,
valuations from appraisers and other available marketplace information. Subsequent revisions to these estimates,
which can be significant, could be caused by changes to Ryanair‘s maintenance program, changes in utilization
of the aircraft, governmental regulations on aging of aircraft, changes in new aircraft technology, changes in
governmental and environmental taxes, changes in new aircraft fuel efficiency and changing market prices for
new and used aircraft of the same or similar types. Ryanair evaluates its estimates and assumptions in each
reporting period, and, when warranted, adjusts these assumptions. Generally, these adjustments are accounted
for on a prospective basis, through depreciation expense.

Ryanair periodically evaluates its long-lived assets for impairment. Factors that would indicate
potential impairment would include, but are not limited to, significant decreases in the market value of an
aircraft, a significant change in an aircraft‘s physical condition and operating or cash flow losses associated with
the use of the aircraft. While the airline industry as a whole has experienced many of these factors from time to
time, Ryanair has not yet been seriously impacted and continues to record positive cash flows from these long-
lived assets. Consequently, Ryanair has not yet identified any impairments related to its existing aircraft fleet.
The Company will continue to monitor its long-lived assets and the general airline operating environment.

The Company‘s estimate of the recoverable amount of aircraft residual values is 15% of current market
value of new aircraft, determined periodically, based on independent valuations and actual aircraft disposals
during prior periods. Aircraft are depreciated over a useful life of 23 years from the date of manufacture to
residual value.

Heavy Maintenance

An element of the cost of an acquired aircraft is attributed, on acquisition, to its service potential,

reflecting the maintenance condition of the engines and airframe.

For aircraft held under operating lease agreements, Ryanair is contractually committed to either return
the aircraft in a certain condition or to compensate the lessor based on the actual condition of the airframe,
engines and life-limited parts upon return. In order to fulfill such conditions of the lease, maintenance, in the
form of major airframe overhaul, engine maintenance checks, and restitution of major life-limited parts, is
required to be performed during the period of the lease and upon return of the aircraft to the lessor. The
estimated airframe and engine maintenance costs and the costs associated with the restitution of major life-
limited parts, are accrued and charged to profit or loss over the lease term for this contractual obligation, based
on the present value of the estimated future cost of the major airframe overhaul, engine maintenance checks and
restitution of major life-limited parts, calculated by reference to the number of hours flown or cycles operated
during the year.

Ryanair‘s aircraft operating lease agreements typically have a term of seven years, which closely
correlates with the timing of heavy maintenance checks. The contractual obligation to maintain and replenish
aircraft held under operating lease exists independently of any future actions within the control of Ryanair.
While Ryanair may, in very limited circumstances, sub-lease its aircraft, it remains fully liable to perform all of
its contractual obligations under the ‗head lease‘ notwithstanding any such sub-leasing.

Both of these elements of accounting policies involve the use of estimates in determining the quantum
of both the initial maintenance asset and/or the amount of provisions to be recorded and the respective periods
over which such amounts are charged to income. In making such estimates, Ryanair has primarily relied on its
own and industry experience, industry regulations and recommendations from Boeing; however, these estimates
can be subject to revision, depending on a number of factors, such as the timing of the planned maintenance, the
ultimate utilization of the aircraft, changes to government regulations and increases or decreases in estimated
costs. Ryanair evaluates its estimates and assumptions in each reporting period and, when warranted, adjusts its
assumptions, which generally impact maintenance and depreciation expense in the income statement on a
prospective basis.

RESULTS OF OPERATIONS

The following table sets forth certain income statement data (calculated under IFRS) for Ryanair

expressed as a percentage of Ryanair‘s total revenues for each of the periods indicated:

Total revenues ..............................................................
Scheduled revenues ...................................................
Ancillary revenues .....................................................
Total operating expenses ..............................................
Staff costs ..................................................................
Depreciation ..............................................................
Fuel and oil ................................................................
Maintenance, materials and repairs ...........................
Aircraft rentals...........................................................
Route charges ............................................................
Airport and handling charges ....................................
Marketing, distribution and other ..............................
Operating profit ............................................................
Net interest income (expense) ......................................
Other income (expenses) ..............................................
Profit before taxation ....................................................
Taxation .......................................................................
Profit after taxation .....................................................

Fiscal Year ended March 31,
2012

2011

2013

100%
78.2
21.8
85.3
8.9
6.7
38.6
2.5
2.0
10.0
12.5
4.1
14.7
(1.5)
0.1
13.3
(1.6)
11.7

100%
79.8
20.2
84.5
9.5
7.0
36.3
2.4
2.1
10.5
12.6
4.1
15.5
(1.5)
0.3
14.3
(1.7)
12.6

100%
77.9
22.1
86.5
10.4
7.7
33.8
2.6
2.7
11.3
13.5
4.6
13.4
(1.8)
-
11.6
(1.3)
10.3

FISCAL YEAR 2013 COMPARED WITH FISCAL YEAR 2012

Profit after taxation. Ryanair recorded a profit on ordinary activities after taxation of €569.3 million in
the 2013 fiscal year, as compared with a profit of €560.4 million in the 2012 fiscal year. This 1.6% increase was
primarily attributable to an increase in revenues driven by a 4.3% increase in average fares and a 20.1% increase
in ancillary revenues, partially offset by a 18.3% increase in fuel and oil costs from €1,593.6 million to €1.885.6
million. The result in fiscal 2012 included €57.8 million, net of tax, relating to a one off release of ticket sales
revenue due to a change in accounting estimates arising in enhancements to Ryanair‘s revenue accounting
system.

Scheduled revenues. Ryanair‘s scheduled passenger revenues increased 9.0%, from €3,504.0 million in
the 2012 fiscal year, to €3,819.8 million in the 2013 fiscal year, primarily reflecting an increase of 4.3% in
average fares. The number of passengers booked increased 4.5%, from 75.8 million to 79.3 million, reflecting
increased passenger volumes on existing routes and the successful launch of new bases at Chania, Eindhoven,
Fez, Krakow, Maastricht, Marrakech and Zadar in the 2013 fiscal year. Booked passenger load factors
remained flat at 82% in both fiscal 2012 and fiscal 2013.

Passenger capacity during the 2013 fiscal year increased by 4.7% due to the addition of 11 Boeing 737-
800 aircraft (net of lease handbacks). Scheduled passenger revenues accounted for 78.2 % of Ryanair‘s total
revenues for the 2013 fiscal year, compared with 79.8% of total revenues in the 2012 fiscal year.

During fiscal year 2012, changes in estimates relating to the timing of revenue recognition for unused
passenger tickets were made, resulting in increased revenue in the 2012 fiscal year of €65.3 million. This change
reflects more accurate and timely data obtained through system enhancements.

Ancillary revenues. Ryanair‘s ancillary revenues, which comprise revenues from non-flight scheduled
operations, in-flight sales and Internet-related services, increased 20.1%, from €886.2 million in the 2012 fiscal
year to €1,064.2 million in the 2013 fiscal year, while ancillary revenues per booked passenger increased to
€13.43 from €11.69. Revenues from non-flight scheduled operations, including revenues from excess baggage
charges, administration/credit card fees, sales of rail and bus tickets, priority boarding, reserved seating,
accommodation, travel insurance and car rental increased 23.3% to €796.2 million from €645.6 million in the
2012 fiscal year. Revenues from in-flight sales increased 2.8%, to €110.2 million from €107.2 million in the
2012 fiscal year. Revenues from Internet-related services, primarily commissions received from products sold
on Ryanair.com or linked websites, increased 18.3%, from €133.4 million in the 2012 fiscal year to €157.8
million in the 2013 fiscal year. The rate of increase in revenues from all ancillary revenue categories exceeded
that of the increase in overall passengers booked.

The following table sets forth the components of ancillary revenues earned by Ryanair and each

component expressed as a percentage of total ancillary revenues for each of the periods indicated:

Fiscal Year ended March 31,

2013

2012
(in millions of euro, except percentage data)

Non-flight Scheduled ..................
In-flight Sales ..............................
Internet-related ............................
Total ............................................

€796.2
€110.2
€157.8
€1,064.2

74.8%
10.4%
14.8%
100.0%

€645.6
€107.2
€133.4
€886.2

72.9%
12.1%
15.0%
100.0%

Operating expenses. As a percentage of total revenues, Ryanair‘s operating expenses increased from
84.5% in the 2012 fiscal year to 85.3% in the 2013 fiscal year, as total revenues increased by 11.2%, slower than
the 12.4% increase in operating expenses. In absolute terms, total operating expenses increased 12.4%, from
€3,707.0 million in the 2012 fiscal year to €4,165.8 million in the 2013 fiscal year, principally as a result of an
18.3% increase in fuel and oil costs from €1,593.6 million in the 2012 fiscal year to €1,885.6 million in the 2013
fiscal year. Staff costs, depreciation and amortization, aircraft rental expenses, route charges, airport handling
charges and marketing, distribution and other costs decreased as a percentage of total revenues, while
maintenance and fuel and oil expenses increased. Total operating expenses per passenger increased by 7.5%,
with the increase reflecting, principally, the increase in passenger capacity during the 2013 fiscal year and the
impact of the higher fuel costs.

The Company‘s decision to ground aircraft did not have a material impact on the results of the
Company for the year ended March 31, 2013 and, at present, is not anticipated to have a material impact on
future operations. The Company anticipates that any revenues which could have been generated had the
Company operated the grounded aircraft would have been lower than the operating costs associated with
operating these aircraft, due to significantly higher fuel costs, airport charges and taxes. The Company does not
anticipate that any material staff costs will be incurred during future periods of the grounding of aircraft, as the
relevant staff can be furloughed under the terms of their contracts without compensation and the maintenance
costs associated with the grounded aircraft will be minimal. However, the Company will still incur aircraft
ownership costs comprised of depreciation and amortization costs, lease rentals costs and financing costs.

The following table sets forth the amounts in euro cent of, and percentage changes in, Ryanair‘s
operating expenses (on a per-passenger basis) for the fiscal years ended March 31, 2013 and March 31, 2012
under IFRS. These data are calculated by dividing the relevant expense amount (as shown in the consolidated
financial statements) by the number of booked passengers in the relevant year as shown in the table of ―Selected
Operating and Other Data‖ in Item 3 and rounding to the nearest euro cent; the percentage change is calculated
on the basis of the relevant figures before rounding.

Staff costs ...............................................................................
Depreciation ...........................................................................
Fuel and oil .............................................................................
Maintenance, materials and repairs ........................................
Aircraft rentals .......................................................................
Route charges .........................................................................
Airport and handling charges .................................................
Marketing, distribution and other ...........................................
Total operating expenses ........................................................

Fiscal Year
Ended
March 31,
2013

Fiscal Year
Ended
March 31,
2012

% Change

€
5.50
4.16
23.79
1.52
1.24
6.14
7.71
2.50
52.56

€
5.47
4.08
21.02
1.37
1.20
6.08
7.31
2.37
48.90

0.4%
2.0%
13.2%
11.0%
3.5%
1.1%
5.6%
5.2%
7.5%

Staff costs. Ryanair‘s staff costs, which consist primarily of salaries, wages and benefits, increased
0.4% on a per-passenger basis, while in absolute terms, these costs increased 5.0%, from €415.0 million in the
2013 fiscal year to €435.6 million in the 2013 fiscal year. The increase in absolute terms was primarily
attributable to a 3.7% increase in hours flown and a flight crew pay increase of 2% granted in fiscal 2013.

Depreciation and amortization. Ryanair‘s depreciation and amortization per passenger increased by
2.0%, while in absolute terms these costs increased 6.6% from €309.2 million in the 2012 fiscal year to €329.6
million in the 2013 fiscal year. The increase was primarily attributable to the addition of 11 owned aircraft to the
fleet during the 2013 fiscal year. See ―—Critical Accounting Policies—Long-lived Assets‖ above.

Fuel and oil. Ryanair‘s fuel and oil costs per passenger increased by 13.2%, while in absolute terms,
these costs increased by 18.3% from €1,593.6 million in the 2012 fiscal year to €1,884.6 million in the 2013
fiscal year, in each case after giving effect to the Company‘s fuel hedging activities. The 18.3% increase
reflected a 15% increase in average fuel prices paid and the impact of a 3.7% increase in the number of hours
flown, which were offset in part by a 2.2% decrease in the average sector length. Fuel and oil costs include the
direct cost of fuel, the cost of delivering fuel to the aircraft, aircraft de-icing and EU emissions trading costs.
The average fuel price paid by Ryanair (calculated by dividing total fuel costs by the number of U.S. gallons of
fuel consumed) increased 14.4% from €2.08 per U.S. gallon in the 2012 fiscal year to €2.38 per U.S. gallon in
the 2013 fiscal year, in each case after giving effect to the Company‘s fuel hedging activities.

Maintenance, materials and repairs. Ryanair‘s maintenance, materials and repair expenses, which
consist primarily of the cost of routine maintenance, provision for leased aircraft and the overhaul of spare parts,
increased 11.0% on a per-passenger basis, while in absolute terms these expenses increased by 16.0% from
€104.0 million in the 2012 fiscal year to €120.7 million in the 2013 fiscal year. The increase in absolute terms
during the fiscal year reflected the additional costs arising from increased level of activity and the opening of
new bases.

Aircraft rentals. Aircraft rental expenses amounted to €98.2 million in the 2013 fiscal year, an 8.2%
increase from the €90.7 million reported in the 2012 fiscal year, reflecting the negative impact of higher lessor
financing costs and the adverse impact of changes in the euro/dollar exchange rate on new leased aircraft and
the handback of 4 aircraft due to the maturity of leases.

Route charges and airport and handling charges. Ryanair‘s route charges per passenger increased
1.1% in the 2013 fiscal year, while airport and handling charges per passenger increased 5.6%. In absolute
terms, route charges increased 5.7%, from €460.5 million in the 2012 fiscal year to €486.6 million in the 2013
fiscal year, primarily as a result of the 4.7% increase in sectors flown. In absolute terms, airport and handling
charges increased 10.4%, from €554.0 million in the 2012 fiscal year, to €611.6 million in the 2013 fiscal year,
reflecting the overall growth in passenger volumes and higher charges at Dublin and London (Stansted) airports,
partially offset by lower average costs at Ryanair‘s newer airports and bases.

Marketing, distribution and other expenses. Ryanair‘s marketing, distribution and other operating
expenses, including those applicable to the generation of ancillary revenues, increased 5.2% on a per-passenger
basis in the 2013 fiscal year, while in absolute terms, these costs increased 9.9%, from €180.0 million in the
2012 fiscal year to €197.9 million in the 2013 fiscal year, with the overall increase primarily reflecting the
higher level of activity and increased onboard product costs reflecting the higher level of sales.

Operating profit. As a result of the factors outlined above, operating profit increased 0.6% on a per-
passenger basis in the 2013 fiscal year, and also increased in absolute terms, from €683.2 million in the 2012
fiscal year to €718.2 million in the 2013 fiscal year.

Finance income. Ryanair‘s interest and similar income decreased 38.2%, from €44.3 million in the

2012 fiscal year to €27.4 million in the 2013 fiscal year, reflecting the reduced yields on term deposits.

Finance expense. Ryanair‘s interest and similar charges decreased 9.0%, from €109.2 million in the
2012 fiscal year to €99.3 million in the 2013 fiscal year, primarily due to lower interest rates in the 2013 fiscal
year compared to the 2012 fiscal year. These costs are expected to increase as Ryanair further expands its fleet.

Foreign exchange gains/losses. Ryanair recorded foreign exchange gains of €4.6 million in the 2013
fiscal year, as compared with foreign exchange gains of €4.3 million in the 2012 fiscal year, with the different
result being primarily due to the positive impact of changes in the U.K. pound sterling and the U.S. dollar
exchange rates against the euro.

Taxation. The effective tax rate for the 2013 fiscal year was 12.5%, as compared to an effective tax rate
of 11.5% in the 2012 fiscal year. The effective tax rate reflects the statutory rate of Irish corporation tax of
12.5%. Ryanair recorded an income tax provision of €81.6 million in the 2013 fiscal year, compared with a tax
provision of €72.6 million in the 2012 fiscal year, with the increase primarily reflecting higher pre-tax profits.
The determination regarding the recoverability of the deferred tax asset was based on future income forecasts,
which demonstrated that it was more likely than not that future profits would be available in order to utilize the
deferred tax asset. A deferred tax asset‘s recoverability is not dependent on material improvements over
historical levels of pre-tax income, material changes in the present relationship between income reported for
financial and tax purposes, or material asset sales or other non-routine transactions.

FISCAL YEAR 2012 COMPARED WITH FISCAL YEAR 2011

Profit after taxation. Ryanair recorded a profit on ordinary activities after taxation of €560.4 million in
the 2012 fiscal year, as compared with a profit of €374.6 million in the 2011 fiscal year. This profit was
primarily attributable to an increase in revenues driven by a 15.6% increase in average fares and a 10.6%
increase in ancillary revenues, partially offset by a 29.9% increase in fuel and oil costs from €1,227.0 million to
€1,593.6 million.

Scheduled revenues. Ryanair‘s scheduled passenger revenues increased 23.9%, from €2,827.9 million
in the 2011 fiscal year, to €3,504.0 million in the 2012 fiscal year, primarily reflecting an increase of 15.6% in
average fares. The number of passengers booked increased 5.2%, from 72.1 million to 75.8 million, reflecting
increased passenger volumes on existing routes and the successful launch of new bases at Manchester, Wroclaw,
Baden-Baden, Billund, Palma, Paphos and Budapest in the 2012 fiscal year. There was a one percentage point
decrease in booked passenger load factors from 83% in fiscal 2011 to 82% in fiscal 2012.

Passenger capacity during the 2012 fiscal year increased by 12.3% due to the addition of 22 Boeing
737-800 aircraft (net of handbacks), as well as a 5.8% increase in sectors flown and a 6.1% increase in the
average length of passenger haul. Scheduled passenger revenues accounted for 79.8% of Ryanair‘s total
revenues for the 2012 fiscal year, compared with 77.9% of total revenues in the 2011 fiscal year.

During fiscal year 2012, changes in estimates relating to the timing of revenue recognition for unused
passenger tickets were made, resulting in increased revenue in the 2012 fiscal year of €65.3 million. This
change reflects more accurate and timely data obtained through system enhancements.

Ancillary revenues. Ryanair‘s ancillary revenues, which comprise revenues from non-flight scheduled
operations, in-flight sales and Internet-related services, increased 10.6%, from €801.6 million in the 2011 fiscal
year to €886.2 million in the 2012 fiscal year, while ancillary revenues per booked passenger increased to
€11.69 from €11.12. Revenues from non-flight scheduled operations, including revenues from excess baggage
charges, debit and credit card transactions, sales of rail and bus tickets, accommodation, travel insurance and car
rental increased 12.4% to €645.6 million from €574.2 million in the 2011 fiscal year. Revenues from in-flight
sales increased 6.4%, to €107.2 million from €100.7 million in the 2011 fiscal year. Revenues from Internet-
related services, primarily commissions received from products sold on Ryanair.com or linked websites,
increased 5.3%, from €126.7 million in the 2011 fiscal year to €133.4 million in the 2012 fiscal year. The rate of
increase in revenues from all ancillary revenue categories exceeded the increase in overall passengers booked.

The following table sets forth the components of ancillary revenues earned by Ryanair and each

component expressed as a percentage of total ancillary revenues for each of the periods indicated:

Fiscal Year ended March 31,

2012

2011
(in millions of euro, except percentage data)

Non-flight Scheduled ..................
In-flight Sales ..............................
Internet-related ............................
Total ............................................

€645.6
€107.2
€133.4
€886.2

72.9%
12.1%
15.0%
100.0%

€574.2
€100.7
€126.7
€801.6

71.6%
12.6%
15.8%
100.0%

Operating expenses. As a percentage of total revenues, Ryanair‘s operating expenses decreased from
86.5% in the 2011 fiscal year to 84.5% in the 2012 fiscal year, as total revenues increased by 21.0%, faster than
the 18.0% increase in operating expenses. In absolute terms, total operating expenses increased 18.0%, from
€3,141.3 million in the 2011 fiscal year to €3,707.0 million in the 2012 fiscal year, principally as a result of a
29.9% increase in fuel costs from €1,227.0 million in the 2011 fiscal year to €1,593.6 million in the 2012 fiscal
year. Staff costs, depreciation and amortization, maintenance expenses, aircraft rental expenses, route charges,
airport handling charges and marketing, distribution and other costs decreased as a percentage of total revenues,
while fuel and oil increased. Total operating expenses per passenger increased by 12.2%, with the increase
reflecting, principally, the increase in passenger numbers during the 2012 fiscal year and the impact of the
higher fuel costs.

The Company‘s decision to ground aircraft did not have a material impact on the results of the
Company for the year ended March 31, 2012 and, at present, is not anticipated to have a material impact on
future operations. The Company anticipates that any revenues which could have been generated had the
Company operated the grounded aircraft would have been lower than the operating costs associated with
operating these aircraft, due to significantly higher fuel costs, airport charges and taxes. The Company does not
anticipate that any material staff costs will be incurred during future periods of the grounding of aircraft, as the
relevant staff can be furloughed under the terms of their contracts without compensation and the maintenance
costs associated with the grounded aircraft will be minimal. However, the Company will still incur aircraft
ownership costs comprised of depreciation and amortization costs, lease rentals costs and financing costs.

The following table sets forth the amounts in euro cent of, and percentage changes in, Ryanair‘s
operating expenses per passenger for the fiscal years ended March 31, 2012 and March 31, 2011 under IFRS.
These data are calculated by dividing the relevant expense amount (as shown in the consolidated financial
statements) by the number of ASMs in the relevant year as shown in the table of ―Selected Operating and Other
Data‖ in Item 3 and rounding to the nearest euro cent; the percentage change is calculated on the basis of the
relevant figures before rounding.

Fiscal Year
Ended
March 31,
2012

Fiscal Year
Ended
March 31,
2011

€
5.47
4.08
21.02
1.37
1.20
6.08
7.31
2.37
48.90

€
5.22
3.85
17.03
1.30
1.35
5.70
6.82
2.32
43.59

% Change

4.9%
5.8%
23.5%
5.3%
(11.3)%
6.6%
7.1%
2.5%
12.2%

Staff costs. Ryanair‘s staff costs, which consist primarily of salaries, wages and benefits, increased
4.9% on a per-passenger basis, while in absolute terms, these costs increased 10.3%, from €376.1 million in the
2011 fiscal year (which included €4.6 million in relation to volcanic ash expenses) to €415.0 million in the 2012
fiscal year. The increase in absolute terms was primarily attributable to a 10.5% increase in hours flown and a
Company-wide pay increase of 2% granted in April 2011, partially offset by a €2.5 million reversal of
previously recognized share-based payment compensation expense for awards that did not vest.

Depreciation and amortization. Ryanair‘s depreciation and amortization per passenger increased by
5.8%, while in absolute terms these costs increased 11.3% from €277.7 million in the 2011 fiscal year, to €309.2
million in the 2012 fiscal year. The increase was primarily attributable to the addition of 14 owned aircraft to the
fleet during the 2012 fiscal year. See ―—Critical Accounting Policies—Long-lived Assets‖ above.

Fuel and oil. Ryanair‘s fuel and oil costs per passenger increased by 23.5%, while in absolute terms,
these costs increased by 29.9% from €1,227.0 million in the 2011 fiscal year to €1,593.6 million in the 2012
fiscal year, in each case after giving effect to the Company‘s fuel hedging activities. The 29.9% increase
reflected an 18.2% increase in average fuel prices paid, the impact of a 10.5% increase in the number of hours
flown and a 6.1% increase in the average sector length. Fuel and oil costs include the direct cost of fuel, the cost
of delivering fuel to the aircraft, and aircraft de-icing costs. The average fuel price paid by Ryanair (calculated
by dividing total fuel costs by the number of U.S. gallons of fuel consumed) increased 18.2% from €1.76 per
U.S. gallon in the 2011 fiscal year to €2.08 per U.S. gallon in the 2012 fiscal year, in each case after giving
effect to the Company‘s fuel hedging activities.

Maintenance, materials and repairs. Ryanair‘s maintenance, materials and repair expenses, which
consist primarily of the cost of routine maintenance and the overhaul of spare parts, increased 5.3% on a per-
passenger basis, while in absolute terms these expenses increased by 10.8% from €93.9 million in the 2011
fiscal year to €104.0 million in the 2012 fiscal year. The increase in absolute terms during the fiscal year
reflected the additional costs arising from increased level of activity and the opening of new bases.

Aircraft rentals. Aircraft rental expenses amounted to €90.7 million in the 2012 fiscal year, a 6.7%
decrease from the €97.2 million reported in the 2011 fiscal year, reflecting the lower lease costs on newer
aircraft and the handback of 3 aircraft due to the maturity of leases.

Route charges and airport and handling charges. Ryanair‘s route charges per passenger increased
6.6% in the 2012 fiscal year, while airport and handling charges per passenger increased 7.1%. In absolute
terms, route charges increased 12.2%, from €410.6 million in the 2011 fiscal year to €460.5 million in the 2012
fiscal year, primarily as a result of the 5.8% increase in sectors flown. In absolute terms, airport and handling
charges increased 12.6%, from €491.8 million in the 2011 fiscal year, to €554.0 million in the 2012 fiscal year,
reflecting the overall growth in passenger volumes and higher charges at Dublin and Stansted airports, partially
offset by lower average costs at Ryanair‘s newer airports and bases.

Marketing, distribution and other expenses. Ryanair‘s marketing, distribution and other operating
expenses, including those applicable to the generation of ancillary revenues, increased 2.5% on a per-passenger
basis in the 2012 fiscal year, while in absolute terms, these costs increased 7.8%, from €167.0 million in the
2011 fiscal year to €180.0 million in the 2012 fiscal year, with the overall increase primarily reflecting the
higher level of activity and increased onboard product costs reflecting the higher level of sales.

Operating profit. As a result of the factors outlined above, operating profit increased 33.0% on a per-
passenger basis in the 2012 fiscal year, and also increased in absolute terms, from €488.2 million in the 2011
fiscal year to €683.2 million in the 2012 fiscal year. See ―Item 3. Key Information—Risk Factors—Ryanair Has
Decided to Seasonally Ground Aircraft. The Company‘s decision to ground aircraft did not have a material
impact on the results of the Company for the year ended March 31, 2012 and, at present, is not anticipated to
have a material impact on future operations. The Company anticipates that any revenues which could have been
generated had the Company operated the grounded aircraft, would have been lower than the operating costs
associated with operating these aircraft, due to significantly higher fuel costs, airport charges and taxes. The
Company does not anticipate that any material staff costs will be incurred during future periods of the grounding
of aircraft, as the relevant staff can be furloughed under the terms of their contract without compensation and the
maintenance costs associated with the grounded aircraft will be minimal. However, the Company will still incur
aircraft ownership costs comprised of depreciation and amortization costs, lease rentals costs and financing
costs.

Finance income. Ryanair‘s interest and similar income increased 62.5%, from €27.2 million in the

2011 fiscal year to €44.3 million in the 2012 fiscal year reflecting the improved yield on term deposits.

Finance expense. Ryanair‘s interest and similar charges increased 16.3%, from €93.9 million in the
2011 fiscal year to €109.2 million in the 2012 fiscal year, primarily due to higher interest rates in the 2012 fiscal
year compared to the 2011 fiscal year. These costs are expected to increase as Ryanair further expands its fleet.

Foreign exchange gains/losses. Ryanair recorded foreign exchange gains of €4.3 million in the 2012
fiscal year, as compared with foreign exchange losses of €0.6 million in the 2011 fiscal year, with the different
result being primarily due to the weakening of the euro against the U.K. pound sterling during the 2012 fiscal
year.

Taxation. The effective tax rate for the 2012 fiscal year was 11.5%, as compared to an effective tax rate
of 11.0% in the 2011 fiscal year. The effective tax rate reflects the statutory rate of Irish corporation tax of
12.5%. Ryanair recorded an income tax provision of €72.6 million in the 2012 fiscal year, compared with a tax
provision of €46.3 million in the 2011 fiscal year, with the increase primarily reflecting higher pre-tax profits.
The determination regarding the recoverability of the deferred tax asset was based on future income forecasts,
which demonstrated that it was more likely than not that future profits would be available in order to utilize the
deferred tax asset. A deferred tax asset‘s recoverability is not dependent on material improvements over
historical levels of pre-tax income, material changes in the present relationship between income reported for
financial and tax purposes, or material asset sales or other non-routine transactions.

SEASONAL FLUCTUATIONS

The Company‘s results of operations have varied significantly from quarter to quarter, and
management expects these variations to continue. Among the factors causing these variations are the airline
industry‘s sensitivity to general economic conditions and the seasonal nature of air travel. Ryanair typically
records higher revenues and income in the first half of each fiscal year ended March 31 than the second half of
such year.

RECENTLY ISSUED ACCOUNTING STANDARDS

Please see Note 1 to the consolidated financial statements included in Item 18 for information on

recently issued accounting standards that are material to the Company.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity. The Company finances its working capital requirements through a combination of cash
generated from operations and bank loans for the acquisition of aircraft. See ―Item 3. Key Information—Risk
Factors—Risks Related to the Company—The Company Will Incur Significant Costs Acquiring New Aircraft
and Any Instability in the Credit and Capital Markets could Negatively Impact Ryanair‘s Ability to Obtain
Financing on Acceptable Terms‖ for more information about risks relating to liquidity and capital resources.
The Company had cash and liquid resources at March 31, 2013 and 2012 of €3,559.0 million and €3,515.6
million, respectively. The increase at March 31, 2013 primarily reflects cash generated from operating activities
of €1,023.5 million offset in part by the cash used to fund the payment of a €491.5 million dividend and the
purchase of property, plant, and equipment – primarily 11 new Boeing 737-800 aircraft, as well as the purchase
of 15.0 million Ordinary Shares via a share buy-back costing €67.5 million. During the 2013 fiscal year, the
Company partially funded its €310.7 million in purchases of property, plant, and equipment out of €234.6
million in loans. Cash and liquid resources included €24.7 million and €35.1 million in ―restricted cash‖ held on
deposit as collateral for certain derivative financial instruments entered into by the Company with respect to its
aircraft financing obligations and other banking arrangements at March 31, 2013 and 2012, respectively. See
―Item 8. Financial InformationOther Financial InformationLegal Proceedings.‖

The Company‘s net cash inflows from operating activities in the 2013 and 2012 fiscal years amounted
to €1,023.5 million and €1,020.3 million, respectively. The €3.2 million increase in net cash flows from
operating activities for fiscal year 2013 compared to fiscal 2012 was principally due to a number of factors
including a €493.8 million increase in operating revenues, due to a combination of a 4.3% increase in average
fares, a 4.5% increase in booked passengers and a 20.1% increase in ancillary revenues, partially offset by a
€291.0 million, or 18.3%, increase in fuel and oil costs, due to the increase in the level of activity and increases
in the average price of fuel, and a €146.4 million, or 8.1%, increase in non-fuel related operating expenses
(excluding a €20.4 million, or 6.6%, increase in non-cash depreciation) due to the growth of the business. In
addition, movements in working capital, related principally to cash received in advance for flights, and receipt
of other receivables and increases in other payables balances, generated €67.4 million in cash in 2013, compared
with €101.8 million in 2012. This decrease in net cash generated from working capital of €34.4 million, or
approximately 34%, is primarily due to the timing of Easter, which led to lower future fly revenues at year end.

During the last two fiscal years, Ryanair‘s primary cash requirements have been for operating
expenses, additional aircraft, including advance payments in respect of new Boeing 737-800s and related flight
equipment, payments on related indebtedness and payments of corporation tax, as well as share buy-backs of
€192.1 million and the payment of a €491.5 million special dividend to shareholders. Cash generated from
operations has been the principal source for these cash requirements, supplemented primarily by aircraft-related
bank loans

The Company‘s net cash inflows from operating activities in the 2012 and 2011 fiscal years amounted
to €1,020.3 million and €786.3 million, respectively. The €234.0 million, or 29%, increase in net cash flows
from operating activities for fiscal year 2012 compared to fiscal 2011 was principally due to a number of factors
including a €760.7 million increase in operating revenues, due to a combination of a 15.6% increase in average
fares, a 5.2% increase in booked passengers and a 10.6% increase in ancillary revenues, partially offset by a
€366.6 million, or 29.9%, increase in fuel and oil costs, due to the increase in the level of activity and increases
in the average price of fuel, and a €167.6 million, or 10.2%, increase in non-fuel related operating expenses
(excluding a €31.5 million, or 11.3%, increase in non-cash depreciation) due to the growth of the business. In
addition, movements in working capital, related principally to cash received in advance for flights, and receipt
of other receivables and increases in other payables balances, generated €101.8 million in cash in 2012,
compared with €86.5 million in 2011. This increase in net cash generated from working capital of €15.3
million, or 17.7%, primarily related to an increase in cash receipts from advance bookings.

The Company‘s net cash used in investing activities in fiscal years 2013 and 2012 totaled €1,821.5
million and €185.4 million, respectively, primarily reflecting the Company‘s capital expenditures, and increased
investment of cash with maturities of greater than three months, as described in more detail below.

The Company‘s net cash used in investing activities in fiscal years 2012 and 2011 totaled €185.4
million and €474.0 million, respectively, primarily reflecting the Company‘s capital expenditures, and decreased
investment of cash with maturities of greater than three months.

Net cash used in financing activities totaled €669.4 million in the 2013 fiscal year, largely reflecting
the receipt of proceeds from long-term borrowings of €234.6 million in fiscal year 2013 and shares issued of
€21.4 million, offset in part by repayments of long-term borrowings of €366.4 million, the payment of a €491.5
million dividend and shares purchased under a share buy-back program of €67.5 million. The Company
experienced a net cash outflow from financing activities of €154.9 million in fiscal year 2012. This was due to
the receipt of proceeds from long term borrowings of €292.3 million being more than offset by repayments of
long-term borrowings of €329.7 million and the expenditure of €124.6 million under the share buy-back
program.

The Company‘s net cash provided by financing activities totaled €238.1 million in the 2011 fiscal year,
largely reflecting the receipt of proceeds from long-term borrowings of €991.4 million in fiscal year 2011, offset
in part by repayments of long-term borrowings of €280.7 million.

Capital Expenditures. The Company‘s net cash outflows for capital expenditures in fiscal years 2013
and 2012 were €310.7 million and €290.4 million, respectively. Ryanair has funded a significant portion of its
acquisition of new Boeing 737-800 aircraft and related equipment through borrowings under facilities provided
by international financial institutions on the basis of guarantees issued by the Export-Import Bank of the United
States (―Ex-Im Bank‖). At March 31, 2013, Ryanair had a fleet of 305 Boeing 737-800 aircraft, the majority of
which (210 aircraft) were funded by Ex-Im Bank-guaranteed financing. Other sources of on-balance-sheet
aircraft financing utilized by Ryanair are Japanese Operating Leases with Call Options (―JOLCOs‖), which are
treated as finance leases (30 of the aircraft in the fleet as of March 31, 2013) and commercial debt financing (6
of the aircraft in the fleet as of March 31, 2013). Of Ryanair‘s total fleet of 305 Boeing 737-800 aircraft at
March 31, 2013 there were 59 aircraft which were financed through operating lease arrangements. Of the 15
new Boeing 737-800 aircraft which Ryanair took delivery of between April 1, 2012 and March 31, 2013, four
were financed through sale-and-leaseback financings and the remainder through Ex-Im Bank guaranteed-
financing. 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.

The Company‘s net cash outflows for capital expenditures in fiscal years 2012 and 2011 were €290.4
million and €897.2 million, respectively. Of the 25 new Boeing 737-800 aircraft which Ryanair took delivery of
between April 1, 2011 and March 31, 2012, 11 were financed through sale-and-leaseback financings and the
remainder through Ex-Im Bank guaranteed-financing.

The following table sets forth the dates on which and the number of aircraft that will be delivered to the

Company pursuant to the 2013 Boeing Contract:

Fiscal Year End

Opening Fleet
Aircraft delivered
Planned returns or disposals

Closing Fleet

Mar 31,
2013

Mar 31,
2014

Mar 31,
2015

Mar 31,
2016

Mar 31,
2017

Mar 31,
2018

Mar 31,
2019

Summary

294
11
-

305

305
0
(15)

290

290
11
(3)

298

298
35
(5)

328

328
50
(24)

354

354
50
(18)

386

386
29
(5)

410

294
186
(70)

410

Capital Resources. Ryanair‘s long-term debt (including current maturities) totaled €3,498.3 million at
March 31, 2013 and €3,625.2 million at March 31, 2012, with the change being primarily attributable to
financing of new aircraft and repayment of existing debt facilities. Please see the table ―Obligations Due by
Period‖ below for more information on Ryanair‘s long-term debt (including current maturities) and finance
leases as of March 31, 2013. See also Note 11 to the consolidated financial statements included in Item 18 for
further information on the maturity profile of the interest rate structure and other information on, the Company‘s
borrowings.

The Company‘s purchase of the 15 Boeing 737-800 aircraft delivered in the 2013 fiscal year has been
funded by a combination of financing solutions, including bank loans supported by Ex-Im Bank guarantees
(eleven aircraft) and sale-and-leaseback financings (four aircraft). At March 31, 2013, the majority of the
aircraft in Ryanair‘s fleet had been financed through loan facilities with various financial institutions active in
the structured export finance sector and supported by a loan guarantee from Ex-Im Bank. Each of these facilities
takes essentially the same form and is based on the documentation developed by Ryanair and Ex-Im Bank,
which follows standard market forms for this type of financing. In November 2010, Ryanair financed seven

aircraft through a U.S. dollar-denominated Ex-Im Bank Capital Markets Product (―Eximbond‖). The Eximbond
has essentially the same characteristics as all previous Ex-Im Bank guaranteed financings with no additional
obligations on Ryanair. On the basis of an Ex-Im Bank guarantee with regard to the financing of up to 85% of
the eligible U.S. and foreign content represented in the net purchase price of the relevant aircraft, the financial
institution investor enters into a commitment letter with the Company to provide financing for a specified
number of aircraft benefiting from such guarantee; loans are then drawn down as the aircraft are delivered and
payments to Boeing become due. Each of the loans under the facilities are on substantially similar terms, having
a maturity of 12 years from the drawdown date and being secured by a first priority mortgage in favor of a
security trustee on behalf of Ex-Im Bank.

Through the use of interest rate swaps or cross currency interest rate swaps, Ryanair has effectively
converted a portion of its floating-rate debt under its financing facilities into fixed-rate debt. Approximately
34% of the loans for the aircraft acquired under the above facilities are not covered by such swaps and have
therefore remained at floating rates linked to EURIBOR, with the interest rate exposure from these loans largely
hedged by placing a similar amount of cash on deposit at floating interest rates. The net result is that Ryanair has
effectively swapped or drawn down fixed-rate euro-denominated debt with maturities between seven and twelve
years in respect of approximately 66% of its outstanding debt financing at March 31, 2013 and of this total
approximately 49% of this debt has been partially swapped, with the relevant swaps covering the first seven
years of the twelve-year amortizing period.

The table below illustrates the effect of swap transactions (each of which is with an established
international financial counterparty) on the profile of Ryanair‘s total outstanding debt at March 31, 2013. See
―Item 11. Quantitative and Qualitative Disclosures About Market Risk—Interest Rate Exposure and Hedging‖
for additional details on the Company‘s hedging transactions.

At March 31, 2013

EUR
Fixed

EUR
Floating

(in millions of euro)

Borrowing profile before swap transactions .....................................
Interest rate swaps – Debt swapped from floating to fixed ...............
Borrowing profile after swap transactions ........................................

1,025.3
1,293.3
2,318.6

2,473.0
(1.293.3)
1,179.7

The weighted-average interest rate on the cumulative borrowings under these facilities of €3,498.3
million at March 31, 2013 was 2.5%. Ryanair‘s ability to obtain additional loans pursuant to each of the
facilities to finance the price of future Boeing 737-800 aircraft purchases is subject to the issuance of further
bank commitments and the satisfaction of various contractual conditions. These conditions include, among other
things, the execution of satisfactory documentation, the requirement that Ryanair perform all of its obligations
under the Boeing agreements and provide satisfactory security interests in the aircraft (and related assets) in
favor of the lenders and Ex-Im Bank, and that Ryanair not suffer a material adverse change in its conditions or
prospects (financial or otherwise).

As part of its Ex-Im Bank guarantee-based financing of the Boeing 737-800s, Ryanair has entered into
certain lease agreements and related arrangements. Pursuant to these arrangements, legal title to the 210 aircraft
delivered and remaining in the fleet as of March 31, 2013 rests with a number of United States special purpose
vehicles (the ―SPVs‖) in which Ryanair has no equity or other interest. The SPVs are the borrowers of record
under the loans made or to be made under the facilities, with all of their obligations under the loans being
guaranteed by Ryanair Holdings.

The shares of the SPVs (which are owned by an unrelated charitable association) are in turn pledged to
a security trustee in favor of Ex-Im Bank and the lenders. Ryanair operates each of the aircraft pursuant to a
finance lease it has entered into with the SPVs, the terms of which mirror those of the relevant loans under the
facilities. Ryanair has the right to purchase the aircraft upon termination of the lease for a nominal amount.
Pursuant to this arrangement, Ryanair is considered to own the aircraft for accounting purposes under IFRS.
Ryanair does not use special purpose entities for off-balance sheet financing or any other purpose which results
in assets or liabilities not being reflected in Ryanair‘s consolidated financial statements.

Ryanair has a track record in securing finance for similar sized aircraft purchases. The 1998, 2002,
2003 and 2005 Boeing Contracts totaling 348 aircraft were financed with approximately 66% US Ex-Im Bank
loan guarantees and capital markets (with 85% loan to value) financing, 24% through sale and operating
leaseback financing, and 10% through Japanese operating leases with call options (―JOLCOs‖). See ―Item 5.
Operating and Financial Review and Prospects—Liquidity and Capital Resources.‖

Under the new Aviation Sector Understanding which came into effect from January 1, 2013, the fees
payable to Ex-Im Bank for the provision of loan guarantees have significantly increased, thereby making it more
expensive than more traditional forms of financing. As a result, Ryanair intends to finance the new aircraft
obtained under the 2013 Boeing Contract through a combination of internally generated cash flows, debt
financing from commercial banks, debt financing through the capital markets in a secured and unsecured
manner, commercial debt through JOLCOs and sale and operating leasebacks. These forms of financing are
generally accepted in the aviation industry and are currently widely available for companies who have the credit
quality of Ryanair. Ryanair may periodically use Ex-Im Bank loan guarantees when appropriate. Ryanair
intends to finance pre-delivery payments (―Aircraft Deposits‖) to Boeing in respect of the New Aircraft via
internally generated cash flows similar to all previous Aircraft Deposit payments.

At March 31, 2013, Ryanair had 59 operating lease aircraft in the fleet. As a result, Ryanair operates,
but does not own, these aircraft, which were leased to provide flexibility for the aircraft delivery program.
Ryanair has no right or obligation to acquire these aircraft at the end of the relevant lease terms. 30 leases are
denominated in euro and require Ryanair to make fixed rental payments over the term of the lease. The
remaining 29 operating leases are U.S. dollar-denominated and require Ryanair to make fixed rental payments.
The Company has an option to extend the initial period of seven years on 41 of the 59 remaining operating lease
aircraft as of March 31, 2013, on pre-determined terms. 15 operating lease arrangements will mature during the
year ended March 31, 2014. In April 2013, the Company decided not to extend two leases that were maturing
and handed these aircraft back to the lessor. In addition to the above, the Company financed 30 of the Boeing
737-800 aircraft delivered between March 2005 and March 2013 with 13-year euro-denominated JOLCOs.
These structures are accounted for as finance leases and are initially recorded at fair value in the Company‘s
balance sheet. Under each of these contracts, Ryanair has a call option to purchase the aircraft at a pre-
determined price after a period of 10.5 years, which it may exercise. Six aircraft have been financed through
euro-denominated 12-year amortizing commercial debt transactions.

Since, under each of the Company‘s operating leases, the Company has a commitment to maintain the
relevant aircraft, an accounting provision is made during the lease term for this obligation based on estimated
future costs of major airframe and certain engine maintenance checks by making appropriate charges to the
income statement calculated by reference to the number of hours or cycles operated during the year. Under
IFRS, the accounting treatment for these costs with respect to leased aircraft differs from that for aircraft owned
by the Company, for which such costs are capitalized and amortized.

Contractual Obligations. The table below sets forth the contractual obligations and commercial
commitments of the Company with definitive payment terms, which will require significant cash outlays in the
future, as of March 31, 2013. These obligations primarily relate to Ryanair‘s aircraft purchase and related
financing obligations, which are described in more detail above. For additional information on the Company‘s
contractual obligations and commercial commitments, see Note 23 to the consolidated financial statements
included in Item 18.

The amounts listed under ―Finance Lease Obligations‖ reflect the Company‘s obligations under its

JOLCOs. See ―Item 5. Operating and Financial Review and Prospects Liquidity and Capital Resources.‖

100

The amounts listed under ―Purchase Obligations‖ in the table reflect obligations for aircraft purchases
and are calculated by multiplying the number of aircraft the Company is obligated to purchase under its current
agreements with Boeing during the relevant period by the Basic Price for each aircraft pursuant to the relevant
contract, with the dollar-denominated Basic Price being converted into euro at an exchange rate of
$1.2805=€1.00 (based on the European Central Bank Rate on March 31, 2013). The relevant amounts therefore
exclude the effect of the price concessions granted to Ryanair by Boeing and CFM, as well as any application of
the Escalation Factor described below. As a result, Ryanair‘s actual expenditures for aircraft during the relevant
periods will be lower than the amounts listed under ―Purchase Obligations‖ in the table.

With respect to purchase obligations under the terms of the 2013 Boeing contract, the Company was
required to pay Boeing 1% of the Basic Price of each of the 175 firm-order Boeing 737-800 aircraft at the time
the contract was signed in April 2013 (such deposit being fully refundable if the Company had not received the
shareholder approval it received at an extraordinary general meeting on June 18, 2013), and will be required to
make periodic advance payments of the purchase price for each aircraft it has agreed to purchase during the
course of the two-year period preceding the delivery of each aircraft. As a result of these required advance
payments, the Company will have paid up to 30% of the Basic Price of each aircraft prior to its delivery
(including the addition of an estimated ―Escalation Factor‖ but before deduction of any credit memoranda and
other concessions); the balance of the net price is due at the time of delivery. Similar terms applied under the
2005 Boeing contract, with the first payment due when the contract was signed in February 2005.

The amounts listed under ―Operating Lease Obligations‖ reflect the Company‘s obligations under its

aircraft operating lease arrangements.

Obligations Due by Period

Contractual Obligations

Total

Less than 1
year

1-2 years

2-5 years

After 5 years

(in millions of euro)

Long-term Debt (a) ..................................
Finance Lease Obligations ......................
Purchase Obligations (b) .........................
Operating Lease Obligations ..................
Future Interest Payments (c)……….....

Total Contractual Obligations .................

2,735.7
762.6
10,726.8
544.1
277.8
15,047.0

346.1
53.4

107.2
68.1
574.8

354.9
55.8
674.2
101.8
56.9
1,243.6

972.2
290.4
8,275.0
240.6
101.7
9,879.9

1,062.5
363.0
1,777.6
94.5
51.1
3,348.7

(a) For additional information on Ryanair‘s long-term debt obligations, see Note 11 to the consolidated financial

statements included in Item 18.

(b) These are noted at a non-discounted ―list‖ price.
(c) In determining an appropriate methodology to estimate future interest payments we have applied either the applicable
fixed rate or currently applicable variable rate where appropriate. These interest rates are subject to change and
amounts actually due may be higher or lower than noted in the table above.

OFF-BALANCE SHEET TRANSACTIONS

Ryanair uses certain off-balance sheet arrangements in the ordinary course of business, including
financial guarantees and operating lease commitments. Details of each of these arrangements that have or are
reasonably likely to have a current or future material effect on the Company‘s financial condition, results of
operations, liquidity or capital resources are discussed below.

Operating Lease Commitments. The Company has entered into a number of sale-and-leaseback
transactions in connection with the financing of a number of aircraft in its fleet. See ―—Liquidity and Capital
Resources—Capital Resources‖ above for additional information on these transactions.

101

Guarantees. Ryanair Holdings has provided an aggregate of €5,973.6 million in letters of guarantee to
secure obligations of certain of its subsidiaries in respect of loans and bank advances, including those relating to
aircraft financing and related hedging transactions. This amount excludes guarantees given in relation to the
2013 Boeing Contract which total approximately $14.2 billion at list prices, and only became effective
following Ryanair Holdings shareholder approval at an EGM on June 18, 2013.

TREND INFORMATION

For information concerning the principal trends and uncertainties affecting the Company‘s results of
operations and financial condition, see ―Item 3. Key Information—Risk Factors,‖ ―Item 5. Operating and
Financial Review and Prospects—Business Overview,‖ ―—Results of Operations,‖ ―—Liquidity and Capital
Resources‖ and ―Item 4. Information on the Company—Strategy—Responding to Current Challenges” above.

Inflation did not have a significant effect on the Company‘s results of operations and financial

condition during the three fiscal years ended March 31, 2013.

INFLATION

Item 6. Directors, Senior Management and Employees

Ryanair Holdings was established in 1996 as a holding company for Ryanair. The management of
Ryanair Holdings and Ryanair are integrated, with the two companies having the same directors and executive
officers.

The following table sets forth certain information concerning the directors of Ryanair Holdings and

Ryanair as of July 26, 2013:

DIRECTORS

Age
70
76
63
62
69
62
52
58
64
46

Positions
Chairman of the Board and Director
Director
Director
Director
Director
Director
Director and Chief Executive Officer
Director
Director
Director

Name
David Bonderman (a)(b) .................................
Michael Horgan (d) .........................................
Charles McCreevy (c) .....................................
Declan McKeon (c) .........................................
Kyran McLaughlin (a)(b) ................................
Dick Milliken ..................................................
Michael O‘Leary (a)(b)(f) ...............................
Julie O‘Neill (e) ...............................................
James Osborne (a)(c)(e) ..................................
Louise Phelan (e) .............................................
______________
(a) Member of the Executive Committee.
(b) Member of the Nomination Committee.
(c) Member of the Audit Committee.
(d) Member of the Air Safety Committee.
(e) Member of the Remuneration Committee.
(f) Mr. O‘Leary is also the chief executive officer of Ryanair Holdings and Ryanair. None of the other directors

are executive officers of Ryanair Holdings or Ryanair.

David Bonderman (Chairman). David Bonderman has served as a director since August 1996 and has served
as the chairman of the Board of Directors since December 1996. In 1992, Mr. Bonderman co-founded TPG
(formerly known as Texas Pacific Group), a private equity investment firm. He currently serves as an officer
and director of the general partner and manager of TPG. Mr. Bonderman is also an officer, director and
shareholder of 1996 Air G.P. Inc., which owns shares of Ryanair. He also serves on the boards of directors of
the following public companies: CoStar Group, Inc. and General Motors Company and is a U.S. citizen.

102

Michael Horgan (Director). Michael Horgan has served as a director since January 2001. A former Chief Pilot
of Aer Lingus, he has acted as a consultant to a number of international airlines, civil aviation authorities, the
European Commission and the European Bank for Reconstruction and Development. Mr. Horgan is the
Chairman of the Company‘s Air Safety Committee and is an Irish citizen.

Charles McCreevy (Director). Charles McCreevy has served as a director since May 2010. Mr. McCreevy has
previously served as EU Commissioner for Internal Markets and Services (2004-2010) and has held positions in
several Irish Government Ministerial Offices, including Minister for Finance (1997-2004), Minister for Tourism
& Trade (1993-1994) and Minister for Social Welfare (1992-1993) and is an Irish citizen.

Declan McKeon (Director). Declan McKeon has served as a director since May 2010. Mr. McKeon is a former
audit partner of PricewaterhouseCoopers and continues to act as a consultant to PricewaterhouseCoopers. He is
currently a director, chairman of the audit committee, and a member of the compensation committee of Icon plc
and is an Irish citizen.

Kyran McLaughlin (Director). Kyran McLaughlin has served as a director since January 2001, and is also
Deputy Chairman and Head of Capital Markets at Davy Stockbrokers. Mr. McLaughlin also advised Ryanair
during its initial flotation on the Dublin and NASDAQ stock markets in 1997. Mr. McLaughlin serves on the
Board of Directors of Elan Corporation plc, and he also serves as a director of a number of other Irish private
companies and is an Irish citizen.

R.A. (Dick) Milliken (Director). Dick Milliken has served as a director of Ryanair since July 2013. Mr.
Milliken is a former CFO of the Almac Group and CEO Lamont plc. A qualified Chartered Accountant, Mr.
Milliken serves as a director of Bank of Ireland Mortgage Bank, NI Science Park Foundation and a number of
private companies. Mr. Milliken is a graduate of Queens University Belfast, a Fellow of the Institute of
Chartered Accountants in Ireland and former Council member and is a British citizen.

Michael O‟Leary (Executive Director). Michael O‘Leary has served as a director of Ryanair since 1988 and a
director of Ryanair Holdings since July 1996. Mr. O‘Leary was appointed chief executive officer of Ryanair in
1994 and is an Irish citizen.

Julie O‟Neill (Director). Julie O‘Neill has served as a director of Ryanair since December 2012. Ms. O‘Neill
served as Secretary General of the Department of Transport, Ireland from 2002 to 2009 and, in a career that
spanned 37 years in the Irish public service, worked in strategic policy development and implementation in eight
Government Departments. She is now an independent strategic management consultant and serves as a director
of the Sustainable Energy Authority of Ireland and the Irish Museum of Modern Art. She also chairs the audit
committee of Trinity College Dublin and is an Irish citizen.

James Osborne (Director). James Osborne has served as a director of Ryanair Holdings since August 1996,
and has been a director of Ryanair since April 1995. Mr. Osborne is a former managing partner of A & L
Goodbody Solicitors. He is also a former Chairman of Independent News and Media plc and a director of
James Hardie Industries NV. He also serves as a director of a number of Irish private companies and is an Irish
citizen.

Louise Phelan (Director). Louise Phelan has served as a director of Ryanair since December 2012. Ms. Phelan
is currently serving as VP for PayPal Global Operations Europe Middle East and Africa leading 1,800 people in
Dublin, Dundalk and Berlin. Louise has been part of PayPal since 2006 and prior to this she was a member of
the Senior Management team for GE Money, a division of General Electric (GE), which specialises in small
ticket lending for a client base comprising both consumers and commercial customers. Louise is also a member
of the Board of the American Chamber of Commerce and a member of the Dublin Chamber of Commerce,
CCMA Ireland, the Women‘s Executive Network (WXN) and the International Women‘s Forum and is an Irish
citizen.

The Board of Directors has established a number of committees, including the following:

Executive Committee. The Board of Directors established the Executive Committee in August 1996.
The Executive Committee can exercise the powers exercisable by the full Board of Directors in circumstances in
which action by the Board of Directors is required but it is impracticable to convene a meeting of the full Board
of Directors. Messrs. Bonderman, McLaughlin, O‘Leary and Osborne are the members of the Executive
Committee.

103

Remuneration Committee. The Board of Directors established the Remuneration Committee in
September 1996. This committee has authority to determine the remuneration of senior executives of the
Company and to administer the stock option plans described below. The Board of Directors as a whole
determines the remuneration and bonuses of the chief executive officer, who is the only executive director. Mr.
Osborne, Ms. O‘Neill and Ms. Phelan are the members of the Remuneration Committee.

Audit Committee. The Board of Directors established the Audit Committee in September 1996 to make
recommendations concerning the engagement of independent chartered accountants; to review with the
accountants the plans for and scope of each annual audit, the audit procedures to be utilized and the results of
the audit; to approve the professional services provided by the accountants; to review the independence of the
accountants; and to review the adequacy and effectiveness of the Company‘s internal accounting controls.
Messrs. McKeon, Osborne and McCreevy are the members of the Audit Committee. In accordance with the
recommendations of the Irish Combined Code of Corporate Governance (the ―Combined Code‖), a senior
independent non-executive director, Mr. McKeon, is the chairman of the Audit Committee. All members of the
Audit Committee are independent for purposes of the listing rules of the NASDAQ and the U.S. federal
securities laws.

Nomination Committee. The Board of Directors established the Nomination Committee in May 1999 to
make recommendations and proposals to the full Board of Directors concerning the selection of individuals to
serve as executive and non-executive directors. The Board of Directors as a whole then makes appropriate
determinations regarding such matters after considering such recommendations and proposals. Messrs.
Bonderman, McLaughlin and O‘Leary are the members of the Nomination Committee.

Air Safety Committee. The Board of Directors established the Air Safety Committee in March 1997 to
review and discuss air safety and related issues. The Air Safety Committee reports to the full Board of Directors
each quarter. The Air Safety Committee is composed of Mr. Horgan (who acts as the chairman), as well as the
following executive officers of Ryanair: Messrs. Conway, Hickey, O‘Brien and Wilson.

Powers of, and Action by, the Board of Directors

The Board of Directors is empowered by the Articles to carry on the business of Ryanair Holdings,
subject to the Articles, provisions of general law and the right of stockholders to give directions to the directors
by way of ordinary resolutions. Every director who is present at a meeting of the Board of Directors of Ryanair
Holdings has one vote. In the case of a tie on a vote, the chairman of the Board of Directors has a second or tie-
breaking vote. A director may designate an alternate director to attend any Board of Directors meeting, and such
alternate director shall have all the rights of a director at such meeting.

The quorum for a meeting of the Board of Directors, unless another number is fixed by the directors,
consists of three directors, a majority of whom must be EU nationals. The Articles require the vote of a majority
of the directors (or alternates) present at a duly convened meeting for the approval of any action by the Board of
Directors.

Composition and Term of Office

The Articles provide that the Board of Directors shall consist of no fewer than three and no more than
15 directors, unless otherwise determined by the stockholders. There is no maximum age for a director and no
director is required to own any shares of Ryanair Holdings.

Directors are elected (or have their appointments confirmed) at the annual general meetings of
stockholders. Save in certain circumstances, at every annual general meeting, one-third (rounded down to the
next whole number if it is a fractional number) of the directors (being the directors who have been longest in
office) must stand for re-election as their terms expire. Accordingly the terms of Charles McCreevy and Declan
McKeon will have expired and they will be eligible to offer themselves for re-election at the next annual general
meeting of Ryanair. In addition, Julie O‘Neill and Louise Phelan, who were newly appointed to the board on
December 13, 2012, and Dick Milliken, who was appointed to the Board on July 26, 2013, will also offer
themselves for re-appointment at the next annual general meeting, which is scheduled to be held on September
20, 2013.

104

Exemptions from NASDAQ Corporate Governance Rules

The Company relies on certain exemptions from the NASDAQ corporate governance rules. These

exemptions, and the practices the Company adheres to, are as follows:

The Company is exempt from NASDAQ‘s quorum requirements applicable to meetings of
shareholders, which require a minimum quorum of 33% for any meeting of the holders of common
stock, which in the Company‘s case are its Ordinary Shares. In keeping with Irish generally
accepted business practice, the Articles provide for a quorum for general meetings of shareholders
of three shareholders, regardless of the level of their aggregate share ownership.

 The Company is exempt from NASDAQ‘s requirement with respect to audit committee approval
of related-party transactions, as well as its requirement that shareholders approve certain stock or
asset purchases when a director, officer or substantial shareholder has an interest. The Company is
subject to extensive provisions under the Listing Rules of the Irish Stock Exchange (the ―Irish
Listing Rules‖) governing transactions with related parties, as defined therein, and the Irish
Companies Act also restricts the extent to which Irish companies may enter into related-party
transactions. In addition, the Articles contain provisions regarding disclosure of interests by the
directors and restrictions on their votes in circumstances involving conflicts of interest. The
concept of a related party for purposes of NASDAQ‘s audit committee and shareholder approval
rules differs in certain respects from the definition of a transaction with a related party under the
Irish Listing Rules.

 NASDAQ requires shareholder approval for certain transactions involving the sale or issuance by
a listed company of common stock other than in a public offering. Under the NASDAQ rules,
whether shareholder approval is required for such transactions depends, among other things, on the
number of shares to be issued or sold in connection with a transaction, while the Irish Listing
Rules require shareholder approval when the size of a transaction exceeds a certain percentage of
the size of the listed company undertaking the transaction.

 NASDAQ requires that each issuer solicit proxies and provide proxy statements for all meetings of
shareholders and provide copies of such proxy solicitation to NASDAQ. The Company is exempt
from this requirement as the solicitation of holders of ADSs is not required under the Irish Listing
Rules or the Irish Companies Acts. Details of our annual general meetings and other shareholder
meetings, together with the requirements for admission, voting or the appointment of a proxy are
available on the website of the Company in accordance with the Irish Companies Acts and the
Company‘s Articles of Association. ADS holders may provide instructions to The Bank of New
York, as depositary, as to the voting of the underlying Ordinary Shares represented by such ADSs.
Alternatively, ADS holders may convert their holding to Ordinary Shares, subject to compliance
with the nationality ownership rules, in order to be eligible to attend our annual general meetings
or other shareholder meetings.

 NASDAQ requires that all members of a listed company‘s Nominating Committee be independent
directors, unless the Company, as a foreign private issuer, provides an attestation of non-
conforming practice based upon home country practice and then discloses such non-conforming
practice annually in its Form 20-F. As permitted by the Irish Listing Rules, Michael O‘Leary, the
Company‘s Chief Executive Officer, serves as a member of the Company‘s Nominating
Committee.

105

The Company also follows certain other practices under the UK Corporate Governance Code in lieu of
those set forth in the NASDAQ corporate governance rules, as expressly permitted thereby. Most significantly:



Independence. NASDAQ requires that a majority of an issuer‘s Board of Directors be
―independent‖ under the standards set forth in the NASDAQ rules and that directors deemed
independent be identified in the Company‘s annual report on Form 20-F. The Board of Directors
has determined that each of the Company‘s nine non-executive directors is ―independent‖ under
the standards set forth in the UK Corporate Governance Code. Under the UK Corporate
Governance Code, there is no bright-line test establishing set criteria for independence, as there is
under NASDAQ Rule 4200(a) (15). Instead, the Board of Directors determines whether the
director is ―independent in character and judgment,‖ and whether there are relationships or
circumstances which are likely to affect, or could appear to affect, the director‘s judgment. Under
the UK Corporate Governance Code, the Board of Directors may determine that a director is
independent notwithstanding the existence of relationships or circumstances which may appear
relevant to its determination, but it should state its reasons if it makes such a determination. The
UK Corporate Governance Code specifies that relationships or circumstances that may be relevant
include whether the director: (i) has been an employee of the relevant company or group within the
last five years; (ii) has had within the last three years a direct or indirect material business
relationship with such company; (iii) has received payments from such company, subject to certain
exceptions; (iv) has close family ties with any of the company‘s advisers, directors or senior
employees; (v) holds cross-directorships or other significant links with other directors; (vi)
represents a significant shareholder; or (vii) has served on the Board of Directors for more than
nine years. In determining that each of the nine non-executive directors is independent under the
UK Corporate Governance Code standard, the Ryanair Holdings Board of Directors identified
such relevant factors with respect to non-executive directors Messrs. Bonderman, McLaughlin,
Osborne and Horgan. When arriving at the decision that these directors are nonetheless
independent, the Board of Directors has taken into account the comments made by the Financial
Reporting Council in its report dated December 2009 on its review of the impact and effectiveness
of the UK Corporate Governance Code. The NASDAQ independence criteria specifically state that
an individual may not be considered independent if, within the last three years, such individual or a
member of his or her immediate family has had certain specified relationships with the company,
its parent, any consolidated subsidiary, its internal or external auditors, or any company that has
significant business relationships with the company, its parent or any consolidated subsidiary.
Neither ownership of a significant amount of stock nor length of service on the board is a per se
bar to independence under the NASDAQ rules.

 CEO compensation. The NASDAQ rules require that an issuer‘s chief executive officer not be
present during voting or deliberations by the Board of Directors on his or her compensation. There
is no such requirement under the UK Corporate Governance Code.

106

EXECUTIVE OFFICERS

The following table sets forth certain information concerning the executive officers of Ryanair

Holdings and Ryanair at June 30, 2013:

Name

Age

Position

Michael Cawley ........................................
Ray Conway .............................................
Caroline Green .........................................
Michael Hickey ........................................
Juliusz Komorek .......................................
Howard Millar ..........................................
David O‘Brien ..........................................
Michael O‘Leary ......................................
Edward Wilson .........................................

59 Deputy Chief Executive; Chief Operating Officer
58 Chief Pilot
49 Director of Customer Service
50 Director of Engineering
35 Director of Legal & Regulatory Affairs; Company Secretary
52 Deputy Chief Executive; Chief Financial Officer
49 Director of Flight Operations and Ground Operations
52 Chief Executive Officer

49 Director of Personnel and In-flight

Michael Cawley (Deputy Chief Executive; Chief Operating Officer). Michael Cawley was appointed Deputy
Chief Executive and Chief Operating Officer on January 1, 2003, having served as Chief Financial Officer and
Commercial Director since February 1997. From 1993 to 1997, Michael served as Group Finance Director of
Gowan Group Limited, one of Ireland‘s largest private companies and the main distributor for Peugeot and
Citröen automobiles in Ireland. On July 1, 2013, The Company announced that Michael has decided step down
from his full-time executive role at the end of March 2014 as he wishes to pursue other business interests
including a number of Non-Executive Board directorships. Michael has been invited to join the board of Ryanair
after he steps down as a full-time executive and it is expected that he will join the board in a Non-Executive
capacity on May 1, 2014.

Ray Conway (Chief Pilot). Captain Ray Conway was appointed as Chief Pilot in June 2002, having joined
Ryanair in 1987. He has held a number of senior management positions within the Flight Operations
Department over the last 25 years, including Fleet Captain of the BAC1-11 and Boeing 737–200 fleets. Ray was
Head of Training between 1998 and June 2002. Prior to joining Ryanair, Ray served as an officer with the Irish
Air Corps for 14 years where he was attached to the Training and Transport Squadron, which was responsible
for the Irish government jet.

Caroline Green (Director of Customer Service). Caroline Green was appointed Director of Customer Service
in February 2003. Prior to this, Caroline served as Chief Executive Officer of Ryanair.com between November
1996 and January 2003. Before joining Ryanair, Caroline worked in senior positions at a number of airline
computerized reservations system providers, including Sabre.

Michael Hickey (Director of Engineering). Michael Hickey has served as Director of Engineering since
January 2000. Michael has held a wide range of senior positions within the Engineering Department since 1988
and was Deputy Director of Engineering between 1992 and January 2000. Prior to joining Ryanair in 1988,
Michael worked as an aircraft engineer with Fields Aircraft Services and McAlpine Aviation, working primarily
on executive aircraft.

Juliusz Komorek (Director of Legal & Regulatory Affairs; Company Secretary). Juliusz Komorek was
appointed Company Secretary and Director of Legal and Regulatory Affairs in May 2009, having served as
Deputy Director of Legal and Regulatory Affairs since 2007. Prior to joining the Company in 2004, Juliusz had
gained relevant experience in the European Commission‘s Directorate General for Competition and in the Polish
Embassy to the EU in Brussels, as well as in the private sector in Poland and the Netherlands. Juliusz is a
lawyer, holding degrees from the universities of Warsaw and Amsterdam.

107

Howard Millar (Deputy Chief Executive; Chief Financial Officer). Howard Millar was appointed Deputy
Chief Executive and Chief Financial Officer on January 1, 2003, having served as Director of Finance of
Ryanair from March 1993. Between April 1992 and March 1993 he served as Financial Controller of Ryanair.
Howard was the Group Finance Manager for the Almarai Group, the largest vertically integrated dairy food
processing company in the world, in Riyadh, Saudi Arabia, from 1988 to 1992.

David O‟Brien (Director of Flight Operations and Ground Operations). David O‘Brien was appointed
Director of Flight Operations and Ground Operations in December 2002; previously, he served as Director of
Flight Operations of Ryanair from May 2002, having served as Director of U.K. Operations since April 1998.
Prior to that, David served as Regional General Manager for Europe and CIS for Aer Rianta International.
Between 1992 and 1996, David served as Director of Ground Operations and In-flight for Ryanair.

Michael O‟Leary (Chief Executive Officer). Michael O‘Leary has served as a director of Ryanair since 1988
and a director of Ryanair Holdings since July 1996. He was appointed chief executive officer of Ryanair in
1994.

Edward Wilson (Director of Personnel and In-flight). Edward Wilson was appointed Director of Personnel
and In-flight in December 2002, prior to which he served as Head of Personnel since joining Ryanair in
December 1997. Prior to joining Ryanair he served as Human Resources Manager for Gateway 2000 and held a
number of other human resources-related positions in the Irish financial services sector.

COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS

Compensation

The aggregate amount of compensation paid by Ryanair Holdings and its subsidiaries to the nine sitting
non-executive directors and nine executive officers named above in the 2013 fiscal year was €6.0 million. For
details of Mr. O‘Leary‘s compensation in such fiscal year, see ―—Employment and Bonus Agreement with Mr.
O‘Leary‖ below

Each of Ryanair Holdings‘ nine non-executive directors is entitled to receive €35,000 plus expenses per
annum, as remuneration for their services to Ryanair Holdings. Mr. Bonderman executed an agreement with
Ryanair Holdings waiving his entitlement to receive this remuneration for the 2013 fiscal year. The additional
remuneration paid to Committee members for service on that committee is €15,000 per annum. Mr. Horgan
receives €40,000 per annum in connection with his additional duties in relation to the Air Safety Committee.

For further details of stock options that have been granted to the Company‘s employees, including the
executive officers, see ―Item 10. Additional Information—Options to Purchase Securities from Registrant or
Subsidiaries,‖ as well as Note 15 to the consolidated financial statements included herein.

Employment and Bonus Agreement with Mr. O‟Leary

Mr. O‘Leary‘s current employment agreement with the Company is dated July 1, 2002 and can be
terminated by either party upon 12 months‘ notice. Pursuant to the agreement, Mr. O‘Leary serves as Chief
Executive Officer at a current annual gross salary of €768,000, subject to any increases that may be agreed
between the Company and Mr. O‘Leary. Mr. O‘Leary is also eligible for annual bonuses as determined by the
Board of Directors of the Company; the amount of such bonuses paid to Mr. O‘Leary in the 2013 fiscal year
totaled €504,000. Mr. O‘Leary is subject to a covenant not to compete with the Company within the EU for a
period of two years after the termination of his employment with the Company. Mr. O‘Leary‘s employment
agreement does not contain provisions providing for compensation on its termination.

108

STAFF AND LABOR RELATIONS

The following table sets forth the details of Ryanair‘s team at each of March 31, 2013, 2012 and 2011:

Classification

2013

Number of Staff at March 31,
2012

2011

Management ..............................................
Administrative ...........................................
Maintenance ...............................................
Ground Operations .....................................
Pilots ..........................................................
Flight Attendants .......................................

Total ...........................................................

99
282
139
229
2,625
5,763

9,137

99
280
138
243
2,429
5,199*

8,388

* Decrease on prior year due to lower aircraft in operation in March 2012 and cabin crew staff being furloughed.

95
275
149
268
2,344
5,429

8,560

Ryanair‘s pilots, flight attendants and maintenance and ground operations personnel undergo training,
both initial and recurrent. A substantial portion of the initial training for Ryanair‘s flight attendants is devoted to
safety procedures, and cabin crew are required to undergo annual evacuation and fire drill training during their
tenure with the airline. Ryanair also provides salary increases to its engineers who complete advanced training
in certain fields of aircraft maintenance. Ryanair utilizes its own Boeing 737-800 aircraft simulators for pilot
training.

IAA regulations require pilots to be licensed as commercial pilots with specific ratings for each aircraft
to be flown. In addition, IAA regulations require all commercial pilots to be medically certified as physically fit.
At March 31, 2013, the average age of Ryanair‘s pilots was 35 years and their average period of employment
with Ryanair was 4.8 years. Licenses and medical certification are subject to periodic re-evaluation and require
recurrent training and recent flying experience in order to be maintained. Maintenance engineers must be
licensed and qualified for specific aircraft types. Flight attendants must undergo initial and periodic competency
training. Training programs are subject to approval and monitoring by the IAA. In addition, the appointment of
senior management personnel directly involved in the supervision of flight operations, training, maintenance and
aircraft inspection must be satisfactory to the IAA. Based on its experience in managing the airline‘s growth to
date, management believes that there is a sufficient pool of qualified and licensed pilots, engineers and
mechanics within the EU to satisfy Ryanair‘s anticipated future needs in the areas of flight operations,
maintenance and quality control and that Ryanair will not face significant difficulty in hiring and continuing to
employ the required personnel. Ryanair has also been able to satisfy its needs for additional pilots through the
use of contract agencies. These contract pilots are included in the table above. In addition, Ryanair has also
been able to satisfy its needs for additional flight attendants through the use of contract agencies. These contract
flight attendants are included in the table above.

Ryanair has licensed approved organizations in Sweden and Holland to operate pilot training courses
using Ryanair‘s syllabus, in order to grant Boeing 737 type-ratings. Each trainee pilot must pay for his or her
own training and, based on his or her performance, he or she may be offered a position operating on Ryanair
aircraft. This program enables Ryanair to secure a continuous stream of type-rated co-pilots.

Ryanair‘s employees earn productivity-based incentive payments, including a sales bonus for onboard
sales for flight attendants and payments based on the number of hours or sectors flown by pilots and flight
attendants (within limits set by industry standards or regulations fixing maximum working hours). During the
2013 fiscal year, such productivity-based incentive payments accounted for approximately 46% of an average
flight attendant‘s total earnings and approximately 35% of the typical pilot‘s compensation. Pilots at 54 out of
Ryanair‘s 57 bases are covered by four or five year agreements on pay, allowances and rosters which variously
fall due for negotiation between 2014 and 2018. In March 2012, Ryanair agreed to increase the pay of pilots and
cabin crew in accordance with the terms of individual base agreements. The remaining employees who were not
covered by base agreements had their salary frozen for a period of 12 months. Ryanair‘s pilots are currently
subject to IAA-approved limits of 100 flight-hours per 28-day cycle and 900 flight-hours per fiscal year. For the
2013 fiscal year, the average flight-hours for Ryanair‘s pilots amounted to approximately 66.5 hours per month
and approximately 798 hours for the complete year, a 5% decrease on the previous fiscal year. Were more
stringent regulations on flight hours to be adopted, Ryanair‘s flight personnel could experience a reduction in
their total pay due to lower compensation for the number of hours or sectors flown and Ryanair could be
required to hire additional flight personnel.

109

Ryanair considers its relations with its employees to be good. Ryanair currently negotiates with groups
of employees, including its pilots, through ―Employee Representation Committees‖ (―ERCs‖) regarding pay,
work practices and conditions of employment, including conducting formal negotiations with these internal
collective bargaining units. Ryanair‘s senior management meets regularly with the different ERCs to discuss all
aspects of the business and those issues that specifically relate to each relevant employee group.

On June 19, 2009, BALPA (the U.K. pilots union) made a request for voluntary recognition under
applicable U.K. legislation, which Ryanair rejected. BALPA had the option of applying to the U.K.‘s Central
Arbitration Committee (CAC) to organize a vote on union recognition by Ryanair‘s pilots in relevant bargaining
units, as determined by the CAC but BALPA decided not to proceed with an application at that time. The option
to apply for a ballot remains open to BALPA and if it were to seek and be successful in such a ballot, it would
be able to represent the U.K. pilots in negotiations over salaries and working conditions.

Ryanair Holdings‘ shareholders have approved a number of share option plans for employees and
directors. Ryanair Holdings has also issued share options to certain of its senior managers. For details of all
outstanding share options, see ―Item 10. Additional Information––Options to Purchase Securities from
Registrant or Subsidiaries.‖

110

Item 7. Major Shareholders and Related Party Transactions

As of June 30, 2013, there were 1,423,341,213 Ordinary Shares outstanding. As of that date,
116,316,349 ADRs, representing 581,581,745 Ordinary Shares, were held of record in the United States by 62
holders, and represented in the aggregate 40.86% of the number of Ordinary Shares then outstanding. See ―Item
10. Additional InformationArticles of Association‖ and ―Limitations on Share Ownership by Non-EU
Nationals.‖

MAJOR SHAREHOLDERS

Based on information available to Ryanair Holdings, the following table summarizes the holdings of
those shareholders holding 3% or more of the Ordinary Shares as of June 30, 2013, June 30, 2012 and June 30,
2011, the latest practicable date prior to the Company‘s publication of its statutory annual report in each of the
relevant years.

As of June 30, 2013

As of June 30, 2012

No. of Shares

% of
Class

No. of Shares

% of
Class No. of Shares

As of June 30, 2011
% of
Class

Capital Research and Management

Company. .................................................. 190,022,595

13.4%

239,479,390 16.6%

242,547,995 16.3%

Baillie Gifford .............................................. 71,863,457

BlackRock Inc .............................................. 68,532,811

Manning and Napier ..................................... 48,194,525

Michael O‘Leary .......................................... 51,081,256

5.0%

4.8%

3.4%

3.6%

52,883,746

3.7% Not Reportable

74,688,280

5.2%

82,794,588

85,044,870

5.9%

76,774,465

51,081,256

3.5%

55,081,256

Lloyds Banking Group ................................. Not Reportable

n/a

Not Reportable

n/a

50,892,144

n/a

5.6%

5.2%

3.7%

3.4%

As of June 30, 2013, the directors and executive officers of Ryanair Holdings as a group owned
59,837,771 Ordinary Shares, representing 4.2% of Ryanair Holdings‘ outstanding Ordinary Shares as of such
date. See also Note 19(d) to the consolidated financial statements included herein. Each of our shareholders has
identical voting rights with respect to its Ordinary Shares.

As of March 31, 2013, there were 1,447,051,752 Ordinary Shares outstanding.

Based on information available to Ryanair Holdings plc, the following table summarizes shareholdings in excess
of 3% or more of the Ordinary Shares as of March 31, 2013, March 31 2012 and March 31, 2011.

As of March 31, 2013
% of
Class

No. of Shares

As of March 31, 2012
% of
Class No. of Shares

As of March 31, 2011
% of
Class

No. of Shares

Capital Research and Management

Company. .................................................. 191,997,595

13.3%

275,514,695 18.9%

242,844,495 16.3%

Baillie Gifford .............................................. 70,323,718

BlackRock Inc .............................................. 66,399,232

Manning and Napier ..................................... 59,095,500

Michael O‘Leary .......................................... 51,081,256

4.9%

4.6%

4.1%

3.5%

Not Reportable

n/a Not Reportable

66,163,716

4.5% Not Reportable

73,249,220

5.0%

57,767,390

51,081,256

3.5%

55,081,256

n/a

3.9%

3.7%

RELATED PARTY TRANSACTIONS

The Company has not entered into any ―related party transactions‖ as defined in Item 7.B. of Form 20-

F in the three fiscal years ending March 31, 2013 or in the period from March 31, 2013 to the date hereof.

111

Item 8. Financial Information

CONSOLIDATED FINANCIAL STATEMENTS

Please refer to ―Item 18. Financial Statements.‖

OTHER FINANCIAL INFORMATION

Legal Proceedings

The Company is engaged in litigation arising in the ordinary course of its business. Although no
assurance can be given as to the outcome of any current or pending litigation, management does not believe that
any of such litigation will, individually or in the aggregate, have a material adverse effect on the results of
operations or financial condition of the Company, except as otherwise described below.

EU State Aid-Related Proceedings. On December 11, 2002, the European Commission announced the
launch of an investigation into the 2001 agreement among Ryanair, the Brussels (Charleroi) airport and the
government of the Walloon Region of Belgium, the owner of the airport, which enabled the Company to launch
new routes and base up to four aircraft at Brussels (Charleroi). The European Commission‘s investigation was
based on an anonymous complaint alleging that Ryanair‘s arrangements with Brussels (Charleroi) constituted
illegal state aid.

The European Commission issued its decision on February 12, 2004. As regards the majority of the
arrangements between Ryanair, the airport and the region, the European Commission found that although they
constituted state aid, they were nevertheless compatible with the EC Treaty provisions and therefore did not
require repayment. However, the European Commission also found that certain other arrangements did
constitute illegal state aid and therefore ordered Ryanair to repay the amount of the benefit received in
connection with those arrangements. On April 20, 2004, the Walloon Region wrote to Ryanair requesting
repayment of such state aid, although it acknowledged that Ryanair could offset against the amount of such state
aid certain costs incurred in relation to the establishment of the base, in accordance with the European
Commission‘s decision. Ryanair made the requested repayment.

On May 25, 2004, Ryanair appealed the decision of the European Commission to the CFI, requesting

the court to annul the decision because:



the European Commission infringed Article 253 of the EC Treaty by failing to provide adequate
reasons for its decision; and

the European Commission misapplied Article 87 of the EC Treaty by failing to properly apply the
Market Economy Investor Principle (MEIP), which generally holds that an investment made by a
public entity that would have been made on the same basis by a private entity does not constitute
state aid.

In March 2008, Ryanair had its hearing before the CFI, and in December 2008, the CFI annulled the
European Commission‘s decision, and Ryanair was repaid the €4 million that the Commission had claimed was
illegal state aid. The Belgian government has also withdrawn a separate €2.3 million action against Ryanair
arising from the European Commission‘s decision.

In January 2010, the European Commission concluded that the financial arrangements between
Bratislava airport in Slovakia and Ryanair do not constitute state aid within the meaning of EU rules, because
these arrangements were in line with market terms. In July 2012, the European Commission similarly concluded
that the financial arrangements between Tampere airport in Finland and Ryanair do not constitute state aid.

Ryanair is facing similar legal challenges with respect to agreements with certain other airports,
notably Lübeck, Berlin (Schönefeld), Alghero, Pau, Aarhus, Frankfurt (Hahn), Dusseldorf (Weeze),
Zweibrücken, Altenburg, Klagenfurt, (Stockholm) Vasteras, Paris (Beauvais), La Rochelle, Carcassonne,
Nimes, Angouleme, Marseille, Cagliari and Brussels (Charleroi). These investigations are ongoing and Ryanair
currently expects that they will conclude in late 2013/early 2014, with any European Commission decisions
appealable to the EU General Court.

112

State aid complaints by Lufthansa about Ryanair‘s cost base at Frankfurt (Hahn) have been rejected by
German courts, as have similar complaints by Air Berlin in relation to Ryanair‘s arrangement with Lubeck
airport, but following a German Supreme Court ruling on a procedural issue in early 2011, these cases will be
re-heard by lower courts. The court case regarding Frankfurt (Hahn) airport has been referred by the German
courts to the Court of Justice of the European Union, which will make a ruling on the discretion national courts
have in state aid proceedings running in parallel with European Commission investigations regarding the same
airport. The ruling of the Court of Justice of the European Union is expected within one year and will be binding
on all EU national courts. In addition, Ryanair has been involved in legal challenges including allegations of
state aid at Alghero and Marseille airports. The Alghero case (initiated by Air One) was dismissed in its entirety
in April 2011. The Marseille case was withdrawn by the plaintiffs (subsidiaries of Air France) in May 2011.

In September 2005, the European Commission announced new guidelines on the financing of airports
and the provision of start-up aid to airlines departing from regional airports, based on the European
Commission‘s finding in the Brussels (Charleroi) case, which Ryanair successfully appealed. The guidelines
apply only to publicly owned regional airports, and place restrictions on the incentives these airports can offer
airlines to deliver traffic. The guidelines apply only in cases in which the terms offered by a public airport are in
excess of what a similar private airport would have offered. Ryanair deals with airports, both public and private,
on an equal basis and receives the same cost agreements from both. The guidelines have therefore had no impact
on Ryanair‘s business, although they have caused significant uncertainty in the industry in relation to what
public airports may or may not do in order to attract traffic.

Ryanair believes that the positive decision by the CFI in the Brussels (Charleroi) case has caused the
European Commission to rethink its policy in this area. Ryanair believes that the CFI‘s findings should be
addressed in the ongoing revision of the guidelines, whereby the European Commission announced on July 3,
2013 that it would finalize this revision by early 2014. However, adverse rulings in the above or similar cases
could be used as precedents by other competitors to challenge Ryanair‘s agreements with other publicly owned
airports and could cause Ryanair to strongly reconsider its growth strategy in relation to public or state-owned
airports across Europe. This could in turn lead to a scaling back of Ryanair‘s growth strategy due to the smaller
number of privately owned airports available for development. No assurance can be given as to the outcome of
these proceedings, nor as to whether any unfavorable outcomes may, individually or in the aggregate, have a
material adverse effect on the results of operations or financial condition of the Company.

In November 2007, Ryanair initiated proceedings in the CFI against the European Commission for its
failure to take action on a number of state aid complaints Ryanair had submitted against Air France, Lufthansa,
Alitalia, Volare and Olympic Airways. Following the European Commission‘s subsequent findings that illegal
state aid had been provided to Air France and Olympic Airways, Ryanair withdrew the two relevant
proceedings. The case related to Lufthansa concluded with the EU General Court‘s ruling in May 2011, in
which the Court found that while the European Commission has not failed to act, it has unreasonably delayed
the launch of the investigation, which justified Ryanair‘s action for failure to act. Consequently, the Court
ordered the European Commission to pay 50% of Ryanair‘s costs in the proceedings. Similarly, in October
2011, the General Court found that the European Commission has failed to act on Ryanair‘s 2005-2006
complaints against state aid to Alitalia. The European Commission appealed the ruling to the Court of Justice of
the European Union, and on May 16, 2013, the European Commission‘s appeal was rejected.

In November 2008, Ryanair initiated proceedings in the CFI contesting the European Commission‘s
refusal to grant Ryanair access to documents relating to the European Commission‘s state aid investigations at
Hamburg (Lubeck), Tampere, Berlin (Schonefeld), Alghero, Pau, Aarhus, Bratislava and Frankfurt (Hahn)
airports. These cases were heard on July 7, 2010 and a judgment was issued in December 2010. The CFI found
that the European Commission had acted in line with applicable legislation, which highlighted the unfairness
inherent in state aid procedures in the EU, whereby alleged beneficiaries of aid have no right of access to the
European Commission‘s files and therefore cannot properly exercise their rights to defense and good
administration. The CFI ordered the European Commission to pay Ryanair‘s costs in three of the eight access to
documents cases.

113

As a result of rising airport charges and the introduction of an Air Travel Tax, in March 2009, of €10
on passengers departing from Irish airports on routes longer than 300 kilometers from Dublin Airport (€2 on
shorter routes), Ryanair reduced its fleet at Dublin airport to 13 during winter 2010 (down from 22 in summer
2008 and 20 in winter 2008). Ryanair also complained to the European Commission about the unlawful
differentiation in the level of the Irish Air Travel tax between routes within the EU. From April 2011, a single
rate (€3) of the Air Travel Tax has been introduced on all routes. In July 2012 the European Commission found
that Ryanair, Aer Lingus and Aer Arann had received state aid from the Irish government by way of a two-tier
air travel tax levied on passengers departing from Irish airports. Also in July 2012, Ryanair issued proceedings
before the Irish courts seeking repayment of the entire amount of the air travel tax paid by Ryanair during the
period (€87.8 million) where it was two-tier on the basis of its illegality. In April 2013 the Irish government
issued proceedings against Ryanair seeking recovery of €12 million of alleged state aid attributable to Ryanair,
arising from the European Commission decision. There is a risk that Ryanair will be ordered by the Irish courts
to pay the €12 million amount to the Irish government notwithstanding our claim for repayment of the entire
amount of the tax.

Matters Related to Investment in Aer Lingus. During the 2007 fiscal year, the Company acquired
25.2% of Aer Lingus. The Company increased its interest to 29.3% during the 2008 fiscal year, and to 29.8%
during the 2009 fiscal year at a total aggregate cost of €407.2 million. Following the acquisition of its initial
stake and upon the approval of the Company‘s shareholders, management proposed to effect a tender offer to
acquire the entire share capital of Aer Lingus. This 2006 offer was, however, prohibited by the European
Commission on competition grounds. Ryanair filed an appeal with the CFI, which was heard in July 2009. On
July 6, 2010 the Court upheld the European Commission‘s decision. (see also: ―Item 5. Operating and Financial
Review and Prospects—Business Overview‖).

The then EU Commissioner for Competition, Neelie Kroes, said on June 27, 2007 that, ―Since Ryanair
is not in a position to exert de jure or de facto control over Aer Lingus, the European Commission is not in a
position to require Ryanair to divest its minority shareholding, which is, by the way, not a controlling stake.‖ In
October 2007, the European Commission also reached a formal decision that it would not force Ryanair to sell
its shares in Aer Lingus. However, Aer Lingus appealed this decision before the CFI. In January 2008, the CFI
heard an application by Aer Lingus for interim measures limiting Ryanair‘s voting rights, pending a decision of
the CFI on Aer Lingus‘ appeal of the European Commission‘s decision not to force Ryanair to sell the Aer
Lingus shares. In March 2008, the court dismissed Aer Lingus‘ application for interim measures. Aer Lingus‘
main appeal was heard in July 2009. On July 6, 2010, the court rejected Aer Lingus‘ appeal and confirmed that
Ryanair cannot be forced to dispose of its 29.8% stake in Aer Lingus. Aer Lingus chose not to appeal this
judgment to the Court of Justice of the EU. EU legislation may change in the future to require such a forced
disposal. If eventually forced to dispose of its stake in Aer Lingus, Ryanair could suffer significant losses due to
the negative impact on market prices of the forced sale of such a significant portion of Aer Lingus‘ shares.

On December 1, 2008, Ryanair made a second offer to acquire all of the ordinary shares of Aer Lingus
it did not own at a price of €1.40 per ordinary share. Ryanair offered to keep Aer Lingus as a separate company,
maintain the Aer Lingus brand, and retain its Heathrow slots and connectivity. Ryanair also proposed to double
Aer Lingus‘ short-haul fleet from 33 to 66 aircraft and to create 1,000 associated new jobs over a five-year
period. If the offer had been accepted, the Irish government would have received over €180 million in cash. The
employee share ownership trust and employees who owned 18% of Aer Lingus would have received over €137
million in cash. The Company met Aer Lingus management, representatives of the employee share ownership
trust and other parties. The offer of €1.40 per Aer Lingus share represented a premium of approximately 25%
over the closing price of €1.12 on November 28, 2008. Ryanair also advised the market that it would not
proceed to seek EU approval for the new bid unless the shareholders agreed to sell their stakes in Aer Lingus to
Ryanair. However, as the Company was unable to secure the shareholders‘ support it decided, on January 28,
2009, to withdraw its second offer for Aer Lingus.

114

On February 27, 2013 the European Commission prohibited Ryanair‘s bid to acquire the entire share
capital of Aer Lingus on the claimed basis that it would be incompatible with the EU internal market. Ryanair
appealed this decision to the EU General Court on May 8, 2013. The judgment of the EU General Court is
expected within 18-24 months and may affirm or annul the decision of the European Commission.

The timing of Ryanair‘s 2012 offer for Aer Lingus was influenced by; (i) the continued consolidation
of European airlines, and more recently the International Airlines Group (the parent company of British
Airways) takeover of British Midland International, where the No.1 airline at Heathrow was allowed to acquire
the No. 2; (ii) the additional capacity available at Dublin airport following the opening of Terminal 2 and the
decline in traffic from 23.3 million passengers per annum in 2007 to 18.7 million in 2011, resulting in Dublin
airport operating at approximately 50% capacity; (iii) the change in the Irish government policy since 2006 in
that the Irish government has decided to sell its stake in Aer Lingus; (iv) the fact that under the terms of the
bailout agreement provided by the European Commission, European Central bank and International Monetary
Fund to Ireland, the Irish government has committed to sell its stake in Aer Lingus; (v) the fact that the ESOT
(Employee Share Ownership Trust) which at the time of the unsuccessful 2006 offer controlled 15% of Aer
Lingus has been disbanded since December 2010 and the shares distributed to the individual members, with the
result that Ryanair‘s new offer was, in Ryanair‘s view, capable of reaching over 50% acceptance either with or
without government acceptance; and (vi) the fact that Etihad, an Abu Dhabi based airline, has acquired a 3%
stake in Aer Lingus and has expressed an interest in buying the Irish government‘s 25% stake in Aer Lingus (the
offer now provides Etihad or any other potential bidder the opportunity to purchase the government‘s stake).

115

Ryanair offered to keep Aer Lingus as a separate company, maintain the Aer Lingus brand, and to grow
its traffic from 9.5 million to over 14.5 million passengers over a five year period post acquisition, by growing
Aer Lingus‘ short haul traffic at some of Europe‘s major airports where Aer Lingus currently operates and
Ryanair does not. Ryanair also intended to increase Aer Lingus‘ transatlantic traffic from Ireland, which has
fallen in recent years, by investing in operations. If the offer had been accepted, the Irish government would
have received €173 million in cash. The offer of €1.30 per share represented a premium of approximately 38%
over the closing price of €0.94 for Aer Lingus shares as of June 19, 2012. The offer was conditional on
competition approval by the European Commission.

Following the European Commission‘s decision to prohibit its offer for Aer Lingus, Ryanair has
actively engaged with the Competition Commission‘s investigation of the minority stake. In its provisional
findings on May 30, 2013, the UK Competition Commission (UKCC) stated that Ryanair, through its minority
shareholding in Aer Lingus, ―has influence‖ over Aer Lingus, that this ―could reduce competition‖, and that
Ryanair should be required to divest some or all of its shares in Aer Lingus. Following an extension of the
investigation timetable on June 24, 2013, the UKCC‘s final decision will be published by September 5, 2013.
The UKCC could order Ryanair to divest some or all of its shares in Aer Lingus, as a result of which Ryanair
could suffer losses due to the negative impact on market prices of the forced sale of such a significant portion of
Aer Lingus‘ shares. Ryanair believes that the enforcement of any such decision should be delayed until the
outcome of Ryanair‘s appeal against the European Commission‘s February 2013 prohibition decision of
Ryanair‘s 2012 offer for Aer Lingus, and the conclusion of any appeals against the UKCC‘s decision in the UK
courts. However, it is possible that the UKCC will seek to enforce any such sell-down remedy at an earlier date.
On July 23, 2013 the Company announced that as part of its remedies discussions with the UKCC it had offered
to give an undertaking to unconditionally sell its shareholding in Aer Lingus to any other EU airline that makes
an offer for Aer Lingus and acquires acceptances in respect of more than 50% of Aer Lingus‘ issued share
capital. For more information, see ―Item 8. Financial Information—Other Financial Information—Legal
Proceedings—Matters Related to Investment in Aer Lingus.‖

Legal Actions Against Monopoly Airports. Ryanair has been involved in a number of legal and
regulatory actions against the Dublin and London (Stansted) airports in relation to what Ryanair considers to be
ongoing abuses of their dominant positions in the Dublin and London (Stansted) markets. Management believes
that both of these airports have been engaging in ―regulatory gaming‖ in order to achieve inflated airport
charges under the regulatory processes in the U.K. and Ireland. By inflating its so-called ―regulated asset base‖
(essentially the value of its airport facilities), a regulated airport can achieve higher returns on its assets through
inflated airport charges. With respect to London (Stansted), the OFT, following complaints from Ryanair and
other airlines, has recognized that the regulatory process is flawed and provides perverse incentives to regulated
airports to spend excessively on infrastructure in order to inflate their airport charges. The OFT referred the case
to the Competition Commission which released its preliminary findings in April 2008. It found that the common
ownership by BAA of the three main airports in London affects competition and that the ―light touch‖ regulation
by the Civil Aviation Authority was having an adverse impact on competition. In March 2009, the Competition
Commission published its final report on the BAA and ordered the breakup of the BAA, (which involved the
sale of London (Gatwick) and London (Stansted) and either Glasgow or Edinburgh Airport in Scotland). In
October 2009, London (Gatwick) was sold to Global Infrastructure Partners for £1.5 billion. In May 2009, BAA
appealed the Competition Commission‘s decision on the bases of apparent bias and lack of proportionality.
Ryanair secured the right to intervene in this appeal in support of the Competition Commission. The case was
heard in October 2009 and in February 2010 the Competition Appeal Tribunal quashed the Competition
Commission‘s ruling on the basis of the ―apparent bias‖ claim. This decision was successfully appealed by both
the Competition Commission and Ryanair before the Court of Appeal. The appeal was heard in June 2010 and
the judgment was issued in October 2010, quashing the Competition Appeal Tribunal ruling and reinstating the
Competition Commission March 2009 decision. In February 2011, the Supreme Court refused to grant the BAA
permission to appeal the Court of Appeal ruling. The Competition Commission has subsequently reconsidered
the appropriateness of the remedies imposed on the BAA in March 2009 in light of the passage of time, and
confirmed in its preliminary report in April 2011 that the remedies are still appropriate and the sale of Stansted
and one of either Glasgow or Edinburgh airports should proceed. In July 2011, the Competition Commission
confirmed its March 2011 provisional decision on ―possible material changes of circumstances.‖ It found that no
material changes of circumstances (that would necessitate a change in the remedies package) had occurred since
the March 2009 decision requiring the BAA to sell Gatwick, Stansted and one of either Glasgow or Edinburgh
airports, and that consequently the BAA should proceed to dispose of Stansted and one of the Scottish airports.
The BAA appealed this decision to the Competition Appeal Tribunal, and lost on February 1, 2012. The BAA
then brought a further appeal to the Court of Appeal, which they also lost on July 26, 2012. While these appeals
were ongoing, the BAA proceeded to sell Edinburgh airport in April 2012. BAA did not appeal the Court of

116

Appeal judgment to the UK Supreme Court, and proceeded to complete the sale of Stansted airport to
Manchester Airports Group plc in March 2013.

With respect to Dublin airport, Ryanair appealed the December 2009 decision of the CAR, which set
maximum charges at the airport for 2010 through 2014, to the Appeals Panel set up by the Minister for
Transport. In June 2010, the Appeals Panel found in favor of Ryanair on the matter of differential pricing
between Terminal 1 and Terminal 2, recommending that such differential pricing be imposed by the CAR. The
CAR subsequently overruled the decision of the Appeals panel and allowed the charges increase at Dublin
Airport, with no differential pricing between Terminals 1 and 2.

Ryanair has also been trying to prevent both the BAA in London and the DAA in Dublin from
engaging in wasteful capital expenditure. In the case of London (Stansted) Airport, the BAA was planning to
spend £4 billion on a second runway and terminal, which Ryanair believes should only cost approximately £1
billion. Following the final decision of the Competition Commission forcing BAA to sell London (Stansted)
airport, Ryanair believed that it was highly unlikely that BAA‘s planned £4 billion plans would proceed. The
Liberal/Conservative government in the U.K. had also outlined that it would not approve the building of any
more runways in the Southeast of England. Consequently, in May 2010, the BAA announced that it would not
pursue its plans to develop a second runway at London (Stansted).

In the case of Dublin, the DAA has built a second terminal, costing over four times its initial estimate.
When the DAA first announced plans to build a second terminal (―Terminal 2‖) at Dublin Airport, it estimated
that the proposed expansion would cost between €170 million and €200 million. Ryanair supported a
development of this scale; however, in September 2006, the DAA announced that the construction of Terminal 2
would cost approximately €800 million. Subsequently, the cost of the new infrastructure rose in excess of €1.2
billion. Ryanair opposed expansion at what it believed to be an excessive cost. On August 29, 2007, however
the relevant planning authority approved the planning application from the DAA for the building of Terminal 2,
and other facilities, all of which went ahead. On May 1, 2010, the airport fees per departing passenger increased
by 27% from €13.61 to €17.23, and by a further 12% in 2011 following the opening of Terminal 2 in November
2010 in accordance with the CAR‘s decision of December 4, 2009 in relation to airport charges between 2010
and 2014. Ryanair sought a judicial review of the planning approval, however, this appeal was unsuccessful.
The increase in charges, in combination with the introduction of the €10 Air Travel Tax (subsequently reduced
to €3) mentioned above, led to substantially reduced passenger volumes to and from Dublin Airport. See ―Item
3. Risk FactorsRisks Related to the CompanyRyanair‘s Continued Growth is Dependent on Access to
Suitable Airports; Charges for Airport Access are Subject to Increase‖ and ―—The Company Is Subject to Legal
Proceedings Alleging State Aid at Certain Airports,‖ as well as ―Item 4. Information on the Company—Airport
Operations—Airport Charges.‖

Legal Proceedings Against Internet Ticket Touts. The Company is involved in a number of legal
proceedings against internet ticket touts (screenscraper websites) in Ireland, Germany, the Netherlands, France,
Spain, Italy and Switzerland. Screenscraper websites gain unauthorized access to Ryanair‘s website and booking
system, extract flight and pricing information and display it on their own websites for sale to customers at prices
which include intermediary fees on top of Ryanair‘s fares. Ryanair does not allow any such commercial use of
its website and objects to the practice of screenscraping also on the basis of certain legal principles, such as
database rights, copyright protection, etc. The Company‘s objective is to prevent any unauthorized use of its
website. The Company also believes that the selling of airline tickets by screenscraper websites is inherently
anti-consumer as it inflates the cost of air travel. At the same time, Ryanair encourages genuine price
comparison websites which allow consumers to compare prices of several airlines and then refer consumers to
the airline website in order to perform the booking at the original fare. Ryanair offers licensed access to its flight
and pricing information to such websites. The Company has received favorable rulings in Ireland, Germany and
The Netherlands, and unfavorable rulings primarily in Spain. However, pending the outcome of these legal
proceedings and if Ryanair were to be ultimately unsuccessful in them, the activities of screenscraper websites
could lead to a reduction in the number of customers who book directly on Ryanair‘s website and loss of
ancillary revenues which are an important source of profitability through the sale of car hire, hotels and travel
insurance etc. Also, some customers may be lost to the Company once they are presented by a screenscraper
website with a Ryanair fare inflated by the screenscraper‘s intermediary fee. See Item 3. Key Information—Risk
Factors—Risks Related to the Company—Ryanair Faces Risks Related to Unauthorized Use of Information
from the Company‘s Website.‖

117

Dividend Policy

Following shareholder approval at the September 2010 annual general meeting of shareholders, a €500
million special dividend was paid in October 2010. Similarly, following shareholder approval at the September
2012 annual general meeting of shareholders, a dividend of €0.34 per Ordinary Share (approximately €492
million) was paid in November 2012. The Company may pay other dividends from time to time. In June 2013,
the Company detailed plans to return up to €1 billion to shareholders over the next two years with at least
€400.0 million (€176.6 million already completed in June 2013) in share buybacks to be completed in the fiscal
year to March 31, 2014 and up to a further €600.0 million in either special dividends or share buybacks.
However, there can be no assurance that the €1 billion will be returned to shareholders, in whole or in part, as it
is subject to shareholder approval, continuing profitability, the economic environment, capital expenditure and
other commitments. Any cash dividends or other distributions, if made, are expected to be made in euro,
although Ryanair Holdings‘ Articles provide that dividends may be declared and paid in U.S. dollars. In the case
of ADRs, the Depositary will convert all cash dividends and other distributions payable to owners of ADRs into
U.S. dollars to the extent that, in its judgment, it can do so on a reasonable basis, and will distribute the resulting
U.S. dollar amounts (net of conversion expenses and any applicable fees) to the owners of ADRs. See ―Item 12.
Description of Securities Other than Equity Securities‖ for information regarding fees of the Depositary.

Share Buy-back Program

Following shareholder approval at the 2006 annual general meeting of shareholders, a €300 million
share buy-back program was formally announced on June 5, 2007. Permission was received at the annual
general meeting of the shareholders held on September 20, 2007 to repurchase a maximum of 75.6 million
Ordinary Shares representing 5% of the Company‘s then outstanding share capital. The €300 million share buy-
back of approximately 59.5 million Ordinary Shares, representing approximately 3.8% of the Company‘s pre-
existing share capital, was completed in November 2007. In February 2008, the Company announced a second
share buy-back program of up to €200 million worth of Ordinary Shares, which was ratified by shareholders at
the annual general meeting of the shareholders held on September 18, 2008. 18.1 million Ordinary Shares were
repurchased under this program at a cost of approximately €46.0 million. The Company also completed the
share buy-back of €125 million in respect of 36.5 million Ordinary Shares in the 2012 fiscal year. In April
2012, the Company completed a share buy-back of 15 million Ordinary Shares at a cost of approximately €68
million. A further 24.1 million Ordinary Shares (including just over 2.0 million ADRs were repurchased in June
2013 at a cost of approximately €176.6 million. As a result, the total amount spent on the share buy-back
programs to date was approximately €714.3 million. All Ordinary Shares (including ADRs which represent five
Ordinary Shares) repurchased have been cancelled.

In April 2012, the Company held an extraordinary general meeting to authorize the Directors to
repurchase Ordinary Shares and ADRs for up to 5% of the issued share capital of the Company traded on the
NASDAQ. Up until April 2012, shareholders had only authorized the Directors to repurchase Ordinary Shares.
As the ADRs typically trade at a premium of up to 20% compared to Ordinary Shares, this may result in
increased costs in performing share buy-backs in the future. On June 20, 2013 the Company detailed plans to
return up to €1 billion to shareholders over the next two years with at least €400.0 million (€176.6 million
already completed in June 2013) in share buybacks to be completed in the fiscal year to March 31, 2014 and up
to a further €600.0 million in either special dividends or share buybacks. However, there can be no assurance
that the €1 billion will be returned to shareholders, in whole or in part, as it is subject to shareholder approval,
continuing profitability, the economic environment, capital expenditure and other commitments. At this time,
the Company has not decided whether it will conduct these further share repurchases in Ordinary Shares or
ADRs or a combination of both.

See ―Item 9. The Offer and Listing - Trading Markets and Share Prices‖ below for further information

regarding share buy-backs.

118

SIGNIFICANT CHANGES

On May 27, 2013 the Company issued a Class 1 circular to shareholders seeking their approval for the
purchase of 175 new Boeing 737-800NG aircraft, with a list value of over US$14.2 billion. An EGM was held
June 18, 2013 and shareholders approved the transaction.

On June 20, 2013 the Company detailed plans to return up to €1 billion to shareholders over the next
two years with at least €400.0 million (€176.6 million already completed in June 2013) in share buybacks to be
completed in the fiscal year to March 31, 2014 and up to a further €600.0 million in either special dividends or
share buybacks (subject to shareholder approval).

119

Item 9. The Offer and Listing

TRADING MARKETS AND SHARE PRICES

The primary market for Ryanair Holdings‘ Ordinary Shares is the Irish Stock Exchange Limited (the
―Irish Stock Exchange‖); Ordinary Shares are also traded on the London Stock Exchange. The Ordinary Shares
were first listed for trading on the Official List of the Irish Stock Exchange on June 5, 1997 and were first
admitted to the Official List of the London Stock Exchange on July 16, 1998.

ADRs, each representing five Ordinary Shares, are traded on NASDAQ. The Bank of New York
Mellon is Ryanair Holdings‘ depositary for purposes of issuing ADRs evidencing the ADSs. The following
tables set forth, for the periods indicated, the reported high and low closing sales prices of the ADRs on
NASDAQ and for the Ordinary Shares on the Irish Stock Exchange and the London Stock Exchange, and have
been adjusted to reflect the two-for-one split of the Ordinary Shares and ADRs effected on February 26, 2007:

*All quarterly high and low prices for ADRs and Ordinary Shares in the following tables refer to calendar year quarters and not fiscal year
quarters

2007 ...................................................................................................
2008 ...................................................................................................
2009 ...................................................................................................
2010 ...................................................................................................
2011

First Quarter* .................................................................................
Second Quarter ..............................................................................
Third Quarter .................................................................................
Fourth Quarter ...............................................................................

2012

First Quarter ...................................................................................
Second Quarter ..............................................................................
Third Quarter .................................................................................
Fourth Quarter ...............................................................................

Month ending:

January 31, 2013 ............................................................................
February 28, 2013 ..........................................................................
March 31, 2013 ..............................................................................
April 30, 2013 ................................................................................
May 31, 2013 .................................................................................
June 30, 2013 .................................................................................
Period ending July 19, 2013 ..............................................................

ADRs
(in U.S. dollars)

High

49.560
35.482
29.586
33.090

31.990
30.560
29.730
30.820

36.280
36.890
32.740
36.140

40.190
41.580
43.230
44.410
49.520
51.530
53.790

Low

36.210
15.089
20.779
21.268

26.580
27.970
24.200
25.410

27.770
29.330
27.890
31.900

34.620
38.230
39.080
41.360
42.990
48.870
51.560

120

2012

Month ending:

2012

Month ending:

Ordinary Shares
(Irish Stock Exchange)
(in euro)

High

6.33
4.20
3.45
4.19

3.98
3.64
3.58
3.84

4.48
4.49
4.48
5.00

5.62
5.78
6.16
6.20
6.97
7.20
7.47

Low

4.40
1.80
2.51
2.77

3.13
3.32
2.82
3.15

3.68
3.83
3.86
4.43

4.76
5.55
5.68
5.70
5.97
6.67
6.95

Ordinary Shares
(London Stock Exchange)
(in euro)

High

6.30
4.20
3.45
4.19

3.97
3.65
3.58
3.85

4.48
4.49
4.47
5.00

5.63
5.79
6.20
6.18
6.98
7.18
7.48

Low

4.44
1.81
2.50
2.76

3.13
3.31
2.83
3.14

3.68
3.84
3.88
4.40

4.76
5.52
5.72
5.80
5.96
6.69
6.95

Since certain of the Ordinary Shares are held by brokers or other nominees, the number of direct record
holders in the United States, which is reported above 62, may not be fully indicative of the number of direct
beneficial owners in the United States, or of where the direct beneficial owners of such shares are resident.

121

In order to increase the percentage of its share capital held by EU nationals, beginning June 26, 2001,
Ryanair Holdings instructed the Depositary to suspend the issuance of new ADRs in exchange for the deposit of
Ordinary Shares until further notice. Therefore, holders of Ordinary Shares cannot currently convert their
Ordinary Shares into ADRs. The Depositary will however convert existing ADRs into Ordinary Shares at the
request of the holders of such ADRs. The Company in 2002 implemented additional measures to restrict the
ability of non-EU nationals to purchase Ordinary Shares. As a result, non-EU nationals are currently effectively
barred from purchasing Ordinary Shares. See ―Item 10. Additional Information—Limitations on Share
Ownership by Non-EU Nationals‖ for additional information.

The Company, at its annual general meeting of the Shareholders, has, in recent years, passed a special
resolution permitting the Company to engage in Ordinary Share buy-back programs subject to certain limits
noted below. Since June 2007 (when the Company engaged in its first Ordinary Share buy-back program) the
Company has repurchased the following Ordinary Shares:

Year ended March 31,

No. of shares („m)

Approx. cost (€‟m)

2008 ..........................................................................
2009 ..........................................................................
2010 ..........................................................................
2011 ..........................................................................
2012 ..........................................................................
2013 ..........................................................................
Period through July 19, 2013 ....................................

Total ..........................................................................

59.5
18.1
-
-
36.5
15.0
24.1

153.2

300.0
46.0
-
-
124.6
67.5
176.6

714.7

All Ordinary Shares repurchased have been cancelled.

The maximum price at which the Company may repurchase Ordinary Shares, in accordance with the
listing rules of the Irish Stock Exchange and of the Financial Services Authority, is the higher of 5% above the
average market value of the Company‘s Ordinary Shares for the five business days prior to the day of the
repurchase and the price stipulated by Article 5(1) of Commission Regulation (EC) of December 22 2003 (No.
2273/2003) (which is the higher of the last independent trade and the highest current independent bid on the
Irish Stock Exchange). The minimum price at which the Company may repurchase Ordinary Shares is their
nominal value, currently 0.635 euro cent per share.

At an extraordinary general meeting of Shareholders held on April 19, 2012, the Company obtained a
new repurchase authority which enables the Company to repurchase the Company‘s ADRs which are traded on
NASDAQ. The maximum price at which Ordinary Shares which underlie the Company‘s ADRs can be
repurchased is 5% above one-fifth of the average market value of the Company‘s ADRs as quoted on
NASDAQ, for the five business days prior to the date of purchase (as one ADS represents five Ordinary
Shares). Any ADRs purchased will be converted to Ordinary Shares by the Company‘s brokers for subsequent
repurchase and cancellation by the Company. On June 5, 2013 the Company repurchased 2,018,800 ADRs
equivalent to 10,094,000 ordinary shares at a price of €7.65 per ordinary share.

As of June 30, 2013, the total number of options over Ordinary Shares outstanding under all of the
Company‘s share option plans was 11,142,430, representing 0.8% of the Company‘s issued share capital at that
date.

122

Item 10. Additional Information

DESCRIPTION OF CAPITAL STOCK

Ryanair Holdings‘ capital stock consists of Ordinary Shares, each having a par value of 0.635 euro
cent. As of March 31, 2013, a total of 1,447,051,752 Ordinary Shares were outstanding. On February 26, 2007,
Ryanair effected a 2-for-1 share split as a result of which each of its then existing Ordinary Shares, par value
1.27 euro cent, was split into two new Ordinary Shares, par value 0.635 euro cent. Each Ordinary Share entitles
the holder thereof to one vote in respect of any matter voted upon by Ryanair Holdings‘ shareholders.

OPTIONS TO PURCHASE SECURITIES FROM REGISTRANT OR SUBSIDIARIES

Ryanair Holdings‘ shareholders approved a stock option plan (referred to herein as ―Option Plan
2000‖), under which all employees and directors are eligible to receive options. Grants of options were
permitted to take place at the close of any of the ten years beginning with fiscal year 2000 only if the
Company‘s net profit after tax for such fiscal year had exceeded its net profit after tax for the prior fiscal year by
at least 25%, or if an increase of 1% in net profit after tax for the relevant year would have resulted in such
requirement being met.

Ryanair Holdings‘ shareholders have also approved a stock option plan (referred to herein as ―Option
Plan 2003‖) established in accordance with a then tax-favorable share option scheme available under Irish law,
so that employees would not be subject to income tax on the exercise of options (subject to certain conditions).
Option Plan 2003 was approved by the Revenue Commissioners on July 4, 2003 for the purposes of Chapter 4,
Part 17, of the Irish Taxes Consolidation Act, 1997 and Schedule 12C of that Act. Following the publication of
the Irish National Recovery Plan: 2011-2014 (the ―NRP‖) on November 24, 2010, Revenue approved share
option plans, such as Option Plan 2003, no longer qualified for favorable tax treatment from that date. All
employees and full-time directors were eligible to participate in the plan, under which grants of options could be
made at the close of any of the ten years beginning with fiscal year 2002 only if the Company‘s net profit after
tax for such fiscal year had exceeded its net profit after tax for the prior fiscal year by at least 25%, or if an
increase of 1% in net profit after tax for the relevant year would have resulted in such requirement being met.

Under Option Plan 2000, 20 senior managers (including seven of the current executive officers) were
granted 10,500,000 share options, in the aggregate, at a strike price of €3.21 in July 2005. Not all of the vesting
conditions were met, and as a result only 80% of the options granted that satisfied the conditions were
exercisable between August 1, 2011 and August 31, 2013. The Company recognized a credit of €2.5 million in
relation to the options that did not vest in June 2011. Also, under Option Plan 2000, each of the non-executive
directors were granted 25,000 share options, at a strike price of €4.96, during the 2008 fiscal year. These options
are exercisable between June 2012 and June 2014. In addition, 39 senior managers (including eight of the
current executive officers) were granted 10,000,000 share options, in the aggregate, under Option Plan 2000, at
a strike price of €2.56, on September 18, 2008. These options will become exercisable between September 18,
2013 and September 17, 2015, but only for managers who continue to be employed by the Company through
September 18, 2013.

The aggregate of 11,142,430 Ordinary Shares that would be issuable upon exercise in full of the
options that were outstanding as of June 30, 2013 under Company‘s option plan represent approximately 0.8%
of the issued share capital of Ryanair Holdings as of such date. Of such total, options in respect of an aggregate
of 9,575,000 Ordinary Shares were held by the directors and executive officers of Ryanair Holdings. For further
information, see notes 15 and 19 to the consolidated financial statements included herein.

ARTICLES OF ASSOCIATION

The following is a summary of certain provisions of the Articles of Association of Ryanair Holdings.
This summary does not purport to be complete and is qualified in its entirety by reference to the complete text of
the Articles, which are included as an exhibit to this annual report.

Objects. Ryanair Holdings‘ objects, which are detailed in its Articles, are broad and include carrying on
business as an investment and holding company. Ryanair Holdings‘ Irish company registration number is
249885.

123

Directors. Subject to certain exceptions, directors may not vote on matters in which they have a
material interest. The ordinary remuneration of the directors is determined from time to time by ordinary
resolutions of the shareholders. Any director who holds any executive office, serves on any committee or
otherwise performs services, which, in the opinion of the directors, are outside the scope of the ordinary duties
of a director, may be paid such extra remuneration as the directors may determine. The directors may exercise
all the powers of the Company to borrow money. These powers may be amended by special resolution of the
shareholders. The directors are not required to retire at any particular age. There is no requirement for directors
to hold shares. One-third of the directors retire and offer themselves for re-election at each annual general
meeting of the Company. The directors to retire by rotation are those who have been longest in office since their
last appointment or reappointment. As between persons who became or were appointed directors on the same
date, those to retire are determined by agreement between them or, otherwise, by lot. All of the shareholders
entitled to attend and vote at the annual general meeting of the Company may vote on the re-election of
directors.

Annual and General Meetings. Annual and extraordinary meetings are called upon 21 days‘ advance
notice. At Ryanair‘s annual general meeting, held on September 22, 2010, the Company‘s Articles of
Association were amended by special resolution to reflect the implementation of the Shareholders‘ Rights
(Directive 2007/36/EC) Regulations 2009 to allow all Ryanair shareholders to appoint proxies electronically to
attend, speak, ask questions and vote on behalf of them at annual general meetings and to reflect certain other
provisions of those Regulations. All holders of Ordinary Shares are entitled to attend, speak at and vote at
general meetings of the Company, subject to limitations described below under ―—Limitations on the Right to
Own Shares.‖

Rights, Preferences and Dividends Attaching to Shares. The Company has only one class of shares,
Ordinary Shares with a par value of 0.635 euro cent per share. All such shares rank equally with respect to
payment of dividends and on any winding-up of the Company. Any dividend, interest or other sum payable to a
shareholder that remains unclaimed for one year after having been declared may be invested by the directors for
the benefit of the Company until claimed. If the directors so resolve, any dividend which has remained
unclaimed for 12 years from the date of its declaration shall be forfeited and cease to remain owing by the
Company. The Company is permitted under its Articles to issue redeemable shares on such terms and in such
manner as the Company may, by special resolution, determine. The Ordinary Shares currently in issue are not
redeemable. The liability of shareholders to invest additional capital is limited to the amounts remaining unpaid
on the shares held by them. There are no sinking fund provisions in the Articles of the Company.

Action Necessary to Change the Rights of Shareholders. The rights attaching to shares in the Company

may be varied by special resolutions passed at meetings of the shareholders of the Company.

Limitations on the Rights to Own Shares. The Articles contain detailed provisions enabling the
directors of the Company to limit the number of shares in which non-EU nationals have an interest or the
exercise by non-EU nationals of rights attaching to shares. See ―—Limitations on Share Ownership by Non-EU
Nationals‖ below. Such powers may be exercised by the directors if they are of the view that any license,
consent, permit or privilege of the Company or any of its subsidiaries that enables it to operate an air service
may be refused, withheld, suspended or revoked or have conditions attached to it that inhibit its exercise and the
exercise of the powers referred to above could prevent such an occurrence. The exercise of such powers could
result in non-EU holders of shares being prevented from attending, speaking at or voting at general meetings of
the Company and/or being required to dispose of shares held by them to EU nationals.

Disclosure of Share Ownership. Under Irish law, the Company can require parties to disclose their
interests in shares. The Articles of the Company entitle the directors to require parties to complete declarations
indicating their nationality and the nature and extent of any interest which such parties hold in Ordinary Shares
before allowing such parties to transfer such Ordinary Shares. See, also ―—Limitations on Share Ownership by
non-EU nationals‖ below. Under Irish law, if a party acquires or disposes of Ordinary Shares so as to bring his
interest above or below 5% of the total issued share capital of the Company, he must notify the Company of
that. The Irish Stock Exchange must also be notified of any acquisition or disposal of shares that brings the
shareholding of a party above or below certain specified percentages – i.e., 10%, 25%, 50% and 75%.

124

Other Provisions of the Articles of Association. There are no provisions in the Articles:

(i) delaying or prohibiting a change in the control of the Company, but which operate only with

respect to a merger, acquisition or corporate restructuring;

(ii) discriminating against any existing or prospective holder of shares as a result of such shareholder

owning a substantial number of shares; or

(iii) governing changes in capital,

in each case, where such provisions are more stringent than those required by law.

MATERIAL CONTRACTS

On March 19, 2013 the Company announced that it had entered into an agreement with Boeing to
purchase 175 Boeing 737-800NG aircraft, with a list value of over $14.2 billion, over a five year period from
fiscal 2015 to 2019 in accordance with the terms of the contract. The contract was approved by the shareholders
of the Company at an extraordinary general meeting on June 18, 2013.

EXCHANGE CONTROLS

Except as indicated below, there are no restrictions on non-residents of Ireland dealing in Irish
securities (including shares or depositary receipts of Irish companies such as the Company). Dividends and
redemption proceeds also continue to be freely transferable to non-resident holders of such securities.

Under the Financial Transfers Act 1992 (the ―1992 Act‖), the Minister for Finance of Ireland may
make provision for the restriction of financial transfers between Ireland and other countries. Financial transfers
are broadly defined, and the acquisition or disposal of the ADRs, which represent shares issued by an Irish
incorporated company, the acquisition or the disposal of Ordinary Shares and associated payments may fall
within this definition. Dividends or payments on the redemption or purchase of shares and payments on the
liquidation of an Irish-incorporated company would fall within this definition.

The 1992 Act prohibits financial transfers involving the late Slobodan Milosevic and associated
persons, Belarus, Burma (Myanmar), certain persons indicted by the International Criminal Tribunal for the
former Yugoslavia, the now deceased Usama Bin Laden, the Al-Qaeda network and the Taliban of Afghanistan,
the Democratic Republic of Congo, Egypt, Eritrea, the Republic of Guinea, the Democratic People‘s Republic
of Korea (North Korea), Iran, Iraq, Côte d‘Ivoire, Lebanon, Liberia, Libya, Afghanistan, Tunisia, Zimbabwe,
Sudan, Somalia, Syria, certain known terrorists and terrorist groups, and countries that harbor certain
terrorist groups, without the prior permission of the Central Bank of Ireland.

Any transfer of, or payment in respect of, an ADS involving the government of any country that is
currently the subject of United Nations sanctions, any person or body controlled by any of the foregoing, or any
person acting on behalf of the foregoing, may be subject to restrictions pursuant to such sanctions as
implemented into Irish law. The Company does not anticipate that Irish exchange controls or orders under the
1992 Act or United Nations sanctions implemented into Irish law will have a material effect on its business.

125

LIMITATIONS ON SHARE OWNERSHIP BY NON-EU NATIONALS

The Board of Directors of Ryanair Holdings is given certain powers under the Articles to take action to
ensure that the number of Ordinary Shares held in Ryanair Holdings by non-EU nationals does not reach a level
which could jeopardize the Company‘s entitlement to continue to hold or enjoy the benefit of any license,
permit, consent or privilege which it holds or enjoys and which enables it to carry on business as an air carrier (a
―License‖). In particular, EU Regulation 2407/92 requires that, in order to obtain and retain an operating license,
an EU air carrier must be majority-owned and effectively controlled by EU nationals. The regulation does not
specify what level of share ownership will confer effective control on a holder or holders of shares. As described
below, the directors will, from time to time, set a ―Permitted Maximum‖ on the number of Ordinary Shares that
may be owned by non-EU nationals at such level as they believe will comply with EU law. The Permitted
Maximum is currently set at 49.9%.

Ryanair Holdings maintains a separate register (the ―Separate Register‖) of Ordinary Shares in which
non-EU nationals, whether individuals, bodies corporate or other entities, have an interest (such shares are
referred to as ―Affected Shares‖ in the Articles). Interest in this context is widely defined and includes any
interest held through ADRs in the shares underlying the relevant ADRs. The directors can require relevant
parties to provide them with information to enable a determination to be made by the directors as to whether
Ordinary Shares are, or are to be treated as, Affected Shares. If such information is not available or forthcoming
or is unsatisfactory then the directors can, at their discretion, determine that Ordinary Shares are to be treated as
Affected Shares. Registered holders of Ordinary Shares are also obliged to notify the Company if they are aware
that any Ordinary Share which they hold ought to be treated as an Affected Share for this purpose. With regard
to ADRs, the directors can treat all of the relevant underlying shares as Affected Shares unless satisfactory
evidence as to why they should not be so treated is forthcoming.

In the event that, inter alia, (i) the refusal, withholding, suspension or revocation of any License or the
imposition of any condition which materially inhibits the exercise of any License (an ―Intervening Act‖) has
taken place, (ii) the Company receives a notice or direction from any governmental body or any other body
which regulates the provision of air transport services to the effect that an Intervening Act is imminent,
threatened or intended or (iii) an Intervening Act may occur as a consequence of the level of non-EU ownership
of Ordinary Shares or an Intervening Act is imminent, threatened or intended because of the manner of share
ownership or control of Ryanair Holdings generally, the directors can take action pursuant to the Articles to deal
with the situation. They can, inter alia, (i) remove any directors or change the chairman of the Board of
Directors, (ii) identify those Ordinary Shares, ADRs or Affected Shares which give rise to the need to take
action and treat such Ordinary Shares, ADRs, or Affected Shares as Restricted Shares (see below) or (iii) set a
―Permitted Maximum‖ on the number of Affected Shares which may subsist at any time (which may not, save in
the circumstances referred to below, be lower than 40% of the total number of issued shares) and treat any
Affected Shares (or ADRs representing such Affected Shares) in excess of this Permitted Maximum as
Restricted Shares (see below).

In addition to the above, if as a consequence of a change of law or a direction, notice or requirement of
any state, authority or person it is necessary to reduce the total number of Affected Shares below 40% or reduce
the number of Affected Shares held by any particular stockholder or stockholders in order to overcome, prevent
or avoid an Intervening Act, the directors may resolve to (i) set the Permitted Maximum at such level below
40% as they consider necessary in order to overcome, prevent or avoid such Intervening Act, or (ii) treat such
number of Affected Shares (or ADRs representing Affected Shares) held by any particular stockholder or
stockholders as they consider necessary (which could include all of such Affected Shares or ADRs) as
Restricted Shares (see below). The directors may serve a Restricted Share Notice in respect of any Affected
Share, or any ADR representing any ADS, which is to be treated as a Restricted Share. Such notices can have
the effect of depriving the recipients of the rights to attend, vote at and speak at general meetings, which they
would otherwise have as a consequence of holding such Ordinary Shares or ADRs. Such notices can also
require the recipients to dispose of the Ordinary Shares or ADRs concerned to an EU national (so that the
relevant shares (or shares underlying the relevant ADRs) will then cease to be Affected Shares) within 21 days
or such longer period as the directors may determine. The directors are also given the power to transfer such
Restricted Shares, themselves, in cases of non-compliance with the Restricted Share Notice.

126

To enable the directors to identify Affected Shares, transferees of Ordinary Shares are generally
required to provide a declaration as to the nationality of persons having interests in those shares. Stockholders
are also obliged to notify Ryanair Holdings if they are aware that any shares, which they hold, ought to be
treated as Affected Shares for this purpose. Purchasers or transferees of ADRs need not complete a nationality
declaration because the directors expect to treat all of the Ordinary Shares held by the Depositary as Affected
Shares. ADS holders must open ADR accounts directly with the Depositary if they wish to provide to Ryanair
Holdings nationality declarations or such other evidence as the directors may require in order to establish to the
directors‘ satisfaction that the Ordinary Shares underlying such holder‘s ADRs are not Affected Shares.

In deciding which Affected Shares are to be selected as Restricted Shares, the directors can take into
account which Affected Shares have given rise to the necessity to take action. Subject to that they will, insofar
as practicable, firstly view as Restricted Shares those Affected Shares in respect of which no declaration as to
whether or not such shares are Affected Shares has been made by the holder thereof and where information
which has been requested by the directors in accordance with the Articles has not been provided within specified
time periods and, secondly, have regard to the chronological order in which details of Affected Shares have been
entered in the Separate Register and, accordingly, treat the most recently registered Affected Shares as
Restricted Shares to the extent necessary. Transfers of Affected Shares to Affiliates (as that expression is
defined in the Articles) will not affect the chronological order of entry in the Separate Register for this purpose.
The directors do however have the discretion to apply another basis of selection if, in their sole opinion, that
would be more equitable. Where the directors have resolved to treat Affected Shares held by any particular
stockholder or stockholders as Restricted Shares (i) because such Affected Shares have given rise to the need to
take such action or (ii) because of a change of law or a requirement or direction of a regulatory authority
necessitating such action (see above), such powers may be exercised irrespective of the date upon which such
Affected Shares were entered in the Separate Register.

After having initially resolved to set the maximum level at 49.0%, the directors increased the maximum
level to 49.9% on May 26, 1999, after the number of Affected Shares exceeded the initial limit. This maximum
level could be reduced if it becomes necessary for the directors to exercise these powers in the circumstances
described above. The decision to make any such reduction or to change the Permitted Maximum from time to
time will be published in at least one national newspaper in Ireland and in any country in which the Ordinary
Shares or ADRs are listed. The relevant notice will specify the provisions of the Articles that apply to Restricted
Shares and the name of the person or persons who will answer queries relating to Restricted Shares on behalf of
Ryanair Holdings. The directors shall publish information as to the number of shares held by EU nationals
annually.

In an effort to increase the percentage of its share capital held by EU nationals, on June 26, 2001,
Ryanair Holdings instructed the Depositary to suspend the issuance of new ADSs in exchange for the deposit of
Ordinary Shares until further notice to its shareholders. Holders of Ordinary Shares cannot convert their
Ordinary Shares into ADRs during such suspension, and there can be no assurance that the suspension will ever
be lifted.

As a further measure to increase the percentage of Ordinary Shares held by EU nationals, on February
7, 2002, the Company issued a notice to shareholders to the effect that any purchase of Ordinary Shares by a
non-EU national after such date will immediately result in the issue of a Restricted Share Notice to such non-EU
national Purchaser. The Restricted Share Notice compels the non-EU national purchaser to sell the Affected
Shares to an EU national within 21 days of the date of issuance. In the event that any such non-EU national
shareholder does not sell its Ordinary Shares to an EU national within the specified time period, the Company
can then take legal action to compel such a sale. As a result, non-EU nationals are effectively barred from
purchasing Ordinary Shares for as long as these restrictions remain in place. There can be no assurance that
these restrictions will ever be lifted.

As an additional measure, to ensure the percentage of shares held by EU nationals remains at least
50.1%, at the extraordinary general meeting held on April 19, 2012, the Company obtained a new repurchase
authority which will enable the repurchase of ADRs for up to 5% of the issued share capital of the Company
traded on the NASDAQ

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Concerns about the foreign ownership restrictions described above could result in the exclusion of
Ryanair from certain stock tracking indices. Any such exclusion may adversely affect the market price of the
Ordinary Shares and ADRs. See also ―Item 3. Risk Factors––Risks Related to Ownership of the Company‘s
Shares or ADRs—EU Rules Impose Restrictions on the Ownership of Ryanair Holdings‘ Ordinary Shares by
Non-EU Nationals and the Company has Instituted a Ban on the Purchase of Ordinary Shares by Non-EU
Nationals‖ above.

As of June 30, 2013, EU nationals owned at least 55.2% of Ryanair Holdings‘ Ordinary Shares
(assuming conversion of all outstanding ADRs into Ordinary Shares). Ryanair continuously monitors the
ownership status of its Ordinary Shares, which changes on a daily basis.

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Irish Tax Considerations

TAXATION

The following is a discussion of certain Irish tax consequences of the purchase, ownership and
disposition of Ordinary Shares or ADSs. This discussion is based upon tax laws and practice of Ireland at the
date of this document, which are subject to change, possibly with retroactive effect. Particular rules may apply
to certain classes of taxpayers (such as dealers in securities) and this discussion does not purport to deal with the
tax consequences of purchase, ownership or disposition of the relevant securities for all categories of investors.

The discussion is intended only as a general guide based on current Irish law and practice and is not
intended to be, nor should it be considered to be, legal or tax advice to any particular investor or stockholder.
Accordingly, current stockholders or potential investors should satisfy themselves as to the overall tax
consequences by consulting their own tax advisers.

Dividends. If Ryanair Holdings pays dividends or makes other relevant distributions, the following is

relevant:

Withholding Tax. Unless exempted, a withholding at the standard rate of income tax (currently 20%)
will apply to dividends or other relevant distributions paid by an Irish resident company. The withholding tax
requirement will not apply to distributions paid to certain categories of Irish resident stockholders or to
distributions paid to certain categories of non-resident stockholders.

The following Irish resident stockholders are exempt from withholding if they make to the Company,

in advance of payment of any relevant distribution, an appropriate declaration of entitlement to exemption:



Irish resident companies;

 Pension schemes approved by the Irish Revenue Commissioners (―Irish Revenue‖);

 Qualifying fund managers or qualifying savings managers;

 Personal Retirement Savings Account (―PRSA‖) administrators who receive the relevant

distribution as income arising in respect of PRSA assets;

 Qualifying employee share ownership trusts;

 Collective investment undertakings;

 Tax-exempt charities;

 Designated brokers receiving the distribution for special portfolio investment accounts;

 Any person who is entitled to exemption from income tax under Schedule F on dividends in
respect of an investment in whole or in part of payments received in respect of a civil action or
from the Personal Injuries Assessment Board for damages in respect of mental or physical
infirmity;

 Certain qualifying trusts established for the benefit of an incapacitated individual and/or persons in

receipt of income from such a qualifying trust;

 Any person entitled to exemption to income tax under Schedule F by virtue of Section 192(2)

Taxes Consolidation Act (―TCA‖) 1997;

 Unit trusts to which Section 731(5)(a) TCA 1997 applies; and

 Certain Irish Revenue-approved amateur and athletic sport bodies.

129

The following non-resident stockholders are exempt from withholding if they make to the Company, in

advance of payment of any dividend, an appropriate declaration of entitlement to exemption:

 Persons (other than a company) who (i) are neither resident nor ordinarily resident in Ireland and
(ii) are resident for tax purposes in (a) a country which has signed a tax treaty with Ireland (a ―tax
treaty country‖) or (b) an EU member state other than Ireland;

 Companies not resident in Ireland which are resident in an EU member state or a tax treaty
country, by virtue of the law of an EU member state or a tax treaty country and are not controlled,
directly or indirectly, by Irish residents;

 Companies not resident in Ireland which are directly or indirectly controlled by a person or
persons who are, by virtue of the law of a tax treaty country or an EU member state, resident for
tax purposes in a tax treaty country or an EU member state other than Ireland and which are not
controlled directly or indirectly by persons who are not resident for tax purposes in a tax treaty
country or EU member state;

 Companies not resident in Ireland the principal class of shares of which is substantially and
regularly traded on a recognized stock exchange in a tax treaty country or an EU member state
including Ireland or on an approved stock exchange; or

 Companies not resident in Ireland that are 75% subsidiaries of a single company, or are wholly-
owned by two or more companies, in either case the principal classes of shares of which is or are
substantially and regularly traded on a recognized stock exchange in a tax treaty country or an EU
member state including Ireland or on an approved stock exchange.

In the case of an individual non-resident stockholder resident in an EU member state or tax treaty
country, the declaration must be accompanied by a current certificate of tax residence from the tax authorities in
the stockholder‘s country of residence. In the case of both an individual and corporate non-resident stockholder
resident in an EU member state or tax treaty country the declaration also must contain an undertaking by the
individual or corporate non-resident stockholder that he, she or it will advise the Company accordingly if he, she
or it ceases to meet the conditions to be entitled to the DWT exemption. No declaration is required if the
stockholder is a 5% parent company in another EU member state in accordance with section 831 TCA 1997.
Neither is a declaration required on the payment by a company resident in Ireland to another company so
resident if the company making the dividend is a 51% subsidiary of that other company.

American Depositary Receipts. Special arrangements with regard to the dividend withholding tax
obligation apply in the case of Irish companies using ADRs through U.S. depositary banks that have been
authorized by the Irish Revenue. Such banks, which receive dividends from the company and pass them on to
the U.S. ADS holders beneficially entitled to such dividends, will be allowed to receive and pass on the gross
dividends (i.e., before withholding) based on an ―address system‖ where the recorded addresses of such holder,
as listed in the depositary bank‘s register of depositary receipts, is in the United States.

Taxation on Dividends. Companies resident in Ireland other than those taxable on receipt of dividends
as trading income are exempt from corporation tax on distributions received on Ordinary Shares from other Irish
resident companies. Stockholders that are ―close‖ companies for Irish taxation purposes may, however, be
subject to a 20% corporation tax surcharge on undistributed investment income.

Individual stockholders who are resident or ordinarily resident in Ireland are subject to income tax on
the gross dividend at their marginal tax rate, but are entitled to a credit for the tax withheld by the company
paying the dividend. The dividend will also be subject to the universal social charge. An individual stockholder
who is not liable or not fully liable for income tax by reason of exemption or otherwise may be entitled to
receive an appropriate refund of tax withheld. A charge to Irish social security taxes can also arise for such
individuals on the amount of any dividend received from the Company.

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Except in certain circumstances, a person who is neither resident nor ordinarily resident in Ireland and
is entitled to receive dividends without deductions is not liable for Irish tax on the dividends. Where a person
who is neither resident nor ordinarily resident in Ireland is subject to withholding tax on the dividend received
due to not benefiting from any exemption from such withholding, the amount of that withholding will generally
satisfy such person‘s liability for Irish tax.

Capital Gains Tax. A person who is either resident or ordinarily resident in Ireland will generally be
liable for Irish capital gains tax on any gain realized on the disposal of the Ordinary Shares or ADSs. The
current capital gains tax rate is 33%. A person who is neither resident nor ordinarily resident in Ireland and who
does not carry on a trade in Ireland through a branch or agency will not be subject to Irish capital gains tax on
the disposal of the Ordinary Shares or ADSs.

Irish Capital Acquisitions Tax. A gift or inheritance of the Ordinary Shares or ADSs will be within the
charge to Irish Capital Acquisitions Tax (―CAT‖) notwithstanding that the donor or the donee/successor in
relation to such gift or inheritance is resident outside Ireland. CAT is charged at a rate of 33% above a tax-free
threshold. This tax-free threshold is determined by the amount of the current benefit and of previous benefits
taken since December 5, 1991, as relevant, within the charge to CAT and the relationship between the donor and
the successor or donee. Gifts and inheritances between spouses (and in certain cases former spouses) are not
subject to CAT.

In a case where an inheritance or gift of the Ordinary Shares or ADSs is subject to both Irish CAT and
foreign tax of a similar character, the foreign tax paid may in certain circumstances be credited in whole or in
part against the Irish tax.

Irish Stamp Duty. It is assumed for the purposes of this paragraph that ADSs are dealt in on a
recognized stock exchange in the United States (NASDAQ is a recognized stock exchange in the United States
for this purpose). Under current Irish law, no stamp duty will be payable on the acquisition of ADSs by persons
purchasing such ADSs or on any subsequent transfer of ADSs. A transfer of Ordinary Shares (including
transfers effected through Euroclear U.K. & Ireland Limited) wherever executed and whether on sale, in
contemplation of a sale or by way of a gift, will be subject to duty at the rate of 1% of the consideration given
or, in the case of a gift or if the purchase price is inadequate or unascertainable, on the market value of the
Ordinary Shares. Transfers of Ordinary Shares that are not liable for duty at the rate of 1% (e.g., transfers under
which there is no change in beneficial ownership) may be subject to a fixed duty of €12.50.

The Irish Revenue treats a conversion of Ordinary Shares to ADSs made in contemplation of a sale or a
change in beneficial ownership (under Irish law) as an event subject to stamp duty at a rate of 1%. The Irish
Revenue has indicated that a re-conversion of ADSs to Ordinary Shares made in contemplation of a sale or a
change in beneficial ownership (under Irish law) will not be subject to a stamp duty. However, the subsequent
sale of the re-converted Ordinary Shares will give rise to Irish stamp duty at the 1% rate. If the transfer of the
Ordinary Shares is a transfer under which there is no change in the beneficial ownership (under Irish law) of the
Ordinary Shares being transferred, nominal stamp duty only will be payable on the transfer. Under Irish law, it
is not clear whether the mere deposit of Ordinary Shares for ADSs or ADSs for Ordinary Shares would be
deemed to constitute a change in beneficial ownership. Accordingly, it is possible that holders would be subject
to stamp duty at the 1% rate when merely depositing Ordinary Shares for ADSs or ADSs for Ordinary Shares
and, consequently, the Depositary reserves the right in such circumstances to require payment of stamp duty at
the rate of 1% from the holders.

The person accountable for payment of stamp duty is the transferee or, in the case of a transfer by way
of a gift or for a consideration less than the market value, all parties to the transfer. Stamp duty is normally
payable within 30 days after the date of execution of the transfer. Late or inadequate payment of stamp duty will
result in liability for interest, penalties and fines.

131

United States Federal Income Tax Considerations

Except as described below under the heading ―Non-U.S. Holders,‖ the following is a summary of
certain U.S. federal income tax considerations relating to the purchase, ownership and disposition of Ordinary
Shares or ADRs by a holder that is a citizen or resident of the United States, a U.S. domestic corporation or
otherwise subject to U.S. federal income tax on a net income basis in respect of the Ordinary Shares or the
ADRs (―U.S. Holders‖). This summary does not purport to be a comprehensive description of all of the tax
considerations that may be relevant to a decision to purchase the Ordinary Shares or the ADRs. In particular, the
summary deals only with U.S. Holders that will hold Ordinary Shares or ADRs as capital assets and generally
does not address the tax treatment of U.S. Holders that may be subject to special tax rules such as banks,
insurance companies, dealers in securities or currencies, partnerships or partners therein, entities subject to the
branch profits tax, traders in securities electing to mark to market, persons that own 10% or more of the stock of
the Company, U.S. Holders whose ―functional currency‖ is not U.S. dollars or persons that hold the Ordinary
Shares or the ADRs as part of an integrated investment (including a ―straddle‖) consisting of the Ordinary
Shares or the ADRs and one or more other positions.

Holders of the Ordinary Shares or the ADRs should consult their own tax advisors as to the U.S. or
other tax consequences of the purchase, ownership, and disposition of the Ordinary Shares or the ADRs in light
of their particular circumstances, including, in particular, the effect of any foreign, state or local tax laws.

For U.S. federal income tax purposes, holders of the ADRs will be treated as the owners of the

Ordinary Shares represented by those ADRs.

Taxation of Dividends

U.S. Holders

Dividends, if any, paid with respect to the Ordinary Shares, including Ordinary Shares represented by
ADRs, will be included in the gross income of a U.S. Holder when the dividends are received by the holder or
the Depositary. Such dividends will not be eligible for the ―dividends received‖ deduction allowed to U.S.
corporations in respect of dividends from a domestic corporation. Dividends paid in euro will be includible in
the income of a U.S. Holder in a U.S. dollar amount calculated by reference to the exchange rate in effect on the
day they are received by the holder or the Depositary. U.S. Holders generally should not be required to
recognize any foreign currency gain or loss to the extent such dividends paid in Euro are converted into U.S.
dollars immediately upon receipt.

Subject to certain exceptions for short-term and hedged positions, the U.S. dollar amount of dividends
received by an individual post January 1, 2013 with respect to the Ordinary Shares or ADRs will be subject to
taxation at a maximum rate of 20% (15% prior to January 1, 2013) if the dividends are ―qualified dividends.‖
Dividends paid on the Ordinary Shares or ADRs will be treated as qualified dividends if (i) the issuer is eligible
for the benefits of a comprehensive income tax treaty with the United States that the Internal Revenue Service
has approved for the purposes of the qualified dividend rules and (ii) the Company was not, in the year prior to
the year in which the dividend was paid, and is not, in the year in which the dividend is paid, a passive foreign
investment company (a ―PFIC‖). The income tax treaty between Ireland and the United States has been
approved for the purposes of the qualified dividend rules. Effective January 1, 2013, a Medicare contribution tax
of 3.8% is also applicable to U.S. individuals, estates and trusts. Based on the Company‘s audited financial
statements and relevant market data, the Company believes that it was not treated as a PFIC for U.S. federal
income tax purposes with respect to its 2011/12 taxable year. In addition, based on the Company‘s audited
financial statements and its current expectations regarding the value and nature of its assets, the sources and
nature of its income, and relevant market data, the Company does not anticipate becoming a PFIC for its
2013/14 taxable year.

Under the U.S.-Ireland Income Tax Treaty currently in effect, in the event the Company were to pay
any dividend, the tax credit attaching to the dividend (as used herein the ―Tax Credit‖; see ―—Irish Tax
Considerations‖) generally will be treated as a foreign income tax eligible for credit against such U.S. Holder‘s
United States federal income tax liability, subject to generally applicable limitations and conditions. Any such
dividend paid by the Company to such U.S. Holder will constitute income from sources outside the United
States for foreign tax credit purposes, and generally will constitute ―passive category‖ income for such purposes.

132

Foreign tax credits may not be allowed for withholding taxes imposed in respect of certain short-term

or hedged positions in securities.

U.S. Holders should consult their own tax advisors concerning the implications of these rules in light of

their particular circumstances.

Distributions of Ordinary Shares that are made as part of a pro rata distribution to all stockholders

generally will not be subject to U.S. federal income tax.

Taxation of Capital Gains

Sale or Disposition of Ordinary Shares or ADRs. Gains or losses realized by a U.S. Holder on the sale
or other disposition of ADRs generally will be treated for U.S. federal income tax purposes as capital gains or
losses, which generally will be long-term capital gains or losses if the ADRs have been held for more than one
year. The net amount of long-term capital gain recognized by an individual holder post January 1, 2013
generally is subject to taxation at a maximum rate of 20% (15% prior to January 1, 2013). Effective January 1,
2013, a Medicare contribution tax of 3.8% is also applicable to U.S. individuals, estates and trusts. The
deductibility of capital losses is subject to limitations.

Deposits and withdrawals of Ordinary Shares by U.S. Holders in exchange for ADRs will not result in

the realization of gain or loss for U.S. federal income tax purposes.

Non-U.S. Holders. A holder of Ordinary Shares or ADRs that is, with respect to the United States, a
foreign corporation or a nonresident alien individual (a ―Non-U.S. Holder‖) generally will not be subject to U.S.
federal income or withholding tax on dividends received on such Ordinary Shares or ADRs unless such income
is effectively connected with the conduct by such holder of a trade or business in the United States. A Non-U.S.
Holder of ADRs or Ordinary Shares will not be subject to U.S. federal income tax or withholding tax in respect
of gain realized on the sale or other disposition of Ordinary Shares or ADRs, unless (i) such gain is effectively
connected with the conduct by such holder of a trade or business in the United States or (ii) in the case of gain
realized by an individual Non-U.S. Holder, such Non-U.S. Holder is present in the United States for 183 days or
more in the taxable year of the sale and certain other conditions are met.

DOCUMENTS ON DISPLAY

Copies of Ryanair Holdings‘ Articles may be examined at its registered office and principal place of

business at its Corporate Head Office, Dublin Airport, County Dublin, Ireland.

Ryanair Holdings also files reports, including annual reports on Form 20-F, periodic reports on Form 6-
K and other information, with the SEC pursuant to the rules and regulations of the SEC that apply to foreign
private issuers. You may read and copy any materials filed with the SEC at its Public Reference Room at 100 F
Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference
Room by calling the SEC at 1-800-SEC-0330.

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Item 11. Quantitative and Qualitative Disclosures About Market Risk

GENERAL

Ryanair is exposed to market risks relating to fluctuations in commodity prices, interest rates and
currency exchange rates. The objective of financial risk management at Ryanair is to minimize the negative
impact of commodity price, interest rate and foreign exchange rate fluctuations on the Company‘s earnings, cash
flows and equity.

To manage these risks, Ryanair uses various derivative financial instruments, including cross currency
interest rate swaps, foreign currency forward contracts and commodity forwards. These derivative financial
instruments are generally held to maturity and are not actively traded. The Company enters into these
arrangements with the goal of hedging its operational and balance sheet risk. However, Ryanair‘s exposure to
commodity price, interest rate and currency exchange rate fluctuations cannot be neutralized completely.

In executing its risk management strategy, Ryanair currently enters into forward contracts for the
purchase of some of the jet fuel (jet kerosene) that it expects to use. It also uses foreign currency forward
contracts intended to reduce its exposure to risks related to foreign currencies, principally the U.S. dollar.
Furthermore, it enters into interest rate contracts with the objective of fixing certain borrowing costs and
hedging principal repayments, particularly those associated with the purchase of new Boeing 737-800s. Ryanair
is also exposed to the risk that the counterparties to its derivative financial instruments may not be creditworthy.
Were a counterparty to default on its obligations under any of the instruments described below, Ryanair‘s
economic expectations when entering into these arrangements might not be achieved and its financial condition
could be adversely affected. Transactions involving derivative financial instruments are also relatively illiquid
as compared with those involving other kinds of financial instruments. It is Ryanair‘s policy not to enter into
transactions involving financial derivatives for speculative purposes.

The following paragraphs describe Ryanair‘s fuel hedging, foreign currency and interest rate swap
arrangements and analyze the sensitivity of the market value, earnings and cash flows of the financial
instruments to hypothetical changes in commodity prices, interest rates and exchange rates as if these changes
had occurred at March 31, 2013. The range of changes selected for this sensitivity analysis reflects Ryanair‘s
view of the changes that are reasonably possible over a one-year period.

FUEL PRICE EXPOSURE AND HEDGING

Fuel costs constitute a substantial portion of Ryanair‘s operating expenses (approximately 45.3% and
43.0% of such expenses in fiscal years 2013 and 2012, respectively, after taking into account Ryanair‘s fuel
hedging activities). Ryanair engages in fuel price hedging transactions from time to time, pursuant to which
Ryanair and a counterparty agree to exchange payments equal to the difference between a fixed price for a given
quantity of jet fuel and the market price for such quantity of jet fuel at a given date in the future, with Ryanair
receiving the amount of any excess of such market price over such fixed price and paying to the counterparty the
amount of any deficit of such fixed price under such market price.

Ryanair has historically entered into arrangements providing for substantial protection against
fluctuations in fuel prices, generally through forward contracts covering periods of up to 18 months of
anticipated jet fuel requirements. Ryanair (like many other airlines) has, in more recent periods, entered into
hedging arrangements on a much more selective basis. See ―Item 3. Key Information—Risk Factors—Risks
Related to the Company—Changes in Fuel Costs and Fuel Availability Affect the Company‘s Results and
Increases the Likelihood that the Company May Incur Losses‖ and ―Item 11. Quantitative and Qualitative
Disclosures About Market Risks—Fuel Price Exposure and Hedging‖ for additional information on recent
trends in fuel costs and the Company‘s related hedging activities, as well as certain associated risks. See also
―Item 5. Operating and Financial Review and Prospects—Fiscal Year 2013 Compared with Fiscal Year 2012—
Fuel and Oil.‖ As of July 26, 2013, Ryanair had entered into forward jet fuel (jet kerosene) contracts covering
approximately 90% of its estimated requirements for the fiscal year ending March 31, 2014 at prices equivalent
to approximately $980 per metric ton. In addition, as of July 26, 2013, Ryanair had entered into forward jet fuel
(jet kerosene) contracts covering approximately 75% of its estimated requirements for the first half of the fiscal
year ending March 31, 2015 at prices equivalent to approximately $935 per metric ton, and had not entered into
any jet fuel hedging contracts with respect to its expected fuel purchases beyond that period.

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While these hedging strategies can cushion the impact on Ryanair of fuel price increases in the short
term, in the medium to longer-term, such strategies cannot be expected to eliminate the impact on the Company
of an increase in the market price of jet fuel. The unrealized gains on outstanding forward agreements at March
31, 2013 and 2012, based on their fair values, amounted to €34.9 million and €145.8 million (gross of tax),
respectively. Based on Ryanair‘s fuel consumption for the 2013 fiscal year, a change of $1.00 in the average
annual price per metric ton of jet fuel would have caused a change of approximately €1.7 million in Ryanair‘s
fuel costs. See ―Item 3. Key Information—Risk Factors—Risks Related to the Company—Changes in Fuel
Costs and Fuel Availability Affect the Company‘s Results and Increase the Likelihood that the Company May
Incur Losses.‖

Under IFRS, the Company‘s fuel forward contracts are treated as cash-flow hedges of forecast fuel
purchases for risks arising from the commodity price of fuel. The contracts are recorded at fair value in the
balance sheet and are re-measured to fair value at the end of each fiscal period through equity to the extent
effective, with any ineffectiveness recorded through the income statement. The Company has considered these
hedges to be highly effective in offsetting variability in future cash flows arising from fluctuations in the market
price of jet fuel because the jet fuel forward contracts typically relate to the same quantity, time, and location of
delivery as the forecast jet fuel purchase being hedged and the duration of the contracts is typically short.
Accordingly, the quantification of the change in expected cash flows of the forecast jet fuel purchase is based on
the jet fuel forward price, and in the 2013 fiscal year, the Company recorded no hedge ineffectiveness within
earnings. The Company has recorded no level of ineffectiveness on its jet fuel hedges in its income statements to
date. In the 2013 fiscal year, the Company recorded a positive fair-value adjustment of €30.6 million (net of tax)
within accumulated other comprehensive income in respect of jet fuel forward contracts, and in the 2012 fiscal
year, the Company recorded a positive fair-value adjustment of €127.6 million (net of tax) within accumulated
other comprehensive income.

FOREIGN CURRENCY EXPOSURE AND HEDGING

In recent years, Ryanair‘s revenues have been denominated primarily in two currencies, the euro and
U.K. pound sterling. The U.K. pound sterling and the euro accounted for approximately 25% and 63%,
respectively, of Ryanair‘s total revenues in the 2013 fiscal year, as compared to approximately 24% and 65%,
respectively, in the 2012 fiscal year. As Ryanair reports its results in euro, the Company is not exposed to any
material currency risk as a result of its euro-denominated activities. Ryanair‘s operating expenses are primarily
denominated in euro, U.K. pounds sterling and U.S. dollars. Ryanair‘s operations can be subject to significant
direct exchange rate risks between the euro and the U.S. dollar because a significant portion of its operating
costs (particularly those related to fuel purchases) is incurred in U.S. dollars, while none of its revenues are
denominated in U.S. dollars. Appreciation of the euro against the U.S. dollar positively impacts Ryanair‘s
operating income because the euro equivalent of its U.S. dollar operating costs decreases, while depreciation of
the euro against the U.S. dollar negatively impacts operating income. It is Ryanair‘s policy to hedge a
significant portion of its exposure to fluctuations in the exchange rate between the U.S. dollar and the euro.
From time to time, Ryanair hedges its operating surpluses and shortfalls in U.K. pound sterling. Ryanair
matches certain U.K. pound sterling costs with U.K. pound sterling revenues and may choose to sell any surplus
U.K. pound sterling cash flows for euro.

Hedging associated with the income statement. In the 2013 and 2012 fiscal years, the Company entered
into a series of forward contracts, principally euro/U.S. dollar forward contracts to hedge against variability in
cash flows arising from market fluctuations in foreign exchange rates associated with its forecast fuel,
maintenance and insurance costs and euro/U.K. pound sterling forward contracts to hedge certain surplus U.K.
pound sterling cash flows. At March 31, 2013, the total unrealized gain relating to these contracts amounted to
€47.4 million, compared to a €89.4 million unrealized loss at March 31, 2012.

Under IFRS, these foreign currency forward contracts are treated as cash-flow hedges of forecast U.S.
dollar and U.K. pound sterling purchases to address the risks arising from U.S. dollar and U.K. pound sterling
exchange rates. The derivatives are recorded at fair value in the balance sheet and are re-measured to fair value
at the end of each reporting period through equity to the extent effective, with ineffectiveness recorded through
the income statement. Ryanair considers these hedges to be highly effective in offsetting variability in future
cash flows arising from fluctuations in exchange rates, because the forward contracts are timed so as to match
exactly the amount, currency and maturity date of the forecast foreign currency-denominated expense being
hedged. In the 2013 fiscal year, the Company recorded a positive fair-value adjustment of €42.3 million (net of
tax) within accumulated other comprehensive income in respect of these contracts, as compared to a positive
adjustment of €86.1 million in the 2012 fiscal year.

135

Hedging associated with the balance sheet. In the 2012 and 2013 fiscal years, the Company entered
into a series of cross currency interest rate swaps to manage exposures to fluctuations in foreign exchange rates
of US dollar-denominated floating rate borrowings entered into during the 2012 and 2013 fiscal years, together
with managing the exposures to fluctuations in interest rates on these US dollar-denominated floating rate
borrowings. Cross currency interest rate swaps are primarily used to convert a portion of the Company‘s U.S.
dollar-denominated debt to euro and floating rate interest exposures into fixed rate exposures and are set so as to
match exactly the critical terms of the underlying debt being hedged (i.e. notional principal, interest rate
settings, re-pricing dates). These are all classified as cash-flow hedges of the forecasted U.S. dollar variable
interest payments on the Company‘s underlying debt and have been determined to be highly effective in
achieving offsetting cash flows. Accordingly, no ineffectiveness has been recorded in the income statement
relating to these hedges in the 2012 and 2013 fiscal years.

At March 31, 2013, the fair value of the cross currency interest rate swap agreements relating to this
U.S. dollar-denominated floating rate debt was represented by a loss of €11.7 million (gross of tax) compared to
a loss of €7.4 million in fiscal 2012. In the 2013 fiscal year, the Company recorded a negative fair-value
adjustment of €10.2 million (net of tax), compared to a loss of €6.5 million in fiscal 2012, within accumulated
other comprehensive income in respect of these contracts.

Hedging associated with capital expenditures. During the 2013 and 2012 fiscal years, the Company
also entered into a series of euro/U.S. dollar contracts to hedge against changes in the fair value of aircraft
purchase commitments under the Boeing contracts, which arise from fluctuations in the U.K. pound
sterling/U.S. dollar and euro/U.S. dollar exchange rates. There were no such contracts in effect at March 31,
2013.

Under IFRS, the Company generally accounts for these contracts as either cash-flow hedges or fair-
value hedges. Fair-value hedges are recorded in the balance sheet at fair value. Any gains or losses arising on
these instruments, as well as the related gain or loss on the underlying aircraft purchase commitment, are
recorded in the balance sheet. Any related ineffectiveness is measured by the amount by which these
adjustments to earnings do not match. Cash-flow hedges are recorded at fair value in the balance sheet and are
re-measured to fair value at the end of the financial period through equity to the extent effective, with any
ineffectiveness recorded through the income statement. The Company has found these hedges to be highly
effective in offsetting changes in the fair value of the aircraft purchase commitments arising from fluctuations in
exchange rates because the forward exchange contracts are always for the same amount, currency and maturity
dates as the corresponding aircraft purchase commitments.

At March 31, 2013, the total unrealized gains relating to these contracts amounted to €nil, while at
March 31, 2012 unrealized gains amounted to €6.8 million. Under IFRS, the Company recorded fair-value
adjustments of €nil and positive fair-value adjustments of €6.0 million for cash-flow hedges in the 2013 and
2012 fiscal years, respectively. No amounts were recorded for such fair-value hedges from other accumulated
comprehensive income in the 2013 and 2012 fiscal years.

Holding other variables constant, if there were an adverse change of 10% in relevant foreign currency
exchange rates, the market value of Ryanair‘s foreign currency contracts outstanding at March 31, 2013 would
decrease by approximately €160.0 million (net of tax), all of which would ultimately impact earnings when such
contracts mature.

INTEREST RATE EXPOSURE AND HEDGING

The Company‘s purchase of 246 of the 305 Boeing 737-800 aircraft in the fleet as of March 31, 2013
has been funded by bank financing in the form of loans supported by a loan guarantee from Ex-Im Bank (with
respect to 210 aircraft), JOLCOs and commercial debt. With respect to these 246 aircraft, at March 31, 2013, the
Company had outstanding cumulative borrowings under these facilities of €3,498.4 million with a weighted
average interest rate of 2.5%. See ―Item 5. Operating and Financial Review and Prospects—Liquidity and
Capital Resources—Capital Resources‖ for additional information on these facilities and the related swaps,
including a tabular summary of the ―Effective Borrowing Profile‖ illustrating the effect of the swap transactions
(each of which is with an established international financial counterparty) on the profile of Ryanair‘s aircraft-
related debt at March 31, 2013. At March 31, 2013, the fair value of the interest rate swap agreements relating to
this floating rate debt was represented by a loss of €81.9 million (gross of tax), as compared with a loss of €80.3
million at March 31, 2012. See Note 11 to the consolidated financial statements included in Item 18 for
additional information.

136

If Ryanair had not entered into such derivative agreements, a plus or minus one percentage point
movement in interest rates would impact the fair value of this liability by approximately €28.8 million. The
earnings and cash-flow impact of any such change in interest rates would have been approximately plus or
minus €18.3 million in the 2013 fiscal year.

137

Item 12. Description of Securities Other than Equity Securities

Holders of ADSs are required to pay certain fees and expenses. The table below sets forth the fees and
expenses which, under the deposit agreement between the Company and The Bank of New York Mellon,
holders of ADRs can be charged or be deducted from dividends or other distributions on the deposited shares.
The Company and The Bank of New York Mellon have also entered into a separate letter agreement, which has
the effect of reducing some of the fees listed below.

Persons depositing or withdrawing
ADSs must pay:
US$5.00 (or less) per 100 ADSs (or portion
of 100 ADSs).

For:
Issuance of ADSs,

including
distribution of common shares or rights or other property.

issuances resulting from a

Cancellation of ADSs for the purpose of withdrawal, including if

the deposit agreement terminates.

US$0.02 (or less) per ADS.

Any cash distribution to the holder of the ADSs.

US$0.02 (or less) per ADS per calendar
year.

Depositary services.

A fee equivalent to the fee that would be
the
if securities distributed
payable
holder of ADSs had been shares and the
shares had been deposited for issuance of
ADSs.

Distribution of securities distributed by the issuer to the holders
of common securities, which are distributed by the depositary to
ADS holders.

Registration or transfer fees.

Transfer and registration of shares on our share register to or from
the name of the depositary or its agent when the holder of ADSs
deposits or withdraws common shares.

Expenses of the depositary.

Cable,
telex and facsimile
provided for in the deposit agreement).

transmissions (when expressly

Expenses of the depositary in converting foreign currency to U.S.

dollars.

Taxes and other governmental charges the
depositary or the custodian have to pay on
any ADSs or common shares underlying
ADSs (for example, stock transfer taxes,
stamp duty or withholding taxes).

As necessary.

Any charges incurred by the depositary or
its agents for servicing the deposited
securities.

As necessary.

Reimbursement of Fees

From April 1, 2012 to June 30, 2013 the Depositary collected annual depositary services fees equal to

approximately US$5.5 million from holders of ADSs, net of fees paid to the Depositary by the Company.

138

Item 13. Defaults, Dividend Arrearages and Delinquencies

PART II

None.

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds

None.

Item 15. Controls and Procedures

DISCLOSURE CONTROLS AND PROCEDURES

The Company has carried out an evaluation, as of March 31, 2013, under the supervision and with the
participation of the Company‘s management, including the chief executive officer and chief financial officer, of
the effectiveness of the design and operation of the Company‘s disclosure controls and procedures (as defined in
Rules 13a-15(e) and 15d-15(e) under the Exchange Act). There are inherent limitations to the effectiveness of
any system of disclosure controls and procedures, including the possibility of human error and the
circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and
procedures can only provide reasonable assurance of achieving their control objectives. Based upon the
Company‘s evaluation, the chief executive officer and chief financial officer have concluded that, as of March
31, 2013, the disclosure controls and procedures were effective to provide reasonable assurance that information
required to be disclosed in the reports the Company files or submits under the Exchange Act is recorded,
processed, summarized and reported as and when required, within the time periods specified in the applicable
rules and forms, and that it is accumulated and communicated to the Company‘s management, including the
chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required
disclosure.

139

MANAGEMENT‟S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING

The Company‘s management is responsible for establishing and maintaining adequate internal control
over financial reporting, (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). The Company‘s
internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.
The Company‘s internal control over financial reporting includes those policies and procedures that:



pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company;

provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the Company are being made only in accordance with
authorizations of management and directors; and

provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Company‘s assets that could have a material effect on the
financial statements.

The Company‘s management evaluated the effectiveness of the Company‘s internal control over
financial reporting as of March 31, 2013, based on the criteria established in the 1992 Framework in ―Internal
Control — Integrated Framework,‖ issued by the Committee of Sponsoring Organizations of the Treadway
Commission (―COSO‖). Based on the evaluation, management has concluded that the Company maintained
effective internal control over financial reporting as of March 31, 2013.

140

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There has been no change in the Company‘s internal control over financial reporting during the 2013
fiscal year that has materially affected, or is reasonably likely to materially affect, the Company‘s internal
control over financial reporting.

Item 16. Reserved

Item 16A. Audit Committee Financial Expert

The Company‘s Board of Directors has determined that Declan McKeon qualifies as an ―audit
committee financial expert‖ within the meaning of this Item 16A. Mr. McKeon is ―independent‖ for purposes of
the listing rules of NASDAQ.

Item 16B. Code of Ethics

The Company has adopted a broad Code of Business Conduct and Ethics that meets the requirements
for a ―code of ethics‖ as defined in Item 16B of Form 20-F. The Code of Business Conduct and Ethics applies to
the Company‘s chief executive officer, chief financial officer, chief accounting officer, controller and persons
performing similar functions, as well as to all of the Company‘s other officers, directors and employees. The
Code of Business Conduct and Ethics is available on Ryanair‘s website at http://www.ryanair.com. (Information
appearing on the website is not incorporated by reference into this annual report.) The Company has not made
any amendment to, or granted any waiver from, the provisions of this Code of Business Conduct and Ethics that
apply to its chief executive officer, chief financial officer, chief accounting officer, controller or persons
performing similar functions during its most recently completed fiscal year.

Item 16C. Principal Accountant Fees and Services

Audit and Non-Audit Fees

The following table sets forth the fees billed or billable to the Company by its independent auditors,

KPMG, during the fiscal years ended March 31, 2013, 2012 and 2011:

2013

Year ended March 31,
2012
(millions)

2011

Audit fees ..................................................
Tax fees .....................................................
Total fees ...................................................

€0.5
€0.3
€0.8

€0.4
€0.4
€0.8

Audit fees in the above table are the aggregate fees billed or billable by KPMG in connection with the
audit of the Company‘s annual financial statements, as well as work that generally only the independent auditor
can reasonably be expected to provide, including the provision of comfort letters, statutory audits, discussions
surrounding the proper application of financial accounting and reporting standards and services provided in
connection with certain regulatory requirements including those under the Sarbanes-Oxley Act of 2002.

Tax fees include fees for all services, except those services specifically related to the audit of financial
statements, performed by the independent auditor‘s tax personnel, work performed in support of other tax-
related regulatory requirements and tax compliance reporting.

Audit Committee Pre-Approval Policies and Procedures

The audit committee expressly pre-approves every engagement of Ryanair‘s independent auditors for

all audit and non-audit services provided to the Company.

141

Item 16D. Exemptions from the Listing Standards for Audit Committees

None.

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers

The following table details purchases by the Company of its Ordinary shares in the 2013 fiscal year.

Month / Period

April 1, 2012 to April 30, 2012
May 1, 2012 to May 31, 2012
June 1, 2012 to June 30, 2012
July 1, 2012 to July 31, 2012
August 1, 2012 to August 31, 2012
September 1, 2012 to September 30, 2012
October 1, 2012 to October 31, 2012
November 1, 2012 to November 30, 2012
December 1, 2012 to December 31, 2012
January 1, 2013 to January 31, 2013
February 1, 2013 to February 28, 2013
March 1, 2013 to March 31, 2013
Total (Year-end)

Post Year-end (b)

Total Number of
Ordinary Shares
Purchased (a)

(Millions)

15.0
-
-
-
-
-
-
-
-
-
-
-
15.0

24.1

Average Price
Paid Per
Ordinary Share

(€)

4.45
-
-
-
-
-
-
-
-
-
-
-
4.45

7.23

(a) The Ordinary Share purchases in the table above have not been made pursuant to publicly announced plans or
programs, and consist of open-market transactions conducted within defined parameters pursuant to the Company‘s
repurchase authority from shareholders granted via a special resolution.

(b) In June 2013, the Company bought back 24.1 million ordinary shares, at a total cost of €176.6 million, for cancellation.
Cumulatively these buybacks are equivalent to 1.7% of the issued share capital of the Company at March 31, 2013.

See ―Item 8. Financial Information—Other Financial Information—Share Buy-Back Program‖ and
―Item 9. The Offer and Listing—Trading Markets and Share Prices‖ for further information regarding the
Company‘s Ordinary Share buy-back program, pursuant to which all of the shares purchased by the Company
and disclosed in the table above were purchased.

Item 16F. Change in Registrant’s Certified Accountant

Not applicable.

Item 16G. Corporate Governance

See ―Item 6. Directors, Senior Management and Employees—Directors—Exemptions from NASDAQ
Corporate Governance Rules‖ for further information regarding the ways in which the Company‘s corporate
governance practices differ from those followed by domestic companies listed on NASDAQ.

Item 16H. Mine Safety Disclosure

Not applicable.

142

PART III

Item 17. Financial Statements

Not applicable.

Item 18. Financial Statements

RYANAIR HOLDINGS PLC
INDEX TO FINANCIAL STATEMENTS

Consolidated Balance Sheet of Ryanair Holdings plc at March 31, 2013 ................................

Consolidated Income Statement of Ryanair Holdings plc for the year ended March 31, 2013

Consolidated Statement of Comprehensive Income of Ryanair Holdings plc for the year
ended March 31, 2013 .............................................................................................................

Consolidated Statement of Changes in Shareholders‘ Equity of Ryanair Holdings plc for the
year ended March 31, 2013 ......................................................................................................

Consolidated Statement of Cash Flows of Ryanair Holdings plc for the year ended March
31, 2013 ...................................................................................................................................

Notes ........................................................................................................................................

Company Balance Sheet of Ryanair Holdings plc at March 31, 2013 .....................................

Company Statement of Cash Flows of Ryanair Holdings plc for the year ended March 31,
2013 .........................................................................................................................................

Company Statement of Changes in Shareholders‘ Equity of Ryanair Holdings plc for the
year ended March 31, 2013 ......................................................................................................

Notes forming part of Company Financial Statements ............................................................

Directors and other Information ...............................................................................................

Page

144

145

146

147

149

150

200

201

202

203

206

143

Consolidated Balance Sheet

At March
31, 2013
€M

At March
31, 2012
€M

At March
31, 2011
€M

Note

Non-current assets

Property, plant and equipment ....................................................................... 2
Intangible assets ............................................................................................. 3
Available for sale financial assets .................................................................. 4
Derivative financial instruments .................................................................... 5
Total non-current assets ..................................................................................

Current assets

Inventories .................................................................................................... 6
Other assets ................................................................................................... 7
Current tax .................................................................................................... 12
Trade receivables ........................................................................................... 8
Derivative financial instruments .................................................................... 5
Restricted cash ............................................................................................... 9
Financial assets: cash > 3 months ..................................................................
Cash and cash equivalents .............................................................................
Total current assets ..........................................................................................
Total assets .......................................................................................................

Current liabilities

Trade payables ...............................................................................................
Accrued expenses and other liabilities ........................................................... 10
Current maturities of debt .............................................................................. 11
Current tax .................................................................................................... 12
Derivative financial instruments .................................................................... 5
Total current liabilities ....................................................................................

Non-current liabilities

Provisions ...................................................................................................... 13
Derivative financial instruments .................................................................... 5
Deferred tax .................................................................................................. 12
Other creditors ............................................................................................... 14
Non-current maturities of debt ....................................................................... 11
Total non-current liabilities ............................................................................
Shareholders‟ equity

Issued share capital ........................................................................................ 15
Share premium account.................................................................................. 15
Capital redemption reserve ............................................................................
Retained earnings ...........................................................................................
Other reserves ................................................................................................ 16
Shareholders‟ equity ........................................................................................
Total liabilities and shareholders‟ equity .......................................................

4,906.3
46.8
221.2
5.1
5,179.4

2.7
67.7
-
56.1
78.1
24.7
2,293.4
1,240.9
3,763.6
8,943.0

138.3
1,341.4
399.9
0.3
31.8
1,911.7

135.9
50.1
346.5
127.8
3,098.4
3,758.7

9.2
687.8
0.8
2,418.6
156.2
3,272.6
8,943.0

4,925.2
46.8
149.7
3.3
5,125.0

2.8
64.9
9.3
51.5
231.9
35.1
772.2
2,708.3
3,876.0
9,001.0

181.2
1,237.2
368.4
-
28.2
1,815.0

103.2
53.6
319.4
146.3
3,256.8
3,879.3

9.3
666.4
0.7
2,400.1
230.2
3,306.7
9,001.0

4,933.7
46.8
114.0
23.9
5,118.4

2.7
99.4
0.5
50.6
383.8
42.9
869.4
2,028.3
3,477.6
8,596.0

150.8
1,224.3
336.7
-
125.4
1,837.2

89.6
8.3
267.7
126.6
3,312.7
3,804.9

9.5
659.3
0.5
1,967.6
317.0
2,953.9
8,596.0

The accompanying notes are an integral part of the financial information.

On behalf of the Board

M.O‘Leary
Director

July 26, 2013

D.Bonderman
Director

144

Consolidated Income Statement

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Note

Operating revenues

Scheduled revenues ........................................................................................
Ancillary revenues ..........................................................................................
Total operating revenues – continuing operations .........................................
Operating expenses

17
17
17

Staff costs .......................................................................................................
Depreciation ...................................................................................................
Fuel and oil .....................................................................................................
Maintenance, materials and repairs ................................................................
Aircraft rentals ................................................................................................
Route charges .................................................................................................
Airport and handling charges .........................................................................
Marketing, distribution and other ...................................................................
Icelandic volcanic ash related costs ................................................... es costs

18
2

Total operating expenses ..................................................................................

3,819.8
1,064.2
4,884.0

(435.6)
(329.6)
(1,885.6)
(120.7)
(98.2)
(486.6)
(611.6)
(197.9)
-
(4,165.8)

3,504.0
886.2
4,390.2

(415.0)
(309.2)
(1,593.6)
(104.0)
(90.7)
(460.5)
(554.0)
(180.0)
-
(3,707.0)

2,827.9
801.6
3,629.5

(376.1)
(277.7)
(1,227.0)
(93.9)
(97.2)
(410.6)
(491.8)
(154.6)
(12.4)
(3,141.3)

Operating profit – continuing operations .......................................................

718.2

683.2

488.2

Other income/(expense)

Finance income...............................................................................................
Finance expense .............................................................................................
Foreign exchange gain/(loss) ..........................................................................
Gain on disposal of property, plant and equipment ........................................

Total other expense ..........................................................................................

Profit before tax ................................................................................................
Tax expense on profit on ordinary activities...................................................

27.4
(99.3)
4.6
-
(67.3)

650.9
(81.6)

44.3
(109.2)
4.3
10.4
(50.2)

633.0
(72.6)

27.2
(93.9)
(0.6)
-
(67.3)

420.9
(46.3)

Profit for the year – all attributable to equity holders of parent ..................

569.3

560.4

374.6

Basic earnings per ordinary share (euro cent) ................................................
Diluted earnings per ordinary share (euro cent) .............................................
Number of ordinary shares (in Ms) ................................................................
Number of diluted shares (in Ms) ...................................................................

22
22
22
22

39.45
39.33
1,443.1
1,447.4

38.03
37.94
1,473.7
1,477.0

25.21
25.14
1,485.7
1,490.1

The accompanying notes are an integral part of the financial information.

On behalf of the Board

M.O‘Leary
Director

July 26, 2013

D.Bonderman
Director

145

Consolidated Statement of Comprehensive Income

Year ended
March 31,
2013

Year ended
March 31,
2012

Year ended
March 31,
2011

Profit for the year ...........................................................................................................

569.3

560.4

Other comprehensive income:

€M

374.6

(1.1)
Net actuarial (loss)/gain from retirement benefit plans .........................................

(6.3)

5.0

Cash-flow hedge reserve-effective portion of fair value

changes to derivatives:
Effective portion of changes in fair value of cash-flow hedges .......................................
Net change in fair value of cash-flow hedges transferred to
property, plant and equipment .........................................................................................
Net change in fair value of cash-flow hedges transferred to profit
or loss ................................................................................................................................
Net movements in cash-flow hedge reserve ......................................................................

(14.4)
(138.1)

(128.4)

4.7

147.3

(11.1)

(255.0)
(118.8)

227.1

(15.2)

(14.8)
197.1

Available for sale financial asset:
Net increase/(decrease) in fair value of available-for-sale asset .......................................

71.5

35.7

(2.2)

Total other comprehensive (loss)/income for the year, net of
(67.7)
income tax ........................................................................................................................

(89.4)

199.9

Total comprehensive income for the year – all attributable to
equity holders of parent ................................................................................................

501.6

471.0

574.5

The accompanying notes are an integral part of the financial information.

On behalf of the Board

M.O‘Leary
Director

July 26, 2013

D.Bonderman
Director

146

Consolidated Statement of Changes in Shareholders‟ Equity

Other Reserves

Balance at March 31, 2010 ..................
Profit for the year ...................................
Other comprehensive income
Net actuarial gains from retirement
benefits plan ..........................................
Net movements in cash-flow reserve .....
Net change in fair value of available-
for -sale asset .........................................
Total other comprehensive income/
(loss) ......................................................
Total comprehensive income .................
Transactions with owners of the
Company, recognised directly in equity
Issue of ordinary equity shares ..............
Share-based payments ...........................
Transfer of exercised and expired share-
based awards ..........................................
Dividend paid ........................................
Balance at March 31, 2011 ..................
Profit for the year ...................................
Other comprehensive income
Net actuarial losses from retirement
benefits plan ..........................................
Net movements in cash-flow reserve .....
Net change in fair value of available-
for -sale asset .........................................
Total other comprehensive income/
(loss) ......................................................
Total comprehensive income .................
Transactions with owners of the
Company, recognised directly in equity
Issue of ordinary equity shares ..............
Repurchase of ordinary equity shares ....
Cancellation of repurchased ordinary
shares .....................................................
Share-based payments ...........................
Transfer of exercised and expired share-
based awards ..........................................
Balance at March 31, 2012 ..................

Ordinary
Shares
M
1,478.9
-

-
-

10.7
-

-
-
1,489.6
-

-
-

2.5
-

(36.5)
-

-
1,455.6

Issued
Share
Capital Account Earnings Reserve Hedging Reserves

Capital
Redemption

Share
Premium

Retained

Other

€M

9.4
-

€M
631.9
-

€M
2,083.5
374.6

€M

0.5
-

60.3
-

63.0
-

Total
€M
2,848.6
374.6

-
-

0.1
-

-
-
9.5
-

-
-

(0.2)
-

-
9.3

-
-

5.0
-

5.0
379.6

27.4
-

-
-
659.3
-

-
-

4.5
(500.0)
1,967.6
560.4

-
-

(6.3)
-

(6.3)
554.1

7.1
-

-
(124.6)

-
-

-
666.4

3.0
2,400.1

-
-

-
-
0.5
-

-
-

0.2
-

-
0.7

-
197.1

-
-

5.0
197.1

(2.2)

197.1
197.1

(2.2)
(2.2)

199.9
574.5

-
-

-
-
257.4
-

-
(118.8)

(118.8)
(118.8)

-
-

-
138.6

-
3.3

(4.5)
-
59.6
-

27.5
3.3

-
(500.0)
2,953.9
560.4

-
-

(6.3)
(118.8)

35.7

35.7
35.7

35.7

(89.4)
471.0

-
-

7.1
(124.6)

-
(0.7)

(3.0)
91.6

-
(0.7)

-
3,306.7

147

Consolidated Statement of Changes in Shareholders‟ Equity Continued

Other Reserves

Issued
Share
Capital Account Earnings Reserve Hedging Reserves

Capital
Redemption

Share
Premium

Retained

Other

€M

Ordinary
Shares
M

Profit for the year ...................................
Other comprehensive income
Net actuarial losses from retirement
benefits plan ..........................................
Net movements in cash-flow reserve .....
Net change in fair value of available-
for -sale asset .........................................
Total other comprehensive income/
(loss) ......................................................
Total comprehensive income .................
Transactions with owners of the
Company, recognised directly in equity
Issue of ordinary equity shares ..............
Repurchase of ordinary equity shares ....
Cancellation of repurchased ordinary
shares .....................................................
Share-based payments ...........................
Dividend Paid ........................................
Transfer of exercised share-based
awards ....................................................
Balance at March 31, 2013 ..................

-
-

6.5
-

(15.0)
-
-

-
1,447.1

-
-

(0.1)
-
-

-
9.2

€M
569.3

(1.1)
-

(1.1)
568.2

-
-

21.4
-

-
(67.5)

-
-
-

-
-
(491.5)

-
687.8

9.3
2,418.6

-
(138.1)

(138.1)
(138.1)

-
-

-
-
-

-
-

71.5

71.5
71.5

-
-

-
1.9
-

Total
€M
569.3

(1.1)
(138.1)

71.5

(67.7)
501.6

21.4
(67.5)

-
1.9
(491.5)

-
0.5

(9.3)
155.7

-
3,272.6

-
-

0.1
-
-

-
0.8

The accompanying notes are an integral part of the financial information.

148

Consolidated Statement of Cash Flows

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Operating activities

Profit before tax .............................................................................................

650.9

633.0

420.9

Adjustments to reconcile profit before tax
to net cash provided by operating activities

Depreciation...................................................................................................
Decrease/(increase) in inventories .................................................................
(Increase) in trade receivables .......................................................................
(Increase)/decrease in other current assets .....................................................
(Decrease)/increase in trade payables ............................................................
Increase in accrued expenses .........................................................................
(Decrease)/increase in other creditors ............................................................
Increase in provisions ....................................................................................
Increase/(decrease) on disposal of property, plant and equipment .................
Decrease in finance income ...........................................................................
(Decrease)/increase in finance expense .........................................................
Retirement costs ............................................................................................
Share-based payments charge/(credit) ...........................................................
Income tax (paid) ...........................................................................................

Net cash provided by operating activities ..................................................

329.6
0.1
(4.6)
(5.0)
(42.9)
107.2
(18.5)
31.1
-
2.2
(2.7)
-
1.9
(25.8)
1,023.5

Investing activities

Capital expenditure (purchase of property, plant and equipment) ................. (310.7)
-
Proceeds from sale of property, plant and equipment ....................................
10.4
Decrease in restricted cash .............................................................................
(Increase)/decrease in financial assets: cash > 3 months................................ (1,521.2)
(1,821.5)

Net cash used in investing activities............................................................

Financing activities

(67.5)
Shares purchased under share buy-back programme .....................................
21.4
Net proceeds from shares issued ....................................................................
Dividend paid ................................................................................................ (491.5)
234.6
Proceeds from long term borrowings .............................................................
Repayments of long term borrowings ............................................................ (366.4)
(669.4)

Net cash (used in)/provided by financing activities ...................................

(Decrease)/increase in cash and cash equivalents ......................................

(1,467.4)
Cash and cash equivalents at beginning of year ............................................. 2,708.3
1,240.9

Cash and cash equivalents at end of year ..................................................

309.2
(0.1)
(0.9)
34.5
30.4
11.6
19.7
6.6
(10.4)
-
1.1
(0.1)
(0.7)
(13.6)
1,020.3

(317.6)
27.2
7.8
97.2
(185.4)

(124.6)
7.1
-
292.3
(329.7)
(154.9)

680.0
2,028.3
2,708.3

277.7
(0.2)
(6.3)
(20.9)
(3.2)
135.0
(10.0)
(7.9)
-
1.6
2.3
(0.1)
3.3
(5.9)
786.3

(897.2)
-
24.9
398.3
(474.0)

-
27.4
(500.0)
991.4
(280.7)
238.1

550.4
1,477.9
2,028.3

The accompanying notes are an integral part of the financial information.

149

Notes forming part of the Consolidated Financial Statements

Basis of preparation and significant accounting policies

The accounting policies applied in the preparation of the consolidated financial statements for the 2013
fiscal year are set out below. These have been applied consistently for all periods presented, except as otherwise
stated.

Business activity

Ryanair Limited and its subsidiaries (―Ryanair Limited‖) has operated as an international airline since
commencing operations in 1985. On August 23, 1996, Ryanair Holdings Limited, a newly formed holding
company, acquired the entire issued share capital of Ryanair Limited. On May 16, 1997, Ryanair Holdings
Limited re-registered as a public limited company, Ryanair Holdings plc (the ―Company‖). Ryanair Holdings
plc and its subsidiaries are hereafter together referred to as ―Ryanair Holdings plc‖ (or ―we‖, ―our‖, ―us‖,
―Ryanair‖ or the ―Company‖) and currently operate a low-fares airline headquartered in Dublin, Ireland. All
trading activity continues to be undertaken by the group of companies headed by Ryanair Limited.

Statement of compliance

In accordance with the International Accounting Standards (―IAS‖) Regulation (EC 1606 (2002))
which applies throughout the European Union (―EU‖), the consolidated financial statements have been prepared
in accordance with International Accounting Standards and International Financial Reporting Standards
(collectively ―IFRS‖) as adopted by the EU, which are effective for the year ended and as at March 31, 2013. In
addition to complying with its legal obligation to comply with IFRS as adopted by the EU, the consolidated
financial statements have been prepared in accordance 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 2012.

Details of legislative changes and new accounting standards or amendments to accounting standards,
which are not yet effective and have not been early adopted in these consolidated financial statements, and the
likely impact on future financial statements are set forth below in the prospective accounting changes section.

New accounting standards adopted during the year

There were no new standards, interpretations or amendments to existing standards adopted for the first
time during the year ended March 31, 2013, which had a material impact on our financial position or results
from operations.

Basis of preparation

These consolidated financial statements are presented in euro millions, the euro being the functional
currency of the parent entity and the majority of the group companies. They are prepared on the historical cost
basis, except for derivative financial instruments and available-for-sale securities which are stated at fair value,
and share-based payments, which are based on fair value determined as at the grant date of the relevant share
options. Certain non-current assets, when they are classified as held for sale, are stated at the lower of cost and
fair value less costs to sell.

150

Critical accounting policies

The preparation of financial statements in conformity with IFRS requires management to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and
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, and the results of such estimates
form the basis of judgements about carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results could differ materially from these estimates. These underlying assumptions are
reviewed on an ongoing basis. A revision to an accounting estimate is 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 forth in the critical accounting
policies section below. Actual results may differ from estimates.

The Company believes that its critical accounting policies, which are those that require management‘s
most difficult, subjective and complex judgements, are those described in this section. These critical accounting
policies, the judgements and other uncertainties affecting application of these policies and the sensitivity of
reported results to changes in conditions and assumptions are factors to be considered in reviewing the
consolidated financial statements.

Long-lived assets

As of March 31, 2013, Ryanair had €4.9 billion of property, plant and equipment long-lived assets,
virtually all of which consisted of aircraft. In accounting for long-lived assets, Ryanair must make estimates
about the expected useful lives of the assets, the expected residual values of the assets and the potential for
impairment based on the fair value of the assets and the cash flows they generate.

In estimating the lives and expected residual values of its aircraft, Ryanair has primarily relied on its
own and industry experience, recommendations from Boeing, the manufacturer of all of the Company‘s aircraft,
and other data available in the marketplace. Subsequent revisions to these estimates, which can be significant,
could be caused by changes to Ryanair‘s maintenance programme, changes in utilisation of the aircraft, changes
to governmental regulations on aging aircraft, and changing market prices for new and used aircraft of the same
or similar types. Ryanair evaluates its estimates and assumptions in each reporting period, and, when warranted,
adjusts these assumptions. Generally, these adjustments are accounted for on a prospective basis, through
depreciation expense.

Heavy maintenance

An element of the cost of an acquired aircraft is attributed, on acquisition, to its service potential,

reflecting the maintenance condition of the engines and airframe.

151

For aircraft held under operating lease agreements, Ryanair is contractually committed to either return
the aircraft in a certain condition or to compensate the lessor based on the actual condition of the airframe,
engines and life-limited parts upon return. In order to fulfill such conditions of the lease, maintenance, in the
form of major airframe overhaul, engine maintenance checks, and restitution of major life-limited parts, is
required to be performed during the period of the lease and upon return of the aircraft to the lessor. The
estimated airframe and engine maintenance costs and the costs associated with the restitution of major life-
limited parts, are accrued and charged to profit or loss over the lease term for this contractual obligation, based
on the present value of the estimated future cost of the major airframe overhaul, engine maintenance checks, and
restitution of major life-limited parts, calculated by reference to the number of hours flown or cycles operated
during the year.

While Ryanair may, in very limited circumstances, sub-lease its aircraft, it remains fully liable to

perform all of its contractual obligations under the ‗head lease‘ notwithstanding any such sub-leasing.

Both of these elements of accounting policies involve the use of estimates in determining the quantum
of both the initial maintenance asset and/or the amount of provisions to be recorded and the respective periods
over which such amounts are charged to income. In making such estimates, Ryanair has primarily relied on its
own and industry experience, industry regulations and recommendations from Boeing; however, these estimates
can be subject to revision, depending on a number of factors, such as the timing of the planned maintenance, the
ultimate utilisation of the aircraft, changes to government regulations and increases or decreases in estimated
costs. Ryanair evaluates its estimates and assumptions in each reporting period and, when warranted, adjusts its
assumptions, which generally impact maintenance and depreciation expense in the income statement on a
prospective basis.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Ryanair Holdings plc and its
subsidiary undertakings as of March 31, 2013. Subsidiaries are entities controlled by Ryanair. Control exists
when Ryanair has the power either directly or indirectly to govern the financial and operating policies of an
entity so as to obtain benefit from its activities.

All inter-company account balances and any unrealised income or expenses arising from intra-group

transactions have been eliminated in preparing the consolidated financial statements.

The results of subsidiary undertakings acquired or disposed of in the period are included in the
consolidated income statement from the date of acquisition or up to the date of disposal. Upon the acquisition of
a business, fair values are attributed to the separable net assets acquired.

Business combinations

Business combinations are accounted for using the acquisition method as at the acquisition date, which
is the date on which control is transferred to the Company. Control is the power to govern the financial and
operating policies of an entity so as to obtain benefits from its activities.

Acquisitions on or after April 1, 2010

For acquisitions on or after January 1, 2010, the Company measures goodwill at the acquisition date as
the fair value of the consideration transferred, plus the recognised amount of any non-controlling interests in the
acquiree, less the net recognised amount of the identifiable assets acquired and liabilities assumed.

152

Acquisitions between January 1, 2004 and April 1, 2010

For acquisitions between January 1, 2004 and January 1, 2010, goodwill represents the excess of the
cost of the acquisition over the Company‘s interest in the recognised amount of the identifiable assets, liabilities
and contingent liabilities of the acquiree.

Acquisitions prior to January 1, 2004 (date of transition to IFRSs)

As part of its transition to the IFRSs, the Company elected to restate only those business combinations
that occurred on or after January 1, 2003. Prior to January 1, 2003, goodwill represented the amount recognised
under the Company‘s previous accounting framework, Irish GAAP.

Foreign currency translation

Items included in the financial statements of each of the group entities are measured using the currency
of the primary economic environment in which the entity operates (the ―functional currency‖). The consolidated
financial statements are presented in euro, which is the functional currency of the majority of the group entities.

Transactions arising in foreign currencies are translated into the respective functional currencies at the
rates of exchange in effect at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies are re-translated at the rate of exchange prevailing at the balance sheet date. Non-monetary assets and
liabilities denominated in foreign currencies are translated to euro at foreign exchange rates in effect at the dates
the transactions were effected. Foreign currency differences arising on retranslation are recognised in profit or
loss, except for differences arising on qualifying cash-flow hedges, which are recognised in other
comprehensive income.

Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated depreciation and provisions
for impairments, if any. Cost includes expenditure that is directly attributable to the acquisition of the asset. Cost
may also include transfers from other comprehensive income of any gain or loss on qualifying cash-flow hedges
of foreign currency purchases of property, plant and equipment. Depreciation is calculated so as to write off the
cost, less estimated residual value, of assets on a straight-line basis over their expected useful lives at the
following annual rates:

Hangar and buildings .....................................................................................................................
Plant and equipment (excluding aircraft) .......................................................................................
Fixtures and fittings .......................................................................................................................
Motor vehicles ...............................................................................................................................

Rate of
Depreciation
5%
20-33.3%
20%
33.3%

Aircraft are depreciated on a straight-line basis over their estimated useful lives to estimated residual

values. The estimates of useful lives and residual values at year-end are:

Aircraft Type
Boeing 737-800s

Number of Owned Aircraft

at March 31, 2013

246(a)

Useful Life
23 years from date of
manufacture

Residual Value
15% of current market value of new
aircraft, determined periodically

______________
(a) The Company operated 305 aircraft as of March 31, 2013, of which 59 were leased.

153

An element of the cost of an acquired aircraft is attributed on acquisition to its service potential,
reflecting the maintenance condition of its engines and airframe. This cost, which can equate to a substantial
element of the total aircraft cost, is amortised over the shorter of the period to the next maintenance check
(usually between 8 and 12 years for Boeing 737-800 aircraft) or the remaining life of the aircraft. The costs of
subsequent major airframe and engine maintenance checks are capitalised and amortised over the shorter of the
period to the next check or the remaining life of the aircraft.

Advance and option payments made in respect of aircraft purchase commitments and options to acquire
aircraft are recorded at cost and separately disclosed within property, plant and equipment. On acquisition of the
related aircraft, these payments are included as part of the cost of aircraft and are depreciated from that date.

Rotable spare parts held by the Company are classified as property, plant and equipment if they are

expected to be used over more than one period.

Gains and losses on disposal of items of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised on a
net basis within other income/(expenses) in profit or loss.

Aircraft maintenance costs

The accounting for the cost of providing major airframe and certain engine maintenance checks for

owned aircraft is described in the accounting policy for property, plant and equipment.

For aircraft held under operating lease agreements, Ryanair is contractually committed to either return
the aircraft in a certain condition or to compensate the lessor based on the actual condition of the airframe,
engines and life-limited parts upon return. In order to fulfill such conditions of the lease, maintenance, in the
form of major airframe overhaul, engine maintenance checks, and restitution of major life-limited parts, is
required to be performed during the period of the lease and upon return of the aircraft to the lessor. The
estimated airframe and engine maintenance costs and the costs associated with the restitution of major life-
limited parts, are accrued and charged to profit or loss over the lease term for this contractual obligation, based
on the present value of the estimated future cost of the major airframe overhaul, engine maintenance checks, and
restitution of major life-limited parts, calculated by reference to the number of hours flown or cycles operated
during the year.

All other maintenance costs, other than major airframe overhaul, engine maintenance checks, and

restitution of major life-limited parts costs associated with leased aircraft, are expensed as incurred.

Intangible assets - landing rights

Intangible assets acquired are recognised to the extent it is considered probable that expected future
benefits will flow to the Company and the associated costs can be measured reliably. Landing rights acquired as
part of a business combination are capitalised at fair value at that date and are not amortised, where those rights
are considered to be indefinite. The carrying values of those rights are reviewed for impairment at each
reporting date and are subject to impairment testing when events or changes in circumstances indicate that
carrying values may not be recoverable. No impairment to the carrying values of the Company‘s intangible
assets has been recorded to date.

154

Available-for-sale securities

The Company holds certain equity securities, which are classified as available-for-sale, and are
measured at fair value, less incremental direct costs, on initial recognition. Such securities are classified as
available-for-sale, rather than as an investment in an associate if the Company does not have the power to
exercise significant influence over the investee. Subsequent to initial recognition they are measured at fair value
and changes therein, other than impairment losses, are recognised in other comprehensive income and reflected
in shareholders‘ equity in the consolidated balance sheet. Fair value losses, subsequent to any impairments are
recognised in other comprehensive income against net cumulative gains in the reserve. Fair value losses below
the impaired value are recognised in the income statement. The fair values of available-for-sale securities are
determined by reference to quoted prices in active markets at each reporting date. When an investment is de-
recognised the cumulative gain or loss in other comprehensive income is transferred to the income statement.

Such securities are considered to be impaired if there is objective evidence which indicates that events
have occurred that can reasonably be expected to adversely affect the future cash flows of the securities, such
that the future cash flows do not support the current fair value of the securities. This includes where there is a
significant or prolonged decline in the fair value below its cost. All impairment losses are recognised in the
income statement and any cumulative loss in respect of an available-for-sale asset recognised previously in other
comprehensive income is also transferred to the income statement.

Other financial assets

Other financial assets (other than available-for-sale financial assets) comprise cash deposits of greater
than three months‘ maturity. All amounts are categorised as loans and receivables and are carried initially at fair
value and then subsequently at amortised cost, using the effective interest method in the balance sheet.

Derivative financial instruments

Ryanair is exposed to market risks relating to fluctuations in commodity prices, interest rates and
currency exchange rates. The objective of financial risk management at Ryanair is to minimise the impact of
commodity price, interest rate and foreign exchange rate fluctuations on the Company‘s earnings, cash flows
and equity.

To manage these risks, Ryanair uses various derivative financial instruments, including interest rate
swaps, foreign currency forward contracts and commodity contracts. These derivative financial instruments are
generally held to maturity. The Company enters into these arrangements with the goal of hedging its operational
and balance sheet risk. However, Ryanair‘s exposure to commodity price, interest rate and currency exchange
rate fluctuations cannot be neutralised completely.

Derivative financial instruments are recognised initially at fair value. Subsequent to initial recognition,
derivative financial instruments continue to be re-measured to fair value, and changes therein are accounted for
as described below.

The fair value of interest rate swaps is computed by discounting the projected cash flows on the
Company‘s swap arrangements to present value using an appropriate market rate of interest. The fair value of
forward foreign exchange contracts and commodity contracts is determined based on the present value of the
quoted forward price. Recognition of any resultant gain or loss depends on the nature of the item being hedged.

Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a
recognised asset or liability or a highly probable forecasted transaction, the effective part of any gain or loss on
the derivative financial instrument is recognised in other comprehensive income (in the cash flow hedging
reserve on the balance sheet). When the hedged forecasted transaction results in the recognition of a non-
financial asset or liability, the cumulative gain or loss is removed from other comprehensive income and
included in the initial measurement of that asset or liability. Otherwise the cumulative gain or loss is removed
from other comprehensive income and recognised in the income statement at the same time as the hedged
transaction. The ineffective part of any hedging transaction and the gain or loss thereon is recognised in the
income statement immediately.

155

When a hedging instrument or hedge relationship is terminated but the underlying hedged transaction is
still expected to occur, the cumulative gain or loss at that point remains in other comprehensive income and is
recognised in accordance with the above policy when the transaction occurs. If the hedged transaction is no
longer expected to take place, the cumulative unrealised gain or loss recognised in other comprehensive income
is recognised in the income statement immediately.

Where a derivative financial instrument hedges the changes in fair value of a recognised asset or
liability or an unrecognised firm commitment, any gain or loss on the hedging instrument is recognised in the
income statement. The hedged item is also stated at fair value in respect of the risk being hedged, with any gain
or loss also being recognised in the income statement.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is based on invoiced price on
an average basis for all stock categories. Net realisable value is calculated as the estimated selling price arising
in the ordinary course of business, net of estimated selling costs.

Trade and other receivables and payables

Trade and other receivables and payables are stated on initial recognition at fair value plus any
incremental direct costs and subsequently at amortised cost, net (in the case of receivables) of any impairment
losses, which approximates fair value given the short-dated nature of these assets and liabilities.

Cash and cash equivalents

Cash represents cash held at banks and available on demand, and is categorised for measurement

purposes as ―loans and receivables.‖

Cash equivalents are current asset investments (other than cash) that are readily convertible into known
amounts of cash, typically cash deposits of more than one day but less than three months at the date of purchase.
Deposits with maturities greater than three months are recognised as short-term investments, are categorised as
loans and receivables and are carried initially at fair value and then subsequently at amortised cost, using the
effective-interest method.

Interest-bearing loans and borrowings

All loans and borrowings are initially recorded at fair value, being the fair value of the 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.

Leases

Leases under which the Company assumes substantially all of the risks and rewards of ownership are
classified as finance leases. Assets held under finance leases are capitalised in the balance sheet, at an amount
equal to the lower of their fair value and the present value of the minimum lease payments, and are depreciated
over their estimated useful lives. The present values of the future lease payments are recorded as obligations
under finance leases and the interest element of a lease obligation is charged to the income statement over the
period of the lease in proportion to the balances outstanding.

Other leases are operating leases and the associated leased assets are not recognised on the Company‘s
balance sheet. Expenditure arising under operating leases is charged to the income statement as incurred. The
Company also enters into sale-and-leaseback transactions whereby it sells the rights to an aircraft to an external
party and subsequently leases the aircraft back, by way of an operating lease. Any profit or loss on the disposal
where the price achieved is not considered to be at fair value is spread over the period during which the asset is
expected to be used. The profit or loss amount deferred is included within ―other creditors‖ and divided into
components of greater than and less than one year.

156

Provisions and contingencies

A provision is recognised in the balance sheet when there is a present legal or constructive obligation
as a result of a past event, and it is probable that an outflow of economic benefit will be required to settle the
obligation. If the effect is material, provisions are determined by discounting the expected future outflow at a
pre-tax rate that reflects current market assessments of the time value of money and, when appropriate, the risks
specific to the liability.

The Company assesses the likelihood of any adverse outcomes to contingencies, including legal
matters, as well as probable losses. We record provisions for such contingencies when it is probable that a
liability will be incurred and the amount of the loss can be reasonably estimated. A contingent liability is
disclosed where the existence of the obligation will only be confirmed by future events, or where the amount of
the obligation cannot be measured with reasonable reliability. Provisions are re-measured at each balance sheet
date based on the best estimate of the settlement amount.

In relation to legal matters, we develop estimates in consultation with internal and external legal
counsel taking into account the relevant facts and circumstances known to us. The factors that we consider in
developing our legal provisions include the merits and jurisdiction of the litigation, the nature and number of
other similar current and past litigation cases, the nature of the subject matter of the litigation, the likelihood of
settlement and current state of settlement discussions, if any.

Segment reporting

Operating segments are reported in a manner consistent with the internal organisational and
management structure and the internal reporting information provided to the chief operating decision maker,
who is responsible for allocating resources and assessing performance of operating segments. The Company is
managed as a single business unit that provides low fares airline-related services, including scheduled services,
and ancillary services including car hire services, and internet and other related services to third parties, across a
European route network.

Income statement classification and presentation

Individual income statement captions have been presented on the face of the income statement, together
with additional line items, headings and sub-totals, where it is determined that such presentation is relevant to an
understanding of our financial performance, in accordance with IAS 1, ―Presentation of Financial Statements‖.

Expenses are classified and presented in accordance with the nature-of-expenses method. We disclose
separately on the face of the income statement, within other income and expense, losses on the impairment of
available-for-sale financial assets and gains or losses on disposal of property, plant and equipment. The nature
of the Company‘s available-for-sale asset is that of a financial investment; accordingly any impairment of the
investment is categorised as finance expense and included in other income/(expense) as a separate line item. The
presentation of gains or losses on the disposal of property, plant and equipment within other income/(expense)
accords with industry practice.

Revenues

Scheduled revenues comprise the invoiced value of airline and other services, net of government taxes.
Revenue from the sale of flight seats is recognised in the period in which the service is provided. Unearned
revenue represents flight seats sold but not yet flown and a provision for government tax refund claims
attributable to unused tickets, and is included in accrued expenses and other liabilities. Revenue, net of
government taxes, is released to the income statement as passengers fly. Unused tickets are recognised as
revenue on a systematic basis, such that twelve months of time expired revenues are recognised in revenue in
each fiscal year. Miscellaneous fees charged for any changes to flight tickets are recognised in revenue
immediately.

157

During the year ended March 31, 2012, changes in estimates relating to the timing of revenue
recognition for unused passenger tickets were made, resulting in increased revenue of €65.3 million (fiscal year
2013:Nil). This change reflects more accurate and timely data obtained through system enhancements.

Ancillary revenues are recognised in the income statement in the period the ancillary services are

provided.

Share-based payments

The Company engages in equity-settled, share-based payment transactions in respect of services
received from certain of its employees. The fair value of the services received is measured by reference to the
fair value of the share options on the date of the grant. The grant measurement date is the date that a shared
understanding of the terms of the award is established between the Company and the employee. The cost of the
employee services received in respect of the share options granted is recognised in the income statement over
the period that the services are received, which is the vesting period, with a corresponding increase in equity. To
the extent that service is provided prior to the grant measurement date, the fair value of the share options is
initially estimated and re-measured at each balance sheet date until the grant measurement date is achieved. The
fair value of the options granted is determined using various option-pricing models, including binomial lattice
and black-scholes, which takes into account the exercise price of the option, the current share price, the risk-free
interest rate, the expected volatility of the Ryanair Holdings plc share price over the life of the option and other
relevant factors. Non-market vesting conditions are taken into account by adjusting the number of shares or
share options included in the measurement of the cost of employee services so that ultimately, the amount
recognised in the income statement reflects the number of vested shares or share options.

Pensions and other post-retirement obligations

The Company provides certain employees with post-retirement benefits in the form of pensions. The

Company operates a number of defined contribution and defined benefit pension schemes.

Costs arising in respect of the Company‘s defined contribution pension schemes (where fixed
contributions are paid into the scheme and there is no legal or constructive obligation to pay further amounts)
are charged to the income statement in the period in which they are incurred. Any contributions unpaid at the
balance sheet date are included as a liability.

A defined benefit plan is a post-employment benefit plan other than a defined-contribution plan. The
liabilities and costs associated with the Company‘s defined benefit pension schemes are assessed on the basis of
the projected unit credit method by professionally qualified actuaries and are arrived at using actuarial
assumptions based on market expectations at the balance sheet date. The discount rates employed in determining
the present value of each scheme‘s liabilities are determined by reference to market yields at the balance sheet
date of high quality corporate bonds in the same currency and term that is consistent with those of the associated
pension obligations. The net surplus or deficit arising on the Company‘s defined-benefit schemes is shown
within non-current assets or liabilities on the balance sheet. The deferred tax impact of any such amount is
disclosed separately within deferred tax.

The Company separately recognises the operating and financing costs of defined-benefit pensions in
the income statement. IFRS permits a number of options for the recognition of actuarial gains and losses. The
Company has opted to recognise all actuarial gains and losses within other comprehensive income.

Income taxes including deferred income taxes

Income tax on the profit or loss for a year comprises current and deferred tax. Income tax is recognised
in the income statement except to the extent that it relates to items recognised in other comprehensive income
(such as certain hedging derivative financial instruments, available-for-sale assets, pensions and other post-
retirement obligations). Current tax payable on taxable profits is recognised as an expense in the period in which
the profits arise using tax rates enacted or substantively enacted at the balance sheet date.

158

Deferred income tax is provided in full, using the balance sheet liability method, on temporary
differences arising from the tax bases of assets and liabilities and their carrying accounts in the consolidated
financial statements. Deferred income tax is determined using tax rates and legislation enacted or substantively
enacted by the balance sheet date and expected to apply when the temporary differences reverse.

The following temporary differences are not provided for: (i) the initial recognition of assets and
liabilities that effect neither accounting nor taxable profit and (ii) differences relating to investments in
subsidiaries to the extent that it is probable they will not reverse in the future.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which temporary differences can be utilised. The carrying amounts of deferred tax assets are
reviewed at each balance sheet date and reduced to the extent that it is no longer probable that a sufficient
taxable profit will be available to allow all or part of the deferred tax asset to be realised.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of
ordinary shares and share options are recognised as a deduction from equity, net of any tax effects. When share
capital recognised as equity is repurchased, the amount of consideration paid, which includes any directly
attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are
classified as treasury shares and are presented as a deduction from total equity, until they are cancelled.

Prospective accounting changes, new standards and interpretations not yet adopted

The following new or revised IFRS standards and IFRIC interpretations will be adopted for purposes of
the preparation of future financial statements, where applicable from the IASB effective date. We do not
anticipate that the adoption of these new or revised standards and interpretations will have a material impact on
our financial position or results from operations:



IAS 1 (amendment 2011) “Presentation of Items of Other Comprehensive Income” (effective for fiscal
periods beginning on or after July 1, 2012).*

IAS 19 (amendment 2011) “Employee Benefits” (effective for fiscal periods beginning on or after
January 1, 2013).*

IAS 27 (amended 2011) ―Separate Financial Statements‖ (effective for fiscal periods beginning on or
after January 1, 2013).*

IAS 28 (amended 2011) ―Investments in Associates and Joint Ventures‖ (effective for fiscal periods
beginning on or after January 1, 2013).*

IFRS 10, ―Consolidated Financial Statements” (effective for fiscal periods beginning on or after
January 1, 2013).*

IFRS 11, ―Joint Arrangements” (effective for fiscal periods beginning on or after January 1, 2013).*

IFRS 12, ―Disclosure of Interests in other Entities” (effective for fiscal periods beginning on or after
January 1, 2013).*

IFRS 13, ―Fair Value Measurement” (effective for fiscal periods beginning on or after January 1,
2013).*

 Amendments to IFRS 7: “Disclosures – Offsetting Financial Assets and Financial Liabilities”

(effective for fiscal periods beginning on or after January 1, 2013).*



IAS 32 (amendment) “Offsetting Financial Assets and Financial Liabilities‖ (effective for fiscal
periods beginning on or after January 1, 2014).

159



IAS 36 (amendment) ―Recoverable Amount Disclosures for Non-Financial Assets‖ (effective for fiscal
periods beginning on or after January 1, 2014).

IAS39 (amendment) ―Novation of Derivatives and Continuation of Hedge Accounting‖ (effective for
fiscal periods beginning on or after January 1, 2014).

IFRIC 21―Levies‖ (effective for fiscal periods beginning on or after January 1, 2014).

IFRS 9 ―Financial Instruments‖ (IFRS 9 (2010)) (effective for fiscal periods beginning on or after
January 1, 2015).

―Annual Improvements to IFRSs‖ (issued May 2012): (effective for fiscal periods beginning on or after
January 1, 2013).

*Endorsed by the EU (IASB effective date in brackets).

160

Property, plant and equipment

Aircraft
€M

Hangar and
Buildings
€M

Plant and
Equipment
€M

Fixtures
and
Fittings
€M

Motor
Vehicles
€M

Total
€M

Year ended March 31, 2013
Cost

At March 31, 2012 ........................................
Additions in year ..........................................
Disposals in year ...........................................
At March 31, 2013 ........................................

6,158.3
293.4
(42.1)
6,409.6

Depreciation

At March 31, 2012 ........................................
Charge for year .............................................
Eliminated on disposal ..................................
At March 31, 2013 ........................................

1,275.9
321.3
(42.1)
1,555.1

Net book value

At March 31, 2013 ........................................

4,854.5

46.8
12.0
-
58.8

13.4
2.3
-
15.7

43.1

20.8
2.4
-
23.2

17.1
2.2
-
19.3

3.9

30.5
2.8
(0.1)
33.2

25.0
3.7
(0.1)
28.6

4.6

2.3
0.1
(0.1)
2.3

2.1
0.1
(0.1)
2.1

6,258.7
310.7
(42.3)

6,527. 1

1,333.5
329.6
(42.3)
1,620.8

0.2

4,906.3

Aircraft
€M

Hangar and
Buildings
€M

Plant and
Equipment
€M

Fixtures
and
Fittings
€M

Motor
Vehicles
€M

Total
€M

Year ended March 31, 2012
Cost

At March 31, 2011 ........................................
Additions in year ..........................................
Disposals in year ...........................................
At March 31, 2012 ........................................

5,953.2
312.3
(107.2)
6,158.3

Depreciation

At March 31, 2011 ........................................
Charge for year .............................................
Eliminated on disposal ..................................
At March 31, 2012 ........................................

1,065.1
301.1
(90.3)
1,275.9

Net book value

At March 31, 2012 ........................................

4,882.4

46.6
0.2
-
46.8

11.1
2.3
-
13.4

33.4

19.1
1.7
-
20.8

14.8
2.3
-
17.1

3.7

27.2
3.3
-
30.5

21.6
3.4
-
25.0

5.5

2.2
0.1
-
2.3

2.0
0.1
-
2.1

0.2

6,048.3
317.6
(107.2)
6,258.7

1,114.6
309.2
(90.3)
1,333.5

4,925.2

Aircraft
€M

Hangar and
Buildings
€M

Plant and
Equipment
€M

Fixtures
and
Fittings
€M

Motor
Vehicles
€M

Total
€M

Year ended March 31, 2011
Cost

At March 31, 2010 ........................................
Additions in year ..........................................
At March 31, 2011 ........................................

5,069.6
883.6
5,953.2

Depreciation

At March 31, 2010 ........................................
Charge for year .............................................
At March 31, 2011 ........................................

794.4
270.7
1,065.1

Net book value

At March 31, 2011 ........................................

4,888.1

39.2
7.4
46.6

8.9
2.2
11.1

35.5

16.4
2.7
19.1

12.3
2.5
14.8

4.3

23.7
3.5
27.2

19.4
2.2
21.6

5.6

2.2
-
2.2

1.9
0.1
2.0

0.2

5,151.1
897.2
6,048.3

836.9
277.7
1,114.6

4,933.7

At March 31, 2013, aircraft with a net book value of €4,663.0 million (2012: €4,856.0 million; 2011:
€4,718.7 million) were mortgaged to lenders as security for loans. Under the security arrangements for the
Company‘s new Boeing 737-800 ―next generation‖ aircraft, the Company does not hold legal title to those
aircraft while these loan amounts remain outstanding.

161

At March 31, 2013, the cost and net book value of aircraft did not include any amount relating to
advance payments on aircraft (2012: €110.5 million; 2011: €194.2 million). Such amounts, where present, are
not depreciated. The cost and net book value also includes capitalised aircraft maintenance, aircraft simulators
and the stock of rotable spare parts.

The net book value of assets held under finance leases at March 31, 2013, 2012 and 2011 was €582.9

million, €607.5 million and €635.1 million respectively.

Intangible assets

2013
€M

At March 31,
2012
€M

2011
€M

Landing rights ........................................................................................................... 46.8

46.8

Landing slots were acquired with the acquisition of Buzz Stansted Limited in April 2003. As these
landing slots have no expiry date and are expected to be used in perpetuity, they are considered to be of
indefinite life and accordingly are not amortised. The Company also considers that there has been no
impairment of the value of these rights to date. The recoverable amount of these rights has been determined on a
value-in-use basis, using discounted cash-flow projections for a twenty-year period for each route that has an
individual landing right. The calculation of value-in-use is most sensitive to the operating margin and discount
rate assumptions. Operating margins are based on the existing margins generated from these routes and adjusted
for any known trading conditions. The trading environment is subject to both regulatory and competitive
pressures that can have a material effect on the operating performance of the business. Foreseeable events,
however, are unlikely to result in a change of projections of a significant nature so as to result in the landing
rights‘ carrying amounts exceeding their recoverable amounts. These projections have been discounted based on
the estimated discount rate applicable to the asset of 7.0% for 2013, 7.7% for 2012 and 7.3% for 2011.

Available-for-sale financial assets

2013
€M

At March 31,
2012
€M

2011
€M

Investment in Aer Lingus ......................................................................................... 221.2

149.7

114.0

As at March 31, 2013 Ryanair‘s total percentage shareholding in Aer Lingus was 29.8% (2012: 29.8%;
2011: 29.8%). The balance sheet value of €221.2 million (2012: €149.7 million; 2011: €114.0 million) reflects
the market value of this investment as at March 31, 2013. In accordance with the Company‘s accounting policy,
this asset is held at fair value with a corresponding adjustment to other comprehensive income following initial
acquisition. Any impairment losses that arise are recognised in the income statement and are not subsequently
reversed. Any cumulative loss previously recognised in other comprehensive income is transferred to the
income statement once an impairment is considered to have occurred.

The movement on the available for sale financial asset from €149.7 million at March 31, 2012 to
€221.2 million at March 31, 2013 is comprised of a gain of €71.5 million, recognised through other
comprehensive income, reflecting the increase in the share price of Aer Lingus from €0.94 per share at March
31, 2012 to approximately €1.39 per share at March 31, 2013. The investment in Aer Lingus has in prior
periods been impaired to €0.50 per share.

162

This investment is classified as available-for-sale, rather than as an investment in an associate, because
the Company does not have the power to exercise any influence over the entity. The Company's determination
that it does not have any influence over Aer Lingus through its minority shareholding has been based on the
following factors, in particular:

(i)

Ryanair does not have any representation on the Aer Lingus Board of Directors, nor does it

have a right to appoint a director;

(ii)

Ryanair does not participate in Aer Lingus‘ policy-making decisions, nor does it have a right

to participate in such policy-making decisions;

(iii)

There are no material transactions between Ryanair and Aer Lingus, there is no interchange of

personnel between the two companies and there is no sharing of technical information between the companies;

(iv)

Aer Lingus and its significant shareholder (the Irish government: 25.1%) have openly opposed

Ryanair‘s investment or participation in the company;

(v)

In August 2007, September 2007 and November/December 2011, Aer Lingus refused
Ryanair‘s attempt to assert its statutory right to requisition a general meeting (a legal right of any 10%
shareholder under Irish law).

(vi)

On April 15, 2011, the High Court in Dublin ruled that Aer Lingus was not obliged to accede
to Ryanair‘s request that two additional resolutions (on the payment of a dividend and on payments to pension
schemes) be put to vote at Aer Lingus‘ annual general meeting;

(vii)

The European Commission has formally found that Ryanair‘s shareholding in Aer Lingus
does not grant Ryanair ―de jure or de facto control of Aer Lingus‖ and that ―Ryanair‘s rights as a minority
shareholder are associated exclusively to rights related to the protection of minority shareholders‖ (Commission
Decision Case No. COMP/M.4439 dated October 11, 2007). The European Commission‘s finding has been
confirmed by the European Union's General Court which issued a decision on July 6, 2010 that the European
Commission was justified to use the required legal and factual standard in its refusal to order Ryanair to divest
its minority shareholding in Aer Lingus and that, as part of that decision, Ryanair‘s shareholding did not confer
control of Aer Lingus (Judgment of the General Court (Third Chamber) Case No. T-411/07 dated July 6, 2010);
and

(viii) On February 27, 2013 the European Commission prohibited Ryanair‘s bid made on June 19,
2012, to acquire the entire share capital of Aer Lingus on the claimed basis that it would be incompatible with
the EU internal market. Ryanair appealed this decision to the EU General Court on May 8, 2013. The judgment
of the EU General Court is expected within 18-24 months and may affirm or annul the decision of the European
Commission.

163

Derivative financial instruments

The Audit Committee of the Board of Directors has responsibility for monitoring the treasury policies
and objectives of the Company, which include controls over the procedures used to manage the main financial
risks arising from the Company‘s operations. Such risks comprise commodity price, foreign exchange and
interest rate risks. The Company uses financial instruments to manage exposures arising from these risks. These
instruments include borrowings, cash deposits and derivatives (principally jet fuel derivatives, interest rate
swaps, cross-currency interest rate swaps and forward foreign exchange contracts). It is the Company‘s policy
that no speculative trading in financial instruments takes place.

The Company‘s historical fuel risk management policy has been to hedge between 70% and 90% of the
forecast rolling annual volumes required to ensure that the future cost per gallon of fuel is locked in. This policy
was adopted to prevent the Company being exposed, in the short term, to adverse movements in global jet fuel
prices. However, when deemed to be in the best interests of the Company, it may deviate from this policy. At
March 31, 2013, the Company had hedged approximately 90% of its estimated fuel exposure for the year ending
March 31, 2014. At March 31, 2012, the Company had hedged approximately 90% of its estimated fuel
exposure for the year ending March 31, 2013. At March 31, 2011, the Company had hedged approximately 77%
of its estimated fuel exposure for the year ending March 31, 2012.

Foreign currency risk in relation to the Company‘s trading operations largely arises in relation to non-
euro currencies. These currencies are primarily U.K. pounds sterling and the U.S. dollar. The Company manages
this risk by matching U.K. pounds sterling revenues against U.K. pounds sterling costs. Surplus U.K. pounds
sterling revenues are sometimes used to fund forward foreign exchange contracts to hedge U.S. dollar currency
exposures that arise in relation to fuel, maintenance, aviation insurance, and capital expenditure costs and excess
U.K. pounds sterling are converted into euro. Additionally, the Company swaps euro for U.S. dollars using
forward currency contracts to cover any expected U.S. dollar outflows for these costs. From time to time, the
Company also swaps euro for U.K. pounds sterling using forward currency contracts to hedge expected future
surplus U.K. pounds sterling. From time to time the Company also enters into cross-currency interest rate swaps
to hedge against fluctuations in foreign exchange rates and interest rates in respect of U.S. dollar denominated
borrowings.

The Company‘s objective for interest rate risk management is to reduce interest-rate risk through a
combination of financial instruments, which lock in interest rates on debt and by matching a proportion of
floating rate assets with floating rate liabilities. In addition, the Company aims to achieve the best available
return on investments of surplus cash – subject to credit risk and liquidity constraints. Credit risk is managed by
limiting the aggregate amount and duration of exposure to any one counterparty based on third-party market-
based ratings. In line with the above interest rate risk management strategy, the Company has entered into a
series of interest rate swaps to hedge against fluctuations in interest rates for certain floating rate financial
arrangements and certain other obligations. The Company has also entered into floating rate financing for
certain aircraft, which is matched with floating rate deposits. Additionally, certain cash deposits have been set
aside as collateral for the counterparty‘s exposure to risk of fluctuations on certain derivative and other
financing arrangements with Ryanair (restricted cash). At March 31, 2013, such restricted cash amounted to
€24.7 million (2012: €35.1 million; 2011: €42.9 million). Additional numerical information on these swaps and
on other derivatives held by the Company is set out below and in Note 11 to the consolidated financial
statements.

The Company utilises a range of derivatives designed to mitigate these risks. All of the above
derivatives have been accounted for at fair value in the Company‘s balance sheet and have been utilised to
hedge against these particular risks arising in the normal course of the Company‘s business. All have been
designated as hedging derivatives for the purposes of IAS 39 and are fully set out below.

164

Derivative financial instruments, all of which have been recognised at fair value in the Company‘s

balance sheet, are analysed as follows:

2013
€M

At March 31,
2012
€M

2011
€M

Current assets
Gains on cash-flow hedging instruments – maturing within one year .................................................

78.1
78.1

Non-current assets
Gains on cash flow hedging instruments – maturing after one year .....................................................

5.1
5.1

231.9
231.9

3.3
3.3

383.8
383.8

23.9
23.9

Total derivative assets .......................................................................................................................

83.2

235.2

407.7

Current liabilities
Losses on cash flow hedging instruments – maturing within one year ................................................

(31.8)
(31.8)

Non-current liabilities
Losses on cash flow hedging instruments – maturing after one year ...................................................

Total derivative liabilities ..................................................................................................................

Net derivative financial instrument position at year-end ..............................................................

1.3

All of the above gains and losses were unrealised at the period-end.

The table above includes the following derivative arrangements:

(50.1)
(50.1)
(81.9)

(28.2)
(28.2)

(53.6)
(53.6)
(81.8)

153.4

(125.4)
(125.4)

(8.3)
(8.3)
(133.7)

274.0

Interest rate swaps (a)
Less than one year (b)...………………………………………………..…..
Between one and five years………………………………………………..
After five years…………………………………………………………….

Foreign currency forward contracts (a)
Less than one year………………………………………………………….
Between one and five years………………………………………………..
After five years…………………………………………………………….

Commodity forward contracts
Less than one year(c)……………………………………………………….

Net derivative position at year end………………………………………

Fair value
2013
€M

Fair value
2012
€M

Fair value
2011
€M

(31.8)
(49.9)
(0.2)
(81.9)

42.3
5.1
-
47.4

35.8
35.8
1.3

(26.7)
(53.8)
0.2
(80.3)

86.1
3.0
0.3
89.4

144.3
144.3
153.4

(61.7)
7.7
16.2
(37.8)

(63.7)
(8.2)
(0.1)
(72.0)

383.8
383.8
274.0

(a) Additional information in relation to the above interest rate swaps and forward currency contracts (i.e. notional value

and weighted average interest rates) can be found in Note 11 to the consolidated financial statements.

(b) €31.8 million interest rate swap financial liabilities falling due within one year, includes €5.2 million derivative
financial liabilities, falling due within one year, in respect of cross currency interest rate swaps (see Note 11 to the
consolidated financial statements).

(c) €35.8 million commodity forward contracts falling due within one year, includes €35.0 million jet fuel derivative
financial assets and €0.8 million carbon swap financial asset (see Note 11 of the consolidated financial statements).

165

Interest rate swaps are primarily used to convert a portion of the Company‘s floating rate exposures on
borrowings and operating leases into fixed rate exposures and are set so as to match exactly the critical terms of
the underlying debt or lease being hedged (i.e. notional principal, interest rate settings, re-pricing dates). These
are all classified as cash-flow hedges of the forecasted variable interest payments and rentals due on the
Company‘s underlying debt and operating leases and have been determined to be highly effective in achieving
offsetting cash flows. Accordingly, no ineffectiveness has been recorded in the income statement relating to
these hedges in the current and preceding years.

The Company also utilises cross currency interest rate swaps to manage exposures to fluctuations in
foreign exchange rates of 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. Cross
currency interest rate swaps are primarily used to convert a portion of the Company‘s U.S. dollar denominated
debt to euro and floating rate interest exposures into fixed rate exposures and are set so as to match exactly the
critical terms of the underlying debt being hedged (i.e. notional principal, interest rate settings, re-pricing dates).
These are all classified as cash-flow hedges of the forecasted U.S. dollar variable interest payments on the
Company‘s underlying debt and have been determined to be highly effective in achieving offsetting cash flows.
Accordingly, no ineffectiveness has been recorded in the income statement relating to these hedges in the
current year.

Foreign currency forward contracts are utilised in a number of ways: forecast U.K. pounds sterling and
euro revenue receipts are converted into U.S. dollars to hedge against forecasted U.S. dollar payments
principally for jet fuel, insurance, capital expenditure and other aircraft related costs. These are classified as
cash-flow hedges of forecasted U.S. dollar payments and have been determined to be highly effective in
offsetting variability in future cash flows arising from the fluctuation in the U.S. dollar to U.K. pounds sterling
and euro exchange rates for the forecasted U.S. dollar purchases. Because the timing of anticipated payments
and the settlement of the related derivatives is very closely coordinated, no ineffectiveness has been recorded for
these foreign currency forward contracts in the current or preceding years (the underlying hedged items and
hedging instruments have been consistently closely matched).

The Company also utilises jet fuel forward contracts to manage exposure to jet fuel prices. These are
used to hedge the Company‘s forecasted fuel purchases, and are arranged so as to match as closely as possible
against forecasted fuel delivery and payment requirements. These are classified as cash-flow hedges of
forecasted fuel payments and have been determined to be highly effective in offsetting variability in future cash
flows arising from fluctuations in jet fuel prices. No ineffectiveness has been recorded on these arrangements in
the current or preceding years.

The European Union Emissions Trading System (EU ETS) began operating for airlines on January 1,
2012. In order to manage the risks associated with the fluctuation in the price of carbon emission credits, the
Company entered into swap arrangements to fix the cost of a portion of its forecasted carbon emission credit
purchases. The Company can forecast its requirement for carbon credits as they are directly linked to its
consumption of jet fuel. These instruments have been classified as cash-flow hedges and no ineffectiveness has
been recorded in the current year.

The (gains)/losses on the aircraft firm commitments are recognised as part of the capitalised cost of
aircraft additions, within property, plant and equipment. The (gains)/losses on interest rate swaps, commodity
forward contracts and forward currency contracts (excluding aircraft firm commitments) are recognised in the
income statement when the hedged transaction occurs.

166

The following table indicates the amounts that were reclassified from other comprehensive income into
the income statement, analysed by income statement category, in respect of cash-flow hedges realised during the
year:

Year ended March 31,

2013
€M

2012
€M

2011
€M

Commodity forward contracts
Reclassification adjustments for (gains) recognised in fuel
(38.0)
and oil operating expenses, net of tax ..........................................................................
Interest rate swaps
Reclassification adjustments for losses recognised
in finance expense, net of tax ........................................................................................
25.9
Foreign currency forward contracts
Reclassification adjustments for (gains)/losses recognised in fuel
(2.3)
and oil operating expenses, net of tax ............................................................................
(14.4)

(284.2)

(39.5)

22.7

21.2

6.5
(255.0)

3.5
(14.8)

The following table indicates the amounts that were reclassified from other comprehensive income into
the capitalised cost of aircraft additions within property, plant and equipment, in respect of cash-flow hedges
realised during the year:

Year ended March 31,
2012
€M

2011
€M

2013
€M

Foreign currency forward contracts
4.7
Recognised in property plant and equipment – aircraft additions ..................................
4.7

(11.1)
(11.1)

(15.2)
(15.2)

The following tables indicate the periods in which cash flows associated with derivatives that are designated as
cash-flow hedges were expected to occur, as of March 31, 2013, 2012 and 2011:

Carrying
Amount
€M

Expected
Cash
Flows
€M

2014
€M

2015
€M

2016
€M

2017
€M

Thereafter
€M

At March 31, 2013
(81.9)
Interest rate swaps ......................................................................................................................
U.S. dollar currency forward
47.4
contracts ......................................................................................................................................
35.8
Commodity forward contracts ....................................................................................................
1.3

1.6
-
(20.4)

42.3
35.8
51.0

48.5
35.8
12.0

(27.1)

(72.3)

(22.0)

(14.6)

1.7
-
(12.9)

(7.3)

1.8
-
(5.5)

(1.3)

1.1
-
(0.2)

Carrying
Amount
€M

Expected
Cash
Flows
€M

2013
€M

2014
€M

2015
€M

2016
€M

Thereafter
€M

At March 31, 2012
Interest rate swaps ......................................................................................................................
(80.3)
U.S. dollar currency forward
89.4
contracts ......................................................................................................................................
144.3
Commodity forward contracts ....................................................................................................
153.4

0.9
-
(22.8)

86.0
144.3
207.6

90.1
144.3
163.9

(22.7)

(70.5)

(23.7)

(14.4)

0.9
-
(13.5)

(7.4)

0.9
-
(6.5)

(2.3)

1.4
-
(0.9)

167

Carrying
Amount
€M

Expected
Cash
Flows
€M

2012
€M

2013
€M

2014
€M

2015
€M

Thereafter
€M

At March 31, 2011
(37.8)
Interest rate swaps ......................................................................................................................
(72.0)
U.S. dollar currency forward
contracts ......................................................................................................................................
383.8
Commodity forward contracts ....................................................................................................
274.0

-
(18.1)

383.8
300.5

383.8
292.4

(19.6)
(63.7)

(18.7)
(72.7)

(9.5)
(8.6)

(1.6)
(0.1)

-
(1.7)

2.8
(0.1)

-
2.7

9.2
(0.2)

-
9.0

The following tables indicate the periods in which cash flows associated with derivatives designated as cash-
flow hedges were expected to impact profit or loss, as of March 31, 2013, 2012 and 2011:

Carrying
Amount
€M

Expected
Cash
flows
€M

2014
€M

2015
€M

2016
€M

2017
€M

Thereafter
€M

At March 31, 2013
Interest rate swaps ......................................................................................................................
U.S. dollar currency forward
47.4
contracts ......................................................................................................................................
35.8
Commodity forward contracts ....................................................................................................

42.3
35.8

48.5
35.8

1.6
-

(27.1)

(72.3)

(22.0)

(81.9)

(14.6)

1.7
-

1.3

12.0

51.0

(20.4)

(12.9)

(7.3)

1.8
-

(5.5)

(1.3)

1.1
-

(0.2)

Carrying
Amount
€M

Expected
Cash
flows
€M

2013
€M

2014
€M

2015
€M

2016
€M

Thereafter
€M

(80.3)

At March 31, 2012
Interest rate swaps ......................................................................................................................
U.S. dollar currency forward
contracts ......................................................................................................................................
82.5
U.S. dollar currency forward
contracts capitalised in property
plant and equipment – aircraft
6.9
additions .....................................................................................................................................
144.3
Commodity forward contracts ....................................................................................................

6.9
144.3

(22.7)

(23.7)

(70.5)

79.1

83.2

0.9

-
-

(14.4)

0.9

-
-

(7.4)

0.9

-
-

(2.3)

1.4

-
-

153.4

163.9

207.6

(22.8)

(13.5)

(6.5)

(0.9)

Carrying
Amount
€M

Expected
Cash
flows
€M

2012
€M

2013
€M

2014
€M

2015
€M

Thereafter
€M

(37.8)

At March 31, 2011
Interest rate swaps ......................................................................................................................
U.S. dollar currency forward
contracts ......................................................................................................................................
U.S. dollar currency forward
contracts capitalised in property
plant and equipment – aircraft
3.7
additions .....................................................................................................................................
383.8
Commodity forward contracts ....................................................................................................

(19.6)

(68.3)

(76.3)

(18.7)

(9.5)

(7.6)

(75.7)

3.6
383.8
292.4

4.6
383.8
300.5

(1.0)
-
(18.1)

274.0

(1.6)

(0.1)

-
-
(1.7)

2.8

(0.1)

-
-
2.7

9.2

(0.2)

-
-
9.0

168

Inventories

2013
€M

At March 31,
2012
€M

2011
€M

Consumables ............................................................................................................. 2.7

2.8

2.7

In the view of the directors, there are no material differences between the replacement cost of

inventories and the balance sheet amounts.

Other assets

Prepayments ............................................................................................................
Interest receivable ...................................................................................................

64.9
2.8
67.7

60.0
4.9
64.9

94.5
4.9
99.4

2013
€M

At March 31,
2012
€M

2011
€M

All amounts fall due within one year.

Trade receivables

2013
€M

At March 31,
2012
€M

2011
€M

Trade receivables .............................................................................................................. 56.2
(0.1)
Allowance for impairment ................................................................................................
56.1

51.6
(0.1)
51.5

50.7
(0.1)
50.6

All amounts fall due within one year.

There has been no change to the allowance for impairment during the year (2012:Nil; 2011:Nil). There

were no bad debt write-offs in the year (2012:Nil; 2011:Nil)

No individual customer accounted for more than 10% of our accounts receivable at March 31, 2013,

March 31, 2012 or at March 31, 2011.

At March 31, 2013 €1.1 million (2012: €1.0 million; 2011: €0.7 million) of our total accounts
receivable balance were past due, of which €0.1 million (2012: €0.1 million; 2011: €0.1 million) was impaired
and provided for and €1.0 million (2012: €0.9 million; 2011: €0.6 million) was considered past due but not
impaired.

169

Restricted cash

Restricted cash consists of €24.7 million (2012: €35.1 million; 2011: €42.9 million) placed on deposit
as collateral for certain derivative financial instruments and other financing arrangements entered into by the
Company.

Accrued expenses and other liabilities

2013
€M

At March 31,
2012
€M

Accruals .............................................................................................................................
431.6
Taxation .............................................................................................................................
251.5
658.3
Unearned revenue ..............................................................................................................
1,341.4

327.0
228.8
681.4
1,237.2

Taxation comprises:

2011
€M

273.2
185.2
765.9
1,224.3

2013
€M

At March 31,
2012
€M

2011
€M

PAYE (payroll taxes) ......................................................................................................... 5.2
246.3
Other tax (principally air passenger duty) ..........................................................................
251.5

5.1
223.7
228.8

5.3
179.9
185.2

Financial instruments and financial risk management

The Company utilises financial instruments to reduce exposures to market risks throughout its
business. Borrowings, cash and cash equivalents and liquid investments are used to finance the Company‘s
operations. Derivative financial instruments are contractual agreements with a value that reflects price
movements in an underlying asset. The Company uses derivative financial instruments, principally jet fuel
derivatives, interest rate swaps, cross-currency interest rate swaps and forward foreign exchange contracts to
manage commodity risks, interest rate risks and currency exposures and to achieve the desired profile of fixed
and variable rate borrowings and leases in appropriate currencies. It is the Company‘s policy that no speculative
trading in financial instruments shall take place.

The main risks attaching to the Company‘s financial instruments, the Company‘s strategy and approach
to managing these risks, and the details of the derivatives employed to hedge against these risks have been
disclosed in Note 5 to the consolidated financial statements.

170

(a)

Financial assets and financial liabilities – fair values

The carrying value and fair value of the Company‘s financial assets by class and measurement category

at March 31, 2013, 2012 and 2011 were as follows:

Available
For Sale
€M

Cash-Flow
Hedges
€M

Loans and
Receivables
€M

Total
Carrying
Value
€M

Total Fair
Value
€M

At March 31, 2013
Available-for-sale financial assets ..............................................................................................
-
Cash and cash equivalents ..........................................................................................................
1,240.9
Financial asset: cash > 3 months .................................................................................................
2,293.4
Restricted cash ............................................................................................................................
24.7
Derivative financial instruments:-
- U.S. dollar currency forward contracts .....................................................................................
-
- Jet fuel derivative contracts ......................................................................................................
-
- Carbon derivative contracts ......................................................................................................
-
56.1
Trade receivables ........................................................................................................................
2.8
Other Assets ................................................................................................................................

221.2
-
-
-

47.4
35.0
0.8
-
-

-
-
-
-
-

-
-
-
-

Total financial assets at March 31, 2013 .....................................................................................
3,617.9

221.2

83.2

221.2
1,240.9
2,293.4
24.7

47.4
35.0
0.8
56.1
2.8

3,922.3

Available
For Sale
€M

Cash-Flow
Hedges
€M

Loans and
Receivables
€M

Total
Carrying
Value
€M

Total Fair
Value
€M

At March 31, 2012
Available-for-sale financial assets ..............................................................................................
-
Cash and cash equivalents ..........................................................................................................
2,708.3
Financial asset: cash > 3 months .................................................................................................
772.2
35.1
Restricted cash ............................................................................................................................
Derivative financial instruments:-
- U.S. dollar currency forward contracts .....................................................................................
-
- Jet fuel derivative contracts ......................................................................................................
-
51.5
Trade receivables ........................................................................................................................
4.9
Other Assets ................................................................................................................................

149.7
-
-
-

89.4
145.8
-
-

-
-
-
-

Total financial assets at March 31, 2012 .....................................................................................
3,572.0

149.7

235.2

149.7
2,708.3
772.2
35.1

89.4
145.8
51.5
4.9

149.7
2,708.3
772.2
35.1

89.4
145.8
51.5
4.9

3,956.9

Available
For Sale

€M

Cash-Flow
Hedges

Loans and
Receivables

€M

Total
Carrying
Value

€M

Total Fair
Value

€M

At March 31, 2011
Available-for-sale financial assets ..............................................................................................
Cash and cash equivalents ..........................................................................................................
Financial asset: cash > 3 months .................................................................................................
Restricted cash ............................................................................................................................
Derivative financial instruments:-
- Jet fuel derivative contracts ......................................................................................................
- Interest rate swaps ....................................................................................................................
Trade receivables ........................................................................................................................
Other Assets ................................................................................................................................

-
2,028.3
869.4
42.9

114.0
-
-
-

383.8
23.9
-
-

-
-
50.6
4.9

-
-
-
-

Total financial assets at March 31, 2011 .....................................................................................

2,996.1

114.0

407.7

114.0
2,028.3
869.4
42.9

383.8
23.9
50.6
4.9

114.0
2,028.3
869.4
42.9

383.8
23.9
50.6
4.9

3,517.8

171

The carrying values and fair values of the Company‘s financial liabilities by class and category were as follows:

Liabilities at
Amortised
Cost
€M

Cash-Flow
Hedges
€M

Total
Carrying
Value
€M

Total Fair
Value
€M

At March 31, 2013
Long-term debt ...........................................................................................................................
3,498.3
Derivative financial instruments:-
81.9
-Interest rate swaps .................................................................................................................
Trade payables ............................................................................................................................
138.3
431.6
Accrued expenses .......................................................................................................................
4,150.1
Total financial liabilities at March 31, 2013 ...............................................................................

-
138.3
431.6
4,068.2

81.9
-
-
81.9

3,498.3

At March 31, 2012
Long-term debt ...........................................................................................................................
3,625.2
Derivative financial instruments:-
80.3
-Interest rate swaps .................................................................................................................
-Carbon swaps ........................................................................................................................
1.5
Trade payables ............................................................................................................................
181.2
327.0
Accrued expenses .......................................................................................................................
4,215.2
Total financial liabilities at March 31, 2012 ...............................................................................

-
-
181.2
327.0
4,133.4

80.3
1.5
-
-
81.8

3,625.2

At March 31, 2011
3,649.4
Long-term debt ...........................................................................................................................
Derivative financial instruments:-
-U.S. dollar currency forward contracts ..................................................................................
72.0
61.7
-Interest rate swaps .................................................................................................................
150.8
Trade payables ............................................................................................................................
273.2
Accrued expenses .......................................................................................................................
4,207.1
Total financial liabilities at March 31, 2011 ...............................................................................

-
-
150.8
273.2
4,073.4

72.0
61.7
-
-
133.7

3,649.4

3,555.7

81.9
138.3
431.6
4,207.5

3,665.4

80.3
1.5
181.2
327.0
4,255.4

3,621.1

72.0
61.7
150.8
273.2
4,178.8

Estimation of fair values

Fair value is the amount at which a financial instrument could be exchanged in an arm‘s length
transaction between informed and willing parties, other than as part of a forced liquidation sale. The following
methods and assumptions were used to estimate the fair value of each material class of the Company‘s financial
instruments:

Cash and liquid resources: Carrying amount approximates fair value due to the short-term nature of
these instruments. Cash and liquid resources comprise cash and cash equivalents, short-term investments and
restricted cash.

Fixed-rate long-term debt: The repayments which Ryanair is committed to make have been
discounted at the relevant market rates of interest applicable (including credit spreads) at March 31, 2013, 2012,
and 2011 to arrive at a fair value representing the amount payable to a third party to assume the obligations.

Derivatives – interest rate swaps: Discounted cash-flow analyses have been used to determine the
estimated amount Ryanair would receive or pay to terminate the contracts. Discounted cash-flow analyses are
based on forward interest rates.

Derivatives – currency forwards, aircraft fuel contracts and carbon swaps: A comparison of the
contracted rate to the market rate for contracts providing a similar risk management profile at March 31, 2013,
2012 and 2011 has been made.

172

The table below analyses financial instruments carried at fair value in the balance sheet categorised by the type
of valuation method used. The different valuation levels are defined as follows:

 Level 1: Inputs are based on unadjusted quoted prices in active markets for identical instruments.

 Level 2: Inputs are based on quoted prices for identical or similar instruments in markets that are not
active, quoted prices for similar instruments in active markets, and model-based valuation techniques for
which all significant assumptions are observable in the market or can be corroborated by observable
market data for substantially the full term of the asset or liability.

 Level 3: Inputs for the asset or liability are not based on observable market data.

Level 1
€M

Level 2
€M

Level 3
€M

Total
€M

At March 31, 2013
Assets measured at fair value
Available-for-sale financial asset .............................................................................
Cash-flow hedges – U.S. dollar currency forward contracts ....................................
Cash-flow hedges – jet fuel derivative contracts ......................................................
Cash-flow hedges –carbon derivative contracts .......................................................

221.2
-
-
-
221.2

Liabilities measured at fair value
Cash-flow hedges – interest rate swaps ....................................................................

-
-

-
47.4
35.0
0.8
83.2

(81.9)
(81.9)

-
-
-
-
-

-
-

221.2
47.4
35.0
0.8
304.4

(81.9)
(81.9)

During the year ended March 31, 2013, there were no transfers between Level 1 and Level 2 fair-value

measurements, and no transfers into or out of Level 3 fair-value measurement.

Level 1
€M

Level 2
€M

Level 3
€M

Total
€M

At March 31, 2012
Assets measured at fair value
Available-for-sale financial asset .............................................................................
Cash-flow hedges – U.S. dollar currency forward contracts ....................................
Cash-flow hedges – jet fuel derivative contracts ......................................................

149.7
-
-
149.7

Liabilities measured at fair value
Cash-flow hedges – interest rate swaps ....................................................................
Cash-flow hedges – carbon swaps............................................................................

-
-
-

-
89.4
145.8
235.2

(80.3)
(1.5)
(81.8)

-
-
-
-

-
-
-

149.7
89.4
145.8
384.9

(80.3)
(1.5)
(81.8)

During the year ended March 31, 2012, there were no transfers between Level 1 and Level 2 fair-value

measurements, and no transfers into or out of Level 3 fair-value measurement.

Level 1
€M

Level 2
€M

Level 3
€M

Total
€M

At March 31, 2011
Assets measured at fair value
Available-for-sale financial asset .............................................................................
Cash-flow hedges – jet fuel derivative contracts ......................................................
Cash-flow hedges – interest rate swaps ....................................................................

114.0
-
-
114.0

Liabilities measured at fair value
Cash-flow hedges – U.S. dollar currency forward contracts ....................................
Cash-flow hedges – interest rate swaps ....................................................................

-
-
-

-
383.8
23.9
407.7

(72.0)
(61.7)
(133.7)

-
-
-
-

-
-
-

114.0
383.8
23.9
521.7

(72.0)
(61.7)
(133.7)

During the year ended March 31, 2011, there were no transfers between Level 1 and Level 2 fair-value

measurements, and no transfers into or out of Level 3 fair-value measurement.

173

(b)

Commodity risk

The Company‘s exposure to price risk in this regard is primarily for jet fuel used in the normal course

of operations.

At the year-end, the Company had the following jet fuel and carbon arrangements in place:

Carbon swaps – fair value ........................................................................................
0.8
Jet fuel forward contracts – fair value ...................................................................... 35.0
35.8

2013
€M

At March 31,
2012
€M

(1.5)
145.8
144.3

2011
€M

-
383.8
383.8

All of the above commodity contracts mature within the year and are matched against highly probable

forecast commodity cash flows.

(c)

Maturity and interest rate risk profile of financial assets and financial liabilities

At March 31, 2013, the Company had total borrowings of €3,498.3 million (2012: €3,625.2 million;
2011: €3,649.4 million) from various financial institutions, provided primarily on the basis of guarantees
granted by the Export-Import Bank of the United States to finance the acquisition of 216 Boeing 737-800 ―next
generation‖ aircraft (2012:199; 2011:185). The guarantees are secured with a first fixed mortgage on the
delivered aircraft. The remaining long-term debt relates to 30 aircraft held under finance leases (2012: 30; 2011:
30), 6 aircraft financed by way of other commercial debt (2012: 6; 2011: 6) and aircraft simulators.

The maturity profile of the Company‘s financial liabilities (excluding aircraft provisions, trade

payables and accrued expenses) at March 31, 2013 was as follows:

Weighted
average
fixed rate
(%)

2.93%

3.88%

3.36%
2.81%

2014
€M

2015
€M

2016
€M

2017
€M

Thereafter
€M

Total
€M

87.9

90.9

94.0

97.0

353.7

723.5

171.4

174.1

152.9

140.9

654.0

1,293.3

259.3
-
259.3

265.0
40.7
305.7

246.9
-
246.9

237.9
-
237.9

1,007.7
261.1
1,268.8

2,016.8
301.8
2,318.6

258.6

264.0

242.7

233.0

1,013.9

2,012.2

(171.4)

(174.1)

(152.9)

(140.9)

(654.0)

(1,293.3)

0.65%
1.42%
0.95%

87.2
53.4
140.6
399.9

89.9
55.8
145.7
451.4

89.8
67.5
157.3
404.2

92.1
66.9
159.0
396.9

359.9
217.2
577.1
1,845.9

718.9
460.8
1,179.7
3,498.3

Fixed rate
Secured long term-debt...............
Debt swapped from floating to

fixed.........................................

Secured long-term debt after

swaps........................................
Finance leases............................
Total fixed rate debt....................

Floating rate
Secured long-term debt...............
Debt swapped from floating to

fixed.........................................

Secured long-term debt after

swaps........................................
Finance leases..............................
Total floating rate debt................
Total financial liabilities.............

All of the above debt maturing after 2017 will mature between fiscal 2017 and fiscal 2025.

174

The maturity profile of the Company‘s financial liabilities (excluding aircraft provisions, trade

payables and accrued expenses) at March 31, 2012 was as follows:

Weighted
average
fixed rate
(%)

2.94%

3.96%

3.59%
2.81%

2013
€M

2014
€M

2015
€M

2016
€M

Thereafter
€M

Total
€M

78.9

81.8

84.7

87.5

392.8

725.7

154.7

159.0

161.5

140.2

675.2

1,290.6

233.6
-
233.6

240.8
-
240.8

246.2
39.8
286.0

227.7
-
227.7

1,068.0
254.4
1,322.4

2,016.3
294.2
2,310.5

238.5

245.9

251.4

230.0

1,127.6

2,093.4

(154.7)

(159.0)

(161.5)

(140.2)

(675.2)

(1,290.6)

1.47%
2.43%
1.85%

83.8
51.0
134.8
368.4

86.9
53.4
140.3
381.1

89.9
55.8
145.7
431.7

89.8
67.5
157.3
385.0

452.4
284.2
736.6
2,059.0

802.8
511.9
1,314.7
3,625.2

Fixed rate
Secured long term-debt...............
Debt swapped from floating to

fixed.........................................

Secured long-term debt after

swaps........................................
Finance leases..............................
Total fixed rate debt....................

Floating rate
Secured long-term debt...............
Debt swapped from floating to

fixed.........................................

Secured long-term debt after

swaps........................................
Finance leases..............................
Total floating rate debt................
Total financial liabilities.............

All of the above debt maturing after 2016 will mature between 2016 and 2024.

The maturity profile of the Company‘s financial liabilities (excluding aircraft provisions, trade

payables and accrued expenses) at March 31, 2011 was as follows:

Weighted
average
fixed rate
(%)

3.03%

4.12%

3.81%
2.80%

2012
€M

2013
€M

2014
€M

2015
€M

Thereafter
€M

Total
€M

57.4

58.3

60.5

62.7

251.9

490.8

138.2

142.0

146.0

148.0

692.0

1,266.2

195.6
-
195.6

200.3
-
200.3

206.5
-
206.5

210.7
38.9
249.6

943.9
247.7
1,191.6

1,757.0
286.6
2,043.6

230.6

237.5

244.9

250.4

1,348.1

2,311.5

(138.2)

(142.0)

(146.0)

(148.0)

(692.0)

(1,266.2)

1.57%
2.39%
1.86%

92.4
48.7
141.1
336.7

95.5
51.0
146.5
346.8

98.9
53.4
152.3
358.8

102.4
55.8
158.2
407.8

656.1
351.6
1,007.7
2,199.3

1,045.3
560.5
1,605.8
3,649.4

Fixed rate
Secured long term-debt...............
Debt swapped from floating to

fixed.........................................

Secured long-term debt after

swaps........................................
Finance leases..............................
Total fixed rate debt....................

Floating rate
Secured long-term debt...............
Debt swapped from floating to

fixed.........................................

Secured long-term debt after

swaps........................................
Finance leases..............................
Total floating rate debt................
Total financial liabilities.............

All of the above debt maturing after 2015 will mature between 2015 and 2023.

175

The following provides an analysis of changes in borrowings during the year:

2013
€M

At March 31,
2012
€M

2011
€M

Balance at start of year ...................................................................................................... 3,625.2
Loans raised to finance aircraft acquisitions– denominated in euro .................................. 82.8
Loans raised to finance aircraft acquisitions– denominated in U.S. dollars ...................... 151.8
Repayments of amounts borrowed .................................................................................... (366.4)
Foreign exchange loss/(gain) on conversion of U.S. dollar loans ..................................... 4.9
Balance at end of year .................................................................................................... 3,498.3

Less than one year ............................................................................................................ 399.9
More than one year ........................................................................................................... 3,098.4
3,498.3

3,649.4
292.3
-
(329.7)
13.2
3,625.2

368.4
3,256.8
3,625.2

2,956.2
751.2
240.2
(280.7)
(17.5)
3,649.4

336.7
3,312.7
3,649.4

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
€M

Total
Contractual
Cash flows
€M

2014
€M

2015
€M

2016
€M

2017
€M

Thereafter
€M

At March 31, 2013
Long term debt and
finance leases:-
-Fixed rate debt
(excluding Swapped debt) ..
-Swapped to fixed rate
debt.....................................
- Fixed rate debt .................. 3.29%
- Floating rate debt.............. 0.95%

Derivative financial
instruments:-
-Interest rate swaps .........
Trade payables ....................
Accrued expenses ...............

Total at March 31, 2013 .....

1,025.3

1,293.3
2,318.6
1,179.7
3,498.3

81.9
138.3
431.6
4,150.1

1,131.3

105.9

107.1

148.9

109.3

660.1

1,329.2
2,460.5
1,226.3
3,686.8

72.3
138.3
431.6
4,329.0

182.1
288.0
154.8
442.8

27.1
138.3
431.6
1,039.8

180.6
287.7
156.7
444.4

22.0
-
-
466.4

156.2
305.1
166.1
471.2

14.6
-
-
485.8

141.8
251.1
166.6
417.7

7.3
-
-
425.0

668.5
1,328.6
582.1
1,910.7

1.3
-
-
1,912.0

Total
Carrying
Value
€M

Total
Contractual
Cash flows
€M

2013
€M

2014
€M

2015
€M

2016
€M

Thereafter
€M

At March 31, 2012
Long term debt and
finance leases:-
-Fixed rate debt
(excluding Swapped debt) ..
-Swapped to fixed rate
debt.....................................
- Fixed rate debt .................. 3.49%
- Floating rate debt.............. 1.85%

Derivative financial
instruments:-
-Interest rate swaps..........
-Carbon swaps .................
Trade payables ....................
Accrued expenses ...............

Total at March 31, 2012 .....

1,019.9

1,290.6
2,310.5
1,314.7
3,625.2

80.3
1.5
181.2
327.0
4,215.2

1,133.9

98.9

99.9

140.7

101.8

692.6

170.2
269.1
158.3
427.4

22.7
1.5
181.2
327.0
959.8

170.6
270.5
161.3
431.8

23.7
-
-
-
455.5

168.7
309.4
164.4
473.8

14.4
-
-
-
488.2

143.7
245.5
173.3
418.8

7.4
-
-
-
426.2

676.2
1,368.8
779.6
2,148.4

2.3
-
-
-
2,150.7

1,329.4
2,463.3
1,436.9
3,900.2

70.5
1.5
181.2
327.0
4,480.4

176

Total
Carrying
Value
€M

Total
Contractual
Cash flows
€M

2012
€M

2013
€M

2014
€M

2015
€M

Thereafter
€M

At March 31, 2011
Long term debt and
finance leases:-
- Fixed rate debt .................. 3.67%
- Floating rate debt.............. 1.86%

Derivative financial
instruments:-
-U.S dollar currency
forward contracts ................
-Interest rate swaps ..........
Trade payables ....................
Accrued expenses ...............

Total at March 31, 2011 .....

Interest rate re-pricing

2,043.6
1,605.8
3,649.4

72.0
37.8
150.8
273.2
4,183.2

2,237.8
1,747.6
3,985.4

237.0
170.0
407.0

235.8
173.2
409.0

236.0
176.3
412.3

273.0
179.4
452.4

1,256.0
1,048.7
2,304.7

72.7
18.7
150.8
273.2
4,500.8

63.7
19.6
150.8
273.2
914.3

8.6
9.5
-
-
427.1

0.1
1.6
-
-
414.0

0.1
(2.8)
-
-
449.7

0.2
(9.2)
-
-
2,295.7

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,
2013, 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 0.39% (2012: 1.07%; 2011: 0.97%).

March 31, 2013

March 31, 2012

March 31, 2011

Financial assets

Within
1 year
€M

Total
€M

Within
1 year
€M

Total
€M

Cash and cash equivalents ................................................................................................
Cash > 3 months ...............................................................................................................
Restricted cash ..................................................................................................................
Total financial assets .........................................................................................................

2,708.3
772.2
35.1
3,515.6

1,240.9
2,293.4
24.7
3,559.0

2,708.3
772.2
35.1
3,515.6

Within
1 year
€M

2,028.3
869.4
42.9
2,940.6

Total
€M

2,028.3
869.4
42.9
2,940.6

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.

177

The following table shows the net amount of monetary assets of the Company that are not denominated
in euro at March 31, 2013, 2012 and 2011. Such amounts have been translated using the following year-end
foreign currency rates in 2013: €/£: 0.8456; €/$: 1.2805 (2012: €/£: 0.8339 ; €/$: 1.3356, 2011: €/£: 0.8837; €/$:
1.4207).

March 31, 2013

March 31, 2012

March 31, 2011

GBP U.S.$
$M
£M

euro
equiv.
€M

GBP
£M

U.S.$
$M

euro
equiv. GBP U.S.$
$M
£M

€M

euro
equiv.
€M

Monetary assets
U.K. pounds sterling cash and liquid
resources ............................................................
73.6
U.S. Dollar cash and liquid
resources ............................................................ -
73.6

87.1

38.9

206.9
206.9

161.6
248.7

-
38.9

-
-

46.7

33.8

-
46.7

-
33.8

-
-

38.2

-
38.2

The following table shows the net amount of monetary liabilities of the Company that are not
denominated in euro at March 31, 2013, 2012 and 2011. Such amounts have been translated using the following
year-end foreign currency rates in 2013: €/$: 1.2805.

March 31, 2013
euro
equiv.
€M

U.S.$
$M

March 31, 2012
euro
equiv.
€M

U.S.$
$M

March 31, 2011
euro
equiv.
€M

U.S.$
$M

Monetary liabilities

U.S dollar long term debt ...................................

450.0
450.0

351.4
351.4

282.8
282.8

211.7
211.7

341.3
341.3

240.2
240.2

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, 2013 was €5.2
million, (2012: €7.4 million; 2011: €7.9 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, 2013, 2012 and 2011:

Currency forward contracts

March 31, 2013

March 31, 2012

March 31, 2011

U.S.$
$M

euro
equiv.
€M

U.S.$
$M

euro
equiv.
€M

U.S.$
$M

euro
equiv.
€M

U.S. dollar currency forward
contracts
2,417.8
- for fuel and other purchases ............................................................................................
-
- for aircraft purchases ......................................................................................................
2,417.8

1,836.2
-
1,836.2

2,657.0
191.7
2,848.7

1,907.9
136.9
2,044.8

2,552.6
584.2
3,136.8

1,887.2
410.8
2,298.0

Currency forward contracts

March 31, 2013

March 31, 2012

March 31, 2011

Stg £
£M

euro
equiv.
€M

Stg £
£M

euro
equiv.
€M

Stg £
£M

euro
equiv.
€M

U.K pounds sterling currency
forward contracts ..............................................................................................................

-
-

10.0
10.0

12.0
12.0

-
-

178

(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, 2013, €1.1 million (2012: €1.0 million; 2011: €0.7 million) of our total accounts
receivable balance were past due, of which €0.1 million (2012: €0.1 million; 2011: €0.1 million) was impaired
and provided for and €1.0 million (2012: €0.9 million; 2011: €0.6 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 and bank loans for the acquisition of aircraft. The Company had cash and liquid resources at March
31, 2013 of €3,559.0 million (2012: €3,515.6 million; 2011: €2,940.6 million). During the year, the Company
funded €310.7 million in purchases of property, plant and equipment (2012: €317.6 million; 2011: €897.2
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.

179

(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, 2013, a plus or minus one-percentage-point movement in
interest rates would result in a respective increase or decrease of €18.3 million (net of tax) in net interest income
and expense in the income statement (2012: €18.3 million; 2011: €10.9 million) and €28.8 million in equity. 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,
2013 would have a respective positive or negative impact on the income statement of €2.6 million (net of tax)
(2012: €1.8 million; 2011: €3.7 million) and on equity of €183.1 million (net of tax) (2012: €176.3 million;
2011: €201.1 million).

(iii)

Equity price risk: An increase/decrease of 10% in the Aer Lingus share price as of March 31,
2013 would result in an increase/decrease of €22.1 million in the fair value of the available-for-sale financial
assets (2012: €15.0 million; 2011: €11.4 million). The increase/decrease would be recognised in other
comprehensive income.

Deferred and current taxation

The components of the deferred and current taxation in the balance sheet are as follows:

2013
€M

At March 31,
2012
€M

2011
€M

Current tax liabilities/(assets)
Corporation tax provision/(prepayment) .......................................................................... 0.3
Total current tax liabilities/(assets) .................................................................................. 0.3

Deferred tax liabilities
Origination and reversal of temporary differences on property, plant and
equipment, derivatives, pensions and available-for-sale securities ................................ 346.5
Total deferred tax liabilities ............................................................................................ 346.5

Deferred tax (assets)
Net operating losses ........................................................................................................
Total deferred tax assets .................................................................................................

-
-

Total deferred tax liabilities (net) ................................................................................ 346.5

Total tax liabilities (net) ................................................................................................ 346.8

(9.3)
(9.3)

324.4
324.4

(5.0)
(5.0)

319.4

310.1

(0.5)
(0.5)

299.1
299.1

(31.4)
(31.4)

267.7

267.2

2013
€M

At March 31,
2012
€M

2011
€M

Reconciliation of current tax

At beginning of year ..................................................................................................... (9.3)
Corporation tax charge in year ..................................................................................... 34.1
Adjustment in respect of prior-year under/(over)provision ......................................... 1.3
Tax paid ........................................................................................................................ (25.8)
At end of year ............................................................................................................... 0.3

(0.5)
4.9
(0.1)
(13.6)
(9.3)

0.9
4.4
-
(5.8)
(0.5)

180

2013
€M

At March 31,
2012
€M

2011
€M

Reconciliation of deferred tax

At beginning of year .................................................................................................... 319.4
Release of deferred tax asset for prior-year net operating losses ................................. 5.0
New temporary differences on property, plant and equipment,
derivatives, pensions and other items .......................................................................... 22.1
At end of year .............................................................................................................. 346.5

267.7
26.4

25.3
319.4

199.6
(1.9)

70.0
267.7

As at March 31, 2013, a deferred tax asset of €nil million was recognised in respect of net operating

losses incurred and available to carry forward to future periods (2012: €5 million; 2011: €31.4 million).

The charge in the year to March 31, 2013 consisted of temporary differences of a charge of €41.3
million for property, plant and equipment recognised in the income statement, a credit of €19.0 million for
derivatives and a credit of €0.2 million for pensions, both recognised in other comprehensive income. New
temporary differences arising in the year to March 31, 2012 consisted of temporary differences of a charge of
€41.4 million for property, plant and equipment recognised in the income statement, a credit of €15.2 million for
derivatives and a credit of €0.9 million for pensions, both recognised in other comprehensive income. The
charge in the year to March 31, 2011 consisted of temporary differences of a charge of €43.7 million for
property, plant and equipment recognised in the income statement, a charge of €25.6 million for derivatives and
a charge of €0.7 million for pensions, both recognised in other comprehensive income.

The components of the tax expense in the income statement were as follows:

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Corporation tax charge in year ....................................................................................... 35.4
Deferred tax charge relating to origination and reversal of

temporary differences ............................................................................................ 46.2
81.6

4.9

67.7
72.6

4.4

41.8
46.3

The following table reconciles the statutory rate of Irish corporation tax to the Company‘s effective

corporation tax rate:

Year ended
March 31,
2013
%

Year ended
March 31,
2012
%

Year ended
March 31,
2011
%

Statutory rate of Irish corporation tax ............................................................................ 12.5
Adjustments for earnings taxed at higher rates .............................................................. 0.1
Adjustments for earnings taxed at lower rates ............................................................... (0.7)
Other differences ........................................................................................................... 0.6
Total effective rate of taxation ....................................................................................... 12.5

12.5
0.2
(1.1)
(0.1)
11.5

12.5
0.2
(0.9)
(0.8)
11.0

181

Deferred tax applicable to items charged or credited to other comprehensive income were as follows:

2013
€M

At March 31,
2012
€M

2011
€M

Defined benefit pension obligations .............................................................................. (0.2)
Derivative financial instruments .................................................................................... (19.0)
Total tax charge in other comprehensive income ........................................................... (19.2)

(0.9)
(15.2)
(16.1)

0.7
25.6
26.3

The majority of current and deferred tax recorded in each of fiscal 2013, 2012 and 2011 relates to
domestic tax charges and there is no expiry date associated with these temporary differences. In fiscal 2013, the
Irish corporation tax rate remained at 12.5%.

The principal components of deferred tax at each year-end were:

2013
€M

At March 31,
2012
€M

2011
€M

Arising on capital allowances and other temporary differences............................... 348.2
-
Arising on net operating losses carried forward.......................................................
-
Arising on derivatives ..............................................................................................
Arising on pension ................................................................................................... (1.7)
Total......................................................................................................................... 346.5

306.9
(5.0)
19.0
(1.5)
319.4

265.5
(31.4)
34.2
(0.6)
267.7

At March 31, 2013, 2012 and 2011, the Company recognised all required deferred tax assets and
liabilities. There are no taxable temporary differences arising in overseas subsidiaries and, on that basis, 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.

Provisions

122.4
Provision for aircraft maintenance on operating leased aircraft (a) ..............................
Provision for pension obligation (b) ............................................................................. 13.5
135.9

2013
€M

(a) Provision for aircraft maintenance on operating leased aircraft

At beginning of year ..................................................................................................... 91.3
Increase in provision during the year ............................................................................ 41.9
(10.8)
Utilisation of provision upon the hand-back of aircraft ................................................
At end of year ...............................................................................................................
122.4

2013
€M

At March 31,
2012
€M

91.3
11.9
103.2

At March 31,
2012
€M

84.7
33.1
(26.5)
91.3

2011
€M

84.7
4.9
89.6

2011
€M

92.6
31.3
(39.2)
84.7

During the 2013 fiscal year, the Company returned 4 aircraft held under operating lease to the lessors.

182

The expected timing of the outflows of economic benefits associated with the provision at March 31, 2013, 2012
and 2011 are as follows:

At March 31, 2013
Provision for leased aircraft
maintenance

At March 31, 2012
Provision for leased aircraft
maintenance

At March 31, 2011
Provision for leased aircraft
maintenance

Carrying
Value
€M

2014
€M

2015
€M

2016
€M

2017
€M

Thereafter
€M

122.4

52.0

10.4

20.7

23.3

16.0

Carrying
Value
€M

2013
€M

2014
€M

2015
€M

2016
€M

Thereafter
€M

91.3

4.3

44.3

8.0

14.9

19.8

Carrying
Value
€M

2012
€M

2013
€M

2014
€M

2015
€M

Thereafter
€M

84.7

10.8

13.4

30.5

10.4

19.6

2013
€M

At March 31,
2012
€M

2011
€M

b) Provision for pension obligation

At beginning of year ...................................................................................................... 11.9
Movement during the year ............................................................................................. 1.6
At end of year ................................................................................................................ 13.5

4.9
7.0
11.9

10.3
(5.4)
4.9

The present value of the net pension obligation before tax is €13.5 million (2012: €11.9 million; 2011: €4.9
million) in Ryanair Limited. See Note 21 to the consolidated financial statements for further details.

Other creditors

This consists of deferred gains arising from the sale and leaseback of aircraft. During fiscal year 2013,
Ryanair returned 4 sale-and-leaseback aircraft and entered into sale-and-leaseback arrangements for 4 (2012: 11;
2011: 6) new Boeing 737-800 ―next generation‖ aircraft, bringing total sale-and-leaseback aircraft to 59 as at
March 31, 2013.

(a)

Issued share capital, share premium account and share options

Share capital

2013
€M

At March 31,
2012
€M

2011
€M

Authorised:

1,680,000,000 ordinary equity shares of 0.635 euro cent each ...................................... 0
10.7

10.7

Allotted, called-up and fully paid:

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 ........................................... -
1,489,574,915 ordinary equity shares of 0.635 euro cent each ........................................... -

-
9.3
-

-
-
9.5

183

The movement in the share capital balance year on year principally relates to 6.5 million (2012: 2.5
million; 2011: 10.6 million) new shares issued due to the exercise of share options, less the cancellation of 15.0
million shares relating to share buy-backs (2012: 36.5 million; 2011: nil).

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

2013
€M

At March 31,
2012
€M

2011
€M

Balance at beginning of year ..............................................................................................
666.4
Share premium arising from the exercise of 6.5 million options in
fiscal 2013, 2.5 million options in fiscal 2012 and 10.6 million options
in fiscal 2011 ..................................................................................................................... 21.4
687.8
Balance at end of year ........................................................................................................

659.3

631.9

7.1
666.4

27.4
659.3

(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. These share options schemes are cash settled.

Details of the share options outstanding are set out below:

Share Options

Weighted
Average
Exercise Price

Outstanding at March 31, 2010 ......................................................................................
Exercised .......................................................................................................................
Expired ..........................................................................................................................
Forfeited ........................................................................................................................
Outstanding at March 31, 2011 ......................................................................................
Exercised .......................................................................................................................
Expired ..........................................................................................................................
Forfeited ........................................................................................................................
Outstanding at March 31, 2012 ......................................................................................
Exercised .......................................................................................................................
Outstanding at March 31, 2013 ......................................................................................

35.8
(10.6)
(1.8)
(0.0)
23.4
(2.5)
(0.8)
(2.1)
18.0
(6.5)
11.5

€3.00
€2.58
€4.13
€3.77
€3.07
€2.81
€3.40
€3.08
€3.11
€3.32
€2.97

The mid-market price of Ryanair Holdings plc‘s ordinary shares on the Irish Stock Exchange at March
31, 2013 was €5.95 (2012: €4.48; 2011: €3.36). The highest and lowest prices at which the Company‘s shares
traded on the Irish Stock Exchange in the 2013 fiscal year were €6.16 and €3.83, respectively (2012: €4.48 and
€2.82, respectively; 2011: €4.20 and €2.78, respectively). There were 2.1 million options exercisable at March
31, 2013 (2012: 6.2 million; 2011: 12.9 million). The average share price for the year was €4.65 (2012: €3.58;
2011: €3.60).

The weighted average share price (as of the dates of exercises) for all options exercised during the 2013

fiscal year was €4.94 (2012: €3.69; 2011: €3.72).

184

At March 31, 2013 the range of exercise prices and weighted average remaining contractual life of

outstanding and exercisable options was as follows:

Options outstanding

Options exercisable

Number
outstanding

11.5

Weighted-
average
remaining
contractual life
(years)

Weighted-
average
exercise
price (€)

2.27

2.97

Number
exercisable

2.1

Weighted-
average
remaining
contractual life
(years)

Weighted-
average
exercise
price (€)

1.24

4.86

Range of
exercise
price (€)

2.56-4.96

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 €1.9 million to
the income statement (2012: €0.7 million credit; 2011: €3.3 million charge) being recognised within the income
statement in accordance with employee services rendered.

There were no share options granted during the years ended March 31, 2011, 2012 and 2013.

16 Other equity reserve

The total share based payments reserve at March 31, 2013 was €14.2 million (2012: €21.6 million;
2011: €25.3 million). The available-for-sale financial asset reserve at March 31, 2013 was €141.5 million (2012:
€70.0 million; 2011: €34.3 million). The total cash-flow hedge reserve amounted to €0.5 million at March 31,
2013 (2012: €138.6 million; 2011: €257.4 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 Icelandic volcanic ash related costs.

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.

185

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
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

External revenues ................................................................................................ 4,884.0

4,390.2

3,629.5

Reportable segment adjusted profit after income tax ....................................... 569.3

502.6

400.7

Other segment information:
Depreciation .......................................................................................................... (329.6)
Finance income ...................................................................................................... 27.4
Finance expense ..................................................................................................... (99.3)
Capital expenditure ................................................................................................ (310.7)

(309.2)
44.3
(109.2)
(317.6)

(277.7)
27.2
(93.9)
(897.2)

At March 31,
2013
€M

At March 31,
2012
€M

At March 31,
2011
€M

Reportable segment assets (i)................................................................................. 8,721.8
(i) Excludes the available-for-sale financial asset.

8,851.3

8,482.0

Reconciliation of reportable segment profit or loss to consolidated profit after income tax is as follows:

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Total adjusted profit for reportable segment .......................................................... 569.3
Other items of profit or loss:
One-off revenue adjustment (a) .............................................................................
Icelandic volcanic ash related cost (b) ...................................................................
Consolidated profit after income tax .................................................

-
-
569.3

502.6

57.8
-
560.4

400.7

-
(26.1)
374.6

(a)

(b)

The exceptional item in the prior year, fiscal year 2012, relates to a one-off release of ticket sales revenue of
€57.8 million, net of tax, due to a change in accounting estimates relating to the timing of revenue recognition
for unused passenger tickets which was made as a result of the availability of more accurate and timely data
obtained through system enhancements.

Icelandic volcanic ash related costs of €26.1 million reflect the estimated costs relating to the closure of airspace
in April and May 2010 due to the Icelandic volcanic ash disruptions. The closure of European airspace in April
and May 2010, due to the Icelandic volcanic ash disruption, resulted in the cancellation of 9,400 Ryanair flights.
The impact on the Group‘s operating results totaled €29.7 million, (before associated tax of €3.6 million) for the
year ended March 31, 2011, comprising €15.6 million of operating expenses and €1.7 million of finance
expenses attributable to the period of flight disruption, together with estimated passenger compensation costs of
€12.4 million pursuant to Regulation (EC) No. 261/2004 (‗EU261‘). The Company‘s estimate of total passenger
compensation costs has been determined based on actual claims received and processed to date together with
probable future compensation payments and other related costs.

186

Entity-wide disclosures:

Revenue is analysed by geographical area (by country of origin) as follows:

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Ireland .................................................................................................................... 471.3
United Kingdom .................................................................................................... 1,227.1
Other European countries ...................................................................................... 3,185.6
4,884.0

387.2
1,054.6
2,948.4
4,390.2

375.1
965.0
2,289.4
3,629.5

Ancillary revenues included in total revenue above comprise:

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Non-flight scheduled.............................................................................................. 832.9
In-flight .................................................................................................................. 109.8
Internet income ...................................................................................................... 121.5
1,064.2

677.4
106.7
102.1
886.2

603.4
102.1
96.1
801.6

Non-flight scheduled revenue arises from the sale of rail and bus tickets, hotel reservations, car hire
and other sources, including excess baggage charges and administration fees, all directly attributable to the low-
fares business.

All of the Company‘s operating profit arises from low-fares airline-related activities, its only business
segment. The major revenue earning assets of the Company are its aircraft, which are registered in Ireland and
therefore profits accrue principally in Ireland. Since the Company‘s aircraft fleet is flexibly employed across its
route network in Europe, there is no suitable basis of allocating such assets and related liabilities to geographical
segments.

18 Staff numbers and costs

The average weekly number of staff, including the executive director, during the year, analysed by

category, was as follows:

Flight and cabin crew....................................................................................... 8,280
Sales, operations, management and administration ......................................... 779
9,059

7,656
782
8,438

7,239
824
8,063

Year ended
March 31,
2013

Year ended
March 31,
2012

Year ended
March 31,
2011

At March 31, 2013 the company had a team of 9,137 people (2012: 8,388; 2011: 8,560).

187

The aggregate payroll costs of these persons were as follows:

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Staff and related costs .................................................................................................................
Social welfare costs ....................................................................................................................
Other pension costs (a) ...............................................................................................................
Share based payments (b) ...........................................................................................................

412.3
18.4
2.9
2.0
435.6

395.0
18.1
2.6
(0.7)
415.0

352.0
18.1
2.7
3.3
376.1

____________________________
(a) Costs in respect of defined-contribution benefit plans and other pension arrangements were €2.1 million in
2013 (2012: €1.9 million; 2011: €1.7 million) while costs associated with defined-benefit plans included
here were €0.8 million in 2013 (2012: €0.7 million; 2011: €1.0 million). (See Note 21 to the consolidated
financial statements).

(b) The net credit to the income statement in the prior year of approximately €0.7 million comprises a €2.5
million reversal of previously recognised share-based compensation expense for awards that did not vest,
offset by a charge of €1.8 million for the fair value of various share options granted in prior periods, which
are being recognised in the income statement in accordance with employee services rendered.

19 Statutory and other information

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Directors‟ emoluments:
-Fees .............................................................................................................................. 0.3
-Other emoluments, including bonus and pension contributions ................................... 1.3
Total directors‘ emoluments .......................................................................................... 1.6

Auditor‟s remuneration:
- Audit services (i) ......................................................................................................... 0.5
-
- Audit-related services (ii) ............................................................................................
- Tax advisory services (iii) ........................................................................................... 0.3
Total fees ....................................................................................................................... 0.8

Included within the above total fees, the following fees were payable to
other KPMG firms outside of Ireland:
Audit services ................................................................................................................
-
Tax services ................................................................................................................... 0.2
Total fees ....................................................................................................................... 0.2

Depreciation of owned property, plant and equipment .................................................. 311.2
Depreciation of property, plant and equipment held under finance leases ..................... 18.4
Operating lease charges, principally for aircraft ............................................................ 98.2

______________

0.3
1.3
1.6

0.4
-
0.4
0.8

-
0.3
0.3

294.3
14.9
90.7

0.3
1.1
1.4

0.4
-
0.4
0.8

-
0.3
0.3

260.5
17.2
97.2

(i) Audit services comprise audit work performed on the consolidated financial statements. In 2013, €1,000, (2012: €1,000;

2011: €1,000) of audit fees relate to the audit of the parent company.

(ii) Audit-related services are for assurance and related services that are traditionally performed by the independent auditor,
including statutory audits, interim reviews, employee benefit plan audits, and special procedures required to meet
certain regulatory requirements.

(iii) Tax services include all services, except those services specifically related to the audit of financial statements,
performed by the independent auditor‘s tax personnel, supporting tax-related regulatory requirements, and tax
compliance and reporting.

188

(a) Fees and emoluments - executive director

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Basic salary .................................................................................................................... 0.8
Bonus (performance and target-related) ......................................................................... 0.5
-
Pension contributions .....................................................................................................
1.3

0.8
0.5
-
1.3

0.6
0.4
0.1
1.1

During the years ended March 31, 2013, 2012, and 2011 Michael O‘Leary was the only executive

director.

(b) Fees and emoluments – non-executive directors

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Fees
Emmanuel Faber (i) .......................................................................................................
-
Michael Horgan ............................................................................................................. 0.03
Klaus Kirchberger (ii) .................................................................................................... 0.04
Charles McCreevy ......................................................................................................... 0.05
Declan McKeon ............................................................................................................. 0.05
Kyran McLaughlin ......................................................................................................... 0.05
Julie O‘Neill (iii)............................................................................................................ 0.01
James Osborne ............................................................................................................... 0.05
Louise Phelan (iv) .......................................................................................................... 0.01
Paolo Pietrogrande (v) ................................................................................................... 0.02
0.31

Emoluments
Michael Horgan ............................................................................................................. 0.04
0.35

(i)
(ii)
(iii)
(iv)
(v)

Emmanuel Faber resigned on September 22, 2010
Klaus Kirchberger resigned on March 31, 2013
Julie O‘Neill joined the Board on December 13, 2012
Louise Phelan joined the Board on December 13, 2012
Paolo Pietrogrande resigned on September 21, 2012

-
0.03
0.03
0.05
0.05
0.05
-
0.05
-
0.03
0.29

0.04
0.33

0.01
0.03
0.03
0.04
0.04
0.05
-
0.05
-
0.03
0.28

0.04
0.32

Director

Increase in
Accrued Benefit
Fiscal
2012
€M

Fiscal
2011
€M

Fiscal
2013
€M

Transfer Value
Equivalent of Increase in
Accrued Benefit
Fiscal
2012
€M

Fiscal
2013
€M

Fiscal
2011
€M

Total Accumulated
Accrued Benefit
Fiscal
2012
€M

Fiscal
2013
€M

Fiscal
2011
€M

Michael O‘Leary ............... 0.0

0.0

0.1

Defined Contribution Plan: Company Contributions Paid

Director

Year ended
March 31,
2013
€

Year ended
March 31,
2012
€

Year ended
March 31,
2011
€

Michael O‘Leary ............................................................................................................

68,425

189

As of October 1, 2008, Michael O‘Leary is no longer an active member of a Company defined-benefit
plan. Michael O‘Leary is now a member of a defined-contribution plan. The cost of the death-in-service and
disability benefits provided during the accounting year is not included in the above figures. No pension benefits
are provided for non-executive directors. The pension benefits set out above have been computed in accordance
with Section 6.8 of the Listing Rules of the Irish Stock Exchange. The increases in transfer values of the accrued
benefits have been calculated as at the year-end in accordance with version 1.1 of Actuarial Standard of Practice
PEN-11.

(d) Shares and share options

(i) Shares

Ryanair Holdings plc is listed on the Irish, London and NASDAQ stock exchanges.

The beneficial interests as at March 31, 2013, 2012 and 2011 of the directors in office at March 31,

2013 and of their spouses and dependent children in the share capital of the Company are as follows:

No. of Shares at March 31,
2012

2011

2013

David Bonderman ......................................................................................................
Michael Horgan .........................................................................................................
Kyran McLaughlin .....................................................................................................
Michael O‘Leary ........................................................................................................
James Osborne ...........................................................................................................

9,230,671
50,000
200,000
51,081,256
310,256

9,230,671
50,000
200,000
51,081,256
510,256

13,230,671
50,000
200,000
55,081,256
1,010,256

(ii) Share options

The share options held by each director in office at the end of fiscal 2013 were as follows:

No. of Options at March 31,
2012

2013

2011

David Bonderman ...................................................................................................................
Michael Horgan ......................................................................................................................
Kyran McLaughlin ..................................................................................................................
James Osborne ........................................................................................................................

25,000
25,000
25,000
25,000

These options were granted to these directors at an exercise price of €4.96 (the market value at the date of grant) during the
2008 fiscal year and are exercisable between June 2012 and June 2014.

Directors not referred to above held no shares or share options.

In the 2013 fiscal year the Company incurred total share-based compensation expense of €0.01 million

(2012: €0.1 million; 2011: €0.05 million) in relation to directors.

20 Finance expense

Interest payable on bank loans wholly repayable after five years ............................ 99.1
Interest arising on pension liabilities, net (see Note 21) .......................................... 0.2
99.3

109.3
(0.1)
109.2

93.8
0.1
93.9

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

190

21 Pensions

The Company accounts for pensions in accordance with IAS 19, ―Employee Benefits.‖

The Company operates defined-benefit and defined-contribution schemes.

Defined-benefit schemes

The Company funds the pension entitlements of certain employees through defined-benefit plans. Two
plans are operated for eligible Irish and UK employees. The UK and Irish schemes were closed to new entrants
on January 1, 2000. In general, on retirement, a member is entitled to a pension calculated at 1/60th of the final
pensionable salary for each year of pensionable service, subject to a maximum of 40 years. These plans are fully
funded on a discontinuance basis and the related pension costs and liabilities are assessed in accordance with the
advice of a professionally qualified actuary. The investments of the plans at March 31, 2013 consisted of units
held in independently administered funds. The most recent full actuarial valuations of the plans were carried out
at January 1, 2011 in respect of the UK plan and December 31, 2009 in respect of the Irish plan, in accordance
with local regulatory requirements using the projected unit credit method, and the valuation reports are not
available for public inspection.

A separate annual actuarial valuation has been performed for the purposes of preparing these financial

statements. The principal actuarial assumptions used for the purpose of this actuarial valuation were as follows:

2013

At March 31,
2012

Discount rate used for Irish plan ..........................................................................................
Discount rate used for UK plan............................................................................................
Return on plan assets for Irish plan ......................................................................................
Return on plan assets for UK plan .......................................................................................
Rate of euro inflation ...........................................................................................................
Rate of UK inflation ............................................................................................................
Future pension increases in Irish plan ..................................................................................
Future pension increases in UK plan ...................................................................................
Future salary increases for Irish plan ...................................................................................
Future salary increases for UK plan ....................................................................................

%
4.30
4.40
5.92
6.52
2.00
3.30
0.00
3.20
1.75
1.75

%
5.00
5.00
6.15
6.55
2.00
3.25
0.00
3.15
2.00
2.25

2011

%
5.75
5.60
6.75
7.55
2.25
3.40
0.00
3.30
2.00
2.00

The Company uses certain mortality rate assumptions when calculating scheme liabilities. The
mortality assumptions of the Irish scheme have been based on the mortality table 62%/70% PNM/FL00 while
the mortality assumptions of the UK scheme have been based on the ―SAPS‖ mortality table. Both mortality
assumptions make allowance for future improvements in mortality rates. Retirement ages for scheme members
are 60 for pilots and 65 for other staff.

The current life expectancies underlying the value of the scheme liabilities for the Irish scheme are as

follows:

Retiring at age 60:
Male ............................................................................................................................... 26.8
Female ........................................................................................................................... 28.4
Retiring at age 65:
Male ............................................................................................................................... 22.5
Female ........................................................................................................................... 23.9

26.6
28.2

22.3
23.7

26.5
28.1

22.2
23.6

2013

At March 31,
2012

2011

191

The current life expectancies underlying the value of the scheme liabilities for the UK scheme are as

follows:

2013

At March 31,
2012

2011

Retiring at age 60:
Male ............................................................................................................................... 26.4
Female ........................................................................................................................... 28.7
Retiring at age 65:
Male ............................................................................................................................... 21.9
Female ........................................................................................................................... 23.9

26.4
28.7

21.9
23.9

26.7
29.6

21.7
24.5

The amounts recognised in the consolidated balance sheet in respect of our defined benefit plans are as

follows:

2013
€M

At March 31,
2012
€M

2011
€M

Present value of benefit obligations ............................................................................... (48.1)
Fair value of plan assets ................................................................................................. 34.6
Present value of net obligations ..................................................................................... (13.5)
Related deferred tax asset .............................................................................................. 1.7
Net pension liability ....................................................................................................... (11.8)

(42.2)
30.3
(11.9)
1.5
(10.4)

(32.8)
27.9
(4.9)
0.6
(4.3)

The amounts recognised in the consolidated income statement in respect of our defined-benefit plans

are as follows:

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Included in payroll costs
Service cost ................................................................................................................. 0.9

0.7

0.8

Included in finance expense
Interest on pension scheme liabilities ......................................................................... 2.1
Expected return on plan assets .................................................................................... (1.9)
Net finance expense/(income) ..................................................................................... 0.2

Net periodic pension cost .......................................................................................... 1.1

1.9
(2.0)
(0.1)

0.6

1.9
(1.8)
0.1

0.9

192

Analysis of amounts included in the Consolidated Statement of Comprehensive Income (―CSOCI‖);

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Actual return less expected return on pension scheme assets ...................................... 2.0
Experience gains/(losses) on scheme liabilities ........................................................... 0.3
Changes in assumptions underlying the present value of scheme
liabilities ...................................................................................................................... (3.6)
Actuarial (losses)/gains recognised in the CSOCI ....................................................... (1.3)
Related deferred tax asset/(liability) ............................................................................ 0.2
Net actuarial (losses)/gains recognised in the CSOCI .................................................. (1.1)

(0.8)
(0.8)

(5.5)
(7.1)
0.8
(6.3)

(0.3)
1.0

5.0
5.7
(0.7)
5.0

Changes in the present value of the defined-benefit obligation of the plans are as follows:

2013
€M

At March 31,
2012
€M

2011
€M

Projected benefit obligation at beginning of year ........................................................ 42.2
Service cost .................................................................................................................. 0.9
Interest cost .................................................................................................................. 2.1
Plan participants‘ contributions ................................................................................... 0.3
Actuarial loss/(gain) ..................................................................................................... 3.5
Benefits paid ................................................................................................................ (0.8)
Foreign exchange rate changes .................................................................................... (0.1)
Projected benefit obligation at end of year funded....................................................... 48.1

32.9
0.6
1.9
0.3
6.2
(0.2)
0.5
42.2

35.9
0.8
1.9
0.3
(6.0)
(0.2)
0.1
32.8

Changes in fair values of the plans‘ assets are as follows:

2013
€M

At March 31,
2012
€M

2011
€M

Fair value of plan assets at beginning of year ............................................................. 30.3
Expected return on plan assets .................................................................................... 1.9
Actual gain/(losses) on plan assets .............................................................................. 2.0
Employer contribution ................................................................................................ 0.8
Plan participants‘ contributions .................................................................................. 0.3
Benefits paid ............................................................................................................... (0.8)
Foreign exchange rate changes ................................................................................... 0.1
Fair value of plan assets at end of year ....................................................................... 34.6

27.9
2.0
(0.8)
0.7
0.3
(0.2)
0.4
30.3

25.6
1.8
(0.3)
0.8
0.3
(0.2)
(0.1)
27.9

The fair value of the plans‘ assets at March 31 of each year is analysed as follows:

2013
€M

At March 31,
2012
€M

2011
€M

Equities ........................................................................................................................ 26.8
Bonds ........................................................................................................................... 5.8
Property ....................................................................................................................... 0.7
Other assets .................................................................................................................. 1.3
Total fair value of plan assets ...................................................................................... 34.6

22.5
5.4
0.7
1.7
30.3

21.5
4.4
0.6
1.4
27.9

The plans‘ assets do not include any of our own financial instruments, nor any property occupied by, or

other assets used by us.

193

The expected long-term rate of return on assets of 5.92% (2012: 6.15%; 2011: 6.75%) for the Irish
scheme was calculated based on the assumptions of the following returns for each asset class: Equities 7.25%
(2012: 7.50%; 2011: 7.50%); Bonds 3.5% (2012: 4.50%; 2011: 4.50% ); Property 6.25% (2012: 6.50%; 2011:
6.25%); and Cash 2.00% (2012: 3.00%; 2011: 3.00%). The expected long-term rate of return on assets of 6.52%
(2012: 6.55%; 2011: 7.55%) for the UK scheme was calculated based on the assumptions of the following
returns for each asset class: Equities 7.50% (2012: 7.50%; 2011: 8.10%); Corporate and Overseas Bonds 4.40%
(2012: 4.65%; 2011: 5.60%); and Other 2.85% (2012: 3.00%; 2011: 3.00%).

Since there are no suitable euro-denominated AA-rated corporate bonds, the expected return is
estimated by adding a suitable risk premium to the rate available from government bonds. The assumptions are
based on long-term expectations at the beginning of the reporting period and are expected to be relatively stable.

The history of the plans for the current and prior periods is as follows:

2013
€M

2012
€M

At March 31,
2011
€M

2010
€M

2009
€M

Difference between expected and actual
return on assets ....................................................................................
Expressed as a percentage of scheme assets ........................................
Experience (losses)/gains on scheme
liabilities ..............................................................................................
Expressed as a percentage of scheme
liabilities ..............................................................................................

2.0
6%

0.3

Total actuarial (losses)/gains ................................................................
Expressed as a percentage of scheme
liabilities ..............................................................................................

(3%)

(1.3)

(0.8)
(3%)

(0.8)

(2%)

(7.1)

(0.3)
(1%)

0.9

5.5

(17%)

17%

5.6
22%

0.5

(9.8)
(54%)

0.9

(8.6)

(31%)

The Company expects to contribute approximately €0.9 million to our defined-benefit plans in 2014.

Defined-contribution schemes

The Company operates defined-contribution retirement plans in Ireland and the UK. The costs of these
plans are charged to the consolidated income statement in the period in which they are incurred. The pension
cost of these defined-contribution plans was €2.1 million in 2013 (2012: €1.9 million; 2011: €1.7 million).

Earnings per share

2013

At March 31,
2012

2011

Basic earnings per ordinary share (in euro cent) .......................................................... 39.45
Diluted earnings per ordinary share (in euro cent) ....................................................... 39.33
Number of ordinary shares (in Ms) used for EPS
Basic ........................................................................................................................... 1,443.1
Diluted (a) ................................................................................................................... 1,447.4
______________
(a) Details of share options in issue have been described more fully in Note 15 to the consolidated financial statements.

1,473.7
1,477.0

38.03
37.94

25.21
25.14

1,485.7
1,490.1

See below for explanation of diluted number of ordinary shares.

Basic earnings per ordinary share (EPS) for Ryanair Holdings plc for the years ended March 31, 2013,
2012 and 2011 has been computed by dividing the profit attributable to shareholders by the weighted average
number of ordinary shares outstanding during the year.

Diluted earnings per share takes account solely of the potential future exercise of share options granted
under the Company‘s share option schemes. For the 2013 fiscal year, the weighted average number of shares in
issue of 1,447.4 million includes weighted average share options assumed to be converted, and equal to a total
of 4.3 million shares. For the 2012 fiscal year, the weighted average number of shares in issue of 1,477.0
million includes weighted average share options assumed to be converted, and equal to a total of 3.3 million
shares. For the 2011 fiscal year, the weighted average number of shares in issue of 1,490.1 million includes
weighted average share options assumed to be converted, and equal to a total of 4.4 million shares.

194

Commitments and contingencies

Commitments

In January 2002, the Company entered into a contract with Boeing (the ―2002 Boeing contract‖)
whereby the Company agreed to purchase 100 new Boeing 737-800 ―next generation‖ aircraft, and received
purchase rights to acquire a further 50 such aircraft. The 2002 Boeing contract was superseded by a contract
entered into with Boeing in January 2003 (the ―2003 Boeing contract‖) whereby the Company agreed to
purchase 125 new Boeing 737-800 ―next generation‖ aircraft, thus adding ―firm‖ orders for 22 aircraft to the
existing ―firm‖ orders (100 ―firm‖ orders, plus three options exercised) under the 2002 Boeing contract. In
addition, the Company acquired purchase rights over a further 78 aircraft, bringing the number of option aircraft
to 125.

In February 2005, the Company entered into another contract with Boeing (the ―2005 Boeing
contract‖) whereby the Company agreed to purchase 70 new Boeing 737-800 ―next generation‖ aircraft and
acquired additional purchase rights to acquire a further 70 such aircraft over a five-year period from 2006 to
2012 (subsequently extended to 2013). The aircraft to be delivered after January 1, 2005, arising from the 2002
and 2003 Boeing contracts, benefit from the discounts and concessions under the 2005 Boeing contract. In
addition, the orders for the 89 ―firm‖ aircraft still to be delivered at January 1, 2005 and the remaining additional
purchase rights in respect of 123 aircraft granted under the 2002 and 2003 Boeing contracts are governed by the
2005 Boeing contract from January 2005.

In August 2006 the Company exercised 32 options under the 2005 contract whereby it increased its

―firm‖ aircraft deliveries by this amount during fiscal 2009 (22) and 2010 (10).

In April 2007 the Company exercised 27 options under the 2005 contract whereby it increased its

―firm‖ aircraft deliveries during fiscal 2010.

In June 2008, the Company exercised three options with Boeing under the terms of its 2005 contract.

These ―firm‖ Boeing 737-800 aircraft were delivered in fiscal 2011.

In September 2008, the Company exercised four options with Boeing under the terms of its 2005

contract. These ―firm‖ Boeing 737-800 aircraft were delivered in fiscal 2011.

In October 2008, the Company exercised 10 options with Boeing under the terms of its 2005 contract.

These ―firm‖ Boeing 737-800 aircraft were delivered in fiscal 2011.

In January 2009, the Company exercised 13 options with Boeing under the terms of its 2005 contract.

These ―firm‖ Boeing 737-800 aircraft were delivered in fiscal 2011.

In December 2009, the Company exercised 10 options with Boeing under the terms of its 2005

contract. These ―firm‖ Boeing 737-800 aircraft were delivered in fiscal 2013.

In March 2013, the Group entered into a contract with Boeing (the ―2013 Boeing Contract‖) whereby
the Group agree to purchase 175 Boeing 737-800 ―next-generation‖ aircraft over a five year period from
calendar 2014 to 2018.

The table below details the firm aircraft delivery schedule at March 31, 2013 and March 31, 2012 for

the Company pursuant to the 2005 and 2013 Boeing contracts.

Aircraft
Delivered at
March 31,
2013

Firm Aircraft
Deliveries
Fiscal 2014/ 2015

Total “Firm”
Aircraft

2005 Contract .......................
2013 Contract .......................
Total ......................................

245
-
245

245
175
420

-
-
-

195

Basic price
per aircraft
(U.S.$
million)

51.0
78.0

Firm Aircraft
Deliveries
Fiscal 2013-
2014 at
March 31,
2012

15
-
15

The ―Basic Price‖ (equivalent to a standard list price for an aircraft of this type) for each aircraft
governed by the 2005 Boeing contract will be increased by (a) an estimated U.S.$900,000 per aircraft for certain
―buyer furnished‖ equipment the Company has asked Boeing to purchase and install on each of the aircraft, and
(b) an ―Escalation Factor‖ designed to increase the Basic Price, as defined in the purchase agreement, of any
individual aircraft by applying a formula which reflects increases in the published U.S. Employment Cost and
Producer Price indices between the time the Basic Price was set and the period of six months prior to the
delivery of such aircraft.

Boeing has granted Ryanair certain price concessions with regard to the Boeing 737-800 ―next
generation‖ aircraft. These take the form of credit memoranda to the Company for the amount of such
concessions, which the Company may apply toward the purchase of goods and services from Boeing or toward
certain payments, in respect of the purchase of the aircraft under the various Boeing contracts.

Boeing and CFMI (the manufacturer of the engines to be fitted on the purchased aircraft) have also
agreed to give the Company certain allowances in addition to providing other goods and services to the
Company on concessionary terms. These credit memoranda and allowances will effectively reduce the price of
each aircraft to the Company. As a result, the effective price of each aircraft will be significantly below the
Basic Price mentioned above. At March 31, 2013, the total potential commitment to acquire all 175 ―firm‖
aircraft, not taking such increases and decreases into account, will be approximately U.S. $14.2 billion. At
March 31, 2012, the total potential commitment was U.S. $0.8 billion to acquire all 15 ―firm‖ aircraft).

Operating leases

The Company financed 76 of the Boeing 737-800 aircraft delivered between December 2003 and
March 2013 under seven-year, sale-and-leaseback arrangements with a number of international leasing
companies, pursuant to which each lessor purchased an aircraft and leased it to Ryanair under an operating
lease. Between October 2010 and December 2012, 17 operating lease aircraft were returned to the lessor at the
agreed maturity date of the lease. At March 31, 2013 Ryanair had 59 operating lease aircraft in the fleet. As a
result, Ryanair operates, but does not own, these aircraft. Ryanair has no right or obligation to acquire these
aircraft at the end of the relevant lease terms. Thirty of these leases are denominated in euro and require Ryanair
to make fixed rental payments over the term of the leases. 29 remaining operating leases are U.S. dollar-
denominated which require Ryanair to make fixed rental payments. The Company has an option to extend the
initial period of seven years on 41 of the 59 remaining operating lease aircraft as at March 31, 2013, on pre-
determined terms. Fifteen operating lease arrangements will mature during the year ended March 31, 2014. The
following table sets out the total future minimum payments of leasing 59 aircraft (2012: 59 aircraft; 2011: 51
aircraft), ignoring movement in interest rates, foreign currency and hedging arrangements, at March 31, 2013,
2012 and 2011, respectively:

2013

At March 31,
2012

2011

Present
value of
Minimum
payments
€M

Minimum
payments
€M

Present
value of
Minimum
payments
€M

Minimum
payments
€M

Present
value of
minimum
payments
€M

Minimum
payments
€M

342.4
94.5
544.1

328.0
160.9
605.8

258.0
53.3
409.7

107.2

116.9

98.4

106.4

232.5
87.4
426.3

100.2

325.5
164.8
590.5

91.7

248.5
91.8
432.0

Finance leases

The Company financed 30 of the Boeing 737-800 aircraft delivered between March 2005 and March
2013 with 13-year euro-denominated Japanese Operating Leases with Call Options (―JOLCOs‖). These
structures are accounted for as finance leases and are initially recorded at fair value in the Company‘s balance
sheet. Under each of these contracts, Ryanair has a call option to purchase the aircraft at a pre-determined price
after a period of 10.5 years, which it may exercise.

196

The following table sets out the total future minimum payments of leasing 30 aircraft (2012: 30

aircraft; 2011: 30 aircraft) under JOLCOs at March 31, 2013, 2012 and 2011, respectively:

2013

At March 31,
2012

2011

Present
value of
Minimum
payments
€M

Minimum
payments
€M

Present
value of
Minimum
payments
€M

Minimum
payments
€M

Present
value of
minimum
payments
€M

Minimum
payments
€M

63.2

53.4

58.1

Due within one year ..........................................................................................................
Due between one and five
years ..................................................................................................................................
Due after five years ...........................................................................................................
Total minimum lease
payments ...........................................................................................................................
Less amounts allocated to
future financing costs ........................................................................................................
Present value of minimum
lease payments ..................................................................................................................

359.1
365.7

260.9
146.5

318.9
484.0

(20.3)

(60.1)

782.9

762.6

460.8

866.1

806.0

51.0

243.6
217.2

511.8

61.9

305.2
556.3

923.4

(76.2)

847.2

48.7

262.8
535.7

847.2

Commitments resulting from the use of derivative financial instruments by the Company are described

in Notes 5 and 11 to the consolidated financial statements.

Contingencies

The Company is engaged in litigation arising in the ordinary course of its business. Management does
not believe that any such litigation will individually or in aggregate have a material adverse effect on the
financial condition of the Company. Should the Company be unsuccessful in these litigation actions,
management believes the possible liabilities then arising cannot be determined but are not expected to materially
adversely affect the Company‘s results of operations or financial position.

In February 2004, the European Commission ruled that Ryanair had received illegal state aid from the
Walloon regional government in connection with its establishment of a low cost base at Brussels (Charleroi).
Ryanair advised the regional government that it believed no money was repayable as the cost of establishing the
base exceeded the amount determined to be illegal state aid. Ryanair also appealed the decision of the European
Commission to the European Court of First Instance (―CFI‖), requesting that the Court annul the decision on the
basis that Ryanair‘s agreement at Brussels (Charleroi) was consistent with agreements at similar privately
owned airports and therefore did not constitute illegal state aid. The Company placed €4.0 million in an escrow
account pending the outcome of this appeal. In December 2008, the CFI annulled the Commission‘s decision
against Charleroi Airport and Ryanair was repaid the €4.0 million that the Commission had claimed was illegal
state aid. A further action taken by the Belgian government for €2.3 million has also been withdrawn.

Ryanair is facing similar legal challenges with respect to agreements with certain other airports,
notably Lübeck, Berlin (Schönefeld), Tampere, Alghero, Pau, Aarhus, Frankfurt (Hahn), Niederrhein (Weeze),
Zweibrücken, Altenburg, Klagenfurt, Vasteras, Paris (Beauvais), La Rochelle, Carcassonne, Nimes, Angouleme,
Marseille and Brussels (Charleroi). In January 2010, the European commission concluded the Bratislava state
aid investigation with a finding that Ryanair‘s agreement with Bratislava airport involved no aid. The remaining
nineteen investigations involving Ryanair are ongoing and Ryanair currently expects that they will conclude
within the next 12 months, with any European Commission‘s decisions appealable to the EU General Court.

197

The Company has also entered into a series of interest rate swaps to hedge against fluctuations in
interest rates for certain floating-rate financing arrangements. Cash deposits have been set aside as collateral for
the counterparty‘s exposure to risk of fluctuations on long-term derivative and other financing arrangements
with Ryanair (restricted cash) (see Note 9 to the consolidated financial statements for further details). Additional
numerical information on these swaps and on other derivatives held by the Company is set out in Notes 5 and 11
to the consolidated financial statements.

Note to cash flow statement

2013
€M

At March 31,
2012
€M

2011
€M

(109.6)
Net debt at beginning of year .......................................................................................
(1,467.4)
(Decrease)/increase in cash and cash equivalents in year ............................................
1,521.2
Increase/(decrease) in financial assets > 3 months .......................................................
(10.4)
Decrease in restricted cash ...........................................................................................
126.9
Net cash flow from decrease/(increase) in debt ...........................................................
170.3
Movement in net funds resulting from cash flows .......................................................
Net funds/(debt) at end of year .................................................................................... 60.7
Analysed as:
3,559.0
Cash and cash equivalents, financial assets and restricted cash ...................................
(3,498.3)
Total borrowings* ........................................................................................................
Net funds/(debt) ........................................................................................................... 60.7

(708.8)
680.0
(97.2)
(7.8)
24.2
599.2
(109.6)

3,515.6
(3,625.2)
(109.6)

(142.8)
550.4
(398.3)
(24.9)
(693.2)
(566.0)
(708.8)

2,940.6
(3,649.4)
(708.8)

*current and non-current maturities of debt

Dividends and share buy-backs

On March 29, 2012, the Company agreed to buy back 15.0 million ordinary shares at a cost of €67.5
million. This trade settled in early April 2012. This is equivalent to approximately 1.0% of the Company‘s
issued share capital. All ordinary shares repurchased have been cancelled. Accordingly, share capital decreased
by 15.0 million ordinary shares with a nominal value of €0.1 million and the capital redemption reserve
increased by a corresponding €0.1 million. The capital redemption reserve is required to be created under Irish
law to preserve permanent capital in the Parent Company.

At the Company‘s AGM on September 21, 2012, a dividend of €0.34 per ordinary share was approved

by the shareholders. The dividend totalling €491.5 million was paid to shareholders on November 30, 2012

In August 2011, the Company bought back 27.0 million ordinary shares at a cost of €85.1 million. In
March 2012, the Company bought back a further 9.5 million ordinary shares at a cost of €39.5 million. Overall
this is equivalent to approximately 2.5% of the Company‘s issued share capital. All ordinary shares repurchased
have been cancelled. Accordingly, share capital decreased by 36.5 million ordinary shares with a nominal value
of €0.2 million and the capital redemption reserve increased by a corresponding €0.2 million which has been
transferred from retained earnings. The capital redemption reserve is required to be created under Irish law to
preserve permanent capital in the parent Company. See note 15 to the consolidated financial statements for
further details.

Post-balance sheet events

On May 27, 2013 the Company issued a Class 1 circular to shareholders seeking their approval for the
purchase of 175 new Boeing 737-800NG aircraft, with a list value of approximately US$14.2 billion, in advance
of an EGM. The EGM was held June 18, 2013 and shareholders approved the transaction. In accordance with
the terms of the contract entered into with Boeing, the Group made stage payments to Boeing in April, May and
June 2013 in relation to the purchase of these aircraft.

198

In June 2013 the Company bought back 24.1 million ordinary shares at a total cost of €176.6 million,
for cancellation. Cumulatively these buybacks are equivalent to 1.7% of the issued share capital of the
Company. Also in June 2013 the Company detailed plans to return up to €1 billion to shareholders over the
next two years with at least €400.0 million (€176.6 million already completed in June 2013) in share buybacks
to be completed in fiscal year 2014 and a further €600.0 million in either special dividends or share buybacks in
fiscal year 2015 subject to current fuel, yields and profitability trends continuing.

Subsidiary undertakings and related party transactions

The following is the principal subsidiary undertaking of Ryanair Holdings plc:

Name

Ryanair Limited (a) .....................

Effective date of
acquisition/incorporation

Registered
Office

Nature of
Business

August 23, 1996
(acquisition)

Corporate Head Office
Dublin Airport
Co Dublin, Ireland.

Airline operator

____________________________
(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, 2013, 2012 and 2011.

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 €7.1 million in the fiscal year ended March 31,
2013, (2012: €5.0 million; 2011: €6.5 million), the majority of which comprises short-term employee benefits.

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Basic salary and bonus ................................................................................................... 6.0
Pension contributions ..................................................................................................... 0.1
Share-based compensation expense (a) .......................................................................... 1.0
7.1

5.9
0.1
(1.0)
5.0

3.9
0.9
1.7
6.5

(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.

Date of approval

The consolidated financial statements were approved by the Board of Directors of the Company on

July 26, 2013.

199

……………………………………………….. …………………………………………

………………………………………………..

………………………………………………………….

Company Balance Sheet

At March 31,

Note

2013
€M

2012
€M

2011
€M

Non-current assets
Investments in subsidiaries ............ ....................................................................

103.4

101.5

102.2

Current assets
Loans and receivables from subsidiaries ....................................................................
Cash and cash equivalents .................................... ..............................................

1,517.5
………………………………
979.8
2.1
2.2

683.0
4.1

Total assets .......................................................................................................

1,085.4

1,621.1

789.3

Current liabilities
Amounts due to subsidiaries .............................................................................. ....................................................................

35.2

Shareholders‟ equity
Issued share capital ............................................................................................ ....................................................................
Share premium account ..................................................................................... ....................................................................
Capital redemption reserve ................................................................................
Retained earnings ............................................................................................... ....................................................................
Other reserves ................................................................................................... ....................................................................

9.3
666.4
0.7
888.0
21.5

9.2
687.8
0.8
338.3
14.1

9.5
659.3
0.5
59.6
25.2

Shareholders‟ equity ........................................................................................

1,050.2

1,585.9

Total liabilities and shareholders‟ equity .......................................................

1,085.4

1,621.1

754.1

789.3

The accompanying notes are an integral part of the financial information.

On behalf of the Board

M. O‘Leary
Director

July 26, 2013

D. Bonderman
Director

200

Company Statement of Cash Flows

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Operating activities
Profit for the year ................................................................ .
Net cash provided by operating activities

Investing activities
Decrease/(increase) in loans to subsidiaries .........................

Net cash from/(used) in investing activities .....................

Financing activities
Shares purchased under share buy-back programme ...........

Dividend paid ......................................................................

Net proceeds from shares issued ..........................................

Net cash (used)/from by financing activities ....................

Increase/(decrease) in cash and cash equivalents ............

Cash and cash equivalents at beginning of year ..............

Cash and cash equivalents at end of year ........................

-
-

537.7

(67.5)

(491.5)

21.4

(537.6)

0.1

2.1

2.2

950.0
950.0

(834.5)

115.5

400.0
400.0

76.6

(124.6)

(500.0)

7.1

(117.5)

27.5

(472.5)

(2.0)

4.1

2.1

4.1

The accompanying notes are an integral part of the financial information.

201

Company Statement of Changes in Shareholders‟ Equity

Ordinary
Shares
M

Issued
Share
Capital
€M

1,478.9

9.4

Share
Premium
Retained
Account Earnings

€M
631.9

€M
155.1

Capital
Redemption
Shares
€M

Other
Reserves
€M

0.5

26.4

Total
€M
823.3

Balance at March 31, 2010………..……
Comprehensive income
Profit for the year…………………….......
Total comprehensive income……………..
Transactions with owners of the
Company, recognised directly in equity
Issue of ordinary equity shares……………
Share based payments…..………………..
Transfer of exercised and expired share
based awards…,………………………….
Dividend paid……………………………...
Balance at March 31, 2011……………..
Comprehensive income
Profit for the year………….……………..
Total comprehensive income……………..
Transactions with owners of the
Company, recognised directly in equity
Issue of ordinary equity shares……………
Repurchase of ordinary equity shares……
Cancellation of repurchased ordinary
shares…..…………………………………
Share-based payments…………………….
Transfer of exercised and expired share
based awards……………………………...
Balance at March 31, 2012……………...
Comprehensive income
Profit for the year…………………….......
Total comprehensive income……………..
Transactions with owners of the
Company, recognised directly in equity
Issue of ordinary equity shares……………
Repurchase of ordinary equity shares……
Cancellation of repurchased ordinary
shares……………………..………………
Share-based payments…………………….
Transfer of exercised and expired share
based awards……………………………...
Dividend paid……………………………...
Balance at March 31, 2013……………..

-
-

10.7
-

-
-
1,489.6

-
-

2.5
-

(36.5)
-

-
1,455.6

-
-

6.5
-

(15.0)
-

-
-
1,447.1

-
-

0.1
-

-
-
9.5

-
-

(0.2)
-

-
9.3

-
-

(0.1)
-

-
-
9.2

-
-

400.0
400.0

27.4
-

-
-
659.3

-
-

4.5
(500.0)
59.6

-
-

950.0
950.0

7.1
-

-
(124.6)

-
-

-
666.4

3.0
888.0

-
-

21.4
-

-
(67.5)

-
-

-
-
687.8

9.3
(491.5)
338.3

-
-

-
-
0.5

-
-

0.2
-

-
0.7

-
-

0.1
-

-
-
0.8

-
-

400.0
400.0

-
3.3

(4.5)
-
25.2

-
-

-
(0.7)

(3.0)
21.5

-
-

-
1.9

(9.3)
-
14.1

27.5
3.3

-
(500.0)
754.1

950.0
950.0

7.1
(124.6)

-
(0.7)

-
1,585.9

-
-

21.4
(67.5)

-
1.9

-
(491.5)
1,050.2

The accompanying notes are an integral part of the financial information.

202

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 Financial
Reporting Standards (IFRS) as adopted by the European Union (EU), which are effective for the year ended and
as at March 31, 2013, as applied in accordance with the Companies Acts, 1963 to 2012. 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 make
judgements, 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,

which are effective at March 31, 2013 as applied in accordance with the Companies Acts, 1963 to 2012.

The directors have reviewed all EU endorsed IFRSs, 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.

203

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

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Balance at start of year
New investments in subsidiaries by way of share
option grant to subsidiary employees .....................................................................
Reversal of unvested cumulative share based
expense........................................................................
Balance at end of year

-
103.4

101.5

1.9

102.2

1.8

(2.5)
101.5

98.9

3.3

-
102.2

31 Loans and receivables from subsidiaries

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Due from Ryanair Limited (subsidiary) ................................................................

979.8
979.8

1,517.5
1,517.5

683.0
683.0

All amounts due from subsidiaries are interest free and repayable upon demand.

32 Amounts due to subsidiaries

Year ended
March 31,
2013
€M

Year ended
March 31,
2012
€M

Year ended
March 31,
2011
€M

Due to Ryanair Limited ..........................................................................................

35.2
35.2

At March 31, 2013, Ryanair Holdings plc had borrowings of €35.2 million (2012: €35.2 million; 2011:

€35.2 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.

204

The credit risk associated with the Company‘s financial assets principally relates to the credit risk of the
Ryanair group as a whole, which is not rated by an external rating agency. 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 €5,973.6 million (2012: €5,503.4 million; 2011: €5,349.6 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. Four 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 26, 2013.

205

Chairman

Chief Executive

Directors

Secretary

Registered Office

Auditors

Principal Bankers

Solicitors &Attorneys at Law

Directors and Other Information

D. Bonderman
M. Horgan
C.McCreevy
D. McKeon
K. McLaughlin
D. Milliken
M. O‘Leary
J. O‘Neill
J. Osborne
L. Phelan

J. Komorek

Corporate Head Office
Dublin Airport
Co. Dublin
Ireland

KPMG – Chartered Accountants
1 Stokes Place
St. Stephens Green
Dublin 2
Ireland

Barclays Bank Plc
2 Park Place
Upper Hatch Street
Dublin 2
Ireland

Bank of Ireland
Dublin Airport
Co. Dublin
Ireland

A&L Goodbody - Solicitors
International Financial Services Centre
North Wall Quay
Dublin 1
Ireland

Cleary, Gottlieb, Steen Hamilton
1 Liberty Plaza, New York
NY 10006, United States

206

Appendix

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 is 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.

207