Ryanair Holdings plc Annual Report 2016

FY2016 Annual Report · Ryanair Holdings plc

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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 Ryanair, Dublin Office, Airside Business Park, Swords, Co. Dublin,
K67 NY94, Ireland. It is a public limited company and operates under the laws of Ireland.

Staff

At March 31, 2016, the Company had a team of 11,458 people. This compares to 9,393 people at March 31, 2015

and 8,992 people at March 31, 2014.

Substantial interests in share capital

Details of substantial interests in the share capital of the Company, which represent 3% of the issued share capital,

are set forth on page 115 of the Annual Report. At March 31, 2016 the free float in shares was 95%.

Directors and company secretary

The names of the directors are listed on pages 107 and 108 of the Annual Report. The name of the company secretary
is listed on page 112 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, 2016 had no interests other than those outlined
in Note 19(d) on page 189 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, but in the context
of a low cost airline, having regard to the comparative marketplace in Europe, in order to ensure that they are properly
motivated to perform in the best interests of the shareholders. Details of 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 197 of the consolidated
financial statements. Details of total remuneration paid to the directors is set out in Note 19 on pages 188 to 190.

Executive director’s service contract

In October 2014, Michael O’Leary (Chief Executive Officer) signed a 5-year contract which commits him to the
Company until September 2019. This contract replaces a rolling 12-month arrangement under which Mr. O’Leary had
worked as Chief Executive of the airline since 1994. Mr. O’Leary is subject to a covenant not to compete with the
Company within the E.U. for a period of two years after the termination of his employment. Mr. O’Leary’s employment
agreement does not contain provisions providing for compensation on its termination.

Dividend policy

Details of the Company’s dividend policy are disclosed on page 120 of the Annual Report.

Share buy-back

In the year ended March 31, 2016 the Company bought back 24.6 million ordinary shares at a total cost of €288
million under its €400 million share buy-back program which commenced in February 2015 and ended in August 2015.
The Company also bought back 29.1 million ordinary shares at a total cost of €418 million under its €800 million share
buy-back program which commenced in February 2016 and which was subsequently increased to approximately €886
million on June 24, 2016. This was equivalent to approximately 3.9% of the Company’s issued share capital. 53.2 million
of these ordinary shares repurchased were cancelled at March 31, 2016. The remaining 0.5 million ordinary shares were
cancelled on April 1, 2016. Accordingly, share capital at March 31, 2016 decreased by 53.2 million ordinary shares with
a nominal value of €0.3 million and the other undenominated capital increased by a corresponding €0.3 million.

In addition to the above, the Company returned €398 million to shareholders via a “B” Share program, and completed
a capital reorganisation which involved the consolidation of its ordinary share capital on a 39 for 40 basis, which resulted
in the reduction of ordinary shares in issue by 33.8 million ordinary shares to 1,319.3 million. The nominal value of an
ordinary share was also reduced from €0.00635 to €0.00600 each under the reorganisation. All “B” Shares and Deferred
Shares issued in connection with the “B” Share program were either redeemed or cancelled during the period such that
there were no “B” Shares or Deferred Shares remaining in issue at March 31, 2016.

In the year ended March 31, 2015 the Company bought back 10.9 million ordinary shares at a total cost of €112
million under its €400 million ordinary share buy-back program referred to above. This was equivalent to approximately
0.8% of the Company’s issued share capital. All ordinary shares repurchased were cancelled.

Accountability and audit

The directors have set out their responsibility for the preparation of the financial statements on page 37 to 38. They
have also considered the going concern position of the Company and their conclusion is set out on page 27. 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, 2016 the Audit Committee met on five occasions. On a quarterly basis the
Audit Committee receives an extensive report from the Head of Internal Audit 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 113 to 114 of the Annual Report for details of employee and labour relations.
See pages 88 to 90 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 79 of the Annual Report for details.

Critical accounting policies

Details of the Company’s critical accounting policies are set forth on pages 93 to 94 of the Annual Report.

Subsidiary companies

Details of the principal subsidiary undertakings are disclosed in Note 27 on page 197 of the consolidated financial

statements.

Political contributions

During the financial years ended March 31, 2016, 2015 and 2014 the Company made no political contributions

which require disclosure under the Electoral Act, 1997.

Corporate Governance Statement

The Corporate Governance Statement on pages 13 to 27 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 196 of the consolidated financial

statements.

Following the June 23, 2016 referendum vote by the U.K. to leave the E.U., the Company announced that it had
increased the size of its buy-back program to the 5% buy-back limit approved by the shareholders at the Company’s 2015
Annual General Meeting (approximately €886 million).

From April 1, 2016 to July 1, 2016 the Company bought back 36.0 million shares at a total cost of approximately

€467.5 million under its €886 million share buy-back program. All ordinary shares repurchased were cancelled.

On July 1, 2016 the Board confirmed it will hold an Extraordinary General Meeting on July 27, 2016 to seek
approval from shareholders to grant the Board of the Company the discretion to engage in further share buy-backs, should
they decide that it is in the best interest of the shareholders, over the next 15 months. While there is no plan to engage in
further planned buybacks (i.e. a VWAP program) during the remainder of 2016, the Board is seeking the flexibility and
discretion to do so, if there is further market volatility such as that witnessed in the aftermath of the U.K. referendum
vote.

Auditor

In accordance with Section 383(2) of the Companies Act 2014, the auditor KPMG, Chartered Accountants, will

continue in office.

Annual General Meeting

The Annual General Meeting will be held on September 14, 2016 at 9 a.m. in the Radisson Blu Hotel, Dublin

Airport, Co. Dublin, Ireland.

On behalf of the Board

David Bonderman
Chairman
July 22, 2016

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
2014 U.K. Corporate Governance Code (the “2014 Code”), the version of the Code in force during the year ended March
31, 2016. This Report also covers the disclosure requirements set out in the Irish Corporate Governance Annex to the
Listing Rules of the Irish Stock Exchange, which supplements the 2014 Code with additional corporate governance
provisions and is also applicable to Ryanair.

A copy of the 2014 Code can be obtained from the Financial Reporting Council’s website, www.frc.org.uk. The Irish

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

The Board of Directors (“the Board”)

Roles

The Board of Ryanair is responsible for the leadership, strategic direction and oversight of 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 approval of the annual budget, large capital expenditure, and key
strategic decisions.

Other matters reserved to the Board include treasury policy, internal control, audit and risk management,

remuneration of the non-executive directors and executive management and Corporate Governance.

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 107), 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 eleven 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. 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. Biographies
of the directors are set out on pages 107 and 108. 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.

Years
on

Committees

Independent Board Audit Remuneration Nomination Executive Safety
-
-
-
-
-
-
-

Chair
Member

Chair

-
-
-
-

Name

D. Bonderman
M. Cawley
M. Horgan (i)
J. Leahy (ii)
C. McCreevy
D. McKeon
K. McLaughlin
H. Millar (iii)
D. Milliken
M. O’Leary
J. O’Neill
J. Osborne
L. Phelan

Role
Chairman
Non-Exec
Non-Exec
Non-Exec
Non-Exec
Non-Exec
Non-Exec
Non-Exec
Non-Exec
CEO
Non-Exec
Senior Independent
Non-Exec

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes

20
2
15
1
6
6
15
1
3
20
3
20
3

-
-
-
-
Member
Chair
-
-
Member
-
-
-
-

-
-
-
-
-
Member
-
-
Member
-
Member
-

-
-
Chair
Chair
-
-
-
-
-
-
-
-
-

Member

-
-

Member

-
-

Chair

Member

(i)
(ii)

(iii)

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. The focus of the Board,
through the Nomination Committee, is to maintain a Board comprising the relevant expertise, quality and experience
required by Ryanair to advance the Company and shareholder value. During the financial year the Nomination Committee
identified candidates whose character, expertise and experience in the aviation sector was known to the Company. The
candidates were subsequently appointed to the Board. Ryanair recognises the benefits of diversity, including gender
diversity. Ryanair recognises the importance of balance and offers equal opportunities to all candidates and potential
candidates, irrespective of gender. Ryanair’s Articles of Association require that all of the directors retire and offer
themselves for re-election within a three-year period. All directors (including Mike O’Brien who was appointed to the
Board on May 20, 2016) with the exception of John Leahy who stepped down on May 20, 2016, will be offering themselves
for re-election at the AGM on September 14, 2016.

In accordance with the recommendations of the 2014 Code, Declan McKeon is Chairman of the Audit Committee

and James Osborne, the Senior Independent 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 has 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 2014 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’
judgement. The Board regards all of the non-executive directors as independent and that no one individual or one grouping
exerts an undue influence on others.

Within its independence review, the Board has considered the following items with respect to certain individual non-

executive directors.

Director

Role

Relationships or circumstances
of relevance under the 2014
Code in determining
independence

Basis upon which the Board has
determined independence

D. Bonderman Chairman

Length of service (20 years)

M. Cawley

Non-Exec

Material Holding – As at March
31, 2016 D. Bonderman had a
beneficial shareholding
the
Company of 7,535,454 ord.
shares, equivalent to 0.58% of the
issued shares.

Previous employment - served as
Deputy Chief Executive Officer
and Chief Operating Officer of
Ryanair from 2003 to March 2014

David Bonderman is independent in
character and judgement and the Board
views his depth of experience and
service as enhancing his independence
in representing shareholder interests.
In light of the number of issued shares in
Ryanair Holdings plc and the personal
financial interests of the director, the
Board has concluded that the interest is
not material and Mr. Bonderman’s
independence is not compromised.

The Board has considered Michael
Cawley’s outside business interests, as
well as the period of time (6 months)
between finishing his executive role
with Ryanair and joining the Board and
concluded that his previous employment
with Ryanair in no way compromises his
independence
and
character.

judgement

Independent
within the spirit
and meaning of
the 2014 Code
Yes

Yes

Director

Role

Relationships or
circumstances of relevance
under the 2014 Code in
determining independence

Basis upon which the Board has
determined independence

K. McLaughlin Non-Exec

Length of service (15 years)

H. Millar

Non-Exec

Business relationship – Deputy
Chairman and Head of Capital
Markets at Davy Stockbrokers
(Joint Corporate Broker
to
Ryanair)

Previous employment - served as
Deputy Chief Executive and
Chief Financial Officer of
Ryanair from January 2003 to
December 2014.

M. O’Brien

Non-Exec

Previous employment – served as
the Chief Pilot and Flight Ops
Manager of Ryanair from 1987
to 1991.

Kyran McLaughlin is independent in
character and judgement and the Board
views his depth of experience and
service as enhancing his independence
in representing shareholder interests.

The fees paid to Davy Stockbrokers in
respect of corporate advisory services
provided to Ryanair are immaterial to
both Ryanair and Davy Stockbrokers
given the size of each organisation's
business operations and financial results.

The Board has considered Howard
Millar’s outside business interests and
the period of time (8 months) between
finishing his executive role with Ryanair
and joining the Board and concluded that
his previous employment with Ryanair
his
in
independence
and
character.

compromises
judgement

no way

The Board has considered Mike
O’Brien’s outside business interests, as
well as the period of time (25 years)
between finishing his executive role
with Ryanair and joining the Board and
concluded that his previous employment
with Ryanair in no way compromises his
independence
and
character.

judgement

J. Osborne

Senior
Independent
Director

Length of service (20 years)

independent

in
is
James Osborne
character and judgement and the Board
views his depth of experience and
service as enhancing his independence
in representing shareholder interests.

L. Phelan

Non-Exec

Business relationship – Vice
President Global Operations at
PayPal
to
Ryanair)

(service provider

Other relevant factors

for

fees chargeable

services
The
provided by PayPal to Ryanair are
immaterial to both Ryanair and PayPal
given the size of each organisation's
business operations and financial results.

Independent
within the spirit
and meaning of
the 2014 Code
Yes

Yes

Other than Capt. Mike O’Brien, who was appointed to the Board in May 2016, all of the non-executive directors hold
share options over 30,000 shares. Whilst the 2014 Code notes that the remuneration of non-executive directors should not
ordinarily include share options, the Company has a NASDAQ listing and has a significant U.S. shareholder base. The
granting of share options to non-executive directors to align interests of shareholders and directors is an established market
practice in the U.S. which is encouraged by a wide number of U.S. investors. The Company in accordance with the 2014
Code sought and received shareholder approval to make these share option grants to its non-executive directors and the
Board believes the modest number of options granted to non-executive directors does not impair their independence of
judgement and character.

In relation to the remaining non-executive directors, with the exception of a modest grant of share options, there were

no relationships or circumstances of relevance under the 2014 Code impacting their independence.

Furthermore, in line with best governance practices, Ryanair has adopted a policy whereby all directors retire on an
annual basis and being eligible for re-election, offer themselves for election. This therefore affords Ryanair’s shareholders
an annual opportunity to vote on the suitability of each Director.

The Nomination Committee has confirmed to the Board that it considers all directors offering themselves for re-
election at the 2016 AGM to be independent and that they continue to effectively contribute to the work of the Board. The
Nomination 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.

The Company has Directors’ and 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, 2016 the Board convened meetings on
eleven occasions. Individual attendance at these meetings is set out in the table on page 23. 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, demonstrates
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 35.

Non-executive directors

Non-executive directors are remunerated primarily by way of directors’ fees. A number of non-executive directors
have share options. While the 2014 Code notes that the remuneration of non-executive directors should not ordinarily
include share options, because of the Company’s substantial NASDAQ listing and U.S. shareholder base, where U.S.
investors encourage and promote non-executive directors’ options to align interests of shareholders and directors, the
Company has granted a small amount of share options to non-executive directors. The Company in accordance with the
2014 Code sought and received shareholder approval to make these share option grants to its non-executive directors and
as described above, the Board believes the modest number of options granted to non-executive directors does not impair
their independence of judgement and character.

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 dependent upon the achievement of certain financial and

personal targets. 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 188 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 189 to 190 of the consolidated

financial statements.

The Board has adopted a code of dealing, to ensure compliance with the Listing Rules of the Irish Stock Exchange
and the U.K. Financial Conduct Authority, applicable to transactions in Ryanair shares, debt instruments, derivatives or
other financial instruments by persons discharging managerial responsibilities (“PDMRs”) (e.g. directors), persons closely
associated with persons discharging managerial responsibilities (“PCAs”) and relevant Company employees (together,
“Covered Persons”). The code of dealing also includes provisions which are intended to ensure compliance with U.S.
securities laws and regulations of the NASDAQ National market. Under the code, Covered Persons are required to notify
the Company and in the case of PDMRs and PCAs only, the Central Bank, of any transaction conducted on their own
account in Ryanair shares, debt instruments, derivatives or other financial instruments. Directors are also required to obtain
clearance from the Chairman or Chief Executive (or other person designated for such purpose) before undertaking such
transactions, whilst Covered Persons who are not directors must obtain clearance from designated senior management.
Covered Persons are prohibited from undertaking such transactions during Closed Periods as defined by the code and at
any time during which the individual is in possession of inside information (as defined in the E.U. Market Abuse
Regulation (596/2014).

Board Succession and Structure

The Board plans for its own succession with guidance from the Nomination Committee. The Nomination Committee
regularly reviews 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 Nomination
Committee identifies and selects candidates on merit against objective criteria, to ensure that the Board has the skills,
knowledge and expertise required.

The Board currently comprises twelve directors. The Chief Executive Officer, Michael O’Leary, is the only
executive director. The eleven non-executive directors include Chairman David Bonderman. Biographies of all current
directors are set out on pages 107 to 108 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 2014 Code. Ryanair continually endeavours 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.

Names and qualifications of members of the Audit Committee

The Audit Committee currently comprises three non-executive directors who are independent for the purposes of the
listing rules of the NASDAQ and the U.S. federal securities laws: Declan McKeon (Chairman), Charles McCreevy and
Richard Milliken. The Board has determined that Mr. Declan McKeon is the Committee’s financial expert. It can be seen
from the directors’ biographies appearing on page 107 and 108, that the members of the committee bring to it a wide range
of experience and expertise, much of which is particularly appropriate for membership of the Audit Committee.

Number of Audit Committee meetings

The Committee met five times during the year ended March 31, 2016. Individual attendance at these meetings is set
out in the table on page 23. The Chief Financial Officer, the Director of Finance, the Head of Finance, 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 Head of Internal Audit has direct
access to the Audit Committee Chairman at all times.

Summary of the role of the Audit Committee

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

Company’s website at http://corporate.ryanair.com, and include:

 monitoring the integrity of the financial statements of the Group and any formal announcements relating to the
Group’s financial performance, profit guidance and reviewing significant financial reporting judgements
contained therein;



considering significant issues in relation to the financial statements, having regard to matters communicated to it
by the auditors;

reviewing the interim and annual financial statements and annual report before submission to the Board including
advising the Board whether, taken as a whole, the content of the annual report and Form 20-F is fair balanced and
understandable and provides the information necessary for shareholders to assess the company’s performance,
business model and strategy;



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

 monitoring and reviewing the effectiveness of the Group’s Internal Audit function;



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;

reviewing with the external auditors 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, for audit and 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;

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; and



reviewing the terms of reference of the Committee annually.

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 judgemental areas and compliance with stock exchange, legal and
regulatory requirements. The Committee receives reports from the external auditors identifying any accounting
or judgemental issues requiring its attention;

 The Committee also meets with management and external auditors to review the Annual Report and Form 20-F,
which is filed annually with the United States Securities and Exchange Commission and with the Irish Companies
Office;

 The Committee regularly reviews 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 function. 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;

 During the year, the Committee receives reports 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. Pre-approval from the audit committee is also required
for all non-audit work to be provided by the external auditors. 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.

 The Committee receives presentations in areas such as treasury operations, information systems and security, in

general, and specifically in relation to the Group.

In addition, the Committee was requested by the board to consider whether the annual report, taken as a whole, is
fair, balanced and understandable, and provides the information necessary for shareholders to assess the company’s
performance, business model and strategy. In doing so, the Committee considered whether the financial statements are
consistent with the Chairman’s Report, the Chief Executive’s Report and operating and financial information elsewhere in
the annual report.

In considering the fairness, balance and understandability of the annual report, the Committee had regard to the
significant issues considered by the Committee in relation to the financial statements, set out below. Each of these
significant issues was addressed in the report received from the external auditors and was discussed with management and
the external auditors.

The Committee reported to the board its conclusion that the annual report, taken as a whole is fair, balanced and
understandable and provides the information necessary for shareholders to assess the Company’s performance, business
model and strategy.

Significant issues considered by the Committee in relation to the financial statements and how these issues were addressed,
having regard to matters communicated to it by the auditors

 On page 93, one of the critical accounting policies referred to is that for long lived assets. There is a detailed
description of the matters of estimate and the judgemental issues arising from the application of the Company’s
policy for accounting for such assets and how the Company dealt with these. The Audit Committee had detailed
discussions with management around its conclusions in relation to the expected useful lives of the assets, the
expected residual lives of the assets and whether there are impairment indicators in respect of the assets. In
particular, the Audit Committee considered that, while the airline industry as a whole has from time to time
experienced issues which would present as impairment indicators, this has not impacted on Ryanair, because of
the positive cash flows these long lived assets generate. The Committee agreed with management’s approach and
conclusions in relation to the accounting for long lived assets.

 On pages 94, the critical accounting policy for heavy maintenance is similarly described in detail, in particular the
factors, such as utilisation of aircraft and timing of heavy maintenance, upon which Ryanair relied in making its
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. Having considered the above
factors and having held discussions with management in relation to this area and the reliability of estimates made
in previous years, the Committee concurred with management’s approach and conclusions in relation to the
accounting for heavy maintenance.

 On page 94, a further critical accounting policy is described in respect of tax audits which by their nature are often
complex and can require several years to conclude. The Committee considered the key judgements made in
estimating the tax charge including provisioning relating to jurisdictions where the Group’s tax affairs are under
investigation by the relevant authorities. The Audit Committee reviewed the status of the tax audits, together with
the advice of relevant members of the management team and external tax advisors, and had regard to the
appropriateness of provisioning in earlier years and agreed that the provisioning for any potential exposures is
appropriate.



In considering management’s assessment of the Group’s ability to continue as a going concern, the Committee
had regard to available sources of finance including access to the capital markets, the cash on hand of
approximately €4.3bn and the sensitivity to changes in these items. The Committee considered the Group’s cash
generation projections through to the end of the current aircraft purchase program in the financial year ending
March 31, 2024. On the basis of the review performed, and the discussions held with management, the Committee
was satisfied that it was appropriate that the financial statements should continue to be prepared on a going concern
basis, and that there were no material uncertainties that may cast significant doubt on the Group’s ability to
continue as a going concern which need to be disclosed in the annual report. Please also refer to the Company’s
Viability Statement on page 27 of the annual report.

The Committee meets the external auditors four times per year. At these meetings:



the external audit plan is considered and approved;

the quarterly, interim and annual results are considered and approved, following consideration of the significant
issues relating to these matters, having regard to matters communicated to the Audit Committee by the external
auditors;

the Annual Report and Form 20-F, which is filed annually with the United States Securities and Exchange
Commission, the Irish Stock Exchange and the London Stock Exchange, is considered and approved;

the procedures and safeguards which the external auditors have put in place to ensure their objectivity and
independence in accordance with regulatory and professional requirements are reviewed;

the letters of engagement and representation are reviewed; and

the fees paid to the external auditors for audit and non-audit work are reviewed, to ensure that the fee levels are
appropriate and that audit independence is not compromised through the level of non-audit fees and the nature
of non-audit work carried out by the external auditors. The Committee’s policy is to expressly pre approve every
engagement of Ryanair’s independent auditors for all audit and non-audit services provided to the Company.

In addition, the Committee updated the prior year evaluation of external audit process. The Committee considered a range
of factors including the quality of service provided, the specialist expertise of the external auditor, the level of audit fee
and independence. The Committee have evaluated the work completed by the external auditor in the year to March 31,
2016, taking into account the fees paid to KPMG, and are satisfied with their effectiveness, objectivity and their
independence.

KPMG have been auditors to the Company since its incorporation in 1985. The last external audit tender was

conducted in 2010. Detailed consideration was given to the external audit arrangements in 2013.

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. Mr. James Osborne, Mr. Howard Millar and Ms. 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, http://corporate.ryanair.com. The terms of reference of the Remuneration
Committee are reviewed annually.

Nomination Committee

Messrs. David Bonderman, Michael Cawley and Ms. Louise Phelan 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, http://corporate.ryanair.com. The Nomination Committee uses its members’
extensive business and professional contacts to identify suitable candidates. The terms of Reference of the Nomination
Committee are reviewed annually. The focus of the Nomination Committee is to maintain a Board which comprises the
necessary expertise, quality and experience required by Ryanair to advance the company and shareholder value. Ryanair
recognises the benefits of gender diversity.

Safety Committee

The Board of Directors established the Air Safety Committee in March 1997 to review and discuss air safety and
related issues. The Safety Committee reports to the full Board of Directors each quarter. The Safety Committee is
composed of a main board director (Mr. John Leahy, following the retirement of Mr. Michael Horgan in September 2015,
until May 2016, and by Mr. Mike O’Brien from May 2016) and Mr. Neil Sorahan, Chief Financial Officer and the
Accountable Manager for Safety (who both act as co-chairman), as well as the following executive officers of Ryanair:
Messrs. Hickey, Wilson, the Chief Pilot, Captain Ray Conway and the Director of Safety and Security, Ms. Carol Sharkey.
A number of other managers are invited to attend, as required, from time to time.

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 Personnel Department investigates any instances and the Head
of Internal Audit reports findings directly to the Audit Committee. The Code is available on the Company’s website,
http://corporate.ryanair.com.

Attendance at Board and Committee meetings during the year ended March 31, 2016:

D. Bonderman
M. Cawley
M. Horgan (i)
J. Leahy (ii)
C. McCreevy
D. McKeon
K. McLaughlin
H. Millar (iii)
D. Milliken
M. O’Leary
J. O’Neill
J. Osborne
L. Phelan

Board Audit Safety Remuneration Executive Nomination
10/11
11/11
6/6
7/7
10/11
11/11
10/11
7/7
11/11
11/11
11/11
11/11
10/11

-
-
2/2 (iv)
3/3 (iv)
-
-
-
-
-
-
-
-
-

6/6
-
-
-
-
-
6/6
-
-
6/6
-
6/6
-

-
-
-
-
5/5
5/5
-
-
5/5
-
-
-
-

-
-
-
-
-
-
-
-
-
2/2
2/2
2/2
2/2

2/2
-
-
-
-
-
2/2
-
-
2/2
-
2/2
-

(i)
(ii)

(iii)
(iv)

Michael Horgan retired from the Board in September 2015.
John Leahy was appointed to the Board in August 2015. Capt. Leahy notified the Board that he did not wish to stand for re-
election at the AGM in September 2016. Capt. Mike O’Brien was appointed to the Board to replace Capt. Leahy in May,
2016.
Howard Millar was appointed to the Board in August 2015.
The Safety Committee met on four occasions during the year. Due to a transition in the Chair of the Committee, Michael
Horgan chaired two of these meetings and John Leahy chaired the other two meetings.

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. 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 Board of Directors considered that the self-
assessment process followed by Ryanair provides sufficient insights into the effectiveness of the board, creates a roadmap
of areas for improvement, and enhances the performance and effectiveness of the board.

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 Board considers the results of the evaluation process and any issues identified. The above evaluations were
conducted in May 2015 and were presented to the Board at the September 2015 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, 2016 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 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 Annual General Meeting (“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 the Company website, http://corporate.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 2014 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 126. 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 or 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 an
extraordinary 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 any general meeting (whether an AGM or an EGM) 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 meeting to which it relates.

Notice of the Annual General Meeting and the Form of Proxy are sent to shareholders at least twenty-one days before
the meeting. The Company’s Annual Report is available on the Company’s website, http://corporate.ryanair.com. The
2016 Annual General Meeting will be held at 9 a.m. on September 14, 2016 in the Radisson Blu Hotel, Dublin Airport,
Ireland.

All general meetings other than the Annual General Meeting are called Extraordinary General Meetings (“EGM”).
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 Financial Reporting Council’s “Guidance on Risk Management, Internal Control and Related
Financial and Business Reporting”, most recently revised in September 2014, 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 2014 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 four 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 and 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 program is in place throughout the Company whereby executive management review and monitor

the controls in place, both financial and non-financial, to manage the risks facing the business.

The Board has satisfied itself on the effectiveness of the internal control systems in operation and it has reviewed and

approved the reporting lines to ensure the ongoing effectiveness of the internal controls and reporting structures.

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, 2016 and has reported thereon to the Board. The Audit
Committee monitors management’s response to significant control failure or weakness in the risk management process,
receives regular progress updates, and ensures issues are sufficiently remediated.

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 program are set forth on page 120 of the Annual Report. The shareholders

approved the power of the Company to buy-back shares at the 2006 AGM and at subsequent AGMs.

None of the significant agreements to which the Company is party to, contain change of control provisions. As
referred to above in the Directors’ 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 judgement, 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 a period of twelve months from the date of approval of the financial statements. 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 37 and the reporting responsibilities of the auditors are set out in
their report on page 39.

Viability Statement

The Company’s internal strategic planning processes currently extend to March 2024 which covers the delivery
timeframe for the Company’s existing aircraft orders and its long-term passenger growth target to 180m customers. Future
assessments of the Company’s prospects are subject to uncertainty that increases with time and cannot be guaranteed or
predicted with certainty.

The directors have taken account of the Company’s strong financial and operating condition, its BBB+ stable credit
rating, the principal risks and uncertainties facing the Company, as outlined in the Principal Risks and Uncertainties section
starting on page 54 of the annual report, and the Company’s ability to mitigate and manage those risks. Appropriate stress-
testing of the Company’s internal budgets are undertaken by management on an ongoing basis to consider the potential
impact of severe but plausible scenarios in which combinations of principal risks materialise together.

Based on this assessment, the directors have a reasonable expectation that the Company will be able to continue in

operation and meet its liabilities as they fall due over the course of the existing Boeing aircraft orders.

Compliance Statement

Ryanair has complied, throughout the year ended March 31, 2016, with the provisions set out in the U.K. 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 2014 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 2014 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 2014 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 and Kyran McLaughlin, having
been offered for annual re-election for the duration of their tenure, have each served more than nine years on the
Board. 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 22, 2016

Michael O’Leary

Chief Executive

Environmental and Social Report

Ryanair is Europe’s greenest, cleanest airline. Ryanair’s low fare, customer friendly growth is being delivered in an
environmentally sustainable way through investing in new aircraft and engine technology while adopting the most efficient
operations and commercial procedures to minimise its impact on the environment. Ryanair has been independently verified
as the industry leader in environmental efficiency and is continuously working to improve its environmental performance.

The launch of the Always Getting Better (“AGB”) Customer Charter, and increased focus on digital technology
through the release of the new website and app, has improved Ryanair’s interaction with customers, providing them with
the information required to make their travel more productive and enjoyable.

Ryanair recognises that in order to achieve its growth objectives while reducing its environmental impact it will need

to continue to invest in, and develop, its business, with a passion for sustainability.

Ryanair’s Environment, Social and Governance (“ESG”) Policy comprises six key components:

1. Safety and Quality
2. Energy Efficiency
3. Environment and Carbon Emissions
4. Labour Management and Social
5. Ethics and Transparency
6. Corporate Governance

1. Safety and Quality

Ryanair is proud of its industry leading 31-year safety record. Safety is Ryanair’s No.1 priority and we invest heavily

in safety-related equipment, training and internal (confidential) reporting systems. Ryanair has:

 11,500 skilled aviation professionals;

 an industry leading Safety Management System;

 launched its latest 3-year Safety Strategy which will ensure that safety and security remain at the heart of

everything we do in Ryanair;

 a world leading operational flight data monitoring (“OFDM”) system;

 a Local Air Safety Group (“LASG”) at each of the 84 bases across Europe. The LASGs comprise representatives
from Flight Operations, In-Flight, Ground Operations and Engineering. The LASGs meet regularly to discuss
safety and security matters. The LASGs operate independently of Ryanair Management. De-identified minutes are
sent to the Safety Services Office in Dublin who are responsible for ensuring that matters raised are appropriately
addressed by management;

 state of the art simulator training centres in the U.K., Germany, Italy and Dublin;

 the industry’s first full size Boeing NG maintenance training aircraft, based at London Stansted;

 acquired a Boeing 737-700 specifically for pilot training;

 installed a Fixed Base Simulator at its Dublin Office which was completed in May 2016;

 committed to equipping all of its fleet with the Runway Awareness and Advisory System (“RAAS”), which is an
electronic detection system that provides aircraft crews with information relating to the aircraft’s position relative
to the airport’s runway. The RAAS is a significant mitigation for three of the Company’s Key Operational Risk
Areas (“KORAs”):

 a 24-hour Safety Office, training and reporting systems;

 independent safety audits and safety reporting channels from front line to Board level; and

 implemented industry leading fixed 5/4 rosters which consists of 5 days on, followed by 4 days off for pilots and

5/3 for Cabin Crew, 5 days on followed by 3 days off which provides an excellent work life balance.

Fatigue Management

Fatigue Management (“FM”) is a shared responsibility between Ryanair and its crews.

Ryanair implements a scientifically-based and verified, data driven, flexible approach to fatigue management that
forms an integral part of the Ryanair Safety Management System. FM includes a continuous process of monitoring and
minimising fatigue.

Ryanair’s Flight Time Limitations (“FTL”) Scheme complies fully with the (E.U.) 83/2014 and has been approved

by the Irish Aviation Authority (“IAA”).

Ryanair and the IAA conduct regular audits and inspections of the approved Ryanair FTL Scheme.

All Ryanair crew have access to a dedicated online Fatigue Report channel. Where any such fatigue report is filed, it

is reviewed expeditiously and follow-up action is taken as necessary.

2. Energy Efficiency

Current Fleet

Ryanair operates a fleet of over 350 Boeing 737-800NG aircraft, each with 189 seats with an average fleet age of

under 6 years. Ryanair expects to grow to approximately 550 aircraft by 2024.

Morgan Stanley Capital International (“MSCI”) “ESG Rating Report, February 2016” confirmed that Ryanair has
the lowest emissions intensity of any MSCI ACWI airline constituent. In 2014 its average emissions intensity amounted
to 75g CO2-e/revenue passenger kilometres which outperforms peers such as Easyjet (82g) and legacy carriers like
Lufthansa (132g).

Ryanair has distinctive operating and commercial policies which reduce the impact of its operations on the

environment as follows.

Ryanair:

 has ordered 200 (100 firm orders and 100 options) of the Boeing 737-MAX-200 which deliver from 2019 onwards
and feature scimitar winglets, CFM Leap 1-B engines and slimline seats. The aircraft will reduce noise emissions
by up to 40% and have up to 16% greater fuel efficiency

 currently operates with a high seat density of 189 seats in all-economy configuration, as opposed to the 162 seats
and two-class configuration of the Boeing 737-800 aircraft used by network airlines. This reduces fuel burn and
emissions per passenger by 14%;

 has reduced per-passenger emissions by 11% through increasing load factors over the past three years from 83%

to 93%;

 has implemented a “low drag approach” landing procedure which optimises the aerodynamic settings of the aircraft

and reduces fuel burn by approximately 5%;

 has installed winglets on all of its existing aircraft and future aircraft. Winglets reduce both the rate of fuel burn

and carbon dioxide emissions by approximately 4%;

 is taking delivery of 183 new Boeing 737-800NG aircraft with CFM Evolution engines which provide a 2%

improvement in fuel consumption compared to previous aircraft types;

 has installed slimline seats, which improve leg room (30-inch seat pitch) for customers and also reduce fuel burn

due to their lighter weight; slimline seats are more than 850kg lighter than older seats per plane;

 operates a one-engine taxi procedure which reduces fuel burn and emissions by another 1%;

 utilises Ground Power Units (“GPUs”) during turnarounds which are more environmentally friendly and fuel
efficient than the aircraft’s Auxiliary Power Units (“APUs”) thereby saving fuel (approximately 30kg per
turnaround) and reducing fuel emissions;

 runs paperless cockpits, with pilots utilising electronic flight bags (“EFB”) and individual tablets, eliminating 15kg

of manuals per cockpit;

 better utilises existing airport infrastructure by operating to underutilised secondary and regional airports
throughout Europe, which limits the use of holding patterns and taxiing times, thus reducing both fuel burn and
emissions;

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

 ranks No. 1 (among airlines with more than 50 movements per month) for Continuous Descent Approach with a

combined 98.7% success rate into Stansted, Gatwick and Luton Airports in June 2016 which reduces noise;

 has further cut its use of paper and printing through the MyRyanair App which allows customers to secure their

boarding cards and travel documents on their laptop or mobile devices;

 operates a “good neighbour” policy of no through-the-night aircraft movements, reducing noise emissions; and

 utilises energy efficient LED lighting in its new Boeing Sky Interiors (“BSI”).

Boeing 737-MAX-200

The Boeing 737-Max-200 (“Gamechanger”), which starts delivering in 2019, represents the newest generation of
Boeing's 737 aircraft. It is a short-to-medium range aircraft and seats 197 passengers (8 more than Ryanair’s existing 189
seat fleet).

The Boeing 737-Max-200 CFM LEAP-1B engines which, combined with Scimitar winglets, and other aerodynamic
improvements, will reduce fuel consumption by up to 16% per seat compared to the Boeing 737-800NGs and also cut
noise emissions by up to 40% per seat.

Dublin Offices

In January 2014 Ryanair moved into a new 100,000 sq. ft. office building in Airside Business Park in Swords, Co.
Dublin, K67 NY84, Ireland which houses its Irish operations including Ryanair Labs, the state-of-the-art digital and IT
innovation hub.

These offices are among one of the most energy efficient in Ireland with a Passive Infra-Red (“PIR”) system which
saves energy by switching off the lighting in offices and open areas when they are not occupied. The Building Management
System (“BMS”) controls and adjusts building related operational systems, further enhancing energy efficiency.

Other initiatives include:

 Moving towards a paperless office, thereby reducing the need for printing.

 Recycling paper, toner and computer equipment.

 A new canteen with a focus on healthy food and nutrition.

 Providing discounted gym membership programs for people, to promote exercise and a healthy work/life balance.

 Participating in the “Cycle to Work” Scheme, which allows staff to purchase a bicycle in a tax efficient manner.
This contributes to lowering carbon emissions, reducing traffic congestion and improving the health and fitness
levels of its people.

3. Environment and Carbon Emissions

Noise and Emissions

Ryanair is committed to reducing emissions and noise through investments in “next generation” aircraft and engine
technologies and the implementation of operating and commercial processes that help minimise the environmental impact
of its operations.

The Air Travel Carbon and Energy Efficiency Report published by Brighter Planet notes that Ryanair is the industry
leader in terms of environmental efficiency and the Company is constantly working towards improving its performance.

Ryanair also has the lowest emissions intensity of any MSCI ACWI airline constituent, and its 2014 average
emissions intensity of 75g CO2-e/RPK was 45% better than the 123g CO2-e/RPK average for that group (source: MSCI
Research, February 2016).

Ryanair cuts noise and emissions through its “one engine taxi” policy and strict compliance with Cost Index Flight
Planning recommendations. Using the correct Cost Index optimises the speed for each flight and maximises fuel efficiency.

The introduction of the Boeing 737-MAX-200 (“Gamechanger”) aircraft in 2019 will reduce operational noise

emissions by up to 40%.

Fleet Replacement

Boeing 737-800NG

In December 2005, Ryanair completed a fleet renewal program which saw all of its older Boeing 737-200A aircraft
replaced with new Boeing 737-800NG aircraft. Ryanair now operates a single aircraft fleet of Boeing 737-800NG aircraft
with an average age of 6 years. By moving to an all Boeing 737-800NG fleet, Ryanair cut the unit emissions per passenger
by 31%.

Boeing 737-MAX-200

In September 2014, Ryanair announced an order for up to 200 Boeing 737-MAX-200 aircraft. These aircraft, which
will deliver between 2019 and 2024, have 197 seats (8 more than Ryanair’s existing 189 seat fleet) and will be fitted with
the CFM LEAP 1B engines which, combined with the Advanced Technology scimitar winglets, slimline seats and other
weight-saving and aerodynamic improvements, will reduce fuel consumption by up to 16% and reduce operational noise
emissions by up to 40%.

Emissions Trading

In the calendar year 2015, Ryanair’s emissions continued to fall on a per passenger basis, down 5.6% year-on-year.

In 2015 Ryanair emitted 8.6bn tCO2, which equates to 0.085 tCO2 per passenger.

Calendar Year
2015
2014
2013

tCO2 per passenger
0.085
0.090
0.094

tCO2
8,638,838
7,756,156
7,653,566

The E.U. passed legislation requiring aviation to operate under the E.U. Emissions Trading Scheme. This scheme is
a cap-and-trade system for CO2 emissions to encourage industry to improve its CO2 efficiency. Airlines were granted
initial CO2 allowances based on historical “revenue ton kilometres” and a CO2 efficiency benchmark. Any shortage of
allowances has to be purchased in the open market and/or at government auctions. Ryanair takes its environmental
responsibilities seriously and intends to continue to improve its environmental efficiency in order to minimise emissions.

MSCI stated, in their report dated February 9, 2016 and titled “ESG Ratings Report”, that “Ryanair continues to lead
its industry on fuel efficiency, driven by its relatively young fleet. The Company’s carbon emissions per revenue passenger
kilometres are the lowest among peers”.

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 E.U. 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 E.U. regulations.

4. Labour Management and Social

Training, career development and promotion opportunities are available for all of Ryanair’s people. Ryanair remains
committed to being an equal opportunities employer regardless of nationality, race, gender, marital status, disability, age,
sexual orientation and religious or political beliefs. The Group selects and promotes its people on the basis of merit and
capability, providing the most effective use of resources. Ryanair considers its relations with its people to be good.

Job Creation

Ryanair has 11,458 aviation professionals from over 40 different nationalities who crew and support Ryanair’s
aircraft fleet. Last year over 1,000 of its people were promoted and we recruited over 2,000 new team members. Ryanair
has also created over 80,000 indirect jobs based on Airport Council International figures.

Employee Representation Committees (“ERC”)

Ryanair negotiates with groups of employees, including its pilots and cabin crew at all of its 84 bases, through ERCs
regarding pay, work practices and conditions of employment, including conducting formal negotiations with these internal
collective bargaining units. In 2007 the Irish Supreme Court upheld that Ryanair agreements and negotiations with ERCs
constitute “collective bargaining”.

Ryanair has concluded 5-year pay and conditions deals with all 84 bases for pilots and cabin crew. Ryanair’s senior
management meets regularly with the different ERCs to consult and discuss all aspects of the business and those issues
that specifically relate to each relevant employee group and to negotiate with these collective bargaining units. Ryanair’s
pilots and cabin crew operate under industry leading rosters and return home to their base at the end of every working day
which is the most family friendly crew roster in aviation and offers personnel a good work/life balance.

European Works Councils (“EWC”)

Ryanair runs an annual forum whereby employees and the airline discuss the transnational affairs of the business.

This forum, or EWC, has taken place every year since 1999 with the last one in Dublin in November 2015.

The EWC provides further opportunity for employee representatives from all bases and departments to engage with

the CEO and senior management regarding financial results, company growth and any other questions they may have.

Charities

Ryanair supports numerous charities across several European markets. Each year Ryanair’s people select nominated
charities and the Company has recently partnered with SOS Children’s Villages as its chosen European charity for 2016,
and Childline as its chosen Irish charity for 2016. Last year Ryanair made a six figure donation to charitable causes.

Ryanair also makes regular ongoing donations to various charities through the proceeds of sales of its onboard scratch
cards, including the Jack & Jill Foundation and the GROW Organisation in Ireland, The Meyer Children’s Hospital in
Italy, Fundación Pequeño Deseo in Spain, Refúgio Aboim Ascensão in Portugal, The Smile of the Child in Greece, and
The Anthony Nolan Organisation and Naomi House and Jacksplace in the U.K.

Ryanair’s staff also raise funds for local charities by participating in annual jersey days, charity cycles and endurance
events. In prior years, the Ryanair charity calendar contributed €100,000 per annum to designated charities (over €700,000
in the seven years that it was produced).

Year
2008
2009
2010
2011
2012
2013
2014

Amount Raised
€100,000
€100,000
€100,000
€100,000
€100,000
€100,000
€100,000

Charity
Angels Quest Charity
Dublin Simon Community
KIDS
TAFEL
Debra Ireland
TVN Foundation
Teenage Cancer Trust

5. Ethics and Transparency

Ryanair’s Code of Business Conduct and Ethics

Ryanair is committed to conducting business in an ethical fashion that complies with all laws and regulations in all
of the countries in which Ryanair operates. Employees and representatives of Ryanair must consider how their actions
affect the integrity and credibility of the Company as a whole. Ryanair’s Code of Business Conduct and Ethics (“Code”)
sets out the principles that constitute Ryanair’s way of doing business. The Code is reviewed and approved by the Audit
Committee of the Board at least annually.

The Chief Executive (“CEO”) and management at all levels of Ryanair are responsible for ensuring adherence to this
Code. They are expected to promote an “open door” policy so that they are available to anyone with ethical concerns,
questions or complaints. All concerns, questions, and complaints are taken seriously and handled promptly, confidentially
and professionally.

Modern Slavery Act 2015

Ryanair does not tolerate any infringement of human rights, including the use of forced, compulsory or trafficked
labour, or anyone held in slavery or servitude (whether adults or children) in any part of our business or supply chain. We
endeavour to only use suppliers that adhere to these principles and provide a safe and healthy working environment for
their employees.

Customer Charter, “Always Getting Better” (“AGB”)

In 2014 Ryanair launched its “Always Getting Better” Customer Charter. This underpins the Company’s relentless
drive towards improving all aspects of the Ryanair experience for its 117 million expected customers (FY17) and comprises
an 8-promise plan as follows:

1. AGB is the way we promise to do things
2. We promise to always prioritise safety
3. We promise the lowest fares
4. We promise the best choice of destinations
5. We promise to strive to make your travel an enjoyable experience
6. We promise we will always be Europe’s most reliable airline
7. We promise to be transparent and to make travel simple for you
8. We promise to innovate, to make your travel exciting

Ryanair is Europe’s No 1 customer service airline with the following Customer Service statistics in the financial year

to March 2016:

 Over 90% On Time Performance (“OTP”)

 Less than 1.1 complaints per 1,000 passengers

 Less than 0.5 bag complaints per 1,000 passengers

 Over 99% complaints answered within 7 days

Ryanair’s on time performance (“OTP”) for the last five years is as follows:

Year
FY 2016
FY 2015
FY 2014
FY 2013
FY 2012

6. Corporate Governance

OTP
90%
90%
92%
91%
91%

E.U. Rank
No. 1
No. 1
No. 1
No. 1
No. 1

For a detailed description of the corporate governance procedures and structures in place within the Group, please refer
to the Corporate Governance statement on page 13 of this annual report.

Report of the Remuneration Committee on Directors’ Remuneration

1. The Remuneration Committee

Details of the Remuneration Committee are set out within the Corporate Governance Statement on page 22 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, http://corporate.ryanair.com. All members of the Remuneration
Committee have access to the advice of the Chief Executive (“CEO”) and may, in the furtherance of their duties, obtain
independent professional advice at the Company’s expense.

2. Remuneration Policy

The remuneration policy of the Company is to ensure that the CEO and the senior management team are rewarded
competitively, but in keeping with the ethos of a low cost airline, 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.

The remuneration of senior management is structured towards a relatively low basic salary (by airline industry
comparatives) and a bonus scheme which allows each senior manager to earn up to a maximum of 100% of their basic
pay each year by way of bonus. The actual bonus quantum is determined annually with up to half (50%) being payable
by reference to achieving the company’s budgeted profit after tax (“PAT”) for the fiscal year, and the balance (of up to
50% of the bonus) by reference to a written assessment of each senior manager’s personal performance against a list of
rigorous performance targets for their individual department or areas of responsibility for that fiscal year. Historically,
senior managers have rarely received 100% of their bonus entitlement, the average in recent years (when budgeted PAT
has been achieved) is between 80% to 95%.

The Company has a policy of minimising management expenses and accordingly it does not provide defined benefit
pensions, company cars, or unvouched expenses to senior managers. All expense claims must be fully vouched and are
rigorously vetted on a monthly basis by the Chief Financial Officer and CEO.

Details of the total remuneration paid to senior management (defined as the executive team reporting to the Board
of Directors) are set out in Note 27 of the consolidated Financial Statements. The Company’s policy in respect of the
granting of share options is dealt with in section 4 below.

Non-Executive Directors

Details of the remuneration paid to non-executive directors are set out in Note 19(b) to the consolidated Financial
Statements. Again, in keeping with the Company’s low-cost ethos, the level of non-executive director fees is low by E.U.
airline industry comparatives.

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 directors retire after a fixed period not exceeding three years. Directors can then offer
themselves for re-election at the Company’s Annual General Meeting. Ryanair, however, has adopted a policy whereby
all directors retire on an annual basis and being eligible for re-election, offer themselves for election. This therefore gives
Ryanair’s shareholders an annual opportunity to vote on the suitability of each Director.

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

termination.

3. Chief Executive

The CEO is the only executive director of the Board. Details of the remuneration paid to the CEO are fully disclosed

in Note 19(a) to the consolidated Financial Statements.

In keeping with the Company’s remuneration policy as outlined above, the CEO’s total remuneration is low by
comparison with CEO pay of similar sized E.U. airlines or other Irish plcs. His bonus for the past year was determined
by the Remuneration Committee at 95% of the prior year’s basic pay, comprising 50% for exceeding the budget PAT
for the year, and 45% by reference to his personal performance against a list of operational, financial and customer
service objectives.

Comparable E.U. Airline CEO Pay

Base Pay

Bonus

Pension

IAG
easyJet
Lufthansa
Ryanair

€’000
1,168
937
1,207
1,058

€’000
935
1,238
706
855

€’000
293
66
543
-

source: latest published accounts

Share Based
Payments
€’000
6,439
6,121
626
1,250

Other

Total Pay

€’000
37
5
115
-

€’000
8,871
8,367
3,197
3,163

The Company does not provide the CEO with any pension contributions or other benefits which is in keeping with

the low cost ethos of the airline.

In October 2014, the CEO signed a five-year contract which commits him to the Company until September 2019.
This contract replaced a rolling 12-month arrangement under which Mr. O’Leary worked as CEO of the airline since
1994.

4. 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.

Share options are granted from time to time, at the discretion of the Board and Remuneration Committee to
incentivise superior performance by the management team, to promote and encourage their long term commitment to
Ryanair and to align the objectives of the management team with those of the shareholders. We wish to encourage
management, through share options, to think and act like long term shareholders and prioritise shareholder returns.
Options are allocated by reference to basic pay levels and will only be exercisable where exceptional profit or share price
targets have been achieved over a 5-year period from date of grant. Executives must remain in full time employment
with the group for a 5-year period from the grant date in order to exercise these options.

A small amount of share options are granted to non-executive directors. Whilst this policy is discouraged by the
U.K. Corporate Governance Code, we have a policy of complying with these codes or explaining why we do not. In this
case, because of its substantial NASDAQ listing and US shareholder base, where US investors encourage and promote
non-executive directors’ options, the Company has granted a small amount of share options to non-executive directors.

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

5. Directors’ Pension Benefits

None of the directors, including the executive director, receive any pension benefits as set forth in Note 19(c) to

the consolidated Financial Statements.

6. Directors’ Shareholdings

The interests of each Director that held office at the end of fiscal 2016, 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 (“IFRS”) as adopted by the European Union (“E.U.”) and have elected to
prepare the Company financial statements in accordance with IFRSs as adopted by the E.U. and as applied in accordance
with the provisions of the Companies Act 2014. In preparing the consolidated financial statements the directors have
also elected to comply with IFRS as issued by the International Accounting Standards Board (“IASB”).

Under company law the directors must not approve the consolidated and Company financial statements unless they
are satisfied that they give a true and fair view of the assets, liabilities and financial position of the Group and the
Company and of the Group’s profit or loss for that year.

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 IFRS as adopted by the European Union and IFRSs as issued by

the IASB, and as regards the Company, as applied in accordance with the Companies Act 2014; 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.

The directors are also required by the Transparency Directive 2004/109/EC0 Regulations 2007 and the
Transparency Rules of the Central Bank of Ireland to include a management report containing a fair review of the
business and a description of the principal risks and uncertainties facing the Group.

The Directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at
any time the assets, liabilities, financial position and profit or loss of the Company and which enable them to ensure that
the financial statements of the Company comply with the provision of the Companies Act 2014. The Directors are also
responsible for taking all reasonable steps to ensure such records are kept by its subsidiaries which enable them to ensure
that the financial statements of the Group comply with the provision of the Companies Act 2014. They are also
responsible for safeguarding the assets of the Company and the Group, and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included
on the Group and Company’s website, http://corporate.ryanair.com. Legislation in the Republic of Ireland governing the
preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Responsibility Statement as required by the Transparency Directive and UK Corporate Governance Code

Each of the directors, whose names and functions are listed on page 107 of this Annual Report confirm that, to the

best of each person’s knowledge and belief:

 the consolidated financial statements, prepared in accordance with IFRS as adopted by the European Union and
the Company financial statements prepared in accordance with IFRS as adopted by the European Union as applied
in accordance with the provisions of Companies Act 2014, give a true and fair view of the assets, liabilities,
financial position of the Group and Company at March 31, 2016 and of the profit or loss of the Group for the year
then ended;

 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; and

 the Annual Report and financial statements taken as a whole, provides the information necessary to assess the
Group’s performance, business model and strategy and is fair, balanced and understandable and provides the
information necessary for shareholders to assess the company’s position and performance, business model and
strategy.

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 E.U., 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, 2016 and of its profit for the year then ended.

On behalf of the Board

David Bonderman
Chairman
July 22, 2016

Michael O’Leary
Chief Executive

Independent Auditor’s Report to the Members of Ryanair Holdings plc

Opinions and conclusions arising from our audit

1 Our opinion on the financial statements is unmodified

We have audited the financial statements of Ryanair Holdings plc for the year ended March 31, 2016, 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 (“IFRS”) as adopted by the European Union,
and, as regards the Company financial statements, as applied in accordance with the provisions of the Companies Act
2014. Our audit was conducted in accordance with International Standards on Auditing (“ISAs”) (U.K. & Ireland).

In our opinion:



the consolidated financial statements give a true and fair view of the assets, liabilities and financial position of
the group as at 31 March 2016 and of its profit for the year then ended;

the Company balance sheet gives a true and fair view of the assets, liabilities and financial position of the
Company as at 31 March 2016;

the consolidated financial statements have been properly prepared in accordance with IFRS as adopted by the
European Union;

the Company financial statements have been properly prepared in accordance with IFRS as adopted by the
European Union, as applied in accordance with the provisions of the Companies Act 2014; and

the consolidated financial statements and the Company financial statements have been properly prepared in
accordance with the requirements of the Companies Act 2014 and, as regards the consolidated financial
statements, Article 4 of the IAS Regulation.

2 Our separate opinion in relation to IFRS as issued by the IASB is unmodified

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 IFRS as adopted by the E.U., has also prepared its consolidated financial statements in
compliance with IFRS as issued by the International Accounting Standards Board (IASB). In our opinion:



the consolidated financial statements give a true and fair view of the assets, liabilities and financial position of
the Group as at 31 March 2016 and of its profit for the year then ended; and



the consolidated financial statements have been properly prepared in accordance with IFRS as issued by the IASB.

3 Our assessment of risks of material misstatement

The risks of material misstatement detailed in this section of this report are those risks that we have deemed, in our
professional judgement, to have had the greatest effect on: the overall audit strategy; the allocation of resources in our
audit; and directing the efforts of the engagement team. Our audit procedures relating to these risks were designed in the
context of our audit of the financial statements as a whole. Our opinion on the financial statements is not modified with
respect to any of these risks, and we do not express an opinion on these individual risks.

In arriving at our audit opinion above on the consolidated financial statements the risks of material misstatement that had
the greatest effect on our Group audit were as follows:

Independent Auditor’s Report to the Members of Ryanair Holdings plc (continued)

Carrying value of aircraft €6,198.7 million (2015 - €5,410.4 million)

Refer to page 21 (Audit Committee Report), page 151 (accounting policy) and pages 160 to 161 (financial disclosures)

The risk:

Ryanair has aircraft with a carrying value of €6,198.7 million at 31 March 2016 (2015: €5,410.4 million) including engines
and related equipment. In accounting for these aircraft, Ryanair makes estimates about their expected useful lives, expected
residual values and the potential for impairment based on the fair value of the assets and the cash flows they generate.
Ryanair flies one aircraft type, the Boeing 737-800, all of which are aged between one and 13 years. There is an active and
established market for this asset class. However, changes to the expected useful lives and/or the residual values of Ryanair’s
aircraft fleet could have a material impact on the profit for the year.

Our response:

The procedures that we performed, among others, to assess the carrying value of aircraft included:

 Assessing the allocation of purchase price to the various components of the aircraft to ensure that the value

allocated to its service potential compares with actual historic experience.

 Comparing Ryanair’s estimates of expected useful life and residual value to manufacturers’ recommendations and

to the published estimates of other international airlines.

 Agreeing the fair value of this aircraft type to independent third party valuation reports prepared by specialist

aircraft valuation experts to assess the accuracy of the residual value estimate.

 Challenging the key assumptions underpinning Ryanair’s near and medium term financial projections against

historical performance and estimates of the likely economic conditions in its principal markets.

 Assessing the adequacy of the related disclosures.

Maintenance provision on leased aircraft €144.4 million (2015 - €176.2 million)

Refer to page 21 (Audit Committee Report), page 151 (accounting policy) and page 181 (financial disclosures).

The risk:

Ryanair had 43 aircraft held under operating lease at 31 March 2016 (2015: 51 aircraft). Under the terms of operating lease
agreements with aircraft lessors, 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. The
estimated airframe and engine maintenance costs and the costs associated with the restitution of life limited parts are
accrued and charged to profit and loss over the lease term for the individual contractual obligation. At each balance sheet
date, the maintenance provision is calculated using a model that incorporates a number of assumptions including: the
lifespan of life-limited parts, likely utilisation of the aircraft by references to the number of hours flown or cycles operated
during the year, the expected cost of the heavy maintenance at the time the overhaul takes place and the discount rate to
be applied to take account of the time value of money.

Our response:

Our audit procedures in this area included, among others:

 Assessing the appropriateness of the methodology applied in calculating the maintenance provision, in addition to

confirming the mathematical accuracy of the model.

 Testing the key assumptions made by Ryanair in estimating future maintenance costs including anticipated use of

the aircraft and the expected cost of maintenance. This included:

 Agreeing the actual cost of incurred maintenance to invoices and comparing this with Ryanair’s estimates.

 Agreeing estimated maintenance costs to maintenance contracts.

 Agreeing the expected use of assets to aircraft utilisation in the prior periods and to Ryanair’s scheduling plan.

Independent Auditor’s Report to the Members of Ryanair Holdings plc (continued)

 Evaluating the discount rate used by the Group, including comparison to externally derived-data.

 Assessing whether the related disclosures in the financial statements are appropriate.

Taxation

Refer to page 21 (Audit Committee Report), page 152 (accounting policy) and pages 179 to 181 (financial disclosures).

The risk:

While Ryanair is headquartered, managed and controlled from Ireland, the Group operates extensively across Europe and
also North Africa. Airlines’ profits on international flights are taxed in the country of residence of the airline which for
Ryanair is Ireland. Profits from domestic flights which are flights within one country are taxable in that jurisdiction. In
addition to corporate taxes, Ryanair is subject to Value Added Tax (“VAT”), passenger taxes (which are levies on
passengers collected by Ryanair and paid to the relevant taxing authority) and taxes on employment. Due to the interplay
between tax laws in individual jurisdictions and the nature of the industry whereby operations can begin and end in different
jurisdictions, there is significant complexity in determining the appropriate corporation tax liability, VAT and payroll tax
obligations.

Our response:
In this area our audit procedures included, among others:

 Obtaining and inspecting tax assessments and related tax correspondence with the authorities of the principal

jurisdictions in which Ryanair operates.

 Engaging KPMG tax specialists, as appropriate, in impacted jurisdictions to assist with our audit of Ryanair’s tax

obligations.

 Challenging the key assumptions impacting on the critical estimates and judgements made by Ryanair in

determining its tax liabilities.

 Assessing whether Ryanair’s disclosures set out the risks inherent in the accounting for taxation balances and

related contingencies.

4 Our application of materiality and an overview of the scope of our audit

The materiality for the consolidated financial statements as a whole was set at €67 million (2015: €49.0 million). This has
been calculated with reference to a benchmark of Group profit before taxation, normalised to exclude the gain on the
disposal of the Group’s investment in Aer Lingus as disclosed in Note 4. We consider this measure to be one of the
principal considerations for members of the Company in assessing the financial performance of the Group.

We report to the Audit Committee all corrected and uncorrected misstatements we identified through our audit with a value
in excess of €3.3 million (2015 €2.0 million), in addition to other audit misstatements below that threshold that we believe
warranted reporting on qualitative grounds.

Ryanair is headquartered, managed and controlled from Ireland, and all of the audit work covering the Group’s revenues,
profit for the year and its assets and liabilities is undertaken and performed by the audit team based in Dublin.

5 We have nothing to report on the disclosures of principal risks

Based on the knowledge we acquired during our audit, we have nothing material to add or draw attention to in relation to:



the Director’s Report on pages 9 to 12, concerning the principal risks, their management, and, based on that, the
directors’ assessment and expectations of the group’s ability to continue in operation and meets its liabilities as they
fall due over the eight years to March 31, 2024; or



the disclosures in Note 1 of the financial statements concerning the use of the going concern basis of accounting.

Independent Auditor’s Report to the Members of Ryanair Holdings plc (continued)

6 We have nothing to report in respect of the matters on which we are required to report by exception

ISAs (U.K. & Ireland) require that we report to you if, based on the knowledge we acquired during our audit, we have
identified information in the annual report that contains a material inconsistency with either that knowledge or the financial
statements, a material misstatement of fact, or that is otherwise misleading.

In particular, we are required to report to you if:

 we have identified any inconsistencies between the knowledge we acquired during our audit and the Directors’
statement that they consider the annual report is fair, balanced and understandable and provides information necessary
for shareholders to assess the entity’s performance, business model and strategy; or



the Report from the Audit Committee included in the Corporate Governance Report does not appropriately disclose
those matters that we communicated to the Audit Committee.

The Listing Rules of the Irish Stock Exchange and U.K. Listing Authority require us to review:



the Directors’ statement, set out on page 27, in relation to going concern;

the part of the Corporate Governance Statement on page 27 relating to the Company’s compliance with the provisions
of the U.K. Corporate Governance Code and the Irish Corporate Governance Annex specified for our review; and

certain elements of disclosures in the report to shareholders by the Board of Directors’ remuneration committee.

In addition, the Companies Act 2014 require us to report to you if, in our opinion, the disclosures of directors’ remuneration
and transactions specified by law are not made.

7 Our conclusions on other matters on which we are required to report by the Companies Act 2014 are set out below

We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and
properly audited and the financial statements are in agreement with the accounting records.

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 Group financial statements is consistent with the Group financial statements.

In addition, we report in relation to information given in the Corporate Governance Statement on pages 13 to 27, that:



based on knowledge and understanding of the Company and its environment obtained in the course of our audit, no
material misstatements in the information identified above have come to our attention;



based on the work undertaken in the course of our audit, in our opinion:

– the description of the main features of the internal control and risk management systems in relation to the
process for preparing the Group financial statements, and information relating to voting rights and other
matters required by the European Communities (Takeover Bids (Directive 2004/25/EC)) Regulations 2006 and
specified by the Companies Act 2014 for our consideration, are consistent with the financial statements and
have been prepared in accordance with the Companies Act 2014; and

– the Corporate Governance Statement contains the information required by the Companies Act 2014.

Independent Auditor’s Report to the Members of Ryanair Holdings plc (continued)

Basis of our report, responsibilities and restrictions on use

As explained more fully in the Directors’ Responsibilities Statement set out on page 37, the Directors are responsible for
the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is
to audit and express an opinion on the Group and Company financial statements in accordance with applicable law and
International Standards on Auditing (“ISAs”) (U.K. & Ireland). Those standards require us to comply with the Financial
Reporting Council’s Ethical Standards for Auditors.

An audit undertaken in accordance with ISAs (U.K. & Ireland) 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 Group’s 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 and to identify any information that is apparently materially incorrect based on, or
materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of
any apparent material misstatements or inconsistencies, we consider the implications for our report.

Whilst an audit conducted in accordance with ISAs (U.K. & Ireland) is designed to provide reasonable assurance of
identifying material misstatements or omissions it is not guaranteed to do so. Rather the auditor plans the audit to determine
the extent of testing needed to reduce to an appropriately low level the probability that the aggregate of uncorrected and
undetected misstatements does not exceed materiality for the financial statements as a whole. This testing requires us to
conduct significant audit work on a broad range of assets, liabilities, income and expense as well as devoting significant
time of the most experienced members of the audit team, in particular the engagement partner responsible for the audit, to
subjective areas of the accounting and reporting.

Our report is made solely to the Company’s members, as a body, in accordance with section 391 of the Companies Act
2014. 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 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.

Emer McGrath
for and on behalf of
KPMG
Chartered Accountants, Statutory Audit Firm
Dublin, Ireland

July 22, 2016

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 0.600 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 nineteen member states of the European Union
(the “E.U.”), 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 E.U., the consolidated financial statements of the Company must comply with International
Financial Reporting Standards as adopted by the E.U. 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 E.U., in each case as in effect for the year ended
and as of March 31, 2016 (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 = $1.1390, or $1.00 = €0.8780, the official rate published by the U.S.
Federal Reserve Board in its weekly “H.10” release (the “Federal Reserve Rate”) on March 31, 2016. The Federal Reserve
Rate for euro on July 21, 2016 was €1.00 = $1.1016 or $1.00 = €0.9078. 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, “Brexit” (as defined below), costs associated with environmental, safety and security measures,
significant outbreaks of airborne disease, terrorist attacks, actions of the Irish, U.K., E.U. and other governments and their
respective regulatory agencies, fluctuations in currency exchange rates and interest rates, changes to the structure of the
European Community and 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, and flight interruptions caused by volcanic ash emissions or other atmospheric
disruptions. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.

Item 1.

Item 2.

Item 3.

Item 4.

TABLE OF CONTENTS

Identity of Directors, Senior Management and Advisers

Offer Statistics and Expected Timetable

PART I

Key Information
The Company
Selected Financial Data
Exchange Rates
Selected Operating and Other Data
Risk Factors

Information on the Company
Introduction
Strategy
Route System, Scheduling and Fares
Marketing and Advertising
Reservations on Ryanair.Com
Aircraft
Ancillary Services
Maintenance and Repairs
Safety Record
Airport Operations
Fuel
Insurance
Facilities
Trademarks
Government Regulation
Description of Property

Item 4A.

Unresolved Staff Comments

Item 5.

Item 6.

Operating and Financial Review and Prospects
History
Business Overview
Recent Operating Results
Critical Accounting Policies
Results of Operations
Fiscal Year 2016 Compared with Fiscal Year 2015
Fiscal Year 2015 Compared with Fiscal Year 2014
Seasonal Fluctuations
Recently Issued Accounting Standards
Liquidity and Capital Resources
Off-Balance Sheet Transactions
Trend Information
Inflation

Directors, Senior Management and Employees
Directors
Executive Officers
Compensation of Directors and Executive Officers
Staff and Labor Relations

Item 7.

Major Shareholders and Related Party Transactions
Major Shareholders

Page

48
48
49
51
53
54

68
68
69
73
74
74
75
76
77
79
79
81
81
83
84
85
91

91
91
91
93
93
95
95
98
101
101
101
106
106
106

107
107
112
113
113

115
115

Item 8.

Item 9.

Item 10.

Item 11.

Related Party Transactions
Financial Information
Consolidated Financial Statements
Other Financial Information
Significant Changes

The Offer and Listing
Trading Markets and Share Prices

Additional Information
Description of Capital Stock
Options to Purchase Securities from Registrant or Subsidiaries
Articles of Association
Material Contracts
Exchange Controls
Limitations On Share Ownership by Non-E.U. Nationals
Taxation
Documents on Display

Quantitative and Qualitative Disclosures About Market Risk
General
Fuel Price Exposure and Hedging
Foreign Currency Exposure and Hedging
Interest Rate Exposure and Hedging

Item 12.

Description of Securities Other than Equity Securities

Item 13.

Item 14.

Item 15.

Defaults, Dividend Arrearages and Delinquencies

PART II

Material Modifications to the Rights of Security Holders and Use of Proceeds

Controls and Procedures
Disclosure Controls and Procedures
Management’s Annual Report on Internal Control Over Financial Reporting
Changes in Internal Control Over Financial Reporting

Item 16.

Reserved

Item 16A.

Audit Committee Financial Expert

Item 16B.

Code of Ethics

Item 16C.

Principal Accountant Fees and Services

Item 16D.

Exemptions from the Listing Standards for Audit Committees

Item 16E.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Item 16F.

Change in Registrant’s Certified Accountant

Item 16G.

Corporate Governance

Item 16H.

Mine Safety Disclosure

Item 17.

Item 18.

Financial Statements

PART III

115
116
116
116
121

121
121

124
124
125
126
127
127
128
130
134

135
135
135
136
137

138

140

140
140
140
141

141

142

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 fare, scheduled airline serving short-haul, point-to-point routes largely in Europe
from 84 bases to airports across Europe, which together are referred to as “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 air travel
model in Europe in the early 1990s. As of June 30, 2016, the Company offered over 2,000 short-haul flights per day
serving over 200 airports largely across Europe, with a fleet of more than 350 Boeing 737-800 aircraft. 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. Financial information presented in euro in the table below has been derived from the consolidated
financial statements that are prepared in accordance with IFRS. The financial information for fiscal 2016 has been
translated from euro to US$ using the Federal Reserve Rate on March 31, 2016. 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:

Total operating revenues
Total operating expenses
Operating income
Net interest (expense)
Other non-operating
(expense) income
Profit before taxation
Tax expense on profit on
ordinary activities

Profit after taxation
Ryanair Holdings basic
earnings per Ordinary Share
(U.S. cents)/(euro cent)
Ryanair Holdings diluted
earnings 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
Current and long-term debt,
including capital lease
obligations
Shareholders’ equity
Issued share capital
Weighted Average Number
of Ordinary Shares

2016(a)

7,444.3 €

6,535.8 €

$ (5,781.2)
1,663.1
$
(60.6)
$

€ (5,075.7)
1,460.1
€
(53.2)
€

Fiscal year ended March 31,

2016

2013
(in millions, except per-Ordinary Share data)

2015

2014

2012

5,036.7 €

5,654.0 €

4,390.2
€ (4,611.1) € (4,378.1) € (4,165.8) € (3,707.0)
683.2
€
(64.9)
€

1,042.9 €
(56.3) €

718.2 €
(71.9) €

658.6 €
(66.7) €

4,884.0 €

$
$

358.8
1,961.3

(185.4)

€
€

€

315.0
1,721.9

(162.8)

€
€

€

(4.2) €
982.4 €

(0.5) €
591.4 €

4.6 €
650.9 €

14.7
633.0

(115.7)

€

(68.6) €

(81.6) €

(72.6)

1,775.9

€

1,559.1

€

866.7 €

522.8 €

569.3 €

560.4

132.42

€

116.26

€

62.59 €

36.96 €

39.45 €

38.03

131.70

€

115.63

€

62.46 €

36.86 €

39.33 €

37.94

33.49

€

29.40

€

37.50

n/a €

34.00

n/a



As of March 31,



2016(a)

2016

2015

2014

2013

2012

(in millions)

1,434.2 €

$
$ 12,777.6 € 11,218.3

1,259.2 €

1,184.6 €
€ 12,185.4 €

1,730.1 €
8,812.1 €

1,240.9 €
8,943.0 €

2,708.3
9,001.0

$
$
$

4,582.2 €
4,096.8
€
8.8 €

4,023.0
3,596.8
7.7

€
€
€

4,431.6 €
4,035.1 €
8.7 €

3,083.6 €
3,285.8 €
8.8 €

3,498.3 €
3,272.6 €
9.2 €

3,625.2
3,306.7
9.3

1,341.0

1,384.7

1,414.6

1,443.1

1,473.7

Cash Flow Statement Data:

2016(a)

2016

2015

2014

2013

2012

Fiscal year ended March 31,

(in millions)

Net cash inflow from
operating activities
Net cash (outflow)/inflow
from investing activities
Net cash (outflow)/inflow
from financing activities
Increase/(decrease) in cash
and cash equivalents

2,102.9 €

1,846.3 €

1,689.4 €

1,044.6 €

1,023.5 €

1,020.3

(323.0)

€

(283.6)

€ (2,888.2) €

300.7 € (1,821.5) €

(185.4)

$ (1,694.9)

€ (1,488.1)

85.0

€

74.6

€

653.3 €

(856.1) €

(669.4) €

(154.9)

(545.5) €

489.2 € (1,467.4) €

680.0

(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, 2016 of €1.00 = $1.1390 or $1.00 = €0.8780

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,

2011
2012
2013
2014
2015

Month ended
January 31, 2016
February 29, 2016
March 31, 2016
April 30, 2016
May 31, 2016
June 30, 2016
Period ended July 21, 2016

U.K. pounds sterling per €1.00(c)

Year ended December 31,

2011
2012
2013
2014
2015

Month ended
January 31, 2016
February 29, 2016
March 31, 2016
April 30, 2016
May 31, 2016
June 30, 2016
Period ended July 21, 2016

End of Average
Period

(b)

Low High

1.296
1.319
1.378
1.210
1.086

1.392 — —
—
1.291
—
1.328
—
1.330
—
1.103

—
—
—
—

—
—
—
—
—
—
—

1.074 1.096
—
1.087 1.136
—
1.085 1.139
—
1.124 1.144
—
1.114 1.152
—
—
1.102 1.140
— 1.101 1.115

End of Average
Period

(b)

Low High

0.836
0.811
0.830
0.776
0.737

0.868
0.811
0.849
0.806
0.723

—
—
—
—
—

—
—
—
—
—
—
—

0.732 0.771
—
0.754 0.791
—
0.772 0.792
—
0.774 0.809
—
0.759 0.792
—
—
0.765 0.834
— 0.833 0.858

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

Year ended December 31,

2011
2012
2013
2014
2015

Month ended
January 31, 2016
February 29, 2016
March 31, 2016
April 30, 2016
May 31, 2016
June 30, 2016
Period ended July 21, 2016

End of Average
Period

(b)

Low High

0.645
0.615
0.603
0.642
0.678

0.624
0.628
0.639
0.607
0.656

—
—
—
—
—

—
—
—
—
—
—
—

0.681 0.706
0.686 0.721
0.689 0.717
0.684 0.710
0.681 0.696
0.676 0.757
0.750 0.774

(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/Reuters.
(d) Based on the Federal Reserve Rate for U.K. pound sterling.

As of July 21, 2016, the exchange rate between the U.S. dollar and the euro was €1.00 = $1.102, or $1.00 =
€0.908; the exchange rate between the U.K. pound sterling and the euro was U.K. £1.00 = €1.200, or €1.00 = U.K. £0.833;
and the exchange rate between the U.K. pound sterling and the U.S. dollar was U.K. £1.00 = $1.322, or $1.00 = U.K.
£0.757. 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 from certain other
data, and are not audited. For definitions of the terms used in this table, see the Glossary in Appendix A.

Operating Data:
Operating Margin
Break-even Load Factor
Avg. Booked Passenger Fare (€)
Ancillary Rev. per Booked Passenger (€)
Cost Per Booked Passenger (€)
Avg. Fuel Cost per U.S. Gallon (€)

Other Data:
Revenue Passengers Booked
Booked Passenger Load Factor
Average Sector Length (miles)
Sectors Flown
Number of Airports Served at Period End
Average Daily Flight Hour Utilization (hours)
Staff at Period End
Staff per Aircraft at Period End
Booked Passengers per Staff at Period End

2016

22 %
72 %

46.67
14.74
47.69
2.21

2016

106,431,130

Fiscal Year Ended March 31,
2014

2013

2015

18 %
72 %

47.05
15.39
50.92
2.34

13 %
72 %

46.40
15.27
53.61
2.45

15 %
70 %

48.20
13.43
52.56
2.38

Fiscal Year Ended March 31,
2014
81,668,285

2015
90,555,521

2013
79,256,253

2012

14 %
70 %

45.36
11.69
48.90
2.07

2012
75,814,551

93 %

88 %

83 %

82 %

762
609,501
200
9.36
11,458
34
9,289

776
545,034
189
9.03
9,394
31
9,640

788
524,765
186
8.81
8,992
30
9,082

754
512,765
167
8.24
9,137
30
8,674

771
489,759
159
8.47
8,388
30
9,038

RISK FACTORS

Risks Related to the Company

Changes in Fuel Costs and Availability Affect the Company’s Results. 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. While oil prices increased substantially in fiscal years 2012, 2013 and
2014, they declined significantly in the second half of fiscal 2015 and in fiscal 2016 remained at lower 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. As of
July 21, 2016, Ryanair had entered into forward jet fuel (jet kerosene) contracts covering approximately 95% of its
estimated requirements for the fiscal year ending March 31, 2017 at prices equivalent to approximately $622 per metric
ton. In addition, as of July 21, 2016, Ryanair had entered into forward jet fuel (jet kerosene) contracts covering
approximately 55% of its estimated requirements for the fiscal year ending March 31, 2018 at prices equivalent to
approximately $496 per metric ton. Ryanair is exposed to risks arising from fluctuations in the price of fuel, and movements
in the euro/U.S. dollar exchange rate because of the limited nature of its hedging program, especially in light of the recent
volatility in the relevant currency and commodity markets. Any further movements in fuel costs could have a material
adverse effect on Ryanair’s financial performance. In addition, any further 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 21, 2016, Ryanair had hedged approximately
95% of its forecasted fuel-related dollar purchases against the euro at a rate of approximately $1.18 per euro for the fiscal
year ending March 31, 2017 and approximately 77% of its forecasted fuel related dollar purchases against the euro at a
rate of approximately $1.12 per euro for the fiscal year ending March 31, 2018.

No assurances whatsoever can be given about trends in fuel prices. Average fuel prices for future years may be
significantly higher than current prices. As of July 21, 2016, management estimated that every $10 movement in the price
of a metric ton of jet fuel will impact Ryanair’s costs by approximately €1.4 million, taking into account Ryanair’s hedging
program for the 2017 fiscal year. However, there can be no assurance in this regard, and the impact of fuel prices on
Ryanair’s operating results may be more or less 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. The
expansion of Ryanair’s fleet from September 2014 onwards has resulted and will likely continue to result in an increase in
Ryanair’s aggregate fuel consumption.

Additionally, ongoing declines in the price of oil may expose Ryanair to some risk of hedging losses that could
lead to negative effects on Ryanair’s financial condition and/or results of operations. Also, a rapid decline in the projected
price of fuel at a time when we have fuel hedging contracts in place could adversely impact Ryanair’s short-term liquidity,
because hedge counterparties could require that we post collateral in the form of cash or letters of credit.

Ryanair Has Seasonally Grounded Aircraft. In recent years, in response to high fuel prices, typically lower winter
traffic and 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 2016, Ryanair grounded
approximately 40 aircraft (compared to 50 in fiscal 2015) and the Company intends to again ground a similar number of
aircraft in fiscal 2017. Ryanair’s 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 the negative impact on operating income 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.

While seasonal grounding does reduce Ryanair’s variable operating costs, it does not avoid fixed costs such as
aircraft ownership 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 year round employment. Such risks could lead to negative effects on Ryanair’s financial condition and/or
results of operations.

Ryanair May Not Achieve All of the Expected Benefits of its Recent Strategic Initiatives. Ryanair is in the process
of implementing a series of strategic initiatives under its “Always Getting Better” (“AGB”) customer experience program
that are expected to have a significant impact on its business. Among other things, these initiatives include scheduling
more flights to primary airports, selling flights via corporate travel agents on global distribution systems (“GDS”), a higher
marketing spend, and adjusting the airline’s yield management strategy with the goal of increasing load factors. In fiscal
years 2014, 2015 and 2016, Ryanair announced a series of customer-experience related initiatives under its “AGB”
customer experience program, including a new easier-to-navigate website with a fare finder facility, a mobile app, reduced
penalty fees, more customer-friendly baggage allowances, 24 hour grace periods to correct minor booking errors, the
introduction of allocated seating for all passengers, family, business traveler and group booking facilities, new crew
uniforms, new cabin interiors, an improved inflight menu, and the introduction of additional routes. For additional
information on these initiatives, see “Item 4. Information on the Company —Strategy”. Although customer reaction to the
measures has so far been positive and management expects these initiatives to be accretive to the Company’s results over
time, no assurance can be given that the financial impact of the initiatives will be positive, particularly in the short to
medium term. In particular, certain of the strategic initiatives may have the effect of increasing certain of the Company’s
costs (including airport fees and marketing expenses) while reducing ancillary revenues previously earned from website
sales and from various penalty fees and charges. Although the Company expects that revenues from allocated seating will
offset the reduction in ancillary revenues, there can be no assurance that this will occur. Factors beyond Ryanair’s control,
including but not limited to customer acceptance, competitive reactions, market and economic conditions and other
challenges described in this report could limit Ryanair’s ability to achieve some or all of the expected benefits of these
initiatives. A relatively minor shortfall from expected revenue levels (or increase in expected costs) could have a material
adverse effect on the Company’s growth or financial performance.

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 substantially 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, hedging activities cannot be expected to eliminate currency risks. See “Item
11. Quantitative and Qualitative Disclosures About Market Risk.”

The “Brexit” Referendum and the resulting uncertainty about the status of the U.K. could adversely affect our
business. In a referendum held on June 23, 2016 in the U.K. (the “Referendum”), a majority voted in favor of the U.K.
leaving the EU (“Brexit”). The Referendum was non-binding and the U.K. government has yet to make the declaration
required by Article 50 of the Lisbon Treaty necessary in order to begin the process by which the U.K. would leave the EU.
If such a notification is made, negotiations would commence to determine the future terms of the U.K.’s relationship with

the EU. This would include the renegotiation, either during a transitional period or more permanently, of a number of
arrangements between the EU and the U.K. that directly impact our business. These arrangements include, inter alia,
freedom of movement between the U.K. and the EU, employment rules governing the relationship between the U.K. and
the EU, the status of the U.K. in relation to the EU’s open aviation market and the tax status of EU member state entities
operating in the U.K. Adverse changes to any of these arrangements, and even uncertainty over potential changes during
any period of negotiation, could potentially materially impact on Ryanair’s financial condition and results of operations in
the U.K. or other markets Ryanair serves.

Ryanair is exposed to Brexit-related risks and uncertainties, as approximately 28% of revenue in fiscal 2016 came
from operations in the U.K., although this was offset somewhat by 21% of our non-fuel costs in fiscal 2016 which were
related to operations in the U.K.

Brexit could also present Ryanair with a number of potential regulatory challenges. Brexit could lead to
potentially divergent national laws and regulations as the U.K. determines which EU laws to replace or replicate. It could
also require special efforts to ensure our continuing compliance with EU Regulation No. 1008/2008, which requires that
air carriers registered in EU member states be majority-owned and effectively controlled by EU nationals. If U.K. holders
of the Company’s shares are no longer designated as EU nationals, the Board of Directors may have to take action to
ensure continuing compliance with EU Regulation No. 1008/2008. For additional information, please see “Item 3 – Risks
Related to Ownership of the Company’s Ordinary Shares or ADRs”.

The Referendum has also caused, and Brexit may continue to cause, both significant volatility in global stock
markets and currency exchange rate fluctuations, as well as creating significant uncertainty among U.K. businesses and
investors. In particular, the pound sterling has lost approximately over 10% of its value against the U.S. Dollar and the
euro since the Referendum, and The Bank of England and other observers have warned of a significant probability of a
Brexit-related recession in the U.K. We earn a significant portion of our revenues in pounds sterling, and any significant
decline in the value of the pound and/or recession in the U.K. would materially impact our financial condition and results
of operations. For the remainder of fiscal 2017, taking account of timing differences between the receipt of sterling
denominated revenues and the payment of sterling denominated costs, Ryanair estimates that every 1 pence sterling
movement in the EUR/GBP exchange rate will impact income by approximately €8 million. For additional information,
please see “Item 3 – Currency Fluctuations Affect the Company’s Results”.

The Company May Not Be Successful in Increasing Fares to Cover Rising 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. Furthermore, as part of its change in marketing and airport strategy, the
Company will expect increased marketing and advertising costs along with higher airport charges due to the increasing
number of primary airports to which it operates. Ryanair cannot offer any assurances regarding its future profitability.
Changes in fuel costs and availability could have a material adverse impact on Ryanair’s results. See “—The Company
Faces Significant Price and Other Pressures in a Highly Competitive Environment” below and “—Changes in Fuel Costs
and Availability Affect the Company’s Results” 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, Klagenfurt, Paris (Beauvais), La
Rochelle, Carcassonne, Cagliari, Girona and Reus and Târgu Mures airports. The investigations seek to determine whether
the agreements constitute illegal state aid under EU law. The investigations are expected to be completed in late 2016, with
the European Commission’s decisions being appealable to the EU General Court. Between 2010 and 2014, investigations
into Ryanair’s agreements with the Bratislava, Tampere, Marseille, Berlin (Schönefeld), Aarhus, Dusseldorf (Weeze),
Brussels (Charleroi), Frankfurt (Hahn), Alghero and Stockholm (Västerås) airports concluded with findings that these
agreements contained no state aid. In 2014, the European Commission announced findings of state aid to Ryanair in its
arrangements with Pau, Nimes, Angouleme, Altenburg and Zweibrücken airports, ordering Ryanair to repay a total of
approximately €10.4 million of alleged state aid. Ryanair has appealed to the EU General Court these five “aid” decisions.
These appeal proceedings are expected to take between two and four years. In addition to the European Commission
investigations, Ryanair is facing allegations that it has benefited from unlawful state aid in national court cases in relation
to its arrangements with Frankfurt (Hahn) and Lübeck airports. 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 Group plc (“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. On February 5, 2015, the EU General Court partially annulled the European Commission’s 2012
decision and held that the actual quantum of aid depended on the extent of pass-through of the “tax reduction” to
passengers. Both Ryanair and the Commission have appealed the EU General Court’s decision to the European Court of
Justice. In addition, Ryanair has submitted a response to the European Commission’s appeal, in support of certain findings
of the EU General Court. The European Court of Justice will issue its judgment in late 2016. On the basis of the European
Commission’s 2012 decision, the Irish State was obliged to recover the alleged unlawful state aid from Ryanair before the
Irish courts, and initiated its claim in April 2013. The Irish State was seeking approximately €12 million plus interest from
Ryanair in those proceedings. Following the EU General Court’s partial annulment of the European Commission’s
decision, Ryanair applied for the Government’s claim to be struck out. In April 2015, both the Irish State’s case and
Ryanair’s application to have it struck out were stayed pending the outcome of the appeal to the European Court of Justice.
Ryanair’s proceedings, initiated in July 2012, 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) are pending.

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, please see “Item 8. Financial InformationOther Financial InformationLegal

Proceedings.”

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 programs), 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. The recent
decrease in fuel prices may enable weaker, unhedged, airlines to pass through fuel savings via lower fares. While Ryanair
is hedged at levels that are expected to deliver unit cost savings over the next two fiscal years, it is hedged at prices that
are above the current spot prices. There is no guarantee that lower fuel prices will not lead to greater price competition and
encourage new entrants to the market in the short to medium term.

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 travelers 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 over 350 aircraft in its principal fleet by June 30, 2016 and has ordered an additional 315 new aircraft (a mix
of new Boeing 737-800 next generation aircraft and 737-MAX-200 aircraft, of which 100 are firm orders and 100 are
subject to option) for delivery post June 30, 2016 to fiscal 2024 pursuant to contracts with the Boeing Company (the “2013
Boeing Contract” and “2014 Boeing Contract”). Ryanair expects to have approximately 546 operating aircraft in its fleet
by March 31, 2024, 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 and 2014 Boeing Contract, the Company has raised and expects to
continue to raise substantial debt financing to cover all of the expected aircraft deliveries over the period from September
2014 to November 2023, including Ryanair’s issuance of €850.0 million in 1.875% unsecured Eurobonds with a 7 year
tenor in June 2014 and issuance of €850.0 million in 1.125% unsecured Eurobonds with an 8 year tenor in March 2015
that are both guaranteed by Ryanair Holdings. Furthermore, Ryanair’s ability to raise unsecured or secured debt to pay for
aircraft as they are delivered is subject to various conditions imposed by the counterparties and debt markets to such 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.
Additionally, Ryanair’s ability to raise unsecured or secured debt to pay for aircraft is subject to potential volatility in the
worldwide financial markets.

Using the debt capital markets to finance the Company and the 2013 and 2014 Boeing Contracts requires the
Company to retain its investment grade credit ratings (the Company has a BBB+ (stable) credit rating from S&P and a
BBB+ (stable) credit rating from Fitch Ratings). There is a risk that the Company will be unable, or unwilling, to access
these markets if it is downgraded or is unable to retain its investment grade credit ratings and this could lead to a higher
cost of finance for Ryanair.

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 180.0
million passengers per annum by March 31, 2024, an increase of approximately 69% from the approximately 106.4 million
passengers booked in the 2016 fiscal year. However, no assurance can be given that this target will 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 repayments) could be materially adversely affected.

The continued expansion of Ryanair’s fleet and operations combined with 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 the
cash required to fund aircraft purchases or aircraft deposits related to the acquisition of additional Boeing 737-800 and
Boeing 737-MAX-200 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. See “—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” above.

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 at a specified time. As part of Ryanair’s recent
strategic initiatives, which include more flights to primary airports, Ryanair is operating to an increasing number of slot
coordinated airports, a number of which have constraints at particular times of the day. There can be no assurance that
Ryanair will be able to obtain a sufficient number of slots at slot-coordinated 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 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 July 2012, 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. 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. The Italian government has recently increased the municipal taxes in Italy by €2.50. As a result, Ryanair
was forced to close two Italian bases. From June 2016, the Norwegian government introduced a passenger travel tax of
NOK80 (approximately €8.50) which resulted in Ryanair announcing the closure of its Oslo Rygge base with effect from
late October 2016. 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”.

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 will 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 (with the exception of the U.K.)
generally operate on Irish contracts of employment as they are required to do so under Irish tax law on the basis that those
crew work mainly 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, in the majority
of jurisdictions, imposes 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 Representative Committees (“ERC”). Following negotiations through this ERC system, pilots at all of Ryanair’s
84 bases are covered by four, five or six year collective agreements on pay, allowances and rosters which fall due for
negotiation at various dates between 2017 and 2021. Cabin crew at all of Ryanair’s bases are also party to long term
collective agreements on pay, allowances and rosters, which expire in March 2021. 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.”

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 (including the Canary
Islands) and Portugal 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 CEO, and key financial, commercial,
operating, IT and maintenance personnel. In October 2014, Mr. O’Leary signed a five-year contract with the Company.
This contract can be terminated by either party giving twelve months’ notice. See “Item 6. Directors, Senior Management
and Employees—Compensation of Directors and Executive Officers—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 several 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. Ryanair’s flight reservations are made through its website, mobile app and GDSs. Ryanair has
established contingency programs which include hosting its website in three separate locations and having a back-up
booking engine available to support its existing booking 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 Ryanair 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 may include hidden 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. Ryanair is
currently 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. Ryanair does allow certain companies who operate fare comparison (i.e. not reselling) websites to access its
schedule and fare information for the purposes of price comparison provided they sign a license and use the agreed method
to access the data. Ryanair also permits Travelport (trading as Galileo and Worldspan), Amadeus and Sabre, GDS
operators, to provide access to Ryanair’s fares to traditional and corporate travel agencies. Ryanair has received favorable
rulings in Ireland and The Netherlands, and unfavorable rulings in Germany, Spain, France and Italy, 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.”

Ryanair is Subject to Cyber Security Risks and May Incur Increasing Costs in an Effort to Minimize Those Risks.
As almost all of Ryanair’s reservations are made through its website, security breaches could expose it to a risk of loss or
misuse of customer information, litigation and potential liability. Although Ryanair takes steps to secure its website and
management information systems, the security measures it has implemented may not be effective, and its systems may be
vulnerable to theft, loss, damage and interruption from a number of potential sources and events, including unauthorized
access or security breaches, cyber-attacks, computer viruses, power loss, or other disruptive events. Ryanair may not have
the resources or technical sophistication to anticipate or prevent rapidly evolving types of cyber-attacks. Attacks may be
targeted at Ryanair, its customers and suppliers, or others who have entrusted it with information.

In addition, data and security breaches can also occur as a result of non-technical issues, including breaches by
Ryanair or by persons with whom it has commercial relationships that result in the unauthorized release of personal or
confidential information. Any such cyber-attack or other security issue could result in a significant loss of reservations and
customer confidence in the website and its business which, in turn, could have a material adverse effect on Ryanair’s
operating results or financial condition and potentially entail its incurring significant litigation or other costs.

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%. There remains 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 U.K. 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 from the effects of this legislation
for a period of 10 years up until 2022. 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 have an adverse impact over
time in the majority of jurisdictions in which Ryanair currently operates from.

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 is of
the view that it is 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 Company could materially increase.
See “—The Irish Corporation Tax Rate Could Rise” above.

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
regarding the future of the Eurozone, including with regard to Ireland. To date, there have been no exits from the Eurozone.
Although the economic environment in Ireland has considerably improved, there is still a risk of contagion spreading to
the weaker Eurozone members. Greece in particular is a potential risk as negotiations around the final restructuring of their
existing debt program continue. As many international banks no longer have material exposure to Greek bonds or Greek
banks, the risk of contagion in the banking system as a result of Greek default is now considered to be low but should not
be totally discounted. In addition, following a Referendum on June 23, 2016, a majority of the U.K. population voted to
leave the EU. The immediate impact of the vote was that the U.K. pound sterling weakened significantly against the euro.
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 be insufficient.

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. Uncertainty regarding the future 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 uncertainty in connection with the euro could also mean that Ryanair is unable to grow.
The recent European recession, austerity measures still in effect in several European countries and social and political

instability associated with the influx of refugees related to the wars in Syria and Afghanistan could mean that Ryanair may
be unable to expand its operations due to lack of demand for air travel.

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 uncertainty relating to the Eurozone and in the U.K. following Brexit, 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 and increased Brexit-related uncertainty in the
U.K., 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.

Brexit and the resulting uncertainty could adversely affect our business. In a referendum held on June 23, 2016
in the U.K. (the “Referendum”), a majority voted in favor of the U.K. leaving the EU (“Brexit”). The Referendum was
non-binding and the U.K. government has yet to make the declaration required by Article 50 of the Lisbon Treaty necessary
in order to begin the process by which the U.K. would leave the EU. If such a notification is made, negotiations would
commence to determine the future terms of the U.K.’s relationship with the EU. This would include the renegotiation,
either during a transitional period or more permanently, of a number of arrangements between the EU and the U.K. that
directly impact our business. These arrangements include, inter alia, freedom of movement between the U.K. and the EU,
employment rules governing the relationship between the U.K. and the EU, the status of the U.K. in relation to the EU’s
open aviation market and the tax status of EU member state entities operating in the U.K. Adverse changes to any of these
arrangements, and even uncertainty over potential changes during any period of negotiation, could potentially materially
impact on Ryanair’s financial condition and results of operations in the U.K. or other markets Ryanair serves.

Ryanair is exposed to Brexit-related risks and uncertainties, as approximately 28% of revenue in fiscal 2016 came
from operations in the U.K. although this was offset somewhat by 21% of our non-fuel costs in fiscal 2016 which were
related to operations in the U.K.

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, £11 in 2009,

£12 in 2010 and subsequently to £13 in April 2012. The increase in this tax has had a negative impact on Ryanair’s
operating performance, both in terms of average fares paid and growth in passenger volumes. On December 3, 2014, the
U.K. government announced that it was reducing APD for children under the age of 12 years from May 1, 2015. It was
also announced that this reduction of APD would be extended to persons under the age of 16 years from March 1, 2016.
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. On April 1, 2014 the tax imposed by the Irish government was abolished. 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. The Moroccan government has also
introduced a similar tax (equivalent to approximately €9) from April 2014. The Italian government has recently increased
the municipal taxes in Italy by €2.50 to €9 (€10 at Rome). From June 2016, the Norwegian government introduced a
passenger travel tax of NOK80 (equivalent to approximately €8.50) which resulted in Ryanair announcing the closure of
its Oslo Rygge base with effect from late October 2016.

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.

Terrorism in Europe, the United States or Elsewhere Could Have a Material Detrimental Effect on the Company.
As 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 could have a material
adverse effect on the Company’s profitability or financial condition. Similarly, any significant increase in expenses related
to security, insurance or related costs could have a material adverse effect on the Company. As a consequence, future
terrorist attacks in Europe, the U.S. or elsewhere, 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.

EU Regulation on Passenger Compensation Could Significantly Increase Related Costs. EU Regulation (EC) No.
261/2004 requires airlines to compensate passengers (holding a valid ticket) who have been denied boarding or whose
flight has been cancelled or delayed more than 3 hours on arrival. The regulation calls for compensation of €250, €400, or
€600 per passenger, depending on the length of the flight and the cause for the cancellation or delay, i.e. whether it is
caused by “extraordinary circumstances”. 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. Passengers subject to flight delays over two hours
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 regulation if Ryanair experiences a large number of delays or cancelled flights, which could occur
as a result of certain types of events beyond its control. Further, recently courts in several jurisdictions have been
broadening the definition of the term “extraordinary circumstances” thus allowing increased consumer claims for
compensation. In September 2015, the European Court of Justice, in Van der Lans v KLM, held that airlines are required
to provide compensation to passengers even in the event of a flight cancellation on account of unforeseen technical defects.
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” below.

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 had until then 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 has 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, in addition to the payment of compensation,
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. Passengers must also be given a re-routing option if their flight is delayed over three hours or
if it is cancelled. Such re-routing options are not limited to Ryanair flights and other carriers must be considered if no
suitable Ryanair flight can be sourced. If a passenger elects for a refund, Ryanair’s reimbursement and re-routing
obligations cease.

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 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
MERS, 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. If it spreads to Europe, the present outbreak of the Zika Virus
may have similar consequences. 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, MERS, 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. Ryanair has an excellent 31-year
safety record. In past years, however, accidents or other safety-related incidents involving certain other 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.

The Company Faces the Risk of Loss and Liability. Ryanair has an excellent 31-year safety record; however, it 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 “Terrorism in Europe, the United States or Elsewhere Could Have a Material Detrimental Effect on the
Company.” 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 41% of total operating expenses in the 2016 fiscal year, management anticipates that this
percentage may vary significantly in future years. See “—Changes in Fuel Costs and Availability Affect the Company’s
Results” 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 major modifications to implement changes to the take-off configuration warning lights,
cabin pressurization system, pitot system heating, fuel tank boost pump electrical arcing protection, and the European
Commission’s Datalink mandate. 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 program 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. 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, 2016, EU nationals owned at least 53.6% 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 occasionally declared special dividends on both its Ordinary Shares and ADRs. The
directors of the Company declared on May 21, 2012 that Ryanair Holdings intended to pay a special dividend of €0.34 per
ordinary share (approximately €492 million) and following shareholder approval at the annual general meeting on
September 21, 2012 this special dividend was paid on November 30, 2012. In June 2013, the Company detailed plans to
return up to €1 billion to shareholders over the following next two years. The Company completed €481.7 million in share
buy-backs in the fiscal year 2014 (including just over 6.0 million ADR buy-backs) and €112.0 million in share buy-backs
in the fiscal year 2015. The Company had indicated on May 19, 2014 that it planned to pay a special dividend of up to
approximately €520 million in the fourth quarter of fiscal year 2015, and following shareholder approval at its annual
general meeting on September 25, 2014, this special dividend was paid on February 27, 2015. In February 2015, Ryanair
commenced a €400 million ordinary share buy-back program which was completed between February and August 2015.
In September, 2015 the Company announced a B share scheme of €398 million to return the proceeds from the sale of its
shares in Aer Lingus to shareholders. Additionally, the Company announced an €800 million share buy-back program

(including an ADR buy-back) in February 2016. At March 31, 2016 the Company had bought back approximately €418.1
million under this program. Following the June 23, 2016 Referendum vote by the U.K. to leave the EU, Ryanair announced
that it had increased the size of its buy-back program to the 5% buy-back limit approved by the shareholders at the
Company’s 2015 Annual General Meeting. Under this increased share buy-back program, the Company purchased just
over 65 million shares at a total cost of approximately €886 million. On July 1, 2016, the Board confirmed that it will hold
an Extraordinary General Meeting (“EGM”) on July 27, 2016 to seek approval from shareholders to grant the Board of the
Company the discretion to engage in further share buy-backs, should they decide that it is in the best interests of
shareholders, over the next fifteen months. While there is no plan to engage in further planned buy-backs (i.e. a VWAP
program) during the remainder of 2016, the Board is seeking the flexibility and discretion to do so, if there is further market
volatility such as that witnessed in the aftermath of the U.K. referendum vote. 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 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 have historically traded 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 fiscal 2016, the Company bought
back 53.7 million Ordinary Shares for cancellation, as part of its overall share buy-back. On June 20, 2013, the Company
detailed plans to return up to €1 billion to shareholders over the following two years. The Company completed €481.7
million in share buy-backs in the fiscal year 2014 and €112.0 million in fiscal year 2015. On May 19, 2014, the Company
had indicated that it planned to pay a special dividend of up to approximately €520 million in the fourth quarter of fiscal
year 2015, and following shareholder approval at its annual general meeting on September 25, 2014, this special dividend
was paid on February 27, 2015. In February 2015, Ryanair commenced a €400 million ordinary share buy-back program,
which was completed between February and August 2015. Additionally, the Company announced an €800 million share
buy-back program (including an ADR buy-back) in February 2016. At March 31, 2016 the Company had bought back
approximately €418.1 million under this program. Following the June 23, 2016 Referendum vote by the U.K. to leave the
EU, Ryanair announced that it had increased the size of its buy-back program to the 5% buy-back limit approved by the
shareholders at the Company’s 2015 Annual General Meeting. Under this increased share buy-back program, the Company
purchased just over 65 million shares at a total cost of approximately €886 million. On July 1, 2016, the Board confirmed
that it will hold an EGM on July 27, 2016 to seek approval from shareholders to grant the Board of the Company the
discretion to engage in further share buy-backs, should they decide that it is in the best interests of shareholders, over the
next fifteen months. While there is no plan to engage in in further planned buy-backs (i.e. a VWAP program) during the
remainder of 2016, the Board is seeking the flexibility and discretion to do so, if there is further market volatility such as
was witnessed in the aftermath of the U.K. Referendum vote.

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 fare, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the U.K., Continental
Europe, Morocco and Israel. Incorporated on November 28, 1984, Ryanair Limited began to introduce a low-fares
operating model in Europe under a new management team in the early 1990s. See “Item 5. Operating and Financial Review
and ProspectsHistory.” As of June 30, 2016, Ryanair had a principal fleet of over 350 Boeing 737-800 aircraft and
offered over 2,000 scheduled short-haul flights per day serving approximately 200 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 €1,559.1 million in the 2016 fiscal year, as
compared to a profit on ordinary activities after taxation of €866.7 million in the 2015 fiscal year. This increase of
approximately 80% was primarily attributable to an increase in revenues of approximately 16% from €5,654.0 million to
€6,535.8 million partially offset by an approximately 10% increase in operating expenses from €4,611.1 million to
€5,075.7 million. Also, the Company disposed of its 29.8% shareholding in Aer Lingus for €2.50 per share resulting in a
gain of €317.5 million primarily due to the reclassification of unrealised gains from other comprehensive income and

reserves to the income statement. Ryanair generated an average booked passenger load factor of approximately 93% in
fiscal 2016, compared to 88% in fiscal 2015, and average booked passenger fare of €46.67 per passenger in the 2016 fiscal
year, down from €47.05 in the prior fiscal year. The Company has focused on maintaining low operating costs (€47.69 per
passenger in the 2016 fiscal year, a decrease from €50.92 in fiscal 2015).

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 routes on which it has commenced service since 1991.
For example, the number of scheduled airline passengers traveling on Ryanair routes increased from 0.7 million passengers
in 1991 to 106.4 million passengers in fiscal 2016. 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 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, Dublin Office, Airside Business Park,
Swords, County Dublin, K67 NY94, Ireland. The Company’s contact person regarding this Annual Report on Form 20-F
is: Neil Sorahan, Chief Financial Officer (same address as above). The telephone number is +353-1-945-1212. 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 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.

Ryanair is implementing a series of strategic initiatives that are expected to have a significant impact on its
customer service offering. Ryanair has also announced and introduced a series of customer-service related initiatives under
the AGB customer experience program, including a new, easier-to-navigate website with a fare finder facility, a mobile
app, reduced penalty fees, allocated seating and more customer-friendly baggage allowances and change policies. Ryanair
has also introduced several important products that improve its offer to customers. Family EXTRA offers families
travelling with Ryanair a set of bundled ancillary discounts and 20% off a third booking. Business PLUS offers business
travelers a flexible ticket, airport fast track and priority boarding. Leisure PLUS gives customers a discounted bundle of
ancillaries including a 20kg bag, priority boarding and a reserved seat. Ryanair Groups is a dedicated booking service
designed for groups travelling together and this year Ryanair launched a new bonded travel service for school travel.
Furthermore, these customer-service related initiatives include scheduling more flights to primary airports, selling flights

via travel agents on GDS, marketing spending to support these initiatives, and adjusting the airline’s yield management
strategy with the goal of increasing load factors and yield.

Frequent Point-to-Point Flights on Short-Haul Routes. Ryanair provides frequent point-to-point service on short-
haul routes to primary, secondary and regional airports in and around major population centers and travel destinations. In
the 2016 fiscal year, Ryanair flew an average route length of 762 miles and an average flight duration of approximately
1.8 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.

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). In
fiscal 2019, when the Boeing 737-800 is scheduled to go out of production, Ryanair will become the launch
customer for the new Boeing 737-MAX-200 aircraft, which is designed to replace the Boeing 737-800, and will
purchase up to 200 of such aircraft through the end of fiscal 2024 (an agreement is in place with Boeing to
purchase 100 aircraft with an option to purchase a further 100 aircraft). 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 sales bonus payments 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. As part of its strategic initiatives, and the “AGB” customer
experience program, the Company has broadened its distribution base by making Ryanair’s fares available to
Travelport (Galileo and Worldspan), Amadeus and Sabre at nominal cost to the Company. Direct sales via the
Ryanair website and mobile app continues to be the prime generator of scheduled passenger revenues.

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, although the recent change in strategy by the Company may see it access
more primary airports, which typically have higher airport charges and greater competition along with slot
limitations. 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 or post booking and is aimed at reducing the
number of bags carried by passengers in order to further reduce handling costs. See “Item 3. 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 November 2019. As
part of the implementation of the 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
the vast majority of reservations over the past several years. In May 2012, Ryanair further upgraded the reservation system
to offer more flexibility for future system enhancements and to accommodate the future growth of Ryanair. In November
2013, Ryanair re-launched its website in a new, easier to use, format that reduced the number of “clicks” to make a booking.
Various other initiatives were also introduced, including a fare finder facility which enables customers to easily find the
lowest fares. The new “My Ryanair” registration services, which allows customers to securely store their personal and
payment details, has also significantly quickened the booking process and made it easier for customers to book a flight.
The Company also launched a new mobile app in July 2014, which made it simpler and easier for customers to book
Ryanair flights. In May 2015, an upgraded mobile app, which is native to both Android and IOS, was launched. This
upgraded app is faster, more reliable and stable than previous versions of the app and enhances the experience for customers
accessing its website via mobile. The new app also offers customers the ability to add additional ancillary products on day
of travel e.g. bags, priority boarding and fast track. We launched a new version of the website in October 2015 with the
key features being personalization, a new myRyanair, easier booking flow, more content, faster, intuitive and fully
responsive for mobile devices. Ryanair, as part of the “AGB” customer experience program, will endeavor to improve its
website and mobile app through a series of ongoing upgrades.

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 31-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 a European Aviation Safety Agency (“EASA”)
Part 145 approval. 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 accommodation (hotels, villas, apartments, hostels etc.) services,
Ryanair currently has a contract with Booking.com to market hotels during and after the booking process. The
accommodation business went out to tender in July 2016, and a new multi-supplier solution is under development for
quarter 3 fiscal 2017. Ryanair also offers airport transfers and car park services through its website and onboard its aircraft.
Ryanair offers car hire services via a contract with CarTrawler, which replaced previous supplier Hertz in September 2015.
Ancillary services accounted for approximately 24% of Ryanair’s total operating revenues in the 2016 fiscal year and
approximately 25% of Ryanair’s total operating revenues in the 2015 fiscal year See “—Ancillary Services” below and
“Item 5. Operating and Financial Review and Prospects—Results of Operations—Fiscal Year 2016 Compared with Fiscal
Year 2015—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, Morocco and Israel, Ryanair intends to follow a manageable growth plan targeting specific markets.
Ryanair believes it will have opportunities for continued growth by: (i) using aggressive fare promotions to increase load
factors; (ii) initiating additional routes in the EU; (iii) 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; (iv) increasing the frequency
of service on its existing routes; (v) starting new domestic routes within individual EU countries; (vi) considering
acquisition opportunities that may become available in the future; (vii) connecting airports within its existing route network
(“triangulation”); (viii) establishing new bases; and (ix) initiating new routes not currently served by any carrier.

Responding to Market Challenges. In recent periods, and with increased effect in the 2012, 2013 and 2014 fiscal
years, Ryanair’s low-fares business model 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 40 in fiscal 2016, 50 in fiscal 2015, 70 in fiscal 2014 and 80 in
fiscal 2013) aircraft during the winter season; (ii) disposing of aircraft (lease hand backs totaled eight in fiscal 2014, none
in fiscal 2015 and eleven in fiscal 2016); (iii) controlling labor and other costs, including through wage freezes for non-
flight crew personnel in fiscal 2011 and fiscal 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 Availability Affect the Company’s Results” and “—The Company May Not
Be Successful in Increasing Fares and Revenues to Cover Rising 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 2014, fiscal 2015, and fiscal
2016 Ryanair grounded approximately 70 aircraft, 50 aircraft, and 40 respectively. 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 Seasonally Grounded Aircraft.”

Route System and Scheduling

ROUTE SYSTEM, SCHEDULING AND FARES

As of July 21, 2016, the Company offered over 2,000 scheduled short-haul flights per day serving approximately

200 airports largely throughout Europe. The following table lists Ryanair’s operating bases:

Alghero
Alicante
Athens
Baden-Baden
Barcelona (Girona)
Barcelona (El Prat)
Bari
Belfast
Berlin
Bologna
Bournemouth
Birmingham
Bratislava
Bremen
Brindisi
Bristol
Brussels (Charleroi)
Brussels (Zaventem)
Bucharest
Budapest
Cagliari
Catania
Chania
Cologne
Corfu
Cork
Dublin
Dusseldorf (Weeze)

Operating Bases

East Midlands
Edinburgh
Eindhoven
Faro
Fez
Frankfurt (Hahn)
Gdansk
Glasgow (Prestwick)
Glasgow International
Gothenburg
Gran Canaria
Hamburg
Ibiza
Kaunas
Krakow
Lamezia
Lanzarote
Leeds Bradford
Lisbon
Liverpool
London (Luton)
London (Stansted)
Madrid
Malaga
Malta
Manchester
Marrakech
Marseilles

Milan (Bergamo)
Milan (Malpensa)
Nuremburg
Palermo
Palma Mallorca
Paphos
Pescara
Pisa
Ponta Delgada
Porto
Prague
Oslo (Rygge)
Rome (Ciampino)
Rome (Fiumicino)
Santiago
Seville
Shannon
Sofia
Stockholm (Skavsta)
Tenerife South
Thessaloniki
Timisoara
Trapani
Valencia
Vilnius
Warsaw (Modlin)
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 11:30 p.m. Management regularly reviews the need for adjustments in the
number of flights on all of its routes.

As part of Ryanair’s “AGB” customer experience program Ryanair has focused on high frequency and business

friendly timings between Europe’s main business centers.

During the 2016 fiscal year, Ryanair opened over 100 new routes across its network. See “Item 3. 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 the new route at 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, route choice and great service
which has recently been enhanced by Ryanair’s “AGB” customer experience program. In doing so, Ryanair primarily
advertises its services in national and regional media across Europe. In addition, Ryanair uses topical advertising, social
media, 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.

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. The vast majority 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, security fast-track, priority boarding service and limited reserved seating since January 2012 (with fully
allocated seating introduced in February 2014 as part of the “AGB” customer experience program). 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. In April 2014, the Company
entered into an agreement with Travelport which operates the Galileo and Worldspan GDS. In October 2014, the Company

entered into an agreement with Amadeus and an agreement was also concluded with Sabre in May 2015 (collectively
“GDSs”). The Company’s fares (except for the three lowest fare categories) will be distributed on the GDSs systems.
Ryanair has negotiated an attractive per segment price and expects to sell tickets via travel agents at no commission to a
mix of largely business/corporate travelers. 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, 2016, Ryanair had a principal fleet of over 350 Boeing 737-800 aircraft. The principal fleet was
composed of Boeing 737-800 “next generation” aircraft, each having 189 seats. Ryanair’s fleet totaled 341 Boeing 737-
800s at March 31, 2016. The Company expects to have an operating fleet comprising approximately 546 Boeing 737s at
March 31, 2024 depending on the level of lease returns/disposals. This operating fleet will comprise a mix of Boeing 737-
800s and Boeing 737-MAX-200 aircraft. The 737-MAX-200 aircraft, which will start being delivered during fiscal 2020,
will have 197 seats.

Between March 1999 and March 2016, Ryanair took delivery of 400 new Boeing 737-800 “next generation”

aircraft under its contracts with Boeing and disposed of 60 such aircraft, including 34 lease handbacks.

Under the terms of the 2013 Boeing Contract, Ryanair has agreed to purchase the 183 new Boeing 737-800 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. Under the terms of the 2014 Boeing Contract, Ryanair has agreed to purchase up to 200 new Boeing 737-MAX-200
aircraft (100 firm orders and 100 aircraft subject to option) over a five-year period from fiscal 2020 to 2024, with delivery
beginning in August 2019. The new aircraft 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$78.5 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.

The Boeing 737-MAX-200 represents the newest generation of Boeing's 737 aircraft. It is a short-to-medium
range aircraft and seats 197 passengers (eight more than Ryanair’s existing 189 seat fleet). The basic price (equivalent to
a standard list price for an aircraft of this type) for each of the Boeing 737-MAX-200 series aircraft is approximately
US$102 million and the basic price will be increased for certain "buyer-furnished" equipment, amounting to approximately
US$1.6 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 2014 Boeing Contract and the planned month of
delivery of any such new aircraft.

Boeing has granted Ryanair certain price concessions as part of the 2014 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 August 2019.

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 43 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 in current production, with the 737-MAX-200 not expected to enter the market
until 2019.

Management believes that its strategy, to date, of having reduced its fleet to two generations of an 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. The Boeing 737-MAX-
200 CFM LEAP-1B engines which, combined with the Advanced Technology winglet and other aerodynamic
improvements, will reduce fuel consumption by up to approximately 16% on a per seat basis compared to the Boeing 737-
800s in Ryanair’s configuration and reduce operational noise emissions by approximately 40%.

The Boeing 737-MAX-200 aircraft could impact the Company insofar as the residual value of its Boeing 737-

800 aircraft could be reduced when it enters production, currently expected to be in August 2019.

At March 31, 2016, the average aircraft age of the Company’s Boeing 737-800 fleet was 6 years.

Training and Regulatory Compliance

Ryanair currently owns and operates eight 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. In December 2014, Ryanair entered into a new contract with CAE
to purchase B737NG Level D flight simulators, two of which were delivered in fiscal 2016. Ryanair has also purchased 3
new state of the art fixed base simulators from Multi Pilot Simulations (“MPS”) which will be used for pilot assessments
and pilot training.

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—Risks Related to the Airline Industry— 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 2016
Compared with Fiscal Year 2015—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 markets accommodation services and travel insurance through its website. For hotel and
accommodation services, Ryanair currently has a contract with Booking.com to market hotels during and after the booking
process and Ryanair receives a commission on these sales. The accommodation business went out to tender in July 2016,
and a new multi-supplier solution is under development for quarter 3, fiscal 2017. Ryanair offers car hire services via a
contract with CarTrawler, which replaced previous supplier Hertz in September 2015.

Ryanair also sells some bus and rail tickets onboard its aircraft and through its website. In addition, Ryanair

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

Ryanair sells gift vouchers on its website, which are redeemable online. In May 2009, Ryanair started to offer its
passengers the possibility of receiving an SMS (text message) when booking, at a modest fee, to inform them of their flight
confirmation details.

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. A new version of the
EPOS device was rolled out in the summer of 2015.

In fiscal year 2011, Ryanair began offering reserved seating in eighteen 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. In February 2014, Ryanair introduced
fully allocated seating on each of its flights. Passengers can, for a modest premium, reserve seats at the front of the aircraft
and at the overwing exits. All other seats can be reserved for a lower fee. In the event a passenger does not wish to purchase
an allocated seat, a random seat will be allocated during the booking process.

In November 2013, the Company launched a new website which reduced the number of clicks to make a booking.
At the same time, the Company reduced the exposure of certain other ancillary products during the booking process on the
website which had a negative impact on sales along with a reduction of certain penalty fees and charges at airports. The
Company anticipates that the reduction in revenues arising from these changes will be offset by the increased revenues
arising from allocated seating and, over time, enhanced selling opportunities that will arise from the digital personalization
of offers to our customers via the new website and mobile app launched in October 2015, such as through the introduction
of fast-track and priority boarding. See “Item 3 Key Information—Risk Factors—Risks related to the Company—Ryanair
May Not Achieve All of the Expected Benefits of its Recent Strategic Initiatives”.

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 EASA Regulations and 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
EASA Part 145. 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” below.

Ryanair is itself an EASA Part 145-approved maintenance organization and provides its own routine aircraft
maintenance and repair services. Ryanair also performs certain checks on its aircraft, including pre-flight and daily checks

at some of its bases, as well as A-checks at its Dublin, London (Stansted), Glasgow (Prestwick), Bremen, Kaunas 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 opened a new C-check hangar facility in Kaunas, Lithuania in January
2013 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. In January 2014, Ryanair opened another
single bay hangar facility in Kaunas.

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 four flight
simulator devices, 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. Ryanair
completed the construction of a single bay hangar in Bergamo, Italy in June 2016 which will be used for line maintenance
activities and 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 EASA Part 145-approved contract maintenance providers. Aircraft return
each evening to Ryanair’s bases, where they are examined by either Ryanair’s approved personnel or by local EASA 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 handle the increased C-check requirements
driven by fleet expansion.

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, which was signed in 2004 and subsequently
extended for three years to November 30, 2017. 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 EASA Part 145-approved repair facility in Cardiff, Wales for this work, but also uses its EASA Part 145-
approved facility in Celma, Brazil. By contracting with experienced EASA Part 145-approved maintenance providers,
management believes it is better able to ensure the quality of its aircraft and engine maintenance. Ryanair assigns a EASA
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), Kaunas, Bremen and Bergamo. 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 31-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 a safety committee to review and discuss air safety and related issues. Mike O’Brien, a Company director, is the
joint chairman of this committee, (along with the Airlines Accountable Manager for Safety, Neil Sorahan), and reports to
the Board of Directors.

Ryanair’s flight crew training is oriented towards accident prevention and integrates with the Safety Management
System to cover 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). The Boeing 737-
MAX-200, scheduled for delivery in 2019, will include flight deck enhancements derived from Ryanair's experience with
the Boeing 737-200 and Boeing 737-800 fleets.

Ryanair has a comprehensive and documented Safety Management System. Management encourages flight crews
to report any safety-related issues through the Air Safety Report (ASR) reporting program, which is available online
through Ryanair’s Crewdock system. Also available to crew is Ryanair’s Confidential Reporting System (RCRS) which
affords personnel the opportunity to report directly to the Flight Safety Officer any event, error, or discrepancy in
operations that they do not wish to report through standard reporting channels. RCRS is designed to increase management’s
awareness of problems that may be encountered by personnel in their day-to-day operations. Management uses the de-
identified 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 U.K.
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 exceedances 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. Swissport Limited provides Ryanair’s ticketing, passenger
and aircraft handling, and ground handling services at many of these airports in Ireland and the U.K., while similar services
in continental Europe are generally provided by the local airport authorities, either directly through sub-contractors, or
partners in self-handling at airports in Spain (including the Canary Islands) and Portugal. 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.”

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/or access to new destinations, 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 likely had a negative impact on the number of passengers traveling to and from Ireland. The
Dublin Airport Authority (“DAA”) reported that passenger volumes declined by 25% from 30 million in 2007 to 23 million
in 2012. Ryanair believes that this was partly reflective of the negative impact of the tax on Irish travel. Ryanair called for
the elimination of the tax to stimulate tourism during the recession. 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 was introduced on all routes. In May 2011, the Irish Government announced that
it would abolish the Air Travel Tax, and the tax was ultimately abolished on April 1, 2014. No assurance can be given that
the tax will not be reintroduced in the future at similar levels or higher levels, which could have a negative impact on
demand for air travel.

The Greek government planned to introduce similar taxes; however, it has 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 regional Walloon Government in Belgium announced a
€3 passenger travel tax from January 2014. However, the plan to introduce this tax was later abandoned. The Moroccan
government has also introduced a similar tax (equivalent to approximately €9) from April 2014. The Italian government
has recently increased the municipal taxes in Italy by €2.50. As a result, Ryanair was forced to close two Italian bases.
From June 2016, the Norwegian government introduced a passenger travel tax of NOK80 (approximately €8.50) which
resulted in Ryanair announcing the closure of its Oslo Rygge base with effect from late October 2016.

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 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 London (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. On January 10, 2014, the U.K. Civil Aviation Authority completed its regulatory investigation

into market power determination for passenger airlines in relation to London (Stansted). It found that London (Stansted)
did not enjoy substantial market power in the market for the provision of airport operation services to passenger airlines,
and as such declined to continue to regulate the airport. On September 16, 2013, Ryanair announced that it had agreed a
10-year growth agreement 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. Once this 10-year growth deal expires, Ryanair may be subject to increased airport charges at London
(Stansted) as the airport is no longer subject to regulation.

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Other
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.

FUEL

The cost of jet fuel accounted for approximately 41% and 43% of Ryanair’s total operating expenses in the fiscal
years ended March 31, 2016 and 2015, 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 0.3% and 0.5% of total
fuel costs in the fiscal years ended March 31, 2016 and 2015, respectively. 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 continues to strengthen 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. As of
July 21, 2016, Ryanair had entered into forward jet fuel (jet kerosene) contracts covering approximately 95% of its
estimated requirements for fiscal 2017 at prices equivalent to approximately $622 per metric ton. In addition, as of July
21, 2016, Ryanair had entered into forward jet fuel (jet kerosene) contracts covering approximately 55% of its estimated
requirements for fiscal 2018 at prices equivalent to approximately $496 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 Availability Affect the Company’s Results” 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 2016 Compared with Fiscal Year 2015—
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 in “Item 3. Risk Factors – Risks Related to the Airline Industry – Volcanic Ash Emissions Could Affect the
Company and Have a Material Adverse Impact on the Company’s Results of Operation”, 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.

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 $16.1 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.

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

FACILITIES

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

Site Area Floor Space

(Sq. Meters)
1,370
12,286
1,620
5,200
2,566
516
605

(Sq. Meters) Tenure

1,649 Leasehold
9,443 Freehold
1,620 Leasehold
5,000 Leasehold
3,899 Freehold
516 Leasehold
605 Leasehold

Activity
Rental Property
Dublin Office
Aircraft Maintenance
Aircraft Maintenance
Rental Property
Administrative Offices
Operations Center

12,161

10,301

Leasehold Aircraft Maintenance 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)
Bergamo (Hangar)
Travel Labs Poland

375 Leasehold
531 Leasehold

2,801

Freehold

634 Leasehold
5,874 Leasehold

1,936 Leasehold
10,052 Leasehold

and Simulator Training
Center
Training Centre
Aircraft Maintenance
Simulator and Training
Center
Training Center
Terminal and Aircraft
Maintenance Hangar
Aircraft Maintenance
Aircraft Maintenance

5,064

Leasehold Aircraft Maintenance Hangar

4,500 Leasehold
1,700 Leasehold
2,200 Freehold
850 Leasehold

and Simulator Training
Center
Aircraft Maintenance
Aircraft Maintenance
Aircraft Maintenance
Administrative Offices

375
378

3,890

2,045
5,952

1,936
10,052
5,064

4,500
1,700
4,125
850

Ryanair has agreements with the DAA, the Irish government authority charged with operating Dublin Airport, to
lease check-in 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 Swissport Limited 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 European Union Trade Marks (“EUTMs”). Ryanair has also registered the EUTM for the word
“Ryanairhotels.com.” Ryanair filed an application for registration of the slogan “Low Fares. Made Simple” in late 2014.
The trademark was partially registered. An EUTM 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 EUTM-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:

 European Union (Word) Trade Mark registration number 004168721 comprised of the word “Ryanair” in classes

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

 European Union (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);

 European Union (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);

 European Union (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,
Tourism and Sport (“DTTAS”), the Irish Aviation Authority (“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 “CAR”. 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.

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 IAA, which reviews the department’s audits,
including flight audits, training audits, returned flight document (RFD) audits, and quality audits. Ryanair’s current Air
Operator Certificate (“AOC”) No IE 7/94 was issued on October 28, 2014. There is no expiration date on the AOC.

Irish Aviation Authority. The IAA is primarily responsible for the operational and regulatory function and services
relating to the safety, security and technical aspects of aviation in Ireland. To operate in Ireland and the EU, an Irish air
carrier is required to hold an AOC 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 AOC, with
Ryanair’s ability to continue to hold its AOC 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;
aviation security 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 the AOC.

In July 1999, the IAA awarded Ryanair a JAR Ops 1 AOC. In 2008, the IAA awarded Ryanair an EU Ops AOC.
In 2014, the IAA awarded Ryanair an Air Ops AOC. This AOC remains in force subject to Ryanair demonstrating
continuing compliance with applicable EASA regulations. The requirements of Air Ops have been incorporated into
European law as prescribed in Regulation EC 965/2012 and were applied in full on October 28, 2014. All current regulatory
requirements are addressed in the Ryanair Operations Manual Part A (as amended). The current Manual, Issue 1 Revision
1, was approved by the IAA on June 27, 2016.

Department of Transport, Tourism and Sport. The Department of Transport, Tourism and Sport (“DTTAS”) is

responsible for implementation of certain EU and Irish legislation and international standards relating to air transport.

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, maintenance and air crew 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 an updated legislative package
to its “single European sky policy,” called “SES2+”, 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 inter-operability of the European air traffic management network. These regulations were amended by the so-
called “Single European Sky II” regulation (EU Regulation 1070/09), which focused on air traffic control (“ATC”)
performance and extended the authority of EASA to include Airports and Air Traffic Management. 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 EU
Court of First Instance (“CFI”) has since annulled in December 2008. The guidelines only applied to publicly owned
regional airports, and placed restrictions on the incentives that these airports can offer airlines to deliver traffic. Ryanair
argued that the CFI’s annulment of the Charleroi decision severely undermined these guidelines. In April 2014, the
European Commission published final revised guidelines that better reflect the commercial reality of the liberalized air
transport market, but still place restrictions on the incentives public airports can offer to airlines delivering traffic, when
compared with the commercial freedom available to 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 8. Financial Information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, eleven of the
twelve 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. Similar competition laws apply at national level in EU member states. 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 6 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. In September 2014, Ryanair entered into an agreement with Boeing to purchase up to 200
Boeing 737-MAX-200 aircraft (including 100 firm orders and 100 aircraft subject to option). The Boeing 737-MAX-200
aircraft will deliver between fiscal 2020 and fiscal 2024. They have 197 seats and are fitted with CFM-LEAP-1B engines
which, combined with the Advanced Technology winglet and other aerodynamic improvements, will reduce fuel
consumption by up to approximately 16% on a per seat basis compared to the Boeing 737-800s in Ryanair’s configuration
and reduce operational noise emissions by approximately 40%. 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 (which will increase to 197 when the Boeing 737-MAX-200
starts being delivered in fiscal 2020) 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 (93% in fiscal 2016);

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; and



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

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. Under
Regulation 7 of The U.K. Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, Ryanair is
obliged to state its annual quantity of emissions in tons of carbon dioxide equivalent. Ryanair’s EU Emissions Trading
Scheme monitoring, reporting and allowance surrender obligations are mandated on a calendar year basis. During calendar
year 2015, Ryanair emitted 8,638,838 tCO2 (Calendar 2014: 7,756,156), which equates to 0.085 tCO2 (Calendar 2014:
0.090) per passenger.

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 passengers per annum, and to the airport with the highest passenger movement in each Member
State, when setting airport charges, and provides for an appeals procedure for airlines in the event that they are not satisfied
with the level of charges. However, Ryanair does not believe that this procedure is effective or that it constrains those
airports that are currently abusing their dominant position, in part because the legislation was transposed improperly in
certain countries, such as Ireland and Spain, thereby depriving 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 Commission proposed
a revision to the slots legislation reflecting the principle of secondary trading. This revision has been negotiated by the EU
institutions since 2014 and is currently stalled. 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. 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.

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.

DESCRIPTION OF PROPERTY

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, 2016, Ryanair launched service on more than 2,000 routes throughout Europe and
also increased the frequency of service on a number of its principal routes. During that period, Ryanair established 84
airports as bases of operations, including Dublin. 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 approximately 4.9 million
in the 1999 fiscal year to approximately 106.4 million in the 2016 fiscal year. As of June 30, 2016, Ryanair had a principal
fleet of over 350 Boeing 737-800 aircraft and now serves approximately 200 airports.

Ryanair expects to have approximately 546 aircraft in its operating fleet by March 31, 2024. This is subject to
lease handbacks and disposals over the period to March 31, 2024 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 low cost operating model in Europe in the early 1990s, its passenger volumes and
scheduled passenger revenues have increased significantly because the Company has substantially increased capacity and
demand has been sufficient to match the increased capacity. Ryanair’s annual booked passenger volume has grown from
approximately 0.9 million passengers in the calendar year 1992 to approximately 106.4 million passengers in the 2016
fiscal year.

Ryanair’s revenue passenger miles (“RPMs”) increased approximately 15% from 70,331 million in the 2015
fiscal year to 81,146 million in the 2016 fiscal year due partly to an increase of approximately 10% in scheduled available
seat miles (“ASMs”) from 79,690 million in the 2015 fiscal year to 87,451 million in the 2016 fiscal year. Scheduled
passenger revenues increased approximately 17% from €4,260.3 million in the 2015 fiscal year to €4,967.2 million in the
2016 fiscal year. Average booked passenger fare decreased from €47.05 in the 2015 fiscal year to €46.67 in the 2016 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 72% in both the 2015 and 2016 fiscal years. Cost per passenger was €50.92 in
the 2015 fiscal year and €47.69 in the 2016 fiscal year, with the decrease primarily reflecting the lower fuel cost per
passenger of €19.46 in the 2016 fiscal year as compared to €22.00 in the 2015 fiscal year. Ryanair recorded operating
profits of €1,042.9 million in the 2015 fiscal year and €1,460.1 million in the 2016 fiscal year. The Company recorded a
profit after taxation of €866.7 million in the 2015 fiscal year and €1,559.1 million in the 2016 fiscal year. Ryanair took
delivery of 41 Boeing 737-800 aircraft in the 2016 fiscal year. The Company will take delivery of a further 52 Boeing 737-
800 aircraft in the 2017 fiscal year and expects that these deliveries, net of lease handbacks, will allow for an approximately
10% increase in fiscal 2017 traffic. See “Item 3. Key Information—Risk Factors—Risks Related to the Company—
Ryanair Has Seasonally Grounded Aircraft.”

Investment in Aer Lingus and Subsequent Sale of this Investment in Fiscal 2016

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.

In 2006 and 2012, Ryanair made offers to acquire the entire share capital of Aer Lingus, but both of these offers
were prohibited by the European Commission on competition grounds. In addition, from 2010 to 2013 the U.K.
competition authority investigated Ryanair’s minority stake in Aer Lingus. On August 28, 2013, it issued its decision in
which it found that Ryanair’s shareholding “gave it the ability to exercise material influence over Aer Lingus” and “had
led or may be expected to lead to a substantial lessening of competition in the markets for air passenger services between
Great Britain and Ireland”, and ordered Ryanair to reduce its shareholding in Aer Lingus to no more than five percent of
Aer Lingus’ issued ordinary shares. Ryanair appealed this decision on procedural and substantive grounds, but withdrew
the appeal in September 28, 2015, following the sale of its stake in Aer Lingus in July 2015.

On June 19, 2015, IAG issued a formal offer for Aer Lingus Group plc. The offer, which was recommended by
the Board of Aer Lingus Group plc, consisted of cash consideration of €2.50 per ordinary share plus a €0.05 ordinary
dividend (already paid in May 2015). On July 10, 2015, Ryanair confirmed that the Board of Ryanair Holdings voted
unanimously to accept the IAG offer for Ryanair’s 29.8% shareholding in Aer Lingus Group plc, subject to that offer
receiving merger clearance from the European Commission, which was subsequently granted on July 14, 2015. On
September 1, 2015 Ryanair received total consideration of €398.1 million for the sale of its stake in Aer Lingus.

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 Eurozone; Brexit; competition and the public’s
perception regarding the safety of low-fares airlines; 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 and Boeing 737-MAX-200 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—

Risks related to the Airline Industry— Terrorism in Europe, the United States or Elsewhere Could Have a Material
Detrimental Effect on the Company.”

RECENT OPERATING RESULTS

The Company’s profit after tax for the quarter ended June 30, 2016 (the first quarter of the Company’s 2017 fiscal
year) was €255.5 million, as compared to €245.1 million for the corresponding period of the previous year. The Company
recorded an increase in operating profit, from €288.4 million in the first quarter of the 2016 fiscal year to €306.8 million
in the recently completed quarter. Total operating revenues increased from €1,652.7 million in the first quarter of fiscal
2016 to €1,687.4 million in the first quarter of fiscal 2017. The increase in operating profit was primarily due to an 11%
increase in traffic and a stronger load factor (up 2 points to 94%). Operating expenses increased from €1,364.3 million in
the first quarter of fiscal 2016 to €1,380.6 million in the first quarter of fiscal 2017, due primarily to the increased costs
associated 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 €4,103.8 million at June 30, 2016 as compared with €4,881.2 million at
June 30, 2015.

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, 2016, Ryanair had €6.3 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.

Tax Audits

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax payable on taxable
profits is recognized as an expense in the period in which the profits arise using tax rates enacted or substantively enacted
at the balance sheet date. Deferred tax is provided in full, using the balance sheet liability method on temporary differences
arising from the tax basis of assets and liabilities and their carrying amount in the consolidated financial statements.

Social insurance, passenger taxes and sales taxes are recorded as a liability based on laws enacted in the

jurisdictions to which they relate. Liabilities are recorded when an obligation has been incurred.

Ryanair reviews its tax obligations by jurisdiction regularly. There are many complexities and judgments in
determining tax obligations due to the inherent complexity of tax law, the manner in which airline businesses are carried
out whereby operations can begin and end in different jurisdictions and assumptions made about the timing and amount of
individual balances to be included in financial statements and tax returns.

Ryanair has an internal tax group and takes professional advice on more complex matters in estimating its tax
liabilities. Ryanair also deals extensively with revenue authorities in each jurisdiction in which it operates. Tax liabilities
are based on the best estimate of the likely obligation at each reporting period. These estimates are subject to revision
based on the outcome of tax audits and discussions with revenue authorities that can take several years to conclude.

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:

RESULTS OF OPERATIONS

Fiscal Year Ended March 31,
2014

2015

2016

Total revenues

Scheduled revenues
Ancillary revenues

Total operating expenses

Fuel and oil
Airport and handling charges
Route charges
Staff costs
Depreciation
Marketing, distribution and other
Maintenance, materials and repairs
Aircraft rentals
Operating profit
Net interest expense
Other income
Profit before taxation
Taxation
Profit after taxation

100 %
76.0
24.0
77.7
31.7
12.7
9.5
9.0
6.5
4.5
2.0
1.8
22.3
(0.8)
4.9
26.4
(2.5)
23.9

100 %
75.4
24.6
81.5
35.2
12.6
9.7
8.9
6.7
4.1
2.4
1.9
18.5
(1.0)
(0.1)
17.4
(2.0)
15.4

100 %
75.2
24.8
86.9
40.0
12.2
10.4
9.2
7.0
3.8
2.3
2.0
13.1
(1.3)
—
11.8
(1.4)
10.4

FISCAL YEAR 2016 COMPARED WITH FISCAL YEAR 2015

Profit after taxation. Ryanair recorded a profit on ordinary activities after taxation of €1,559.1 million in the 2016
fiscal year, as compared with a profit of €866.7 million in the 2015 fiscal year. This 79.9% increase was primarily
attributable to a 15.6% increase in revenues due to a 17.5% increase in traffic, a stronger load factor (up 5 points to 92.8%),
11.5% fuel savings per passenger and a one off gain of €317.5 million on the sale of the Company’s 29.8% shareholding
in Aer Lingus.

Scheduled revenues. Ryanair’s scheduled passenger revenues increased 16.6%, from €4,260.3 million in the 2015
fiscal year to €4,967.2 million in the 2016 fiscal year, primarily reflecting a 17.7% increase in the number of passengers
booked from 90.6 million to 106.4 million reflecting increased passenger volumes on existing routes and the successful
launch of new bases in Belfast, Berlin, Corfu, Gothenburg, Ibiza, Milan (Malpensa) and Santiago in the 2016 fiscal year.
Booked passenger load factors increased to 92.8% in fiscal 2016 compared with 88.2% in fiscal 2015.

Passenger capacity during the 2016 fiscal year increased by 11.8% due to an increase in the average number of
aircraft in the fleet. Scheduled passenger revenues accounted for 76.0% of Ryanair’s total revenues for the 2016 fiscal
year, compared with 75.4% of total revenues in the 2015 fiscal year.

Ancillary revenues. Ryanair’s ancillary revenues, which comprise revenues from non-flight scheduled operations,
in-flight sales and Internet-related services, increased 12.5%, from €1,393.7 million in the 2015 fiscal year to €1,568.6
million in the 2016 fiscal year, while ancillary revenues per booked passenger decreased to €14.74 from €15.39. 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
14.2% to €1,329.6 million from €1,164.4 million in the 2015 fiscal year. Revenues from in-flight sales increased 19.8%,
to €153.4 million from €128.1 million in the 2015 fiscal year. Revenues from Internet-related services, primarily
commissions received from products sold on Ryanair.com or linked websites, decreased 15.4%, from €101.2 million in
the 2015 fiscal year to €85.6 million in the 2016 fiscal year. The overall increase in ancillary revenues reflects the solid
performance of on-board sales and reserved seating offset by reduced travel insurance, a one-time benefit in the prior year

comparative arising from the earlier loading of the schedules and the impact of being without a car hire provider for much
of quarter 2, fiscal 2016.

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:

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

Fiscal Year Ended March 31,
2015
2016

(in millions of euro, except percentage data)

1,329.6

84.8 % 1,164.4

153.4
85.6
1,568.6

9.8 %
5.4 %

128.1
101.2
100.0 % 1,393.7

83.5 %
9.2 %
7.3 %
100.0 %

Operating expenses. As a percentage of total revenues, Ryanair’s operating expenses decreased from 81.5% in
the 2015 fiscal year to 77.7% in the 2016 fiscal year. Total revenues increased by 15.6%, faster than the 10.1% increase in
operating expenses. In absolute terms, total operating expenses increased 10.1%, from €4,611.1 million in the 2015 fiscal
year to €5,075.7 million in the 2016 fiscal year, principally as a result of increased costs associated with the growth of the
airline. Fuel and oil expenses, route charges, depreciation, maintenance, materials and repairs and aircraft rentals decreased
as a percentage of total revenues, while airport and handling charges, staff costs and marketing, distribution and other costs
increased. Total operating cost per passenger decreased 6.3%, with the decrease reflecting, principally, an 11.5% reduction
in per passenger fuel costs and ex-fuel costs decreasing by 2.4%.

The Company’s decision to ground aircraft during the winter months did not have a material impact on the results
of the Company for the year ended March 31, 2016 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, including 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 crews 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, 2016 and March 31, 2015 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.

Fiscal Year Fiscal Year

Ended

March 31, March 31,

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

2016
€
19.47
7.80
5.85
5.50
4.02
2.75
1.22
1.08
47.69

% Change

2015
€
22.00
7.87
6.05
5.55
4.17
2.58
1.49
1.21
50.92

(11.5%)
(0.9%)
(3.2%)
(1.0%)
(3.7%)
6.5%
(17.8%)
(10.5%)
(6.3%)

Fuel and oil. Ryanair’s fuel and oil costs per passenger decreased by 11.5%, while in absolute terms, these costs
increased by 4.0% from €1,992.1 million in the 2015 fiscal year to €2,071.4 million in the 2016 fiscal year, in each case
after giving effect to the Company’s fuel hedging activities. The 4.0% increase reflected a 10.9% increase in hours flown
and higher fuel burn due to the higher load factor. 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) decreased 5.6% from €2.34 per U.S. gallon in
the 2015 fiscal year to €2.21 per U.S. gallon in the 2016 fiscal year, in each case after giving effect to the Company’s fuel
hedging activities.

Airport and handling charges. Ryanair’s airport and handling charges per passenger decreased 0.9% in the 2016
fiscal year, while route charges per passenger decreased 3.2%. In absolute terms, airport and handling charges increased
16.5%, from €712.8 million in the 2015 fiscal year to €830.6 million in the 2016 fiscal year, reflecting the addition of more
primary airports to the network and stronger U.K. pound sterling against the euro.

Route charges. Ryanair’s route charges per passenger decreased by 3.2%. In absolute terms, route charges
increased 13.8%, from €547.4 million in the 2015 fiscal year, to €622.9 million in the 2016 fiscal year, primarily as a result
of an increase in the sectors flown and Eurocontrol price increases in France, Germany and the U.K.

Staff costs. Ryanair’s staff costs, which consist primarily of salaries, wages and benefits, decreased 1.0% on a
per-passenger basis, while in absolute terms, these costs increased 16.4%, from €502.9 million in the 2015 fiscal year to
€585.4 million in the 2016 fiscal year. The increase in absolute terms was primarily attributable to increased sectors and
less grounded aircraft in the winter of fiscal 2016, the impact of a 2% pay increase in April and adverse U.K. pound
sterling.

Depreciation. Ryanair’s depreciation per passenger decreased by 3.7%, while in absolute terms these costs
increased 13.1% from €377.7 million in the 2015 fiscal year to €427.3 million in the 2016 fiscal year. The increase was
primarily attributable to 41 additional owned aircraft in the fleet, the purchase of 3 spare engines and higher levels of heavy
maintenance activity. See “—Critical Accounting Policies—Long-lived Assets” above.

Marketing, distribution and other expenses. Ryanair’s marketing, distribution and other operating expenses,
including those applicable to the generation of ancillary revenues, increased 6.5% on a per-passenger basis in the 2016
fiscal year, while in absolute terms, these costs increased 25.1%, from €233.9 million in the 2015 fiscal year to €292.7
million in the 2016 fiscal year, with the overall increase primarily reflecting the increased distribution costs related to
higher on-board sales, disruption costs related to the French ATC strikes and the Brussels terrorist attacks and higher
passenger compensation costs following an ECJ ruling on passenger compensation in September 2015.

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, decreased 17.8%
on a per-passenger basis, while in absolute terms these expenses decreased by 3.4% from €134.9 million in the 2015 fiscal
year to €130.3 million in the 2016 fiscal year. The decrease in absolute terms during the fiscal year was due to lower
unscheduled maintenance than fiscal 2015 and a lower maintenance provision due to lease handbacks in the winter of fiscal
2016.

Aircraft rentals. Aircraft rental expenses amounted to €115.1 million in the 2016 fiscal year, a 5.2% increase from
the €109.4 million reported in the 2015 fiscal year, reflecting the longer duration of short-term summer leases, offset by
lease handbacks in the winter.

Operating profit. As a result of the factors outlined above, operating profit increased 19.1% on a per-passenger
basis in the 2016 fiscal year, and also increased in absolute terms, from €1,042.9 million in the 2015 fiscal year to €1,460.1
million in the 2016 fiscal year.

Other income. Other income consists primarily of the gain of €317.5 million on the sale of Ryanair’s stake in Aer

Lingus.

Finance expense. Ryanair’s interest and similar charges decreased 4.2%, from €74.2 million in the 2015 fiscal

year to €71.1 million in the 2016 fiscal year, primarily due to lower interest rates.

Finance income. Ryanair’s interest and similar income remained flat at €17.9 million in the 2016 fiscal year as
lower interest rates were offset by higher average cash balances and a 25% increase in the Aer Lingus dividend compared
to fiscal 2015.

Foreign exchange gains/losses. Ryanair recorded foreign exchange losses of €2.5 million in the 2016 fiscal year,
as compared with foreign exchange losses of €4.2 million in the 2015 fiscal year, with the different result being primarily
due to the impact of changes in the euro exchange rate against the U.S. dollar and U.K. pound sterling.

Taxation. The effective tax rate for the 2016 fiscal year was 11.6%, as compared to an effective tax rate of 11.8%
in the 2015 fiscal year. The effective tax rate reflects the statutory rate of Irish corporation tax of 12.5%. Ryanair recorded
an income tax provision of €162.8 million in the 2016 fiscal year, compared with a tax provision of €115.7 million in the
2015 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 2015 COMPARED WITH FISCAL YEAR 2014

Profit after taxation. Ryanair recorded a profit on ordinary activities after taxation of €866.7 million in the 2015
fiscal year, as compared with a profit of €522.8 million in the 2014 fiscal year. This 65.8% increase was primarily
attributable to a 1.4% increase in average fares, a 10.9% increase in traffic, a stronger load factor (up 5 points to 88.2%),
and 10.8% fuel savings per passenger.

Scheduled revenues. Ryanair’s scheduled passenger revenues increased 12.4%, from €3,789.5 million in the 2014
fiscal year to €4,260.3 million in the 2015 fiscal year, primarily reflecting an increase of 1.4% in average fares. The number
of passengers booked increased 10.9%, from 81.7 million to 90.6 million, reflecting increased passenger volumes on
existing routes and the successful opening of new bases at Athens, Lisbon, Thessaloniki, Warsaw, Cologne, Glasgow
International, Gdansk and Bratislava in the 2015 fiscal year. Booked passenger load factors increased to 88.2% in fiscal
2015 compared with 83% in fiscal 2014.

Passenger capacity during the 2015 fiscal year increased by 3.8% due to an increase in the average number of
aircraft in the fleet. Scheduled passenger revenues accounted for 75.4% of Ryanair’s total revenues for the 2015 fiscal
year, compared with 75.2% of total revenues in the 2014 fiscal year.

Ancillary revenues. Ryanair’s ancillary revenues, which comprise revenues from non-flight scheduled operations,
in-flight sales and Internet-related services, increased 11.7%, from €1,247.2 million in the 2014 fiscal year to €1,393.7
million in the 2015 fiscal year, while ancillary revenues per booked passenger increased to €15.39 from €15.27. 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
15.0% to €1,164.4 million from €1,012.4 million in the 2014 fiscal year. Revenues from in-flight sales increased 9.2%, to
€128.1 million from €117.3 million in the 2014 fiscal year. Revenues from Internet-related services, primarily commissions
received from products sold on Ryanair.com or linked websites, decreased 13.9%, from €117.5 million in the 2014 fiscal
year to €101.2 million in the 2015 fiscal year, reflecting a combination of factors including an improved product mix and
the implementation of fully reserved seating across the network. The rate of increase in ancillary revenues 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:

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

Fiscal Year Ended March 31,
2014
2015

(in millions of euro, except percentage data)

1,164.4

83.5 % 1,012.4

128.1
101.2
1,393.7

9.2 %
7.3 %

117.3
117.5
100.0 % 1,247.2

81.2 %
9.4 %
9.4 %
100.0 %

Operating expenses. As a percentage of total revenues, Ryanair’s operating expenses decreased from 86.9% in
the 2014 fiscal year to 81.6% in the 2015 fiscal year. Total revenues increased by 12.3%, faster than the 5.3% increase in
operating expenses. In absolute terms, total operating expenses increased 5.3%, from €4,378.1 million in the 2014 fiscal
year to €4,611.1 million in the 2015 fiscal year, principally as a result of increased costs associated with the growth of the
airline offset by a 1.0% reduction in fuel and oil costs from €2,013.1 million in the 2014 fiscal year to €1,992.1 million in
the 2015 fiscal year. Fuel and oil expenses, route charges, staff costs, depreciation and aircraft rentals decreased as a
percentage of total revenues, while airport and handling charges, marketing, distribution and other costs and maintenance,
materials and repairs increased. Total operating expenses per passenger decreased by 5.0%, with the decrease reflecting,
principally, a 10.8% reduction in per passenger fuel costs and ex-fuel costs remaining flat per passenger during the 2015
fiscal year.

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, 2015 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, including 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, 2015 and March 31, 2014 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.

Fiscal Year Fiscal Year

Ended

March 31, March 31,

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

2015
€
22.00
7.87
6.05
5.55
4.17
2.58
1.49
1.21
50.92

2014
€
24.65
7.56
6.39
5.68
4.31
2.36
1.42
1.24
53.61

(10.8%)
(4.1%)
(5.3%)
(2.3%)
(3.2%)
9.3%
4.9%
(2.4%)
(5.0%)

% Change

Fuel and oil. Ryanair’s fuel and oil costs per passenger decreased by 10.8%, while in absolute terms, these costs
decreased by 1.0% from €2,013.1 million in the 2014 fiscal year to €1,992.1 million in the 2015 fiscal year, in each case
after giving effect to the Company’s fuel hedging activities. The 1.4% decrease reflected a 4.6% decrease in average fuel

prices paid and the impact of a 2.5% increase in the number of hours flown, and a slight increase in fuel burn across the
fleet due to the higher load factor. 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) decreased 4.6% from €2.45 per U.S. gallon in the 2014 fiscal year
to €2.34 per U.S. gallon in the 2015 fiscal year, in each case after giving effect to the Company’s fuel hedging activities.

Airport and handling charges. Ryanair’s airport and handling charges per passenger increased 4.1% in the 2015
fiscal year, while route charges per passenger decreased 5.3%. In absolute terms, airport and handling charges increased
15.5%, from €617.2 million in the 2014 fiscal year to €712.8 million in the 2015 fiscal year, reflecting the overall growth
in passenger volumes, the mix of new routes and bases launched at primary airports and the strengthening of U.K. pound
sterling against the euro.

Route charges. In absolute terms, route charges increased 4.9%, from €522.0 million in the 2014 fiscal year, to
€547.4 million in the 2015 fiscal year, primarily as a result of the 3.9% increase in sectors flown and price increases in
Germany, France and the U.K.

Staff costs. Ryanair’s staff costs, which consist primarily of salaries, wages and benefits, decreased 2.3% on a
per-passenger basis, while in absolute terms, these costs increased 8.5%, from €463.6 million in the 2014 fiscal year to
€502.9 million in the 2015 fiscal year. The increase in absolute terms was primarily attributable to the increased level of
activity, a pay increase of 2.0% granted in fiscal 2015 and the strength of U.K. pound sterling against the euro.

Depreciation. Ryanair’s depreciation per passenger decreased by 3.2%, while in absolute terms these costs
increased 7.4% from €351.8 million in the 2014 fiscal year to €377.7 million in the 2015 fiscal year. The increase was
primarily attributable to the increase in the average number of owned aircraft in the fleet in the 2015 fiscal year (250)
compared to the 2014 fiscal year (246) and spare engines purchased during the year. See “—Critical Accounting Policies—
Long-lived Assets” above.

Marketing, distribution and other expenses. Ryanair’s marketing, distribution and other operating expenses,
including those applicable to the generation of ancillary revenues, increased 9.3% on a per-passenger basis in the 2015
fiscal year, while in absolute terms, these costs increased 21.3%, from €192.8 million in the 2014 fiscal year to €233.9
million in the 2015 fiscal year, with the overall increase primarily reflecting the higher marketing spend to support
Ryanair’s “AGB” customer experience program and the launch of new routes and bases.

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 4.9%
on a per-passenger basis, while in absolute terms these expenses increased by 16.2% from €116.1 million in the 2014 fiscal
year to €134.9 million in the 2015 fiscal year. The increase in absolute terms during the fiscal year was partly due to the
inclusion in the prior year of a one off credit of €3.7 million arising from the renegotiation of certain maintenance contracts.
The remainder of the increase was primarily due to line maintenance costs resulting from the launch of new bases,
unscheduled maintenance costs and the strength of U.K. pound sterling to the euro.

Aircraft rentals. Aircraft rental expenses amounted to €109.4 million in the 2015 fiscal year, a 7.9% increase from
the €101.5 million reported in the 2014 fiscal year, reflecting short term leases over the summer, offset by the lower average
number of leased aircraft in the 2015 fiscal year (51) compared to the 2014 fiscal year (55).

Operating profit. As a result of the factors outlined above, operating profit increased 42.8% on a per-passenger
basis in the 2015 fiscal year, and also increased in absolute terms, from €658.6 million in the 2014 fiscal year to €1,042.9
million in the 2015 fiscal year.

Finance expense. Ryanair’s interest and similar charges decreased 10.8%, from €83.2 million in the 2014 fiscal
year to €74.2 million in the 2015 fiscal year, primarily due to lower interest rates in the 2015 fiscal year compared to the
2014 fiscal year. These costs are expected to increase in future periods as Ryanair further expands its fleet.

Finance income. Ryanair’s interest and similar income increased 8.5%, from €16.5 million in the 2014 fiscal year

to €17.9 million in the 2015 fiscal year, reflecting higher cash balances in the 2015 fiscal year.

100

Foreign exchange gains/losses. Ryanair recorded foreign exchange losses of €4.2 million in the 2015 fiscal year,
as compared with foreign exchange losses of €0.5 million in the 2014 fiscal year, with the different result being primarily
due to the negative impact of changes in the euro exchange rate against the U.S. dollar.

Taxation. The effective tax rate for the 2015 fiscal year was 11.8%, as compared to an effective tax rate of 11.6%
in the 2014 fiscal year. The effective tax rate reflects the statutory rate of Irish corporation tax of 12.5%. Ryanair recorded
an income tax provision of €115.7 million in the 2015 fiscal year, compared with a tax provision of €68.6 million in the
2014 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, debt capital market issuances 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, 2016 and 2015 of €4,321.5 million and €4,789.2 million, respectively. The decrease at
March 31, 2016 primarily reflects net capital expenditure of €1,217.7 million, shareholder returns of €1,104.0 million
(including a €398 million return via a B share scheme following the sale of Aer Lingus) and debt repayments of €384.9
million while the sale of the 29.8% shareholding in Aer Lingus generated €398.1 million in cash.

The Company’s net cash inflows from operating activities in the 2016 and 2015 fiscal years amounted to €1,846.3
million and €1,689.4 million, respectively. The €156.9 million increase in net cash flows from operating activities for fiscal
year 2016 compared to fiscal year 2015 was principally due to an increase in profit after tax of €692.4 million offset by
the gain on disposal of available for sale financial asset of €317.5 million and a lower increase in accrued expenses
compared to the prior year. The movement which primarily relates to cash received in advance for flights, receipts for
other receivables and increases in other payables balances, generated €135.6 million in cash in 2016 compared with €407.0
million in 2015. The decrease in net cash generated from working capital of €271.4 million, or approximately 67%, was
primarily due to a one-time benefit in the prior year comparative arising from the earlier loading of schedules.

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 aircraft and related flight equipment, payments on
related indebtedness and payments of corporation tax, as well as share buy-backs of €706.1 million and a return of €398
million to shareholders via a B share scheme. Cash generated from operations and the issuance of €850.0 million in 1.875%
unsecured Eurobonds with a 7-year tenor in June 2014 and €850.0 million in 1.125% unsecured Eurobonds with an 8-year
tenor in March 2015 have been the principal source for these cash requirements.

101

The Company’s net cash inflows from operating activities in the 2015 and 2014 fiscal years amounted to €1,689.4
million and €1,044.6 million, respectively. The €644.8 million increase in net cash flows from operating activities for fiscal
year 2015 compared to fiscal year 2014 was principally due to an increase in profit after tax of €343.9 million and an
increase in accrued expenses of €364.4 million. This movement, which primarily relates to cash received in advance for
flights, and receipt of other receivables and increases in other payables balances, generated €407.0 million in cash in 2015,
compared with €133.9 million in 2014. This increase in net cash generated from working capital of €273.1 million, or
approximately 204%, was primarily due to an increase in cash receipts from advance bookings.

The Company’s net cash used in investing activities in fiscal year 2016 totaled €283.6 million, primarily reflecting
the Company’s capital expenditures, the disposal of the available for sale asset and the decreased investment in cash with
maturities of greater than three months, as described in more detail below.

The Company’s net cash from investing activities in fiscal year 2015 totaled €2,888.2 million, primarily
reflecting, as compared to fiscal year 2014, the Company’s higher profitability and increased investment of cash within
maturities of greater than 3 months.

Net cash used in financing activities totaled €1,488.1 million in the 2016 fiscal year, largely reflecting shareholder
returns of €1,104.0 million (including a €398 million return via a B share scheme following the sale of the 29.8% stake in
Aer Lingus) and repayments of long term borrowings of €384.9 million.

Net cash from financing activities totaled €653.3 million in the 2015 fiscal year, largely reflecting the issuance of
€850.0 million unsecured Eurobonds in both June 2014 and March 2015 offset by a special dividend of €520.3 million,
repayments of long-term borrowings of €419.7 million and shares purchased under a share buy-back program of €112.0
million.

Net cash used in finance activities totaled €856.1 million in the 2014 fiscal year, largely reflecting the repayments
of long-term borrowings of €390.8 million and shares purchased under a share buy-back program of €481.7 million, offset
in part by shares issued of €16.4 million.

Capital Expenditures. The Company’s net cash outflows for capital expenditures in fiscal years 2016 and 2015
were €1,217.7 million and €788.5 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, 2016, Ryanair had a fleet of 341 Boeing 737-800 aircraft, 194 of which 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 (26 of the aircraft in the fleet as of March 31, 2016) and
commercial debt financing (6 of the aircraft in the fleet as of March 31, 2016). Of Ryanair’s total fleet of 341 Boeing 737-
800 aircraft at March 31, 2016 there were 43 aircraft which were financed through operating lease arrangements, 52 aircraft
were financed from Ryanair’s own resources on an unsecured basis and the remaining 20 aircraft have no outstanding debt
remaining. 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 2017 fiscal year.

102

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 and 2014 Boeing Contracts:

Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31,

Fiscal Year End
Opening Fleet
Deliveries under 2013
Boeing Contract
Firm deliveries under
2014 Boeing Contract
Option Aircraft under
2014 Boeing Contract
Planned returns or
disposals
Closing Fleet

2017
341

2018
380

2019
401

2020
419

2021
450

2022
472

2023
507

2024 Total
341

535

—

131

—

100

—

100

(13)
380

(29)
401

(11)
419

(8)
450

(20)
472

(14)
507

(17)
535

(14)
546

(126)
546

Capital Resources. Ryanair’s long-term debt (including current maturities) totaled €4,023.0 million at March 31,
2016 and €4,431.6 million at March 31, 2015, with the change being primarily attributable to debt repayments. 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, 2016. 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.

At March 31, 2016, 194 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 32% 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 of between seven and twelve years in respect of approximately 68% of its outstanding
aircraft debt financing at March 31, 2016 and approximately 18% of total debt was floating rate at that date.

103

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, 2016. 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, 2016

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

EUR
EUR
Floating
Fixed
(in millions of euro)
1,563.5
2,459.5
(827.0)
827.0
736.5
3,286.5

The weighted-average interest rate on the cumulative borrowings under these facilities of €4,023.0 million at
March 31, 2016 was 1.97%. Ryanair’s ability to obtain additional loans pursuant to each of the facilities to finance the
price of future Boeing 737-800 and Boeing 737-MAX-200 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). In
addition, as a result of the Company obtaining a BBB+ (stable) credit rating from Standard & Poor’s and Fitch Ratings
and following Ryanair’s issuance of €850.0 million in 1.875% unsecured Eurobonds with a 7-year tenor in June 2014 and
issuance of €850.0 million in 1.125% unsecured Eurobonds with an 8-year tenor in March 2015 under its EMTN program,
the Company may decide in the future to issue additional debt from capital markets to finance future aircraft deliveries.
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 194 aircraft delivered and remaining
in the fleet as of March 31, 2016 rests with a number of United States special purpose vehicles (the “SPVs”). 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.

These Aircraft are financed using a standard Ex-Im Bank “orphan” ownership structure. The shares of the SPVs
(which are owned by an unrelated charitable association and not by Ryanair) 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. In addition to its purchase option under the finance lease, Ryanair is entitled to receive the balance of any
proceeds received in respect of the aircraft that remain after Ex-Im Bank and the lenders are paid what they are owed under
the loan guarantees.

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% U.S. 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 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 and 2014
Boeing Contracts 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, 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.

104

At March 31, 2016, Ryanair had 43 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. 9 leases are denominated in euro and require
Ryanair to make fixed rental payments over the term of the lease. The remaining 34 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 23 of the 43 remaining operating lease aircraft as at March 31, 2016 on pre-determined terms. In addition
to the above, the Company financed 30 of the Boeing 737-800 aircraft delivered between March 2005 and March 2014
with 13-year euro-denominated JOLCOs. 26 of these JOLCO arrangements are still outstanding as of March 31, 2016.
These structures are accounted for as finance leases and are initially recorded at fair value on 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. Ryanair exercised this option for four of these aircraft in fiscal year 2015. 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, engine maintenance checks and restitution of major life limited parts 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.

Ryanair currently has corporate ratings of BBB+ (stable) from both Standard & Poor’s and Fitch Ratings and a
€3 billion EMTN program. Ryanair issued €850.0 million in unsecured Eurobonds with a 7-year tenor at a coupon of
1.875% in June 2014 and €850.0 million in unsecured Eurobonds an 8-year tenor at a coupon of 1.125% in March 2015
under this program that are guaranteed by Ryanair Holdings. The Company used the proceeds from these issuances for
general corporate purposes.

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,
2016. These obligations primarily relate to Ryanair’s aircraft purchase and related financing obligations, which are
described in more detail above, and do not reflect the Eurobond issuances in June 2014 and March 2015. 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.”

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 $1.1385 = €1.00 (based on the European Central
Bank Rate on March 31, 2016). 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 and 2014 Boeing Contract, the
Company was required to pay Boeing 1.0% of the Basic Price of each of the 283 firm-order Boeing 737 aircraft at the time
the contracts were signed (such deposit being fully refundable if the Company had not received the shareholder approval
at the EGMs on June 18, 2013 and November 28, 2014), 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.

105

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

3,457.8
565.2
18,034.2
278.8
280.0

€ 22,616.0 €

341.2
108.7
3,585.0
93.5
70.0

316.8
133.2
5,446.3
77.1
50.6
4,198.4 € 6,024.0 € 4,123.2 €

786.2
323.3
2,790.9
107.6
115.2

2,013.7
—
6,212.0
0.5
44.2
8,270.4

(a) For additional information on Ryanair’s long-term debt obligations, see Note 11 and Note 23 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.

Guarantees. Ryanair Holdings has provided an aggregate of €5,274.6 million in letters of guarantee to secure
obligations of certain of its subsidiaries in respect of loans, capital market transactions 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 $14.4 billion at list prices and which became effective following Ryanair
Holdings shareholder approval at an EGM on June 18, 2013 and guarantees given in relation to the 2014 Boeing contract
which total approximately $20.5 billion at list prices and which became effective following Ryanair Holdings shareholder
approval at an EGM on November 28, 2014.

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, 2016.

INFLATION

106

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

DIRECTORS

July 21, 2016:

Name
David Bonderman (a)(b)
Michael Cawley (b)
Charles McCreevy (c)
Declan McKeon (c)
Kyran McLaughlin (a)
Howard Millar (e)
Dick Milliken (c)
Mike O’Brien (d)
Michael O’Leary (a)
Julie O’Neill (e)
James Osborne (a)(e)
Louise Phelan (b)

Age
73
62
66
65
72
55
65
72
55
61
67
49

Positions
Chairman and Director
Director
Director
Director
Director
Director
Director
Director
Director and CEO
Director
Director
Director

(a) Executive Committee Member.
(b) Nomination Committee Member.
(c) Audit Committee Member.
(d) Safety Committee Member.
(e) Remuneration Committee Member.
(f) Mr. O’Leary is the CEO of both Ryanair Holdings and Ryanair. No other director is an executive officer of Ryanair

Holdings or Ryanair.

David Bonderman (Chairman). David Bonderman has served as a director since August 1996 and as Chairman of the
Board since December 1996. Mr. Bonderman also serves on the Boards of the following public companies: Caesars
Entertainment Corporation, Pace Holdings Corp., and Kite Pharma, Inc. In addition, he serves on the Boards of The
Wilderness Society, the Grand Canyon Trust, and the American Himalayan Foundation. He is a U.S. citizen.

Michael Cawley has served as a director since August 2014. Mr. Cawley previously worked with Ryanair for 17 years
prior to his retirement and contributed enormously to Ryanair’s growth and success until he retired in March 2014. He
served as Ryanair’s Deputy CEO and Chief Operating Officer. Mr. Cawley’s other non-executive directorships include
Paddy Power plc, Kingspan Group plc and he is also Chairman of Failte Ireland, the Irish tourism authority. He is an Irish
citizen.

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 and Trade (1993-1994) and Minister for Social Welfare
(1992-1993). He is an Irish citizen.

Declan McKeon has served as a director since May 2010. Mr. McKeon is a former audit partner of
PricewaterhouseCoopers. He is currently a director, Chairman of the Audit Committee, a member of the Nomination
Committee and Senior Independent Director of Icon plc. Mr. McKeon is the Chairman of the Company’s Audit Committee.
He is also a director and Chairman of the Audit Committee of GC Aesthetics. He is an Irish citizen.

107

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 advised Ryanair during its initial flotation on the Dublin and NASDAQ stock
markets in 1997. Mr. McLaughlin is a non-executive director of Malin Corporation plc and also serves as a director of a
number of other Irish private companies. He is an Irish citizen.

Howard Millar was appointed as a director of Ryanair in August 2015. Mr. Millar had served as Deputy Chief Executive
Officer and Chief Financial Officer from 2003 to December 2014 and before that as Ryanair’s Director of Finance from
1993 and Financial Controller in 1992. Howard is Chairman of BDO Ireland, Chief Executive Officer of Stellwagen
Capital, Chief Operating Officer of the Stellwagen Group and a member of Irelandia Aviation’s advisory board. He is also
a non-executive director of Applegreen plc, and ASL Aviation Airlines Group Ltd. Howard is a graduate of Trinity College,
Dublin and is a fellow of Chartered Certified Accountants. He is an Irish citizen.

R.A. (Dick) Milliken has served as a director since July 2013. Mr. Milliken is a former CFO of the Almac Group and
former CEO of Lamont plc. A qualified Chartered Accountant, Mr. Milliken serves as a director of Bank of Ireland
Mortgage Bank and Chairman of Bank of Ireland Mortgage Bank Audit Committee. Mr. Milliken is also Chairman of
Northern Ireland Science Park and a director of 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. He is a
British citizen.

Mike O’Brien was appointed as a director of Ryanair in May 2016. Capt. O’Brien has a long and distinguished career in
the aviation industry having just retired as Head of Flight Operations with the Maltese Civil Aviation Authority whom he
joined in 2001, having previously served for 10 years as the Head of Operations Standards with the Irish Aviation
Authority. Capt. O’Brien also served 4 years as the Chief Pilot and Flight Operations Manager of Ryanair from 1987 to
1991. He is an Irish citizen.

Michael O’Leary has served as a director of Ryanair Ltd. since 1988 and as CEO since 1994. Mr. O’Leary has served as
a director of Ryanair Holdings since July 1996. He is an Irish citizen.

Julie O’Neill has served as a director 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 chairs the Sustainable Energy Authority
of Ireland and the Audit Committee of Trinity College Dublin. She is a Senior Independent Director of Permanent tsb plc
and a director of AXA Life Europe. She is an Irish citizen.

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

Louise Phelan has served as a director since December 2012. Ms. Phelan is Vice President for PayPal Global Operations
Europe Middle East and Africa (EMEA), and leads over 2,700 people in Dublin, Dundalk and Berlin. Ms. Phelan is a
member of the Board of Voxpro since January 2016. She 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.

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 budget and non-budget performance criteria. The Board of

108

Directors as a whole determines the remuneration and bonuses of the CEO, who is the only executive director. Mr.
Osborne, Mr. Millar and Ms. O’Neill 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 external auditors; to review with the auditors 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 auditors; to review the independence of the auditors; and to review the adequacy and effectiveness
of the Company’s internal accounting controls. Messrs. McKeon, McCreevy and Milliken 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, Cawley and Ms. Phelan are the
members of the Nomination Committee.

Safety Committee. The Board of Directors established the Safety Committee in March 1997 to review and discuss
air safety and related issues. The Safety Committee reports to the full Board of Directors each quarter. The Safety
Committee is composed of Mr. O’Brien and Mr. Sorahan, Chief Financial Officer and Accountable Manager for Safety
(who both act as co-chairman), as well as the following executive officers of Ryanair: Messrs. Hickey, Wilson, the Chief
Pilot, Captain Ray Conway and the Director of Safety and Security, Ms. Carol Sharkey. A number of other managers are
invited to attend, as required, from time to time.

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. Capt.
Mike O’Brien joined the Board as a Non-Executive Director on May 20, 2016 with oversight of Air Safety as John Leahy
indicated his intention not to stand for re-election at the next Annual General Meeting which is scheduled to be held on
September 14, 2016.

109

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
value of a transaction, as measured under any one or more of four class tests, exceeds a certain percentage of
the size of the listed company undertaking the transaction as measured for the purposes of same tests.

 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 Act. 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 Act 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.

The Company also follows certain other practices under the U.K. 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 eleven non-executive directors is “independent”
under the standards set forth in the U.K. Corporate Governance Code (the “Code”).

Under the Code, there is no bright-line test establishing set criteria for independence, as there is under NASDAQ Rule
5605(a)(12). 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.

110

Under the 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 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 eleven non-executive directors is independent under the Code standard, the Ryanair
Holdings Board of Directors identified such relevant factors with respect to non-executive directors Messrs. Bonderman,
McLaughlin, Osborne, Cawley, Millar and Ms. Phelan. 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 organization'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 Code Rules.

The Board has also considered the independence of David Bonderman given his shareholding in Ryanair Holdings plc.
As at March 31, 2016, David Bonderman had a beneficial shareholding in the Company of 7,535,454 ordinary shares,
equivalent to 0.58% 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 Code.

The Board has also considered the independence of Louise Phelan given her role as Vice President Global Operations
at PayPal. PayPal is one of Ryanair’s payment service providers. The Board has considered the services provided by PayPal
and have concluded that Louise Phelan is an independent non-executive director within the spirit and meaning of the Code
Rules.

The Board has considered Michael Cawley’s independence given that he served as Deputy Chief Executive Officer and
Chief Operating Officer of Ryanair from 2003 to March 2014 and before that as Ryanair’s Chief Financial Officer and
Commercial Director from 1997. The Board has considered Michael’s employment and has concluded that Michael Cawley
is an independent non-executive director within the spirit and meaning of the Code Rules.

The Board has considered Howard Millar’s independence given that he was Ryanair’s Deputy Chief Executive up to
December 31, 2014, and Chief Financial Officer up to September 30, 2014. The Board has considered Howard’s employment
and has concluded that Howard Millar is an independent non-executive director within the spirit and meaning of the Code
Rules.

The Board has considered Mike O’Brien’s independence given that he served as Chief Pilot and Flight Operations
Manager of Ryanair from 1987 to 1991. The Board has considered Mike’s employment and has concluded that Mike O’Brien
is an independent non-executive director within the spirit and meaning of the Code Rules.

The Board has further considered the independence of Messrs. David Bonderman, James Osborne and Kyran
McLaughlin 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 they either have other significant commercial and professional commitments and/or
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 Financial Reporting Council in their
report dated December 2009 on their review of the impact and effectiveness of the 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 further detail of the Board’s consideration of independence
please refer to page 15 of this annual report.

111

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.

The following table sets forth certain information concerning the executive officers of Ryanair at July 21, 2016:

EXECUTIVE OFFICERS

Name
Michael Hickey
John Hurley
Kenny Jacobs
Juliusz Komorek
David O’Brien
Michael O’Leary
Neil Sorahan
Edward Wilson

Age
53
41
42
38
52
55
44
52

Position
Chief Operations Officer
Chief Technology Officer
Chief Marketing Officer
Chief Legal and Regulatory Officer; Company Secretary
Chief Commercial Officer
Chief Executive Officer
Chief Financial Officer
Chief People Officer

Michael Hickey (Chief Operations Officer). Michael was appointed as Chief Operations Officer in January 2014 having
held the position of Director of Engineering since January 2000. Michael who has an MSC in Air Safety Management
from City University in London is a licensed aircraft engineer and holds an EASA private pilot’s license. He has held a
wide range of senior positions within the Engineering Department since he joined Ryanair in 1988 and was Deputy Director
of Engineering between 1992 and January 2000. Prior to joining Ryanair, Michael worked as an aircraft engineer with
Fields Aircraft Services and McAlpine Aviation, working primarily on executive aircraft.

John Hurley (Chief Technology Officer). John was appointed Chief Technology Officer in September 2014. He joined
Ryanair from Houghton Mifflin Harcourt, where he was Vice-President of Engineering and Product Operations, Director
of Platform Development and Software Development Program Manager. He was previously Production Manager at both
Intuition Publishing Ltd and Education Multimedia Group and has 17 years of experience in the IT industry.

Kenny Jacobs (Chief Marketing Officer). Kenny was appointed Chief Marketing Officer in January 2014. He is
responsible for sales, marketing and customer service at Ryanair. Previously Kenny was CMO for Moneysupermarket plc.
which has a set of digital brands saving consumers money on insurance, finance, energy and travel. Kenny has spent most
of his career in retail with Tesco PLC as marketing director in Tesco Ireland and brand director for Tesco U.K. Prior to
that he worked for German retailer Metro Group GmbH in various roles in marketing and IT in Europe and Asia.

Juliusz Komorek (Chief Legal and Regulatory Officer; Company Secretary). Juliusz was appointed Chief Legal and
Regulatory Officer; Company Secretary in June 2015, having served as Company Secretary and Director of Legal and
Regulatory Affairs since May 2009, and 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.

David O’Brien (Chief Commercial Officer). David was appointed Chief Commercial Officer in January 2014 having
previously served as Ryanair’s Director of Flight and Ground Operations from December 2002. A graduate of the Irish
Military College, David followed a military career with positions in the airport sector and agribusiness in the Middle East,
Russia and Asia.

Michael O’Leary (Chief Executive Officer). Michael has served as a director of Ryanair Limited since 1988 and a
director of Ryanair Holdings since 1996. Michael was appointed CEO of Ryanair in 1994, having previously served as
CFO since 1988.

112

Neil Sorahan (Chief Financial Officer). Neil was appointed Chief Financial Officer in October 2014, having previously
served as Ryanair’s Finance Director since June 2006. Prior to that he was Group Treasurer from January 2003. Before
joining Ryanair, Neil held various finance and treasury roles at CRH plc., the international building materials group.

Edward Wilson (Chief People Officer). Eddie was appointed Chief People Officer 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 its non-executive
directors and eight executive officers named above in the 2016 fiscal year was €10.3 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’ eleven non-executive directors is entitled to receive €35,000 plus expenses per annum,
as remuneration for their services to Ryanair Holdings. The Chairman of the Board receives a fee of €100,000 per annum.
Prior to the 2014 fiscal year, Mr. Bonderman had waived his entitlement to receive remuneration. The additional
remuneration paid to all Committee members for service on that committee is €15,000 per annum.

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. The Chairman of the Safety Committee is entitled to
receive €40,000 per annum in connection with the additional duties in relation to that committee.

Employment and Bonus Agreement with Mr. O’Leary

In October 2014, Michael O’Leary (Chief Executive Officer) signed a five-year contract which commits him to
the Company until September 2019. This contract replaces a rolling 12-month arrangement under which Mr. O’Leary has
worked as Chief Executive of the airline since 1994. Pursuant to the agreement, Mr. O’Leary serves as Chief Executive
Officer at a current annual gross salary of approximately €1 million, 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, which are subject to the achievement of both budget and personal performance criteria; the amount of
such bonuses paid to Mr. O’Leary in the 2016 fiscal year totaled approximately €0.9 million. 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.

STAFF AND LABOR RELATIONS

The following table sets forth the details of Ryanair’s team at each of March 31, 2016, 2015 and 2014:

Classification
Management
Administrative
Maintenance
Ground Operations
Pilots
Flight Attendants
Total

Number of Staff at March 31,
2016

2015

2014

112
485
148
356
3,424
6,933
11,458

110
334
143
286
2,804
5,716
9,393

105
290
139
220
2,665
5,573
8,992

113

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,
2016, the average age of Ryanair’s pilots was 34 years and their average period of employment with Ryanair was 4.5 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 and flight attendants through the
use of contract agencies. These contract pilots and flight attendants are included in the table above.

Ryanair has a licensed approved organization in The Netherlands 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 crews 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 governing maximum working hours). During the 2016 fiscal year, such productivity-
based incentive payments accounted for approximately 41% of an average flight attendant’s total earnings and
approximately 32% of the typical pilot’s compensation. Pilots at all of Ryanair’s 84 bases are covered by four, five or six
year collective agreements on pay, allowances and rosters which fall due for negotiation at various dates between 2017
and 2021. Cabin crew at all Ryanair bases are also party to long term collective agreements on pay, allowances and rosters
which expire in March 2021. In April 2016, Ryanair agreed to increase the pay of pilots and cabin crew in accordance with
the terms of individual base collective agreements. 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 2016 fiscal year, the average flight-hours for
Ryanair’s pilots amounted to approximately 69 hours per month and approximately 826 hours for the complete year, a 4%
decrease on the previous fiscal year. If more stringent regulations on flight hours were 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.

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 consult and discuss all aspects of the business
and those issues that specifically relate to each relevant employee group and where necessary to negotiate with these
collective bargaining units. Following negotiations through this ERC system, pilots and cabin crew at all Ryanair bases
are covered by long term collective agreements which provide certainty on cost, pay and conditions.

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

114

Item 7. Major Shareholders and Related Party Transactions

As of June 30, 2016, there were 1,254,473,074 Ordinary Shares outstanding. As of that date, 104,747,412 ADRs,
representing 523,737,060 Ordinary Shares, were held of record in the United States by 50 holders, and represented in the
aggregate 41.7% 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, 2016, June 30, 2015 and June 30, 2014, 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, 2016

As of June 30, 2015

As of June 30, 2014

% of

No. of Shares

Class No. of Shares

% of
Class

Capital
HSBC Holdings PLC
Baillie Gifford
BlackRock Inc.
Fidelity
Michael O’Leary

170,097,046
67,327,570
74,577,765

––

81,631,505
50,096,725

79,131,376
84,944,353

13.5 % 189,452,050
5.3 %
5.9 %
––
6.5 %
3.9 %

68,232,108
51,381,256

––

13.9 % 230,832,565

5.8 %
6.2 %
––
5.0 %
3.8 %

85,009,314
79,001,583
70,993,234
––
51,381,256

16.7 %
6.1 %
5.7 %
5.1 %
––
3.7 %

As of June 30, 2016, the directors and executive officers of Ryanair Holdings as a group owned 59,322,452
Ordinary Shares, representing 4.7% 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, 2016, there were 1,290,739,865 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, 2016, March 31 2015 and March 31, 2014.

Capital
HSBC Holdings PLC
Baillie Gifford
BlackRock Inc.
Fidelity
Michael O’Leary
Standard Life

As of March 31, 2016

No. of Shares

% of
Class

As of March 31, 2015
% of
Class

No. of Shares

As of March 31, 2014
% of
No. of Shares Class

164,067,874
71,373,074
74,971,675

––

81,631,505
50,096,725

––

12.7 % 212,605,935

15.4 % 230,917,315

5.5 %
5.8 %
––
6.3 %
3.8 %
––

85,975,817
83,045,080

––

57,401,554
51,381,256
43,215,170

6.2 %
6.0 %
––
4.2 %
3.7 %
3.1 %

81,509,308
77,578,902
75,178,344
––
51,081,256
44,213,767

16.7 %
5.9 %
5.6 %
5.4 %
––
3.7 %
3.2 %

RELATED PARTY TRANSACTIONS

The Company has not entered into any “related party transactions” (except for remuneration paid by Ryanair to
members of senior management and the Board of directors as disclosed in Note 27 to the consolidated financial statements)
as defined in Item 7.B. of Form 20-F in the three fiscal years ending March 31, 2016 or in the period from March 31, 2016
to the date hereof.

115

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 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 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 to 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 Court of First Instance

(“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. Ryanair was repaid the €4.0 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. In February 2014, the European Commission
found that the financial arrangements between Aarhus, Berlin (Schönefeld) and Marseille airports, and Ryanair, do not
constitute state aid. In July 2014, the European Commission announced a ‘no state aid’ decision in respect of Dusseldorf
(Weeze) airport. In October 2014, the European Commission concluded that Ryanair’s agreements with the Brussels
(Charleroi), Frankfurt (Hahn), Alghero and Stockholm (Västerås) airports did not constitute State aid. In July and October
2014, the European Commission announced findings of state aid to Ryanair in its arrangements with Pau, Nimes,
Angouleme, Altenburg and Zweibrücken airports, ordering Ryanair to repay a total of approximately €10.4 million of

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alleged aid. Ryanair has appealed the five “aid” decisions to the EU General court. These appeal proceedings are expected
to take between two and four years.

Ryanair is facing similar legal challenges with respect to agreements with certain other airports, notably Lübeck,
Klagenfurt, Paris (Beauvais), La Rochelle, Carcassonne, Cagliari, Girona, Reus and Târgu Mureș. These investigations
are ongoing and Ryanair currently expects that they will conclude in late 2016, with any European Commission decisions
appealable to the EU General Court.

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 Lübeck airport, but following a
German Supreme Court ruling on a procedural issue in early 2011, these cases will be re-heard by lower courts. In addition,
Ryanair has been involved in legal challenges including allegations of state aid at Alghero, Marseille and Berlin Schönefeld
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. The Berlin Schönefeld case, initiated by Germania,
was discontinued following the European Commission’s finding in February 2014 that Ryanair’s arrangement with the
airport contained no state aid.

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 applied only to publicly owned regional
airports, and placed restrictions on the incentives these airports could offer airlines to deliver traffic. 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 argued that the positive decision by the CFI in the Brussels (Charleroi) case in December 2008 required
the European Commission to rethink its policy in this area. The revised guidelines, published by the European Commission
in April 2014, provide more certainty in the industry as to how public airports may deal with airlines in offering incentives
for traffic growth. However, adverse rulings in the above or similar cases 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 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 (Lübeck),
Tampere, Berlin (Schönefeld), 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.

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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 was introduced on all routes (and
subsequently eliminated entirely in April 2014). 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. Ryanair appealed this decision and on February 5, 2015 the EU General Court partially
annulled the EU Commission’s 2012 decision and held that the actual quantum of aid depended on the extent of pass-
through of the “tax reduction” to passengers. Both Ryanair and the Commission have appealed the EU General Court’s
decision to the European Court of Justice. In addition, Ryanair has submitted a response to the European Commission’s
appeal, in support of certain findings of the EU General Court. The European Court of Justice will issue its judgment in
late 2016. 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 2012 European Commission decision. Following the General Court’s partial
annulment of that decision, Ryanair applied to have the Government’s claim struck out. In light of the European
Commission’s appeal of the General Court’s judgment, the risk remains that Ryanair will, at some point, be ordered by the
Irish courts to pay the €12 million amount to the Irish government.

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 London (Gatwick), London (Stansted) and one of either Glasgow or Edinburgh airports, and that
consequently the BAA should proceed to dispose of London (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 Appeal judgment to the U.K. Supreme Court, and
proceeded to complete the sale of London (Stansted) airport to Manchester Airports Group plc in March 2013.

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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 in March 2011 and eliminated entirely in April 2014) 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. Ryanair also permits Travelport, Amadeus and Sabre, GDS
operators, to provide access to Ryanair’s fares to traditional bricks and mortar travel agencies. The Company has received
favorable rulings in Ireland and The Netherlands, and unfavorable rulings in Germany, Spain, France and Italy. 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.”

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Dividend Policy

On June 20, 2013 the Company detailed plans to return up to €1.0 billion to shareholders over the next two years.
The Company completed €481.7 million in share buy-backs in fiscal year 2014 and paid a special dividend of €520.3
million in fiscal 2015. In February 2015 the Company announced a €400 million ordinary share buy-back program which
was completed between February and August 2015. In September 2015, the Company announced a B share scheme to
return the €398 million proceeds from the sale of its shares in Aer Lingus to shareholders. Additionally, the Company
announced an €800 million share buy-back program (including shares underlying ADRs) in February 2016. At March 31,
2016 the Company had bought back approximately €418.1 million under this program. Following the June 23, 2016,
Referendum vote by the U.K. to leave the EU, Ryanair announced that it had increased the size of its buy-back program
to the 5% buy-back limit approved by shareholders at the Company’s 2015 Annual General Meeting. Under this increased
share buy-back program, the Company purchased just over 65 million shares at a total cost of approximately €886 million.
On July 1, 2016, the Board confirmed that it will hold an EGM on July 27, 2016 to seek approval from shareholders to
grant the Board of the Company the discretion to engage in further share buy-backs, should they decide it is in the best
interests of the shareholders over the next fifteen months. While there is no plan to engage in further planned buy-backs
(i.e. a VWAP program) during the remainder of 2016, the Board is seeking the flexibility and discretion to do so, if there
is further market volatility such as that witnessed in the aftermath of the U.K. Referendum vote. 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 share buy-backs of €125 million in respect of 36.5 million Ordinary Shares in the 2012 fiscal year and 15
million Ordinary Shares at a cost of approximately €68 million in the 2013 fiscal year. In fiscal year 2014, 69.5 million
Ordinary Shares (including just over 6.0 million ADRs) were repurchased at a cost of approximately €481.7 million. In
February 2015, the Company announced a €400 million ordinary share buy-back program which was completed between
February and August 2015. €418 million of the €800 million share buy-back program (announced in February 2016 and
subsequently increased to approximately €886 million in June 2016) was completed during fiscal 2016 with approximately
29.1 million shares (including approximately 19.9 million shares underlying ADRs) bought back. A further €467.5 million
was spent during fiscal 2017 up to June 29, 2016 to buy-back approximately 36.0 million shares (including approximately
3.9 million shares underlying ADR’s). As a result, the total amount spent on the share buy-back programs at July 21, 2016
was approximately €2,305.4 million with respect to the repurchase of 299.2 million Ordinary Shares. All Ordinary Shares
(including ADRs which represent five Ordinary Shares) repurchased have been cancelled.

In April 2012, the Company held an 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. 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. This authority
was renewed at the Annual General Meeting held on September 20,2013 and at subsequent Annual General Meetings.

The Company announced on July 1, 2016 that it had no plan to engage in further planned buy-backs
during the remainder of 2016, but, subject to shareholder approval at an EGM to be held on July 27, 2016 the Board should
have the flexibility and discretion to do so, should it decide it is in the best interests of shareholders. While there is no plan

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to engage in further planned buy-backs (i.e. a VWAP program) during the remainder of 2016, the Board is seeking the
flexibility and discretion to do so, if there is further market volatility such as that witnessed in the aftermath of the U.K.
Referendum vote.

See “Item 9. The Offer and Listing - Trading Markets and Share Prices” below for further information regarding

share buy-backs.

SIGNIFICANT CHANGES

Following the June 23, 2016 Referendum vote by the U.K. to leave the EU, the Company announced
that it had increased the size of its buy-back program to the 5% buy-back limit approved by the shareholders at the
Company’s 2015 Annual General Meeting (approximately €886 million).

From April 1, 2016 to July 1, 2016 the Company bought back 36.0 million shares at a total cost of
approximately €467.5 million under its €886 million share buy-back program. All ordinary shares repurchased were
cancelled.

On July 1, 2016 the Board confirmed that it will hold an EGM on July 27, 2016 to seek approval from
shareholders to grant the Board of the Company the discretion to engage in further share buy-backs, should they decide
that it is in the best interests of the shareholders, over the next 15 months. While there is no plan to engage in further
planned buy-backs (i.e. a VWAP program) during the remainder of 2016, the Board is seeking the flexibility and discretion
to do so, if there is further market volatility such as was witnessed in the aftermath of the U.K. Referendum vote.

Item 9. The Offer and Listing

TRADING MARKETS AND SHARE PRICES

The primary market for Ryanair Holdings’ Ordinary Shares is the Irish Stock Exchange plc (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:

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*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.

2010
2011
2012
2013
2014

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2015

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2016

January 31, 2016
February 29, 2016
March 31, 2016
April 30, 2016
May 31, 2016
June 30, 2016
July 21, 2016

2010
2011
2012
2013
2014

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2015

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2016

January 31, 2016
February 29, 2016
March 31, 2016
April 30, 2016
May 31, 2016
June 30, 2016
July 21, 2016

ADRs
(in U.S. dollars)

High

Low

33.09
31.99
36.89
54.05

58.81
60.11
58.32
71.27

67.63
73.28
82.11
87.64

86.99
84.69
86.13
86.62
87.40
87.41
72.49

21.27
24.20
27.77
34.62

46.99
50.98
51.22
49.84

60.10
63.88
69.94
75.73

77.49
74.19
80.36
80.35
76.71
66.82
67.73

Ordinary Shares
(Irish Stock Exchange)
(in euro)

High

Low

4.19
3.98
5.00
7.47

7.70
7.75
7.57
9.83

11.13
12.33
13.79
15.35

15.34
14.50
14.23
14.20
14.11
14.00
11.87

2.77
3.13
3.68
4.76

6.30
6.35
6.58
6.74

9.06
10.47
11.38
12.59

13.37
12.75
13.23
12.96
12.76
10.46
11.00

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2010
2011
2012
2013
2014

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2015

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2016

January 31, 2016
February 29, 2016
March 31, 2016
April 30, 2016
May 31, 2016
June 30, 2016
July 21, 2016

Ordinary Shares
(London Stock Exchange)
(in euro)

High

Low

4.19
3.97
5.00
7.48

7.72
7.75
7.57
9.82

11.18
12.31
13.96
15.29

15.34
14.50
14.24
14.19
14.07
14.02
11.86

2.76
3.13
3.68
4.76

6.31
6.35
6.57
6.71

9.06
10.53
11.40
12.56

13.41
12.75
13.32
12.96
12.73
10.53
11.00

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 as 50, 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.

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.

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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,
2008
2009
2010
2011
2012
2013
2014
2015
2016
Period through July 21, 2016
Total

No. of shares (m) Approx. cost (€m)
300.0
46.0
––
––
124.6
67.5
481.7
112.0
706.1
467.5
2,305.4

59.5
18.1
––
––
36.5
15.0
69.5
10.9
53.7
36.0
299.2

All Ordinary Shares repurchased have been cancelled.

The maximum price at which the Company may repurchase Ordinary Shares traded on the Irish Stock Exchange
or the London Stock Exchange is the higher of (i) 5% above the average market value of the Company’s Ordinary Shares
on the trading venue where the shares are being repurchased for the five (5) business days prior to the date of purchase;
and (ii) the price stipulated by the European Commission-adopted regulatory technical standards pursuant to article 5(6)
of the EU Market Abuse Regulation 596/2014, being the higher of the last independent trade and the highest current
independent bid on the trading venue on which the shares are being repurchased. The maximum price at which the
Company may repurchase Ordinary Shares which underlie the Company’s ADSs traded on NASDAQ is 5% above the
average market value of one-fifth of the Company’s ADSs on NASDAQ for the five (5) business days prior to the date of
purchase (as one ADS represents five (5) Ordinary Shares).

The minimum price at which the Company may repurchase Ordinary Shares is their nominal value of 0.600 (euro)

cents (€0.006).

At an EGM 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.

As of June 30, 2016, the total number of options over Ordinary Shares outstanding under all of the Company’s

share option plans was 17.3 million, representing 1.4% of the Company’s issued share capital at that date.

Item 10. Additional Information

DESCRIPTION OF CAPITAL STOCK

Ryanair Holdings’ capital stock consists of Ordinary Shares, each having a par value of 0.600 euro cent. As of
March 31, 2016, a total of 1,290,739,865 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.

On October 27, 2015, the Company completed a capital reorganisation which involved the consolidation of its
ordinary share capital on a 39 for 40 basis which resulted in the reduction of ordinary shares in issue by 33.8 million
ordinary shares to 1,319.3 million. The nominal value of an ordinary share was also reduced from 0.635 euro cent each to

124

0.600 euro cent each under the reorganisation. All ‘B’ Shares and Deferred Shares issued in connection with the B scheme
were either redeemed or cancelled during the period such that there were no ‘B’ Shares or Deferred Shares remaining in
issue as at March 31, 2016. 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 1.0% in net profit after tax
for the relevant year would have resulted in such requirement being met.

Under Option Plan 2000, each of the non-executive directors at that time were granted 25,000 share options, at a
strike price of €4.96, during the 2008 fiscal year. These options were exercisable between June 2012 and June 2014. In
addition, 39 senior managers (including five 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 were exercisable
between September 18, 2013 and September 17, 2015, but only for managers who continued to be employed by the
Company through September 18, 2013.

During fiscal year 2014, Ryanair Holdings’ shareholders approved a stock option plan at the Company’s annual
general meeting on September 20, 2013 (referred to herein as “Option Plan 2013”), 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 2014. All options will be subject to a five-year performance period beginning with the year in
which a grant occurs. The Remuneration Committee has discretion to determine the financial performance targets that
must be met with respect to the financial year. Those targets will relate directly to the achievement of certain year-on-year
growth targets in the Company’s profit after tax figures for each of the financial years of the performance period and/or
certain share price targets. The Option Plan 2013 replaced all stock options plans previously approved by shareholders for
all future grants, as these previously approved plans have expired.

Under Option Plan 2013, 36 senior managers (including 7 of the current executive officers) and 10 of the current
non-executive Board members were granted 10 million share options, in the aggregate, at a strike price of €6.25 in July
2014. These options are exercisable between June 2019 and July 2022. They will only vest if certain targets in relation to
net profit and/or share price are achieved and will only be available to managers/directors who continue to be employed
by the Company through April 30, 2019. Also under Option Plan 2013, 3.5 million share options were granted, in
aggregate, to executive officers at a strike price of €6.74 in October 2014. These options are exercisable between
September, 2019 and October, 2021. They will only vest if certain exceptional targets in relation to net profit and/or share
price are achieved and will only be available to executives who continue to be employed by the Company through July 31,
2019. On November 11, 2014, 5 million options were granted to Mr. O’Leary under Option Plan 2013 as part of his new
5-year contract. These options which were granted at a strike price of €8.345 are exercisable between September 2019 and
November 2021. They will only vest if certain exceptional targets in relation to net profit and/or share price are achieved
and will only be available if Mr. O’Leary continues to be employed by the Company through July 31, 2019. During fiscal
2016, 60,000 options were granted under Option plan 2013 to new non-executive Board members at a strike price of
€11.38. These options are exercisable between August 2019 and August 2021. They will only vest if certain exceptional
targets in relation to net profit and/or share price are achieved and will only be available to those non-executive Board
members who continue to be directors through April 30, 2019.

The aggregate of 17.3 million Ordinary Shares that would be issuable upon exercise in full of the options that
were outstanding as of June 30, 2016 under Company’s option plan represent approximately 1.4% of the issued share
capital of Ryanair Holdings as of such date. Of such total, options in respect of an aggregate of 11.9 million 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.

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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.

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.

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. The directors
are not required to retire at any particular age. There is no requirement for directors to hold shares. The Articles of
Association provide that one-third of the directors (rounded down to the next whole number if it is a fractional number)
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. All
Ryanair shareholders may 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 three classes of shares, Ordinary
Shares with a par value of 0.60 euro cent per share, B Shares with a nominal value of 0.05 cent per share and Deferred
Shares with a nominal value of 0.05 cent per share. The B Shares and the Deferred Shares were created at an EGM of the
Company held on 22 October 2015 in connection with a return of value to shareholders arising from the sale of the
Company’s shareholding in Aer Lingus plc, and no such shares remain in issue. Accordingly, the Ordinary Shares
currently represent the only class of shares in issue and 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 licence, 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.

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Disclosure of Share Ownership. Under Irish law, the Company can require parties to disclose their interests in
shares. The Articles of the Company provide that the directors will not register any person as a holder of shares unless
such person has completed a declaration indicating his/her nationality and the nature and extent of any interest which
he/she holds in 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%.

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, 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 EGM on June 18, 2013. In April 2014, the Company
agreed to purchase an additional five Boeing 737-800 next generation aircraft and in February 2015, the Company agreed
to purchase an additional three Boeing 737-800 next generation. This brings the total number of 737-800 next generation
aircraft on order to 183, with a list value of approximately $14.4 billion. At March 31, 2016, 52 of these aircraft had been
delivered.

In September 2014, the Group entered into an agreement with Boeing to purchase 200 Boeing 737-MAX-200
aircraft (100 firm orders and 100 aircraft subject to option), with a list value of approximately $20.5 billion (assuming all
options are exercised), over a five-year period from fiscal 2020 to 2024 in accordance with the terms of the contract. The
contract was approved by the shareholders of the Company at an EGM on November 28, 2014.

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.

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The 1992 Act prohibits financial transfers involving President Lukashenko, the Belarusian leadership and certain
other officials of Belarus, the late Slobodan Milosevic and associated persons, certain persons indicted by the International
Criminal Tribunal for the former Yugoslavia, Burma (Myanmar), certain persons and entities associated with the now
deceased Usama Bin Laden, the Al-Qaeda network and the Taliban of Afghanistan, the Democratic Republic of Congo,
certain persons in Egypt, certain activities, persons and entities in Eritrea, the Republic of Guinea, the Democratic People’s
Republic of Korea (North Korea), Iraq, Côte d’Ivoire, certain activities in Lebanon, certain activities in Liberia and the
former Liberian President Charles Taylor, his immediate family and close associates, Libya, certain persons and activities
in Sudan and South Sudan, Somalia, Tunisia, Zimbabwe, certain activities, persons and entities in Syria and Iran, certain
persons, entities and bodies in Ukraine, certain persons, entities and bodies in the Republic of Guinea-Bissau, 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.

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).

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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.

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.

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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
EGM 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. This authority was renewed at each
subsequent Annual General Meeting since then and was last renewed at the Annual General Meeting held on September
24, 2015.

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, 2016, EU nationals owned at least 53.6% 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.

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;

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 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.

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

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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.

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 done. 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.

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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.

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 who 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

Dividends, if any, paid with respect to the Ordinary Shares, including Ordinary Shares represented by ADRs,
should be included in the gross income of a U.S. Holder when the dividends are received by the holder or the Depositary.
Such dividends generally should 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 should 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 on or post January 1, 2013 with respect to the Ordinary Shares or ADRs should be subject to taxation at
a maximum rate of 20% if the dividends are “qualified dividends” (apart from the Medicare contribution tax referred to
below), and the individual has taxable income that exceeds certain thresholds. Dividends paid on the Ordinary Shares or
ADRs should be treated as qualified dividends if (i) the issuer is eligible for the benefits of a comprehensive income tax

133

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% may also be 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 fiscal 2016 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 fiscal 2017 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 should 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 should
constitute income from sources outside the United States for foreign tax credit purposes, and generally should constitute
“passive category” income for such purposes.

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

should 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 should be treated for U.S. federal income tax purposes as capital gains or losses, which
generally should 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%. Short term capital gains are subject to U.S. federal taxation at ordinary income rates. Effective
January 1, 2013, a Medicare contribution tax of 3.8% may also be applicable to U.S. individuals, estates and trusts. Gains
realized by a U.S. Holder generally should constitute income from sources within the United States for foreign tax credit
purposes and generally should constitute “passive category” income for such purposes. The deductibility of capital losses,
in excess of capital gains, is subject to limitations.

Deposits and withdrawals of Ordinary Shares by U.S. Holders in exchange for ADRs should 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 should 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 should 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.

Copies of Ryanair Holdings’ Articles may be examined at its registered office and principal place of business at

its Dublin Office, Airside Business Park, Swords, County Dublin, K67 NY94, Ireland.

DOCUMENTS ON DISPLAY

134

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.

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 737s. Ryanair is also exposed to the risk that the counterparties to its derivative
financial instruments may not be creditworthy. If a counterparty was 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, 2016. 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 41% and 43% of such
expenses in fiscal years 2016 and 2015, 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. See
“Item 3. Key Information—Risk Factors—Risks Related to the Company—Changes in Fuel Costs and Availability Affect
the Company’s Results” 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 2016 Compared with Fiscal Year 2015—Fuel and Oil.” As of July 21, 2016, Ryanair had entered into forward jet
fuel (jet kerosene) contracts covering approximately 95% of its estimated requirements for the fiscal year ending March
31, 2017 at prices equivalent to approximately $622 per metric ton. In addition, as of July 21, 2016, Ryanair had entered
into forward jet fuel (jet kerosene) contracts covering approximately 55% of its estimated requirements for the fiscal year

135

ending March 31, 2018 at prices equivalent to approximately $496 per metric ton, and had not entered into any jet fuel
hedging contracts with respect to its expected fuel purchases beyond that period.

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 losses or gains on outstanding forward agreements at March 31, 2016 and 2015,
based on their fair values, amounted to €596.6 million loss and €813.2 million loss (gross of tax), respectively. Based on
Ryanair’s fuel consumption for the 2016 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 €2.5 million in Ryanair’s fuel costs. See “Item 3. Key Information—
Risk Factors—Risks Related to the Company—Changes in Fuel Costs and Availability Affect the Company’s Results.”

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 2015 and 2016 fiscal years, 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 2016 fiscal year, the Company recorded a negative fair-value adjustment of
€522.0 million (net of tax), and in the 2015 fiscal year the Company recorded a negative fair-value adjustment of €711.6
million (net of tax) within accumulated other comprehensive income in respect of jet fuel forward contracts.

FOREIGN CURRENCY EXPOSURE AND HEDGING

In recent years, Ryanair’s revenues have been denominated primarily in two currencies, the euro and the U.K.
pound sterling. The euro and the U.K. pound sterling accounted for approximately 63% and 28%, respectively, of Ryanair’s
total revenues in the 2016 fiscal year (2015: 63% and 27% respectively). 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 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 practically 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 2016 and 2015 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. At
March 31, 2016, the total unrealized gain relating to these contracts amounted to €44.9 million, compared to a €623.1
million unrealized gain at March 31, 2015.

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 2016 fiscal year, the Company recorded a negative

136

fair-value adjustment of €505.9 million (net of tax) within accumulated other comprehensive income in respect of these
contracts, as compared to a positive fair-value adjustment of €589.9 million in the 2015 fiscal year.

Hedging associated with the balance sheet. In prior years, the Company entered into a series of 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.

At March 31, 2016, 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 €7.7 million (gross of tax) compared to a gain of €21.3 million
in fiscal 2015. In the 2016 fiscal year, the Company recorded a negative fair-value adjustment of €11.9 million (net of tax),
compared to a positive fair-value adjustment of €41.3 million in fiscal 2015, within accumulated other comprehensive
income in respect of these contracts.

Hedging associated with capital expenditures. During the 2016 and 2015 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 euro/U.S. dollar exchange rates. At March 31, 2016, the total
unrealized gain relating to these contracts amounted to €250.5 million, compared to €614.6 million unrealized gain at
March 31, 2015.

Under IFRS, the Company generally accounts for these contracts as either cash-flow hedges or fair-value hedges.
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, 2016, the total unrealized gains relating to these contracts amounted to €250.5 million, while at
March 31, 2015 unrealized gains amounted to €614.6 million. Under IFRS, the Company recorded fair-value adjustments
of €219.2 million and fair-value adjustments of €537.8 million for cash-flow hedges in the 2016 and 2015 fiscal years,
respectively. No amounts were recorded for such fair-value hedges from other accumulated comprehensive income in the
2016 and 2015 fiscal years.

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, 2016 would have a respective positive or
negative impact on the income statement of €0.1 million (net of tax) (2015: €3.2 million; 2014: €3.0 million). The same
movement of 10% in foreign currency exchange rates would have a positive €567.6 million impact (net of tax) on equity
if the rate fell by 10% and negative €464.4 million impact (net of tax) if the rate increased by 10%. (2015: €818.7 million
positive or €766.4 million negative; 2014: €288.2 million positive or negative).

INTEREST RATE EXPOSURE AND HEDGING

The Company’s purchase of 226 of the 341 Boeing 737-800 aircraft in the fleet as of March 31, 2016 has been
funded by financing in the form of loans supported by a loan guarantee from Ex-Im Bank (with respect to 194 aircraft),
JOLCOs (26 aircraft) and commercial debt (6 aircraft). In addition, the Company has raised unsecured debt via capital
market bond issuances. The Company had outstanding cumulative borrowings under the above facilities of €4,023.0
million with a weighted average interest rate of 1.97% at March 31, 2016. 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-

137

related debt at March 31, 2016. At March 31, 2016, the fair value of the interest rate swap agreements relating to this
floating rate debt was represented by a loss of €8.2 million (gross of tax), as compared with a loss of €10.7 million at
March 31, 2015. See Note 11 to the consolidated financial statements included in Item 18 for additional information.

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 €6.4 million. The earnings and cash-flow impact
of any such change in interest rates would have been approximately plus or minus €30.5 million in the 2016 fiscal year.

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:
$5.00 (or less) per 100 ADSs (or portion of 100

For:
Issuance of ADSs, including issuances resulting from a distribution of

ADSs).

common shares or rights or other property.

Cancellation of ADSs for the purpose of withdrawal, including if the

deposit agreement terminates.

$0.02 (or less) per ADS.

Any cash distribution to the holder of the ADSs.

$0.02 (or less) per ADS per calendar year.

Depositary services.

A fee equivalent to the fee that would be

Distribution of securities distributed by the issuer to the holders of

payable if securities distributed to the holder
of ADSs had been shares and the shares had
been deposited for issuance of ADSs.

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 transmissions (when expressly provided for

in the deposit agreement).

Expenses of the depositary in converting foreign currency to U.S.

dollars.

Taxes and other governmental charges the

As necessary.

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).

Any charges incurred by the depositary or its

As necessary.

agents for servicing the deposited
securities.

138

Reimbursement of Fees

From April 1, 2015 to June 30, 2016 the Depositary collected annual depositary services fees equal to

approximately $4.0 million from holders of ADSs, net of fees paid to the Depositary by the Company.

139

Item 13. Defaults, Dividend Arrearages and Delinquencies

None.

PART II

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, 2016, 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, 2016, 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.

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, 2016, based on the criteria established in the 2013 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, 2016.

Our independent registered public accounting firm, KPMG, has issued an auditor’s report on the Company’s

internal control over financial reporting, which is included in its entirety below.

140

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There has been no change in the Company’s internal control over financial reporting during the 2016 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, 2016, 2015 and 2014:

2016

Year Ended March 31,
2015
(millions)

2014

Audit fees
Tax fees
Total fees

€
€
€

0.4 €
0.3 €
0.7 €

0.5 €
0.3 €
0.8 €

0.5
0.3
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 2016 fiscal year.

Month / Period

April 1, 2015 to April 30, 2015
May 1, 2015 to May 31, 2015
June 1, 2015 to June 30, 2015
July 1, 2015 to July 31, 2015
August 1, 2015 to August 31, 2015
September 1, 2015 to September 30, 2015
October 1, 2015 to October 31, 2015
November 1, 2015 to November 30, 2015
December 1, 2015 to December 31, 2015
January 1, 2016 to January 31, 2016
February 1, 2016 to February 29, 2016
March 1, 2016 to March 31, 2016
Total (Year-end)
Post Year-end (b)

Total Number of Average Price
Ordinary Shares

Paid Per

Purchased (a) Ordinary Share

(Millions)

(€)

5.4
5.5
6.2
4.6
2.9
––
––
––
––
––
14.8
14.3
53.7
36.0

11.28
11.03
11.77
12.45
12.78
––
––
––
––
––
14.18
14.60
13.15
13.02

(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) From April 1, 2016 to July 21, 2016 the Company bought back 36 million ordinary shares, at a total cost of €467.5
million, for cancellation. Cumulatively these buy-backs are equivalent to 2.8% of the issued share capital of the
Company at July 21, 2016.

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 Sheets of Ryanair Holdings plc at March 31, 2016, March 31, 2015 and
March 31, 2014

Consolidated Income Statements of Ryanair Holdings plc for the Years ended March 31, 2016,
March 31, 2015 and March 31, 2014

Consolidated Statements of Comprehensive Income of Ryanair Holdings plc for the Years ended
March 31, 2016, March 31, 2015 and March 31, 2014

Consolidated Statements of Changes in Shareholders’ Equity of Ryanair Holdings plc for the Years
ended March 31, 2016, March 31, 2015 and March 31, 2014

Consolidated Cash Flow Statements of Ryanair Holdings plc for the Years ended March 31, 2016,
March 31, 2015 and March 31, 2014

Notes

Page
144

145

146

147

149

150

143

Non-current assets

Property, plant and equipment
Intangible assets
Available for sale financial assets
Derivative financial instruments

Total non-current assets
Current assets
Inventories
Other assets
Current tax
Trade receivables
Derivative financial instruments
Restricted cash
Financial assets: cash > 3 months
Cash and cash equivalents

Total current assets
Total assets
Current liabilities
Trade payables
Accrued expenses and other liabilities
Current maturities of debt
Current tax
Derivative financial instruments

Total current liabilities
Non-current liabilities

Provisions
Derivative financial instruments
Deferred tax
Other creditors
Non-current maturities of debt

Total non-current liabilities
Shareholders’ equity
Issued share capital
Share premium account
Other undenominated capital
Retained earnings
Other reserves

Shareholders’ equity
Total liabilities and shareholders’ equity

Consolidated Balance Sheet

At March 31, At March 31, At March 31,

Note

2016
€M

2015
€M

2014
€M

2
3
4
5

6
7
12
8
5
9

10
11
12
5

13
5
12
14
11

15
15

6,261.5
46.8
—
88.5
6,396.8

3.3
148.5
—
66.1
269.1
13.0
3,062.3
1,259.2
4,821.5
11,218.3

230.6
2,112.7
449.9
20.9
555.4
3,369.5

149.3
111.6
385.5
32.5
3,573.1
4,252.0

7.7
719.4
2.3
3,166.1
(298.7)
3,596.8
11,218.3

5,471.1
46.8
371.0
554.5
6,443.4

2.1
138.7
0.8
60.1
744.4
6.7
3,604.6
1,184.6
5,742.0
12,185.4

196.5
1,938.2
399.6
—
811.7
3,346.0

180.8
73.4
462.3
55.8
4,032.0
4,804.3

8.7
718.6
1.3
2,706.2
600.3
4,035.1
12,185.4

5,060.3
46.8
260.3
0.4
5,367.8

2.5
124.2
1.1
58.1
16.7
13.3
1,498.3
1,730.1
3,444.3
8,812.1

150.0
1,561.2
467.9
—
95.4
2,274.5

133.9
43.2
368.6
90.4
2,615.7
3,251.8

8.8
704.2
1.2
2,465.1
106.5
3,285.8
8,812.1

The accompanying notes are an integral part of the financial information.

On behalf of the Board

M. O’Leary
Director
July 22, 2016

D. Bonderman
Director

144

Consolidated Income Statement

Year ended Year ended Year ended
March 31, March 31, March 31,
2015
€M

2014
€M

2016
€M

Note

Operating revenues
Scheduled revenues
Ancillary revenues

Total operating revenues – continuing operations
Operating expenses

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

Total operating expenses
Operating profit – continuing operations
Other income/(expense)

Gain on disposal of available for sale financial asset
Finance expense
Finance income
Foreign exchange (loss)

Total other income/(expenses)
Profit before tax

Tax expense on profit on ordinary activities

Profit for the year – all attributable to equity holders of parent

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)

17
17
17

4,967.2
1,568.6
6,535.8

4,260.3
1,393.7
5,654.0

3,789.5
1,247.2
5,036.7

(2,071.4)
(830.6)
(622.9)
(585.4)
(427.3)
(292.7)
(130.3)
(115.1)
(5,075.7)
1,460.1

317.5
(71.1)
17.9
(2.5)
261.8
1,721.9
(162.8)
1,559.1
116.26
115.63
1,341.0
1,348.4

(1,992.1)
(712.8)
(547.4)
(502.9)
(377.7)
(233.9)
(134.9)
(109.4)
(4,611.1)
1,042.9

—
(74.2)
17.9
(4.2)
(60.5)
982.4
(115.7)
866.7
62.59
62.46
1,384.7
1,387.6

(2,013.1)
(617.2)
(522.0)
(463.6)
(351.8)
(192.8)
(116.1)
(101.5)
(4,378.1)
658.6

—
(83.2)
16.5
(0.5)
(67.2)
591.4
(68.6)
522.8
36.96
36.86
1,414.6
1,418.2

18
2

4
20

22
22
22
22

The accompanying notes are an integral part of the financial information.

On behalf of the Board

M. O’Leary
Director
July 22, 2016

D. Bonderman
Director

145

Consolidated Statement of Comprehensive Income

Year ended Year ended Year ended
March 31, March 31, March 31,
2015
€M
866.7

2016
€M
1,559.1

2014
€M
522.8

0.4
0.4

(2.4)
(2.4)

(1.6)
(1.6)

365.7
(39.6)
(935.2)
(609.1)

—
(291.4)
(900.5)
(900.1)
659.0

363.4
(40.0)
68.3
391.7

110.7
—
500.0
500.0
1,366.7

(108.0)
(0.1)
24.4
(83.7)

39.1
—
(44.6)
(46.2)
476.6

Profit for the year
Other comprehensive income:
Items that will never be reclassified to profit or loss:
Net actuarial gain/(loss) from retirement benefit plans

Items that are or may be reclassified subsequently to profit or loss:

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
Available for sale financial asset:
Net increase in fair value of available-for-sale financial asset - reclassified to profit or loss
Disposal of available-for-sale financial asset

Total other comprehensive (loss)/income for the year, net of income tax
Total comprehensive income for the year – all attributable to equity holders of parent

The accompanying notes are an integral part of the financial information.

On behalf of the Board

M. O’Leary
Director
July 22, 2016

D. Bonderman
Director

146

Consolidated Statement of Changes in Shareholders’ Equity

Issued Share

Other

Other Reserves

Ordinary Share Premium Retained Undenominated
Shares Capital Account Earnings
M
1,447.1
––

687.8 2,418.6
522.8

Capital
€M
0.8
––

€M
9.2
––

€M

––

Treasury Hedging Reserves Total

Other

€M
––
––

––
––

––
—
––

––
––
––
––

––

—
––

––
––

––
—
––

––
––
––
(3.2)
––
––

–––

(3.2)

€M
0.5
––

––
(83.7)

––
(83.7)
(83.7)

––
––
––
––

––

(83.2)
––

––
391.7

––
391.7
391.7

––
––
––
––
––
––

308.5

€M

€M
155.7 3,272.6
522.8

––

––
––

(1.6)
(83.7)

39.1
39.1
39.1

39.1
(46.2)
476.6

––
1.9
––
––

16.4
1.9
(481.7)
––

––
(7.0)
189.7 3,285.8
866.7

––

––
––

(2.4)
391.7

110.7 110.7
110.7 500.0
110.7 1,366.7

––
0.5
––
––
––

14.4
0.5
(112.0)
––
(520.3)

––
(5.9)
295.0 4,035.1

––
––

––
—
––

––
––
––
0.4

––

1.2
––

––
––

––
—
––

––
––
––
––
0.1
––

––

1.3

Balance at March 31, 2013
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
financial 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
Repurchase of ordinary equity shares
Cancellation of repurchased ordinary shares
Transfer of exercised and expired share-based
awards

Balance at March 31, 2014
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
Share-based payments
Repurchase of ordinary equity shares
Cancellation of repurchased ordinary shares
Dividend paid
Transfer of exercised and expired share-based
awards

––
––

––
—
––

––
––

––
—
––

––
––

––
—
––

(1.6)
––

––
(1.6)
521.2

5.7
––
––
(69.5)

––
––
––
(0.4)

16.4
––
––
––

––
––
(481.7)
––

––

7.0

1,383.3
––

8.8
––

704.2 2,465.1
866.7

––

––
––

––
—
––

––
––

––
—
––

––
––

––
—
––

(2.4)
––

––
(2.4)
864.3

5.0
––
––
(10.6)
––

––
––
––
(0.1)
––

14.4
––
––
––
––

––
-
(108.8)
––
(520.3)

––

5.9

Balance at March 31, 2015

1,377.7

8.7

718.6 2,706.2

147

Consolidated Statement of Changes in Shareholders’ Equity

Issued Share

Other

Other Reserves

Ordinary Share Premium Retained Undenominated
Shares Capital Account Earnings
M
––

Capital
€M
––

–– 1,559.1

€M

––

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 capital reorganisation
Share-based payments
Repurchase of ordinary equity shares
Cancellation of repurchased ordinary shares
Treasury shares cancelled
Dividend paid
Transfer of exercised and expired share-based
awards

––
––

––
—
—

0.3
(33.8)
––
––
(53.2)
(0.3)
––

––
––

––
—
—

––
(0.7)
––
––
(0.3)
––
––

––
––

0.4
––

––
––
—
0.4
— 1,559.5

0.8
––
––
––
––
––
––

––
––
––
(698.8)
––
(3.2)
(397.9)

––

0.3

Balance at March 31, 2016

1,290.7

7.7

719.4 3,166.1

––
––

––
—
—

––
0.7
––
––
0.3
––
––

––

2.3

Treasury Hedging Reserves Total

Other

€M
––

––
––

––
—
—

––
––
––
(7.3)
––
3.2
––

––

(7.3)

€M
––

€M
1,559.1

––
(609.1)

––
(609.1)
(609.1)

––
––

0.4
(609.1)

(291.4) (291.4)
(291.4) (900.1)
(291.4) 659.0

––
––
––
––
––
––
––

––

(300.6)

––
––
5.9
––
––
––
––

0.8
––
5.9
(706.1)
––
––
(397.9)

(0.3)

9.2

––
3,596.8

The accompanying notes are an integral part of the financial information.

148

Consolidated Statement of Cash Flows

Year ended Year ended Year ended
March 31, March 31, March 31,
2015
€M

2014
€M

2016
€M

Operating activities

Profit after tax
Adjustments to reconcile profit after tax to net cash provided by
operating activities
Depreciation
Retirement costs
Tax expense on profit on ordinary activities
Share-based payments charge
(Increase)/decrease in inventories
(Increase) in trade receivables
(Increase) in other current assets
Increase in trade payables
Increase in accrued expenses
(Decrease) in other creditors
(Decrease)/increase in provisions
Gain on disposal of available for sale financial asset
Decrease/(increase) in finance income
(Decrease)/increase in finance expense
Income tax paid

Net cash provided by operating activities
Investing activities

Capital expenditure (purchase of property, plant and equipment)
Disposal of available for sale asset
(Increase)/decrease in restricted cash
Decrease/(increase) in financial assets: cash > 3 months

Net cash (used in)/provided by investing activities
Financing activities

Net proceeds from shares issued
Shareholder returns
Proceeds from long term borrowings
Repayments of long term borrowings

Net cash (used in)/provided 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

1,559.1

866.7

522.8

427.3
0.2
162.8
5.9
(1.2)
(6.0)
(11.2)
34.1
175.0
(23.3)
(31.8)
(317.5)
1.4
(1.0)
(127.5)
1,846.3

(1,217.7)
398.1
(6.3)
542.3
(283.6)

0.8
(1,104.0)
—
(384.9)
(1,488.1)
74.6
1,184.6
1,259.2

377.7
0.2
115.7
0.5
0.4
(2.0)
(12.3)
46.5
364.4
(34.6)
44.0
—
(2.2)
12.8
(88.4)
1,689.4

(788.5)
—
6.6
(2,106.3)
(2,888.2)

14.4
(632.3)
1,690.9
(419.7)
653.3
(545.5)
1,730.1
1,184.6

351.8
(1.2)
68.6
1.9
0.2
(2.0)
(56.6)
11.7
220.7
(37.4)
(2.7)
—
0.1
(0.9)
(32.4)
1,044.6

(505.8)
—
11.4
795.1
300.7

16.4
(481.7)
—
(390.8)
(856.1)
489.2
1,240.9
1,730.1

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 2016 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 (“E.U.”), the consolidated financial statements have been prepared in accordance with
International Accounting Standards and International Financial Reporting Standards (“IFRS”) as adopted by the E.U.
(“IFRS as adopted by the E.U.”), which are effective for the year ended and as at March 31, 2016. In addition to complying
with its legal obligation to comply with IFRS as adopted by the E.U., the consolidated financial statements have been
prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”) (“IFRS as issued
by the IASB”). The consolidated financial statements have also been prepared in accordance with the Companies Acts
2014.

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

The following new and amended standards, that have been issued by the IASB, and are effective under those
standards for the first time for the financial year beginning on or after January 1, 2015, and have also been endorsed by the
E.U., have been applied by the Group for the first time in the consolidated financial statements;



“Annual Improvements to IFRSs”. 2010-2012 Cycle (effective for fiscal periods beginning on or after July 1,
2014).

“Annual Improvements to IFRSs”. 2011-2013 Cycle (effective for fiscal periods beginning on or after July 1,
2014).

 Defined Benefit Plans: Employee Contributions (Amendments to IAS 19) (effective for fiscal periods beginning

on or after July 1, 2014).

The adoption of these new or amended standards did not have a material impact on our financial position or results from
operations in the year ended March 31, 2016.

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,

150

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.

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, 2016, Ryanair had €6.3 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 program, 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

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.

Tax audits

Income tax on the profit or loss for the year comprises current and deferred tax. 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. Deferred tax is provided in full, using the balance sheet liability method on temporary differences
arising from the tax basis of assets and liabilities and their carrying amount in the consolidated financial statements.

Social insurance, passenger taxes and sales taxes are recorded as a liability based on laws enacted in the

jurisdictions to which they relate. Liabilities are recorded when an obligation has been incurred.

Ryanair reviews its tax obligations by jurisdiction regularly. There are many complexities and judgements in
determining tax obligations due to the inherent complexity of tax law, the manner in which airline businesses are carried
out whereby operations can begin and end in different jurisdictions and assumptions made about the timing and amount of
individual balances to be included in financial statements and tax returns.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Ryanair Holdings plc and its subsidiary
undertakings as of March 31, 2016. Subsidiaries are entities controlled by Ryanair. Control exists when Ryanair is exposed
or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through
its power over the investee.

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.

152

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.

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.

Borrowing costs directly attributable to the acquisition or construction of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use, are capitalised, until such time until such
time as the assets are substantially ready for their intended use. Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation.

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, 2016
298(a)

Useful Life

Residual Value

23 years from date of 15% of current market value of new

manufacture

aircraft, determined periodically

(a) The Company operated 341 aircraft as of March 31, 2016, of which 43 were leased.

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

153

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.

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

154

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.

During the year ended March 31, 2016 the Company disposed of its 29.8% shareholding in Aer Lingus, which

had been accounted for as an available-for-sale security.

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. The credit quality
of Ryanair and counterparties are considered in setting fair value. 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.

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

155

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 split 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 hotel, travel
insurance 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, the gain on disposal of and/or 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.

Ancillary revenues are recognised in the income statement in the period the ancillary services are provided.

157

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 a binomial lattice option-
pricing model, 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.

Retirement benefit obligations

The Company provides certain employees with post-retirement benefits in the form of pensions. The Company

currently operates a number of defined contribution 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 scheme 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 net obligation in respect of defined benefit schemes is calculated separately for
each plan by estimating the amount of future benefits that employees have earned in return for their service in the current
and prior periods. That benefit is discounted to determine its present value and the fair value of any plan asset is deducted.
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
scheme 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.

Re-measurements, comprising actuarial gains and losses and the return on plan assets (excluding net interest), are
recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other
comprehensive income in the period in which they occur.

Taxation

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, retirement benefit 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.

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 amounts 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.

158

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.

Social insurance, passenger taxes and sales taxes are recorded as a liability based on laws enacted in the

jurisdictions to which they relate. Liabilities are recorded when an obligation has been incurred.

Tax liabilities are based on the best estimate of the likely obligation at each reporting period. These estimates are
subject to revision based on the outcome of tax audits and discussions with revenue authorities that can take several years
to conclude.

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.

Dividend distributions are recognised as a liability in the period in which the dividends are approved by the

Company’s shareholders.

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. Those that are not as yet E.U. endorsed are flagged below.
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.

 Amendments to IFRS 11: “Accounting for Acquisitions of Interests in Joint Operations” (effective for fiscal

periods beginning on or after January 1, 2016).

 Amendments to IAS 16 and IAS 38: “Clarification of Acceptable Methods of Depreciation and Amortisation”

effective for fiscal periods beginning on or after January 1, 2016).

 Amendments to IAS 16: “Property, Plant and Equipment” and IAS 41: “Bearer Plants” (effective for fiscal periods

beginning on or after January 1, 2016).

 Amendments to IAS 27: “Equity Method in Separate Financial Statements” (effective for fiscal periods beginning

on or after January 1, 2016).

 Amendments to IAS 1: “Disclosure Initiative” (effective for fiscal periods beginning on or after January 1, 2016).



“Annual Improvements to IFRSs”. 2012-2014 Cycle (effective for fiscal periods beginning on or after January 1,
2016).

 Amendments to IFRS 10, IFRS 12 and IAS 28: “Investment Entities: Applying the consolidation exception”

(effective for fiscal periods beginning on or after January 1, 2016).*



IFRS 14: “Regulatory Deferral Accounts” (effective for fiscal periods beginning on or after January 1, 2016).*

159

 Amendments to IAS 7: “Disclosure Initiative” (effective for fiscal periods beginning on or after January 1,

2017).*

 Amendments to IAS 12: “Recognition of deferred tax assets for unrealised losses” (effective for fiscal periods

beginning on or after January 1, 2017).*



IFRS 15: “Revenue from Contracts with Customers” (effective for fiscal periods beginning on or after January 1,
2018).*



IFRS 16: “Leases” (effective for fiscal periods beginning on or after January 1, 2018).*

 Amendments to IFRS 2:”Classification and Measurement of Share-based Payment Transactions” (effective for

fiscal periods beginning on or after January 1, 2018).*



IFRS 9: “Financial Instruments” (effective for fiscal periods beginning on or after January 1, 2019).*

* These standards or amendments to standards are not as yet EU endorsed.

Property, plant and equipment

Hangar and Plant and Fixtures and Motor

Aircraft Buildings Equipment
€M

€M

Fittings
€M

Vehicles

€M

Total
€M

Year ended March 31, 2016
Cost

At March 31, 2015
Additions in year
Disposals in year
At March 31, 2016

Depreciation

At March 31, 2015
Charge for year
Eliminated on disposal
At March 31, 2016

Net book value

At March 31, 2016

Year ended March 31, 2015
Cost

At March 31, 2014
Additions in year
Disposals in year
At March 31, 2015

Depreciation

At March 31, 2014
Charge for year
Eliminated on disposal
At March 31, 2015

Net book value

At March 31, 2015

7,538.1
1,203.8
(75.5)
8,666.4

2,127.7
415.5
(75.5)
2,467.7

6,198.7

67.4
3.4
—
70.8

21.7
3.4
—
25.1

45.7

29.5
2.9
—
32.4

24.0
2.7
—
26.7

44.1
6.5
—
50.6

34.8
5.4
—
40.2

2.5
1.1
—
3.6

2.3
0.3
—
2.6

7,681.6
1,217.7
(75.5)
8,823.8

2,210.5
427.3
(75.5)
2,562.3

5.7

10.4

1.0

6,261.5

Hangar and Plant and Fixtures and Motor

Aircraft Buildings Equipment
€M

€M

Fittings
€M

Vehicles

€M

Total
€M

6,815.7
777.0
(54.6)
7,538.1

1,814.6
367.7
(54.6)
2,127.7

67.3
0.1
—
67.4

18.3
3.4
—
21.7

26.6
2.9
—
29.5

21.5
2.5
—
24.0

36.5
8.4
(0.8)
44.1

31.6
4.0
(0.8)
34.8

2.4 6,948.5
788.5
0.1
(55.4)
—
2.5 7,681.6

2.2 1,888.2
377.7
0.1
(55.4)
—
2.3 2,210.5

5,410.4

45.7

5.5

9.3

0.2 5,471.1

160

Hangar and Plant and Fixtures and Motor

Aircraft Buildings Equipment
€M

€M

Fittings
€M

Vehicles

€M

Total
€M

Year ended March 31, 2014
Cost

At March 31, 2013
Additions in year
Disposals in year
At March 31, 2014

Depreciation

At March 31, 2013
Charge for year
Eliminated on disposal
At March 31, 2014

Net book value

At March 31, 2014

6,409.6
490.5
(84.4)
6,815.7

1,555.1
343.9
(84.4)
1,814.6

58.8
8.5
—
67.3

15.7
2.6
—
18.3

23.2
3.4
—
26.6

19.3
2.2
—
21.5

33.2
3.3
—
36.5

28.6
3.0
—
31.6

2.3 6,527.1
505.8
0.1
(84.4)
—
2.4 6,948.5

2.1 1,620.8
351.8
0.1
(84.4)
—
2.2 1,888.2

5,001.1

49.0

5.1

4.9

0.2 5,060.3

At March 31, 2016, aircraft with a net book value of €3,570.9 million (2015: €3,713.9 million; 2014: €3,912.1
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.

At March 31, 2016, the cost and net book value of aircraft included advance payments on aircraft of €687.1
million (2015: €631.1 million; 2014: €282.1 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, 2016, 2015 and 2014 was €452.7 million,

€535.0 million, and €559.0 million respectively.

During the year, €9.4 million (2015: €9.8 million; 2014: Nil) of borrowing costs were capitalized as part of

property, plant and equipment. Borrowing costs have been capitalized at a rate of 1.482% (2015: 1.836%: 2014; Nil).

Intangible assets

Landing rights

At March 31,
2016 2015 2014
€M
46.8

€M
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 4.0% for 2016, 4.0% for 2015 and 5.3% for 2014.

161

Available-for-sale financial assets

Investment in Aer Lingus

At March 31,
2016 2015 2014
€M
260.3

€M
—

€M
371.0

During the year ended March 31, 2016 Ryanair disposed of its 29.8% shareholding in Aer Lingus for cash
consideration of €398.1 million or €2.50 per share, resulting in a gain in the income statement of €317.5 million, primarily
due to the reclassification of unrealised gains from other comprehensive income and reserves to the income statement. The
investment had previously been impaired to €0.50 per share in prior periods. As at March 31, 2015 Ryanair’s total
percentage shareholding was 29.8% (2014: 29.8%). The balance sheet value at March 31, 2015 of €371.0 million (2014:
€260.3 million) reflected the market value of this investment as at that time. In accordance with the Company’s accounting
policy, this asset was held at fair value with a corresponding adjustment to other comprehensive income following initial
acquisition. Any impairment losses that arose were recognised in the income statement and were not subsequently reversed.
Any cumulative loss previously recognised in other comprehensive income was transferred to the income statement once
an impairment was considered to have occurred.

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.

On June 19, 2015 IAG issued a formal offer for Aer Lingus Group plc. The offer, which was recommended by
the Board of Aer Lingus Group plc, consisted of cash consideration of €2.50 per ordinary share plus a €0.05 ordinary
dividend (already paid in May 2015). On July 10, 2015 Ryanair confirmed that the Board of Ryanair Holdings plc voted
unanimously to accept the IAG offer for Ryanair’s 29.8% shareholding in Aer Lingus Group plc, subject to that offer
receiving merger clearance from the European Commission which was subsequently granted on July 15, 2015. On
September 1, 2015 the Company received total consideration of €398.1 million for the sale of its stake in Aer Lingus.

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, 2016, the Company had
hedged approximately 95% (2015; 90%, 2014; 90%) of its estimated fuel exposure for the next fiscal year and hedged
approximately 38% of its estimated fuel exposure for fiscal 2018.

162

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 arrangements
with Ryanair (restricted cash). At March 31, 2016, such restricted cash (including amounts held in Escrow not relating to
derivatives) amounted to €13.0 million (2015: €6.7 million; 2014: €13.3 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.

Derivative financial instruments, all of which have been recognised at fair value in the Company’s balance sheet,

are analysed as follows:

Non-current assets
Gains on cash-flow hedging instruments – maturing after one year

Current assets
Gains on cash flow hedging instruments – maturing within one year

Total derivative assets
Current liabilities
Losses on cash flow hedging instruments – maturing within one year

Non-current liabilities
Losses on cash flow hedging instruments – maturing after one year

Total derivative liabilities
Net derivative financial instrument position at year-end

All of the above gains and losses were unrealised at the period-end.

163

2016
€M

At March 31,
2015
€M

2014
€M

88.5
88.5

554.5
554.5

269.1
269.1
357.6

744.4
744.4
1,298.9

0.4
0.4

16.7
16.7
17.1

(555.4)
(555.4)

(811.7)
(811.7)

(95.4)
(95.4)

(111.6)
(111.6)
(667.0)
(309.4)

(73.4)
(73.4)
(885.1)
413.8

(43.2)
(43.2)
(138.6)
(121.5)

The table above includes the following derivative arrangements:

Fair value Fair value Fair value
2014 (a)
€M

2015 (a)
€M

2016 (a)
€M

Interest rate swaps (b)
Less than one year (c)
Between one and five years
After five years

Foreign currency forward contracts (b)
Less than one year
Between one and five years
After five years

Commodity forward contracts (d)
Less than one year
Between one and five years

Net derivative position at year end

(10.4)
(0.5)
2.7
(8.2)

266.6
28.7
—
295.3

(542.6)
(53.9)
(596.5)
(309.4)

(7.4)
(3.5)
0.2
(10.7)

702.2
534.0
1.5
1,237.7

(762.1)
(51.1)
(813.2)
413.8

(31.0)
(40.9)
(0.5)
(72.4)

(64.4)
(0.7)
(1.1)
(66.2)

16.7
0.4
17.1
(121.5)

(a) The derivative arrangements in the above table have been netted for disclosure purposes only. The amounts included on the Balance

Sheet are gross amounts as the Company does not qualify for netting.

(b) 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.

(c) €10.4 million interest rate swap financial liabilities falling due within one year, is net of €1.8 million derivative financial assets,
falling due within one year, in respect of cross currency interest rate swaps (see Note 11 to the consolidated financial statements).

(d) €596.5 million commodity forward contracts relate solely to jet fuel derivative financial liabilities (see Note 11 of the consolidated

financial statements).

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 designated in 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 designated in 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 may be 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 designated in 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

164

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 designated in 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
designated in 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.

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,
2016 2015 2014
€M

€M

Commodity forward contracts
Reclassification adjustments for (gains)/losses recognised in fuel and oil operating
expenses, net of tax
Interest rate swaps
Reclassification adjustments for (gains)/losses recognised in finance expense, net of tax
Foreign currency forward contracts
Reclassification adjustments for (gains) recognised in fuel and oil operating expenses, net
of tax

(891.4)

135.4

0.7

(15.4)

18.9

24.0

(28.4)
(935.2)

(86.0)
68.3

(0.3)
24.4

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,
2016 2015 2014
€M

€M

Foreign currency forward contracts
Recognised in property plant and equipment – aircraft additions

(39.6)
(39.6)

(40.0)
(40.0)

(0.1)
(0.1)

165

The following tables indicate the periods in which cash flows associated with derivatives that are designated as

cash-flow hedges were expected to occur and to impact on profit or loss, as of March 31, 2016, 2015 and 2014:

Expected

Carrying Cash
Amount Flows

€M

2017 2018 2019 2020 Thereafter
€M

€M

At March 31, 2016
Interest rate swaps
U.S. dollar currency forward contracts
U.S. dollar currency forward contracts to be
capitalised in property, plant and equipment -
aircraft additions
Commodity forward contracts

(8.2)
44.9

26.2
54.7

(2.1)
4.0
86.3 (37.1)

2.8
2.3

3.8
2.0

17.7
1.2

250.4
(596.5)
(309.4)

241.7
(596.5)
(273.9)

180.3
61.4
(542.5) (54.0) —
5.1
(278.0) (25.7)

—
5.8

—
18.9

Expected

Carrying Cash
Amount Flows

€M

2016 2017 2018 2019 Thereafter
€M

€M

At March 31, 2015
Interest rate swaps
U.S. dollar currency forward contracts
U.S. dollar currency forward contracts to be
capitalised in property, plant and equipment -
aircraft additions
U.K. pounds sterling currency forward contracts
Commodity forward contracts

(10.7)
647.6

(17.7)
654.6

(12.5)
(5.8)
469.6 172.1

0.8
5.9

(0.5)
2.9

0.3
4.1

614.6
(24.5)
(813.2)
413.8

628.7
(24.5)
(813.2)
427.9

22.1

11.2
(24.5)
(762.1)
(318.3) 137.3

27.3
— —
(51.1) —
34.0

27.3
—
—
29.7

540.8
—
—
545.2

Expected

Carrying Cash
Amount Flows 2015 2016 2017 2018 Thereafter

€M

At March 31, 2014
Interest rate swaps
U.S. dollar currency forward contracts
U.S. dollar currency forward contracts to be
capitalised in property, plant and equipment -
aircraft additions
U.K. pounds sterling currency forward contracts
Commodity forward contracts

(72.4)
(51.4)

(51.0)
(51.7)

(22.0)
(50.6)

(17.6)
1.3

(9.2)
(0.4)

(1.6)
(0.3)

(0.6)
(1.7)

(15.0)
0.2
17.1
(121.5)

(15.0)
0.2
17.1
(100.4)

(14.0)
0.2
16.7
(69.7)

(1.0)
—
0.4
(16.9)

—
—
(9.6)

—
—
(1.9)

—
—
(2.3)

Derivative transactions entered into by the Company with a particular counterparty are not settled net and there

are no provisions within these agreements to off-set similar transactions.

The Company entered into a series of interest rate swaps to hedge against fluctuations in interest rates for certain
floating rate financing of certain aircraft. Cash deposits are required to be set aside as collateral for certain historic interest

166

rate swaps to mitigate the counterparty’s exposure to fluctuations in the underlying interest rate swaps. The following
table sets out the carrying amounts of recognised financial instruments that are subject to the above agreements:

Gross financial instruments in the statement of financial position
Derivative financial liabilities
Interest rate swaps
Related financial instruments that are not offset
Restricted cash
Net amount

Inventories

Consumables

2016
€M

At March 31,
2015
€M

2014
€M

(1.0)

(4.5)

(11.0)

1.6
0.6

6.7
2.2

13.3
2.3

2016
€M

At March 31,
2015
€M

2014
€M

3.3

2.1

2.5

In the view of the directors, there are no material differences between the net realisable value of inventories and

the balance sheet amounts.

Other assets

Prepayments
Interest receivable

All amounts fall due within one year.

Trade receivables

Trade receivables
Allowance for impairment

All amounts fall due within one year.

2016
€M
145.1
3.4
148.5

At March 31,
2015
€M
133.9
4.8
138.7

2014
€M
121.6
2.6
124.2

2016
€M
66.2
(0.1)
66.1

At March 31,
2015
€M
60.2
(0.1)
60.1

2014
€M
58.2
(0.1)
58.1

There has been no change to the allowance for impairment during the year (2015: Nil; 2014: Nil). There were no

bad debt write-offs in the year (2015: Nil; 2014: Nil).

No individual customer accounted for more than 10% of our accounts receivable at March 31, 2016, at March 31,

2015 or at March 31, 2014.

At March 31, 2016, €0.6 million (2015: €1.1 million; 2014: €1.4 million) of our total accounts receivable balance
were past due, of which €0.1 million (2015: €0.1 million; 2014: €0.1 million) was impaired and provided for and €0.5
million (2015: €1.0 million; 2014: €1.3 million) was considered past due but not impaired.

167

Restricted cash

Restricted cash consists of €13.0 million (2015: €6.7 million; 2014: €13.3 million) placed on deposit as collateral
for certain derivative financial instrument arrangements entered into by the Company and also include amounts held in
escrow (which accounts for the majority of the balance).

10.

Accrued expenses and other liabilities

Accruals
Taxation
Unearned revenue

Taxation comprises:

PAYE (payroll taxes)
Other tax (principally air passenger duty in various countries)

11.

Financial instruments and financial risk management

2016
€M
422.8
516.0
1,173.9
2,112.7

At March 31,
2015
€M
417.1
433.3
1,087.8
1,938.2

2014
€M
397.8
308.1
855.3
1,561.2

2016
€M
12.9
503.1
516.0

At March 31,
2015
€M

2014
€M

9.7
423.6
433.3

6.7
301.4
308.1

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.

168

(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, 2016, 2015 and 2014 were as follows:

At March 31, 2016
Cash and cash equivalents
Financial asset: cash > 3 months
Restricted cash
Derivative financial instruments:-
- U.S. dollar currency forward contracts
- Interest rate swaps
- Jet fuel derivative contracts
Trade receivables
Other assets
Total financial assets at March 31, 2016

At March 31, 2015
Available-for-sale financial assets
Cash and cash equivalents
Financial asset: cash > 3 months
Restricted cash
Derivative financial instruments:-
- U.S. dollar currency forward contracts
- Interest rate swaps
- Jet fuel derivative contracts
Trade receivables
Other assets
Total financial assets at March 31, 2015

At March 31, 2014
Available-for-sale financial assets
Cash and cash equivalents
Financial asset: cash > 3 months
Restricted cash
Derivative financial instruments:-
- Jet fuel derivative contracts
Trade receivables
Other assets
Total financial assets at March 31, 2014

Cash-

Total
Loans and Carrying Total Fair

Flow

Hedges Receivables

€M

Value
€M

—
—
—

1,259.2
3,062.3
13.0

346.4
8.0
3.2
—
—
357.6

—
—
—
66.1
3.4
4,404.0

346.4
8.0
3.2
66.1
3.4
4,761.6

—
—
—

346.4
8.0
3.2
—
—
357.6

Cash-

Total

Flow Loans and Carrying Total Fair

Available
For Sale Hedges Receivables
€M

€M

Value
€M

371.0
—
—
—

—
—
—
—

—
1,184.6
3,604.6
6.7

371.0
1,184.6
3,604.6
6.7

— 1,262.2
21.3
—
15.4
—
—
—
—
—
371.0 1,298.9

—
—
—
60.1
4.8
4,860.8

1,262.2
21.3
15.4
60.1
4.8
6,530.7

371.0
—
—
—

1,262.2
21.3
15.4
—
—
1,669.9

Cash-
Available Flow
For Sale Hedges Receivables Value

Loans and

Total
Carrying Total Fair

€M

Value

€M

260.3
—
—
—

—
—
—
260.3

—
—
—
—

17.1
—
—
17.1

—
1,730.1
1,498.3
13.3

260.3
1,730.1
1,498.3
13.3

—
58.1
2.6
3,302.4

17.1
58.1
2.6
3,579.8

260.3
—
—
—

17.1
—
—
277.4

169

The Company has not disclosed the fair value of the financial instruments: cash and cash equivalents, financial assets:
cash > 3 months, restricted cash, trade receivables and other assets because their carrying amounts are a reasonable
approximation of their fair values due to the short term nature of the instruments.

The carrying values and fair values of the Company’s financial liabilities by class and category were as follows:

At March 31, 2016
Current and non-current maturities of debt
Derivative financial instruments:-
-GBP currency forward contracts
-Jet fuel derivative contracts
-Interest rate swaps

Trade payables
Accrued expenses
Total financial liabilities at March 31, 2016

At March 31, 2015
Current and non-current maturities of debt
Derivative financial instruments:-
-GBP currency forward contracts
-Jet fuel derivative contracts
-Interest rate swaps

Trade payables
Accrued expenses
Total financial liabilities at March 31, 2015

At March 31, 2014
Current and non-current maturities of debt
Derivative financial instruments:-

- Interest rate swaps
- Foreign exchange forward contracts

Trade payables
Accrued expenses
Total financial liabilities at March 31, 2014

Liabilities at
Amortised Cash-Flow Carrying Total Fair

Total

Cost
€M

Hedges

€M

Value
€M

4,023.0

—

4,023.0

4,115.1

—
—
—
230.6
422.8
4,676.4

51.1
599.7
16.2
—
—
667.0

51.1
599.7
16.2
230.6
422.8
5,343.4

51.1
599.7
16.2
—
—
4,782.1

4,431.6

—

4,431.6

4,529.6

—
—
—
196.5
417.1
5,045.2

24.5
828.7
31.9
—
—
885.1

24.5
828.7
31.9
196.5
417.1
5,930.3

24.5
828.7
31.9
—
—
5,414.7

3,083.6

—

3,083.6

3,128.8

—
—
150.0
397.8
3,631.4

72.4
66.2
—
—
138.6

72.4
66.2
150.0
397.8
3,770.0

72.4
66.2
—
—
3,267.4

The Company has not disclosed the fair value for financial liabilities such as trade payables and accrued expenses because
their carrying amounts are a reasonable approximation of their fair values due to the short term nature of the instruments.

Estimation of fair values

Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction
between market participants at the measurement date. The following methods and assumptions were used to estimate the
fair value of each material class of the Company’s financial instruments:

Financial instruments measured at fair value

Available-for- sale: The fair value of available-for-sale financial assets is their quoted market bid price at the

balance sheet date. (Level 1)

170

Derivatives – interest rate swaps: Discounted cash-flow analyses have been used to determine the fair value,
taking into account current market inputs and rates. The Company’s credit risk and counterparty’s credit risk is taken into
account when establishing fair value. (Level 2)

Derivatives – currency forwards and aircraft fuel contracts: A comparison of the contracted rate to the market
rate for contracts providing a similar risk profile at March 31, 2016 has been used to establish fair value. The Company’s
credit risk and counterparty’s credit risk is taken into account when establishing fair value. (Level 2)

Financial instruments not measured at fair value

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 the relevant reporting year end date to arrive at a
fair value representing the amount payable to a third party to assume the obligations.

There were no significant changes in the business or economic circumstances during the year to March 31, 2016

that affect the fair value of the Company’s Financial Assets and Financial Liabilities.

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.

At March 31, 2016
Assets measured at fair value
Cash-flow hedges – U.S. dollar currency forward contracts
Cash-flow hedges – jet fuel derivative contracts
Cash-flow hedges – interest rate swaps

Liabilities measured at fair value
Cash-flow hedges – GBP currency forward contracts
Cash-flow hedges – jet fuel derivative contracts
Cash-flow hedges – interest rate swaps

Liabilities not measured at fair value
Long-term debt

Level 1 Level 2 Level 3 Total

€M

—
—
—
—

346.4
3.2
8.0
357.6

51.1
599.7
16.2
667.0

—
—
—
—

346.4
3.2
8.0
357.6

51.1
599.7
16.2
667.0

—
—

4,115.1
5,139.7

—
—

4,115.1
5,139.7

During the year ended March 31, 2016, 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.

171

At March 31, 2015
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 – interest rate swaps

Liabilities measured at fair value
Cash-flow hedges – GBP currency forward contracts
Cash-flow hedges – jet fuel derivative contracts
Cash-flow hedges – interest rate swaps
Cash-flow hedges – carbon derivative contracts

Liabilities not measured at fair value
Long-term debt

Level 1 Level 2 Level 3 Total

€M

371.0
—
—
—
371.0

—
1,262.2
15.4
21.3
1,298.9

—
—
—
—
—

(24.5)
(828.7)
(31.9)
—
(885.1)

—
371.0
— 1,262.2
15.4
—
—
21.3
— 1,669.9

—
—
—
—
—

(24.5)
(828.7)
(31.9)
—
(885.1)

—
—

4,529.6
4,529.6

— 4,529.6
— 4,529.6

During the year ended March 31, 2015, 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.

At March 31, 2014
Assets measured at fair value
Available-for-sale financial asset
Cash-flow hedges – jet fuel derivative contracts

Liabilities measured at fair value
Cash-flow hedges – interest rate swaps
Cash-flow hedges – Foreign exchange forward contracts

Liabilities not measured at fair value
Long-term debt

Level 1 Level 2 Level 3 Total

€M

260.3
—
260.3

—
17.1
17.1

—
—
—

72.4
66.2
138.6

—
—
—

260.3
17.1
277.4

72.4
66.2
138.6

—
—

3,128.8
3,128.8

—
—

3,128.8
3,128.8

During the year ended March 31, 2014, 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.

(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 arrangements in place:

Jet fuel forward contracts – fair value

At March 31,
2016 2015 2014
€M
(813.2)
(813.2)

€M
(596.5)
(596.5)

€M
17.1
17.1

All of the above commodity contracts are matched against highly probable forecast commodity cash flows.

172

(c)

Maturity and interest rate risk profile of financial assets and financial liabilities

At March 31, 2016, the Company had total borrowings of €4,023.0 million (2015: €4,431.6 million; 2014:
€3,083.6 million) from various financial institutions and the debt capital markets. Financing for the acquisition of 194
Boeing 737-800 “next generation” aircraft (2015: 202; 2014: 210) were provided on the basis of guarantees granted by the
Export-Import Bank of the United States. The guarantees are secured with a first fixed mortgage on the delivered aircraft.
The remaining long-term debt relates to two unsecured Eurobonds for €850 million each, 26 aircraft held under finance
leases (2015: 26; 2014: 30) and six aircraft financed by way of other commercial debt (2015: 6; 2014: 6).

The maturity profile of the Company’s financial liabilities (excluding derivative financial liabilities, aircraft

provisions, trade payables and accrued expenses) at March 31, 2016 was as follows:

Fixed rate
Secured long term-debt
Unsecured 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

Weighted
average
fixed rate
(%)

2017
€M

2018
€M

2019
€M

2020 Thereafter
€M

€M

Total
€M

97.1
2.68 %
1.48 %
7.1
3.23 % 144.9
2.15 % 249.1
41.8
2.83 %
290.9

96.1
7.1
234.0
337.2
62.5
399.7

71.7
7.1
157.7
236.5
66.6
303.1

237.0
(144.9)
92.1
0.41 %
1.09 %
66.9
0.71 % 159.0
449.9

329.5
(234.0)
95.5
70.7
166.2
565.9

248.6
(157.7)
90.9
62.6
153.5
456.6

46.6
7.1
85.7
139.4
—
139.4

170.4
(85.7)
84.7
21.3
106.0
245.4

139.3
1,699.1
204.7
2,043.1
110.3
2,153.4

450.8
1,727.5
827.0
3,005.3
281.2
3,286.5

293.9
(204.7)
89.2
62.6
151.8
2,305.2

1,279.4
(827.0)
452.4
284.1
736.5
4,023.0

All of the above debt maturing after 2020 will mature between fiscal 2020 and fiscal 2025.

173

The maturity profile of the Company’s financial liabilities (excluding derivative financial liabilities, aircraft

provisions, trade payables and accrued expenses) at March 31, 2015 was as follows:

Weighted
average
fixed rate 2016
€M

(%)

2017
€M

2018
€M

2019
€M

Thereafter Total
€M

€M

93.9
2.70 %
1.48 %
7.1
3.36 % 159.0
2.25 % 260.0
2.82 % —
260.0

97.1
7.1
147.1
251.3
46.5
297.8

96.1
7.1
242.9
346.1
61.2
407.3

71.7
7.1
158.5
237.3
65.1
302.4

185.9
1,705.1
295.4
2,186.4
101.6
2,288.0

544.7
1,733.5
1,002.9
3,281.1
274.4
3,555.5

248.8
(159.0)
89.8
0.50 %
49.8
1.27 %
0.79 % 139.6
399.6

239.0
338.4
(147.1) (242.9)
95.5
70.7
166.2
573.5

91.9
66.9
158.8
456.6

249.4
(158.5)
90.9
62.6
153.5
455.9

469.4
(295.4)
174.0
83.9
257.9
2,545.9

1,545.1
(1,002.9)
542.1
333.9
876.1
4,431.5

All of the above debt maturing after 2019 will mature between fiscal 2019 and fiscal 2025.

The maturity profile of the Company’s financial liabilities (excluding derivative financial liabilities, aircraft

provisions, trade payables and accrued expenses) at March 31, 2014 was as follows:

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

Weighted
average
fixed rate 2015
€M

(%)

2016
€M

2017
€M

2018
€M

Thereafter Total
€M

€M

2.93 %
90.9
3.79 % 171.9
3.30 % 262.8
41.6
2.81 %
304.4

93.9
150.7
244.6
—
244.6

97.1
138.5
235.6
45.6
281.2

96.1
207.3
303.4
59.8
363.2

257.7
430.5
688.2
162.4
850.6

635.7
1,098.9
1,734.6
309.4
2,044

261.8
(171.9)
89.9
0.74 %
1.48 %
73.6
1.03 % 163.5
467.9

240.5
230.6
(150.7) (138.5)
92.1
66.9
159.0
440.2

89.8
49.7
139.5
384.1

302.7
(207.3)
95.4
70.7
166.1
529.3

695.5
(430.5)
265.0
146.5
411.5
1,262.1

1,731.1
(1,098.9)
632.2
407.4
1,039.6
3,083.6

All of the above debt maturing after 2017 will mature between fiscal 2018 and fiscal 2025.

174

The following provides an analysis of changes in borrowings during the year:

2016
€M

Balance at start of year
Loans raised to finance aircraft acquisitions– euro
Repayments of amounts borrowed
Foreign exchange loss/(gain) on conversion of U.S. dollar loans
Balance at end of year
Less than one year
More than one year

At March 31,
2015
€M

(384.9)
(23.7)

4,431.6 3,083.6
— 1,690.9
(419.7)
76.8
4,023.0 4,431.6
399.6
3,573.1 4,032.0
4,023.0 4,431.6

449.9

2014
€M
3,498.3
—
(390.8)
(23.9)
3,083.6
467.9
2,615.7
3,083.6

The maturities of the contractual undiscounted cash flows (including estimated future interest payments on debt)

of the Company’s financial liabilities are as follows:

At March 31, 2016
Long term debt and finance
leases: -
-Fixed rate debt (excluding
Swapped debt)
-Swapped to fixed rate debt
- Fixed rate debt
- Floating rate debt

Derivative financial
instruments
- Interest rate swaps
- Currency forward contracts
- Commodity forward
contracts
Trade payables
Accrued expenses
Total at March 31, 2016

Total

Total
Carrying Contractual
Cash flows
Value
€M

€M

2017
€M

2018
€M

2019
€M

2020
€M

Thereafter
€M

2,459.5
827.0
2.20 % 3,286.5
736.5
0.71 %
4,023.0

2,678.4
849.9
3,528.3
746.2
4,274.5

188.4
161.9
350.3
162.5
512.8

199.9
237.6
437.5
168.9
606.4

177.8
159.4
337.2
155.4
492.6

80.4
86.0
166.4
107.2
273.6

2,031.9
205.0
2,236.9
152.2
2,389.1

16.2
51.1

599.7
230.6
422.8
5,343.4

14.9
51.1

11.1
0.6

2.8
50.5

1.0
—

—
—

599.7
230.6
422.8
5,593.6

542.5
230.6
422.8
1,720.4

57.2
—
—
716.9

—
—
—
493.6

—
—
—
273.6

—
—
—
2,389.1

175

Total

Carrying Contractual
Cash flows
€M

Value
€M

2016
€M

2017 2018 2019 Thereafter
€M

€M

2,552.7
1,002.9
2.29 % 3,555.6
876.0
0.79 %
4,431.6

2,827.9
1,059.5
3,887.4
903.6
4,791.0

147.0 193.2
183.6 162.8
330.6 356.0
146.9 165.3
477.5 521.3

201.6 177.7
249.5 162.9
451.1 340.6
171.1 157.3
622.2 497.9

2,108.3
300.7
2,409.0
263.0
2,672.0

31.9
24.5

30.9
24.5

16.8
24.5

10.8
—

2.5
—

0.8
—

—
—

828.7
196.5
417.1
5,930.3

828.7
196.5
417.1
6,288.7

765.1
196.5
417.1

63.6
—
—
1,897.5 595.7

—
—
—

—
—
—
624.7 498.7

—
—
—
2,672.0

Total

Carrying Contractual
Cash flows
€M

Value
€M

2015
€M

2016
€M

2017
€M

2018
€M

Thereafter
€M

945.1
1,098.9
3.23 % 2,044.0
1.03 % 1,039.6
3,083.6

1,020.7
1,109.7
2,130.4
1,088.6
3,219.0

148.7 108.2
178.4 153.9
327.1 262.1
175.0 148.9
502.1 411.0

154.9 165.8
139.5 207.3
294.4 373.1
167.1 172.8
461.5 545.9

443.1
430.6
873.7
424.8
1,298.5

72.4
66.4
150.0
397.8
3,770.2

51.0
66.7
150.0
397.8
3,884.5

22.0
64.6
150.0
397.8

17.6
(0.3)
—
—
1,136.5 428.3

9.2
0.4
—
—

1.6
0.3
—
—
471.1 547.8

0.6
1.7
—
—
1,300.8

At March 31, 2015
Long term debt and finance
leases: -
-Fixed rate debt (excluding
Swapped debt)
-Swapped to fixed rate debt
- Fixed rate debt
- Floating rate debt

Derivative financial
instruments
- Interest rate swaps
- Currency forward contracts
- Commodity forward
contracts
Trade payables
Accrued expenses
Total at March 31, 2015

At March 31, 2014
Long term debt and finance
leases: -
-Fixed rate debt (excluding
Swapped debt)
-Swapped to fixed rate debt
- Fixed rate debt
- Floating rate debt

Derivative financial
instruments
- Interest rate swaps
- U.S dollar currency forward
Trade payables
Accrued expenses
Total at March 31, 2014

Interest rate re-pricing

Floating interest rates on financial liabilities are generally referenced to European inter-bank interest rates
(EURIBOR). Secured long-term debt and interest rate swaps typically re-price on a quarterly basis with finance leases re-
pricing on a semi-annual basis. We use current interest rate settings on existing floating rate debt at each year-end to
calculate contractual cash flows.

Fixed interest rates on financial liabilities are fixed for the duration of the underlying structures (typically between

7 and 12 years).

176

The Company holds significant cash balances that are invested on a short-term basis. At March 31, 2016, all of
the Company’s cash and liquid resources attracted a weighted average interest rate of 0.19% (2015: 0.39%; 2014: 0.37%).

Financial assets

Cash and cash equivalents
Cash > 3 months
Restricted cash
Total financial assets

Total
€M

March 31, 2016
Within
1 year
€M
1,259.2
3,062.3
13.0
4,334.5

March 31, 2015
Within
1 year
€M

March 31, 2014
Within
1 year
€M

Total
€M

Total
€M
1,259.2 1,184.6 1,184.6 1,730.1 1,730.1
3,062.3 3,604.6 3,604.6 1,498.3 1,498.3
13.3
4,334.5 4,795.9 4,795.9 3,241.7 3,241.7

13.0

13.3

6.7

Interest rates on cash and liquid resources are generally based on the appropriate EURIBOR, LIBOR or bank

rates dependent on the principal amounts on deposit.

(d)

Foreign currency risk

The Company has exposure to various foreign currencies (principally U.K. pounds sterling and U.S. dollars) due
to the international nature of its operations. The Company manages this risk by matching U.K. pound sterling revenues
against U.K. pound sterling costs. Any remaining unmatched U.K. pound sterling revenues are used to fund U.S. dollar
currency exposures that arise in relation to fuel, maintenance, aviation insurance and capital expenditure costs or are sold
for euro. The Company also sells euro forward to cover certain U.S. dollar costs. Further details of the hedging activity
carried out by the Company are disclosed in Note 5 to the consolidated financial statements.

The following table shows the net amount of monetary assets of the Company that are not denominated in euro
at March 31, 2016, 2015 and 2014. Such amounts have been translated using the following year-end foreign currency rates
in 2016: €/£: 0.7916; €/$:1.1385 (2015: €/£: 0.7273; €/$: 1.0759; 2014: €/£:0.8282; €/$: 1.3788).

March 31, 2016

March 31, 2015

March 31, 2014

euro

euro
GBP U.S.$ equiv. GBP U.S.$ equiv. GBP U.S.$ equiv.
€M
£M

euro

€M

£M

Monetary assets

U.K. pounds sterling cash and liquid
resources
U.S. Dollar cash and liquid resources

4.0 —
4.7
4.7

—
4.0

5.1
4.2 —
72.6
9.3

72.6 —
22.0
22.0

95.4
99.8 79.0 —
6.7
9.3
20.5 —
9.3 102.1
120.3 79.0

The following table shows the net amount of monetary liabilities of the Company that are not denominated in
euro at March 31, 2016, 2015 and 2014. Such amounts have been translated using the following year-end foreign currency
rates in 2016: €/$1.1385. (2015: €/$: 1.0759; 2014: €/$: 1.3788).

March 31, 2016 March 31, 2015 March 31, 2014
euro
equiv.
€M

euro
equiv. U.S.$
$M

U.S.$
$M

€M

Monetary liabilities

U.S dollar long term debt

330.5
330.5

290.3
290.3

371.2
371.2

345.0
345.0

411.1
411.1

298.1
298.1

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, 2016 was €1.8 million, (2015: €4.5 million; 2014: €8.5 million) which

177

has been classified within current assets (2015: current liabilities; 2014: current assets), specifically derivative
assets/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, 2016, 2015 and 2014:

Currency forward contracts

U.S. dollar currency forward contracts
- for fuel and other purchases
- for aircraft purchases

Currency forward contracts

U.K pounds sterling currency forward contracts

(f)

Credit risk

March 31, 2016
euro
equiv.

U.S.$
$M

€M

March 31, 2015
euro
equiv.
€M

U.S.$
$M

March 31, 2014

U.S.$
$M

euro
equiv.
€M

3,931.9
2,770.3
6,702.2

3,383.1 4,910.3 3,881.5 3,216.4 2,385.9
2,160.3 4,085.3 3,121.9
683.2
5,543.4 8,995.6 7,003.4 4,135.7 3,069.1

919.3

March 31, 2016 March 31, 2015 March 31, 2014
euro
equiv.
€M
27.4
27.4

euro
equiv. GBP
£M
22.5
22.5

euro
equiv. GBP
£M
232.0
232.0

€M
—
—

€M
293.4
293.4

GBP
£M

—
—

The Company holds significant cash balances, which are classified as either cash and cash equivalents or financial
assets >3 months. 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 3 years. 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.

(g)

Liquidity and capital management

The Company’s cash and liquid resources comprise cash and cash equivalents, short-term investments and
restricted cash. The Company defines the capital that it manages as the Company’s long-term debt and equity. The
Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
maintain sufficient financial resources to mitigate against risks and unforeseen events.

The Company finances its working capital requirements through a combination of cash generated from operations,
bank loans and debt capital market issuances for general corporate purposes including the acquisition of aircraft. The
Company had cash and liquid resources at March 31, 2016 of €4,334.5 million (2015: €4,795.9 million; 2014: €3,241.7

178

million). During the year, the Company funded €1,217.7 million in purchases of property, plant and equipment (2015:
€788.5 million; 2014: €505.8 million). Cash generated from operations has been the principal source for these cash
requirements, supplemented primarily by general corporate purposes debt capital markets issuances.

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 2016 fiscal year.

(h)

Guarantees

Details of the Company’s guarantees and the related accounting have been disclosed in Note 23 to the

consolidated financial statements.

(i)

Sensitivity analysis

(i)

Interest rate risk: Based on the levels of and composition of year-end interest bearing assets and
liabilities, including derivatives, at March 31, 2016, a plus or minus one-percentage-point movement in interest rates would
result in a respective increase or decrease of €29.3 million (net of tax) in net interest income and expense in the income
statement (2015: €32.9 million; 2014: €18.0 million) and €4.8 million in equity (2015: €9.6 million: 2014: €16.7 million).
All of the Group’s interest rate swaps are used to swap variable rate debt to fixed rate debt; consequently, any changes in
interest rates would have an equal and opposite income statement effect for both the interest rate swaps and the debt.

(ii)

Foreign currency risk: A plus or minus change of 10% in relevant foreign currency exchange rates, based
on outstanding foreign currency-denominated financial assets and financial liabilities at March 31, 2016 would have a
respective positive or negative impact on the income statement of €0.1 million (net of tax) (2015: €3.2 million; 2014: €3.0
million). The same movement of 10% in foreign currency exchange rates would have a positive €567.6 million impact (net
of tax) on equity if the rate fell by 10% and negative €464.4 million impact (net of tax) if the rate increased by 10% (2015:
€818.7 million positive or €766.4 million negative; 2014: €288.2 million positive or negative).

12.

Deferred and current taxation

The components of the deferred and current taxation in the balance sheet are as follows:

Current tax (assets)/liabilities
Corporation tax (prepayment)/provision
Total current tax (assets)/liabilities
Deferred tax liabilities
Origination and reversal of temporary differences on property, plant and equipment,
derivatives, pensions and available-for-sale securities
Total deferred tax liabilities
Total deferred tax liabilities (net)
Total tax liabilities (net)

2016
€M

At March 31,
2015
€M

2014
€M

20.9
20.9

(0.8)
(0.8)

(1.1)
(1.1)

385.5
385.5
385.5
406.4

462.3
462.3
462.3
461.5

368.6
368.6
368.6
367.5

179

Reconciliation of current tax
At beginning of year
Corporation tax charge in year
Other adjustments
Tax paid
At end of year

Reconciliation of deferred tax

At beginning of year
New temporary differences on property, plant and equipment, derivatives,
pensions and other items
At end of year

At March 31,
2015
€M

2014
€M

2016
€M

(0.8)
149.2
—
(127.5)
20.9

(1.1)
90.1
(1.4)
(88.4)
(0.8)

0.3
31.1
—
(32.5)
(1.1)

At March 31,
2015
€M

2016
€M

2014
€M

462.3

368.6

346.5

(76.8)
385.5

93.7
462.3

22.1
368.6

The charge in the year to March 31, 2016 consisted of temporary differences of a charge of €15.3 million for
property, plant and equipment and a credit of €1.7 million for other temporary differences, both recognised in the income
statement, and a credit of €90.2 million for derivatives and a credit of €0.1 million for pensions, both recognised in other
comprehensive income. The charge in the year to March 31, 2015 consisted of temporary differences of a charge of €26.5
million for property, plant and equipment and a credit of €0.9 million for other temporary differences, both recognised in
the income statement, and a charge of €68.5 million for derivatives and a credit of €0.4 million for pensions, both
recognised in other comprehensive income. The charge in the year to March 31, 2014 consisted of temporary differences
of a charge of €37.5 million for property, plant and equipment recognised in the income statement and a credit of €15.2
million for derivatives and a credit of €0.2 million for pensions, all recognised in other comprehensive income.

The components of the tax expense in the income statement were as follows:

Year ended
Year ended
Year ended
March 31, 2016 March 31, 2015 March 31, 2014
€M

€M

Corporation tax charge in year
Deferred tax charge relating to origination and reversal of
temporary differences

149.2

90.1

13.6
162.8

25.6
115.7

31.1

37.5
68.6

The following table reconciles the statutory rate of Irish corporation tax to the Company’s effective corporation

tax rate:

Year ended Year ended Year ended
March 31, 2016 March 31, 2015 March 31, 2014
%

Statutory rate of Irish corporation tax
Adjustments for earnings taxed at higher rates
Adjustments for earnings taxed at lower rates
Other differences
Total effective rate of taxation

12.5
—
(0.1)
(0.8)
11.6

12.5
0.1
(0.6)
(0.2)
11.8

12.5
—
(0.5)
(0.4)
11.6

180

Deferred tax applicable to items charged or credited to other comprehensive income were as follows:

Defined benefit pension obligations
Derivative financial instruments
Total tax charge in other comprehensive income

At March 31,
2015
€M
(0.4)
68.5
68.1

2016
€M
(0.1)
(90.2)
(90.3)

2014
€M
(0.2)
(15.2)
(15.4)

The majority of current and deferred tax recorded in each of fiscal 2016, 2015 and 2014 relates to domestic tax
charges and there is no expiry date associated with these temporary differences. In fiscal 2016, the Irish corporation tax
rate remained at 12.5%.

The principal components of deferred tax at each year-end were:

At March 31,
2015
€M

2016
€M

2014
€M

Arising on capital allowances and other temporary differences
Arising on derivatives
Arising on pension
Total

424.6 411.1 385.7
(16.9)
(0.2)
368.6

(38.5)
(0.6)
385.5

51.7
(0.5)
462.3

The Company recognised all required deferred tax assets and liabilities at March 31, 2016, 2015 and 2014. No
deferred tax has been provided for un-remitted earnings of overseas subsidiaries as there is no immediate intention to remit
these to Ireland. No temporary differences arise on the carrying value of the tax base of subsidiary companies as the
Company’s trading subsidiaries are resident in countries with which Ireland has concluded double taxation agreements.

13.

Provisions

Provision for aircraft maintenance on operating leased aircraft (a)
Provision for pension obligation (b)

2016
€M
144.4
4.9
149.3

At March 31,
2015 2014

€M
176.2
4.6
180.8

€M
132.2
1.7
133.9

(a) Provision for aircraft maintenance on operating leased aircraft

At beginning of year
Increase in provision during the year
Utilisation of provision upon the hand-back of aircraft
At end of year

2016
€M

At March 31,
2015 2014

€M

176.2
29.5
(61.3)
144.4

132.2
44.0
—
176.2

122.4
38.0
(28.2)
132.2

During the 2016 fiscal year, the Company returned eight aircraft held under operating lease to the lessors.

181

The expected timing of the outflows of economic benefits associated with the provision at March 31, 2016, 2015 and 2014
are as follows:

At March 31, 2016
Provision for leased aircraft maintenance

144.4 69.4 18.7 29.7

21.2

5.4

Carrying
Value

2017 2018 2019 2020 Thereafter
€M

€M

Carrying
Value

2016 2017 2018 2019 Thereafter
€M

€M

At March 31, 2015
Provision for leased aircraft maintenance

176.2 65.4 51.4 15.0

22.9

21.5

Carrying
Value

2015 2016 2017 2018 Thereafter
€M

€M

At March 31, 2014
Provision for leased aircraft maintenance

132.2

1.4 49.0 44.5

22.2

15.1

(b) Provision for pension obligation

At beginning of year
Settlement on closure of Irish defined benefit plan
Movement during the year
At end of year

See Note 21 to the consolidated financial statements for further details.

14.

Other creditors

2016
€M

At March 31,
2015
€M

2014
€M

4.6
—
0.3
4.9

1.7
—
2.9
4.6

13.5
(12.5)
0.7
1.7

This consists of deferred gains arising from the sale and leaseback of aircraft. During fiscal year 2016, eight sale-
and-leaseback aircraft were returned and Ryanair did not enter into sale-and-leaseback arrangements for any new Boeing
737-800 “next generation” aircraft (2015: nil; 2014: eight). Total sale-and-leaseback aircraft at March 31, 2016 was 43.

182

15.

(a)

Issued share capital, share premium account and share options

Share capital

2016
€M

At March 31,
2015
€M

2014
€M

Authorised:

1,680,000,000 ordinary equity shares of 0.635 euro cent each

10.7

Share Capital reorganisation

1,550,000,000 ordinary equity shares of 0.6 euro cent each
1,368,000,000 'B' Shares of 0.05 euro cent each
1,368,000,000 Deferred shares of 0.05 euro cent each

9.3
0.7
0.7
10.7

Allotted, called-up and fully paid:

1,290,739,865 ordinary equity shares of 0.6 euro cent each
1,377,661,859 ordinary equity shares of 0.635 euro cent each
1,383,237,668 ordinary equity shares of 0.635 euro cent each

7.7
—
—

—
8.7
—

—
—
8.8

During the year, the Group returned €398 million to shareholders via a B share scheme, and completed a capital
reorganisation which involved the consolidation of its ordinary share capital on a 39 for 40 basis. The Group’s shareholders
approved the creation of two new authorised share classes being the ‘B’ Shares and Deferred Shares classes to effect this
B share scheme and 1,353,149,541 ‘B’ Shares and 663,060,175 Deferred Shares were subsequently issued. Arising out of
the ordinary share consolidation the number of ordinary equity shares in issue was reduced by 33,828,739 ordinary equity
shares from 1,353,149,541 immediately prior to the implementation of the B Share scheme to 1,319,320,802 ordinary
equity shares in issue upon completion of the B Share scheme and the nominal value of an ordinary equity share was
reduced from 0.635 euro cent each to 0.6 euro cent each. All ‘B’ Shares and Deferred Shares issued in connection with the
B Share scheme were either redeemed or cancelled during the year ended 31 March 2016 such that there were no ‘B’
Shares or Deferred Shares remaining in issue as at 31 March 2016.

Other movement in the share capital balance year-on-year principally relates to 0.3 million (2015: 5.0 million;
2014: 5.7 million) new shares issued due to the exercise of share options, less the cancellation of 53.5 million shares
relating to share buy-backs (2015: 10.6 million; 2014: 69.5 million).

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

2016
€M
718.6

At March 31,
2015
€M
704.2

2014
€M
687.8

0.8
719.4

14.4
718.6

16.4
704.2

Balance at beginning of year
Share premium arising from the exercise of 0.3 million options in fiscal 2016, 5.0
million options in 2015 and 5.7 million options in 2014
Balance at end of year

183

(c)

Share options and share purchase arrangements

The Company has adopted a number of share option plans, which allow current or future employees or executive
directors to purchase shares in the Company up to an aggregate of approximately 5% (when aggregated with other ordinary
shares over which options are granted and which have not yet been exercised) of the outstanding ordinary shares of Ryanair
Holdings plc, subject to certain conditions. All grants are subject to approval by the Remuneration Committee. These are
exercisable at a price equal to the market price of the ordinary shares at the time options are granted. The key terms of
these option plans include the requirement that certain employees remain in employment with the Company for a specified
period of time and that the Company achieves certain net profit targets and/or share price targets.

Details of the share options outstanding are set out below:

Outstanding at March 31, 2013
Exercised
Outstanding at March 31, 2014
Exercised
Granted
Expired
Forfeited
Outstanding at March 31, 2015
Exercised
Granted
Forfeited
Outstanding at March 31, 2016

Share Options
M

11.50

Weighted
Average
Exercise Price
€2.97
€2.90
€3.04
€2.88
€6.91
€4.99
€6.25
€6.86
€2.56
€11.38
€6.25
€6.97

(5.7)
5.8
(5.0)
18.5
(0.5)
(0.8)
18.0
(0.3)
0.1
(0.5)
17.3

The mid-market price of Ryanair Holdings plc’s ordinary shares on the Irish Stock Exchange at March 31, 2016
was €14.17 (2015: €11.13; 2014: €7.61). The highest and lowest prices at which the Company’s shares traded on the Irish
Stock Exchange in the 2016 fiscal year were €15.35 and €10.47 respectively (2015: €11.13 and €6.35, respectively; 2014:
€7.70 and €5.33, respectively). There were no options exercisable at March 31, 2016 (2015: 0.3 million; 2014: 5.8 million).
The average share price for the 2016 fiscal year was €13.06 (2015: €8.12; 2014: €6.59).

The weighted average share price (as of the dates of exercises) for all options exercised during the 2016 fiscal

year was €11.70 (2015: €8.56; 2014: €6.67).

At March 31, 2016 the range of exercise prices and weighted average remaining contractual life of outstanding

options are shown in the table below. There were no exercisable options at March 31, 2016.

Options outstanding
Weighted-

Range of exercise
price (€)
6.25-7.99
8.00-11.38

average
remaining

Weighted-
Number
average
outstanding contractual life exercise
price (€)
6.39
8.38

(years)
6.1
5.7

M
12.2
5.1

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 €5.9 million to the income
statement (2015: €0.5 million charge; 2014: €1.9 million charge) being recognised within the income statement in
accordance with employee services rendered.

184

The table below shows, for all share option grants, the weighted-average assumptions used in the binomial lattice

model and the resulting weighted-average grant date fair value of share options granted in 2016:

Fair value at grant date
Share price at grant date
Exercise Price
Dividend yield
Volatility
Range of risk free interest rates
Expected term (years)

Year ended
March 31, 2016
2.62
11.38
11.38
3%
25%
0.3% - 0.4%
7 years

A blend of the historical and implied volatilities of the Company’s own ordinary shares is used to determine
expected volatility for share option granted. The weighted-average volatility is determined by calculating the weighted-
average of volatilities for all share options granted in a given year. The expected term of share option grants represents the
weighted-average period the awards are expected to remain outstanding. For share options granted in 2016, we estimated
the weighted-average expected term based on historical exercise data. The service period is five years.

The risk-free interest rate assumption was based on Eurozone zero-coupon bond instruments whose term was
consistent with the expected term of the share option granted. The expected dividend yield assumption was based on our
history and expectation of dividend payouts.

16.

Other equity reserves

The total share based payments reserve at March 31, 2016 was €9.2 million (2015: €3.7 million; 2014: €9.1
million). The available-for-sale financial asset reserve at March 31, 2016 was €nil (2015: €291.4 million; 2014: €180.6
million). The treasury reserve amounted to negative €7.3 million at March 31, 2016 (2015: negative €3.2 million; 2014
€nil). The total cash-flow hedge reserve amounted to negative €300.6 million at March 31, 2016 (2015: positive €308.5
million; 2014: negative €83.2 million). Further details of the group’s derivatives are set out in Notes 5 and 11 to the
consolidated financial statements.

17.

Analysis of operating revenues and segmental analysis

The Company is managed as a single business unit that provides low fares airline-related services, including
scheduled services, internet and other related services to third parties across a European route network. The Company
operates a single fleet of aircraft that is deployed through a single route scheduling system.

The Company determines and presents operating segments based on the information that internally is provided to
Michael O’Leary, CEO, who is the Company’s Chief Operating Decision Maker (CODM). When making resource
allocation decisions, the CODM evaluates route revenue and yield data, however resource allocation decisions are made
based on the entire route network and the deployment of the entire aircraft fleet, which are uniform in type. The objective
in making resource allocation decisions is to maximise consolidated financial results, rather than results on individual
routes within the network.

The CODM assesses the performance of the business based on the consolidated adjusted profit/(loss) after tax of
the Company for the year. This measure excludes the effects of certain income and expense items, which are unusual, by
virtue of their size and incidence, in the context of the Company’s ongoing core operations, such as the impairment of a
financial asset investment, accelerated depreciation related to aircraft disposals and one off release of ticket sale revenue.

All segment revenue is derived wholly from external customers and, as the Company has a single reportable

segment, inter-segment revenue is zero.

185

The Company’s major revenue-generating asset class comprises its aircraft fleet, which is flexibly employed
across the Company’s integrated route network and is directly attributable to its reportable segment operations. In addition,
as the Company is managed as a single business unit, all other assets and liabilities have been allocated to the Company’s
single reportable segment.

There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss

since the prior year.

Reportable segment information is presented as follows:

Year ended Year ended Year ended
March 31,

March 31,

External revenues

2016
€M
6,535.8

2015
€M
5,654.0

2014
€M
5,036.7

Reportable segment adjusted profit after income tax (i)

1,241.6

866.7

522.8

Other segment information:
Depreciation
Finance income
Finance expense
Capital expenditure - cash

Reportable segment assets (ii)

(427.3)
17.9
(71.1)
(1,217.7)

(377.7)
17.9
(74.2)
(788.5)

(351.8)
16.5
(83.2)
(505.8)

At March 31, At March 31, At March 31,
2015
€M
11,814.4

2016
€M
11,218.3

2014
€M
8,551.8

(i) Adjusted profit after income tax excludes the gain of €317.5 million on the sale of the Aer Lingus Shareholding recognised in the

financial year ended March 31, 2016.

(ii) Excludes the available-for-sale financial asset in 2015 and 2014.

Entity-wide disclosures:

Geographical information for revenue by country of origin is as follows:

Ireland
United Kingdom
Other European countries

Year ended Year ended Year ended
March 31,
March 31,

March 31,

2016
€M

672.9
1,843.9
4,019.0
6,535.8

2015
€M

560.7
1,550.1
3,543.2
5,654.0

2014
€M

532.4
1,253.6
3,250.7
5,036.7

186

Ancillary revenues included in total revenue above comprise:

Non-flight scheduled
In-flight
Internet income

Year ended Year ended Year ended
March 31,
March 31,

March 31,

2016
€M
1,329.6
153.4
85.6
1,568.6

2015
€M
1,164.4
128.1
101.2
1,393.7

2014
€M
1,012.4
117.3
117.5
1,247.2

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
Sales, operations, management and administration

Year ended
March 31,

2016

2015

2014

9,777
1,149
10,926

8,699
887
9,586

8,706
795
9,501

At March 31, 2016 the company had a team of 11,458 people (2015: 9,393; 2014: 8,992).

The aggregate payroll costs of these persons were as follows:

Staff and related costs
Social welfare costs
Other pension costs (a)
Share based payments (b)

Year ended Year ended Year ended
March 31,
March 31,

March 31,

2016
€M

2015
€M

2014
€M

551.9
23.1
4.5
5.9
585.4

479.1
19.8
3.5
0.5
502.9

441.5
18.7
1.5
1.9
463.6

(a) Costs in respect of defined-contribution benefit plans and other pension arrangements were €4.2 million in 2016 (2015: €3.2
million; 2014: €2.6 million) while costs associated with the defined benefit plans included here were €0.3 million in 2016 (2015:
€0.3 million; 2014: credit of €1.1 million). (See Note 21 to the consolidated financial statements).

(b) In the year ended March 31, 2016 the charge in the income statement of €5.9 million for share based compensation comprises a
charge for the fair value of various share options granted, which are being recognised in the income statement in accordance with
services rendered.

187

19.

Statutory and other information

Year ended Year ended Year ended
March 31, March 31, March 31,
2015
€M

2014
€M

2016
€M

Directors’ emoluments:
-Fees
-Share based compensation
-Other emoluments, including bonus and pension contributions
Total directors’ emoluments
Auditor’s remuneration (including reimbursement of outlay):
- Audit services (i)
- Tax advisory services (ii)
Total fees
Included within the above total fees, the following fees were payable to
other KPMG firms outside of Ireland:
Audit services
Tax services
Total fees
Depreciation of owned property, plant and equipment
Depreciation of property, plant and equipment held under finance leases
Operating lease charges, principally for aircraft

0.6
1.6
1.9
4.1

0.4
0.3
0.7

—
0.1
0.1
403.4
23.9
115.1

0.5
0.6
1.9
3.0

0.5
0.3
0.8

—
0.2
0.2
357.8
19.9
109.4

0.5
—
1.8
2.3

0.5
0.3
0.8

—
0.2
0.2
333.9
17.9
101.5

(i) Audit services comprise audit work performed on the consolidated financial statements. In 2016, €1,000 (2015: €1,000; 2014:

€1,000) of audit fees relate to the audit of the Parent Company.

(ii) 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.

(a) Fees and emoluments - executive director

Year ended Year ended Year ended
March 31, March 31, March 31,
2015
€M

2014
€M

2016
€M

Basic salary
Bonus (performance and target-related)
Share based compensation

1.0
0.9
1.3
3.2

1.0
0.9
0.5
2.4

1.0
0.8
—
1.8

During the years ended March 31, 2016, 2015, and 2014 Michael O’Leary was the only executive director.

188

(b) Fees and emoluments – non-executive directors

Fees
David Bonderman
Michael Cawley
Michael Horgan (i)
John Leahy (ii)
Charles McCreevy
Declan McKeon
Kyran McLaughlin
Howard Millar (iii)
Dick Milliken
Julie O’Neill
James Osborne
Louise Phelan

Emoluments
Michael Horgan (i)
John Leahy (ii)
Share based compensation
Total

Year ended Year ended Year ended
March 31, March 31, March 31,
2015
€M

2014
€M

2016
€M

0.10
0.05
0.02
0.02
0.05
0.05
0.05
0.02
0.05
0.05
0.05
0.05
0.56

0.02
0.02
0.30
0.90

0.10
0.03
0.04
—
0.05
0.05
0.05
—
0.05
0.05
0.05
0.05
0.52

0.04
—
0.06
0.62

0.10
—
0.04
—
0.05
0.05
0.05
—
0.03
0.05
0.05
0.05
0.47

0.04
—
—
0.51

(i) Michael Horgan resigned from the Board of Directors in September 2015.
(ii) John Leahy was appointed to the Board of Directors in August 2015. Capt. Leahy notified the Board of his wish to not stand for
re-election at the AGM in September 2016. Capt. Mike O’Brien was appointed to the Board to replace Capt. Leahy in May 2016.

(iii) Howard Millar was appointed to the Board of Directors effective in August 2015.

From October 1, 2008, Michael O’Leary was no longer an active member of a Company defined-benefit plan.
The total accumulated accrued benefit for Michael O’Leary at March 31, 2016 was €0.1 million (2015: €0.1 million; 2014
€0.1 million). Pension benefits have been computed in accordance with Section 6.8 of the Listing Rules of the Irish Stock
Exchange. 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. No non-executive directors are members of the Company defined-
benefit plan.

Michael O’Leary is a member of a defined-contribution plan. During the years ended March 31, 2016, 2015, and
2014 the Company did not make contributions to the defined-contribution plan for Michael O’Leary. No non-executive
directors are members of the Company defined-contribution plan.

(d) Shares and share options

(i) Shares

Ryanair Holdings plc is listed on the Irish, London and NASDAQ stock exchanges.

189

The beneficial interests as at March 31, 2016, 2015 and 2014 of the directors in office at March 31, 2016 and of

their spouses and dependent children in the share capital of the Company are as follows:

No. of Shares at March 31,
2015

2016

David Bonderman
Michael Cawley
Kyran McLaughlin
Howard Millar
Dick Milliken
Michael O’Leary
James Osborne
Louise Phelan

(ii) Share options

7,535,454
756,198
225,000
390,000
9,750
50,096,725
302,500
6,825

7,680,671
615,588
225,000
—
10,000
51,381,256
310,256
7,000

The share options held by each director in office at the end of fiscal 2016 were as follows:

2014
7,655,671
—
200,000
—
10,000
51,081,256
310,256
7,000

David Bonderman (b) (c)
Michael Cawley (b)
John Leahy (a)
Charles McCreevy (b)
Declan McKeon (b)
Kyran McLaughlin (b)
Howard Millar (a)
Dick Milliken (b)
Michael O'Leary (d)
Julie O’Neill (b)
James Osborne (b) (c)
Louise Phelan (b)

No. of Options at March 31,
2015
30,000
30,000
—
30,000
30,000
30,000
—
30,000
5,000,000
30,000
30,000
30,000

2016
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
5,000,000
30,000
30,000
30,000

2014
25,000
—
—
—
—
—
—
—
—
—
25,000
—

(a) These options were granted to these directors at an exercise price of €11.38 (the market value at the date of grant) during the
2016 fiscal year and are exercisable between August 2019 and August 2021 subject to the director still being a non-executive
director of the Company through April 30, 2019.

(b) These options were granted to these directors at an exercise price of €6.25 (the market value at the date of grant) during the
2015 fiscal year and are exercisable between June 2019 and July 2022 subject to the director still being a non-executive director of
the Company through April 30, 2019.

(c) These 25,000 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 were exercisable between June 2012 and June 2014.

(d) These options were granted to Mr. O’Leary during fiscal 2015 at an exercise price of €8.345 (the market value at the date of
grant) and are exercisable between September 2019 and November 2021 subject to him still being an employee of the Company
through July 31, 2019.

In the 2016 fiscal year the Company incurred total share-based compensation expense of €1.6 million (2015:

€0.06; 2014: €nil million) in relation to directors.

190

20.

Finance expense

Interest payable on bank loans
Interest arising on pension liabilities

21.

Pensions

Year ended Year ended Year ended
March 31, March 31, March 31,
2015
€M

2014
€M

2016
€M

70.9
0.2
71.1

74.1
0.1
74.2

82.3
0.9
83.2

At March 31, 2016 the Company operated defined-contribution schemes.

During fiscal 2016 the Company closed the defined benefit plan for U.K. employees to future accruals. The net
pension liability recognized in the consolidated balance sheet for the scheme at March 31, 2016 was €4.1 million (2015:
€4.2 million; 2014 €1.5 million). The costs associated with the scheme during fiscal 2016 was €0.3 million (2015: 0.3
million; 2014: credit of €1.1 million).

The Irish defined benefit plan was closed effective December 31, 2013. In the year ended March 31, 2014, the
Company made a final contribution of €12.5 million into the Irish defined benefit plan which represented a full and final
settlement of the Company’s liability to contribute to the Irish defined benefit plan.

The Company operates defined-contribution retirement plans in Ireland and the U.K. 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 €4.2 million in 2016 (2015: €3.4 million; 2014: €2.6 million).

The amounts recognized in the consolidated balance sheet in respect of defined benefit plans are as follows:

Present value of benefit obligations
Fair value of plan assets
Present value of net obligations
Related deferred tax asset
Net pension liability

Defined-contribution schemes

2016
€M
(15.0)
10.3
(4.7)
0.6
(4.1)

At March 31,
2015
€M
(16.7)
12.0
(4.7)
0.5
(4.2)

2014
€M
(11.5)
9.8
(1.7)
0.2
(1.5)

191

22.

Earnings per share

Basic earnings per ordinary share (in euro cent)
Diluted earnings per ordinary share (in euro cent)
Number of ordinary shares (in Ms) used for EPS
Basic
Diluted (a)

2016

At March 31,
2015

2014

116.26
115.63

62.59
62.46

36.96
36.86

1,341.0 1,384.7
1,348.4 1,387.6

1,414.6
1,418.2

(a) Details of share options in issue have been described more fully in Note 15 to the consolidated financial statements. See below

for explanation of diluted number of ordinary shares.

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 2016 fiscal year, the weighted average number of shares in issue of 1,348.4
million includes weighted average share options assumed to be converted, and equal to a total of 7.4 million shares. For
the 2015 fiscal year, the weighted average number of shares in issue of 1,387.6 million includes weighted average share
options assumed to be converted, and equal to a total of 2.9 million shares. For the 2014 fiscal year, the weighted average
number of shares in issue of 1,418.2 million includes weighted average share options assumed to be converted, and equal
to a total of 3.6 million shares.

23.

Commitments and contingencies

Commitments

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. This
agreement was approved at an EGM of Ryanair Holdings plc on June 18, 2013.

In April 2014, the Company agreed to purchase an additional 5 Boeing 737-800 “next-generation” aircraft for
delivery in fiscal year 2016 on the same terms and conditions as the 2013 Boeing Contract. In March 2015, the Company
announced the purchase of an additional three Boeing 737-800 aircraft for delivery in early 2016 on the same terms as the
2013 Boeing Contract. This brings the total “firm” new deliveries to 183 aircraft.

In September 2014, the Group agreed to purchase up to 200 (100 firm orders and 100 subject to option) Boeing
737-Max-200 aircraft from The Boeing Corporation during the period Fiscal 2019 to Fiscal 2024. This agreement was
approved at an EGM of Ryanair Holdings plc on November 28, 2014.

The table below details the firm aircraft delivery schedule at March 31, 2016 and March 31, 2015 for the Company

pursuant to the 2013 and 2014 Boeing contracts.

Aircraft
Delivered at Aircraft
March 31,
2016

Firm

Firm Aircraft
Deliveries
Deliveries Post Fiscal
Fiscal 2017
2016/2017
52
—
52

79
100
179

Firm Aircraft

Basic
price per Deliveries
aircraft
Total
“Firm”
(U.S.$
Aircraft million)
78.49
102.50

Fiscal 2015-
2016 at March
31, 2015

183
100
283

11
—
11

2013 Contract
2014 Contract
Total

52
—
52

The “Basic Price” (equivalent to a standard list price for an aircraft of this type) for each aircraft governed by the
2013 Boeing contract will be increased by (a) an estimated U.S.$2.9 million 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

192

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 18 to 24 months prior to the delivery of such aircraft.

The “Basic Price” (equivalent to a standard list price for an aircraft of this type) for each aircraft governed by the
2014 Boeing contract will be increased by (a) an estimated U.S.$1.6 million 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 18 to 24 months prior to the delivery of such aircraft.

Boeing has granted Ryanair certain price concessions as part of the Boeing 2013 Contract and the 2014 Contract.
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, other than advance 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 (the purchase price of the new aircraft net of discounts received from Boeing) will be
significantly below the Basic Price mentioned above. At March 31, 2016 and March 31, 2015, the total potential
commitment to acquire all 283 “firm” aircraft, not taking such increases and decreases into account, will be approximately
U.S. $24.6 billion.

Operating leases

The Company financed 76 of the Boeing 737-800 aircraft delivered between December 2003 and March 2014
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 March
2016, 33 operating lease aircraft were returned to the lessor at the agreed maturity date of the lease. At March 31, 2016
Ryanair had 43 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. Nine of these leases are
denominated in euro and require Ryanair to make fixed rental payments over the term of the leases. 34 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 23 of the 43 remaining operating lease aircraft as at March 31, 2016, on pre-
determined terms. The following table sets out the total future minimum payments of leasing 43 aircraft (2015: 51 aircraft;
2014: 51 aircraft), at March 31, 2016, 2015 and 2014, respectively:

Due within one year
Due between one and five years
Due after five years
Total

Finance leases

2016

2014

At March 31,
2015
Minimum Minimum Minimum
payments payments payments
€M
139.9
272.7
20.2
432.8

€M
118.7
292.1
61.9
472.7

93.5
184.8
0.5
278.8

€M

The Company financed 30 Boeing 737-800 aircraft delivered between March 2005 and March 2014 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. Ryanair
exercised this option for 4 of these aircraft in fiscal year 2015. 6 aircraft have been financed through euro-denominated
12 year amortising commercial debt transactions.

193

The following table sets out the total future minimum payments of leasing the remaining 26 aircraft (2015: 26

aircraft; 2014: 30 aircraft) under JOLCOs at March 31, 2016, 2015 and 2014, respectively:

2016
Present
value of

Present
value of
Minimum Minimum Minimum Minimum Minimum minimum
payments payments payments payments payments payments

At March 31,
2015
Present
value of

2014

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

€M
110.6
460.1
—
570.7

€M
106.4
401.7
—
508.1

€M

52.7
565.7
—
618.4

€M

49.8
284.1
—
333.9

€M

78.1
408.6
248.4
735.1

€M

73.5
250.0
83.9
407.4

(5.4)

(5.0)

(10.1)

—

(18.2)

—

565.3

503.1

608.3

333.9

716.9

407.4

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 have a material adverse effect on the Company’s results of
operations or financial position.

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.

On May 25, 2004, Ryanair appealed the decision of the European Commission to the Court of First Instance

(“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

194

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, in relation to some historic swaps, as
collateral for the counterparty’s exposure to risk of fluctuations on certain 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.

195

24.

Note to cash flow statement

Net funds/(debt) at beginning of year
Increase/(decrease) in cash and cash equivalents in year
(Decrease)/(increase) in financial assets > 3 months
Decrease/(increase) in restricted cash
FX on U.S. dollar denominated debt
Net cash flow from (increase)/decrease in debt
Movement in net funds resulting from cash flows
Net funds at end of year
Analysed as:
Cash and cash equivalents, financial assets and restricted cash
Total borrowings*
Net funds/(debt)

includes both current and non-current maturities of debt.

25.

Shareholder returns

2016
€M
364.3
74.6
(542.3)
6.3
23.7
384.9
(52.8)
311.5

At March 31,
2015
€M
158.1
(545.5)
2,106.3
(6.6)
(76.8)
(1,271.2)
206.2
364.3

2014
€M
60.7
489.2
(795.1)
(11.4)
23.9
390.8
97.4
158.1

4,334.5
(4,023.0)
311.5

4,795.9
(4,431.6)
364.3

3,241.7
(3,083.6)
158.1

In the year ended March 31, 2016 the Company bought back 53.7 million ordinary shares at a total cost of €706.1
million. This is equivalent to approximately 4.2% of the Company’s issued share capital at March 31, 2016. 53.2 million
of these ordinary shares were cancelled at March 31, 2016. The remaining 0.5 million ordinary shares were cancelled on
April 1, 2016. In addition to the above, the Company returned €398 million to shareholders via a B share scheme, and
completed a capital reorganisation which involved the consolidation of its ordinary share capital on a 39 for 40 basis which
resulted in the reduction of ordinary shares in issue by 33.8 million ordinary shares. The nominal value of an ordinary
share was also reduced from 0.635 euro cent each to 0.600 euro cent each under the reorganisation. All ‘B’ Shares and
Deferred Shares issued in connection with the B share scheme were either redeemed or cancelled during the period such
that there were no ‘B’ Shares or Deferred Shares remaining in issue as at March 31, 2016.

In the year ended March 31, 2015 the Company bought back 10.9 million ordinary shares at a total cost of €112.0
million. This is equivalent to approximately 0.8% of the Company’s issued share capital at March 31, 2015. 10.6 million
ordinary shares repurchased were cancelled as at March 31, 2016. The remaining 0.3 million were cancelled on April 1,
2015. Accordingly, share capital decreased by 10.6 million ordinary shares with a nominal value of €0.1 million and other
undenominated capital increased by a corresponding €0.1 million. Other undenominated capital is required to be created
under Irish law to preserve permanent capital in the Parent Company.

On June 20, 2013 the Company detailed plans to return up to €1.0 billion to shareholders over the following two
years. At March 31, 2014, the Company bought back 69.5 million ordinary shares at a total cost of €481.7 million. This
was equivalent to approximately 4.8% of the Company’s issued share capital at March 31, 2014. All ordinary shares
repurchased were cancelled. Accordingly share capital decreased by 69.5 million ordinary shares with a nominal value of
€0.4 million and other undenominated capital increased by a corresponding €0.4 million. In February 2015 the Company
paid a special dividend of €520 million to shareholders.

26.

Post-balance sheet events

Following the June 23, 2016 Referendum vote by the U.K. to leave the EU, the Company announced that it had
increased the size of its buy-back program to the 5% buy-back limit approved by the shareholders at the Company’s 2015
Annual General Meeting (approximately €886 million).

From April 1, 2016 to July 1, 2016 the Company bought back 36.0 million shares at a total cost of approximately

€467.5 million under its €886 million share buy-back program. All ordinary shares repurchased were cancelled.

196

On July 1, 2016 the Board confirmed that it will hold an EGM on July 27, 2016 to seek approval from shareholders
to grant the Board of the Company the discretion to engage in further share buy-backs, should they decide that it is in the
best interest of the shareholders, over the next 15 months. While there is no plan to engage in further planned buy-backs
(i.e. a VWAP program) during the remainder of 2016, the Board is seeking the flexibility and discretion to do so, if there
is further market volatility such as that witnessed in the aftermath of the U.K. Referendum vote.

27.

Subsidiary undertakings and related party transactions

The following is the principal subsidiary undertaking of Ryanair Holdings plc:

Name

Effective date of
acquisition/incorporation

Registered
Office

Nature of
Business

Ryanair Limited (a)

23/08/1996 (acquisition) Airside Business Park,

Airline operator

Swords, Co. Dublin,
Ireland

(a) Ryanair Limited is wholly owned by Ryanair Holdings plc.

Information regarding all other subsidiaries will be filed with the Company’s next Irish Annual Return as provided

for by Section 316(1) of the Irish Companies Act, 2014.

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, 2016, 2015 and 2014.

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 €10.3 million in the fiscal year ended March 31, 2016 (2015: €9.0 million;
2014: €7.9 million), the majority of which comprises short-term employee benefits.

Year ended Year ended Year ended
March 31, March 31, March 31,
2015
€M

2014
€M

2016
€M

Basic salary and bonus
Pension contributions
Share-based compensation expense

28.

Date of approval

7.0
0.2
3.1
10.3

7.2
0.2
1.6
9.0

6.8
0.1
1.0
7.9

The consolidated financial statements were approved by the Board of Directors of the Company on July 22, 2016.

197

Non-current assets

Investments in subsidiaries

Current assets
Loans and receivables from subsidiaries
Cash and cash equivalents

Total assets

Current liabilities
Amounts due to subsidiaries

Shareholders’ equity
Issued share capital
Share premium account
Other undenominated capital reserve
Retained earnings
Other reserves

Shareholders’ equity

Company Balance Sheet

2016
€M

At March 31,
2015
€M

2014
€M

Note

111.7

105.8

105.3

1,189.5
5.8

1,095.9
2.9

1,214.1
2.6

1,307.0

1,204.6

1,322.0

35.2

7.7
719.4
2.3
540.5
1.9

8.7
718.6
1.3
440.4
0.4

8.8
704.2
1.2
563.6
9.0

1,271.8

1,169.4

1,286.8

Total liabilities and shareholders’ equity

1,307.0

1,204.6

1,322.0

The accompanying notes are an integral part of the financial information.

On behalf of the Board

M. O’Leary
Director
July 22, 2016

D. Bonderman
Director

198

Company Statement of Cash Flows

Year ended March 31, Year ended March 31, Year ended March 31,
2015
€M

2014
€M

2016
€M

Operating activities
Profit for the year
Net cash provided by operating activities

Investing activities
(Increase)/decrease in loans to subsidiaries
Net cash (used in)/from investing activities

Financing activities
Shares purchased under share buy-back programme
Dividend paid
Net proceeds from shares issued
Net cash (used in) financing activities

Increase in cash and cash equivalents
Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

1,199.7
1,199.7

(93.6)
(93.6)

(706.1)
(397.9)
0.8
(1,103.2)

2.9

5.8

500
500

118.2
118.2

(112)
(520.3)
14.4
(617.9)

0.3

2.6

2.9

700
700

(234.3)
(234.3)

(481.7)
-
16.4
(465.3)

0.4
2.2

2.6

The accompanying notes are an integral part of the financial information.

199

Company Statement of Changes in Shareholders’ Equity

Balance at March 31, 2013
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
Repurchase of ordinary equity shares
Cancellation of repurchased ordinary
shares

Transfer of exercised and expired share
based awards

Balance at March 31, 2014
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
Repurchase of ordinary equity shares
Cancellation of repurchased ordinary
shares

Dividend paid
Transfer of exercised and expired share
based awards

Balance at March 31, 2015
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 capital reorganization
Share-based payments
Repurchase of ordinary equity shares
Cancellation of repurchased ordinary
shares

Cancellation of treasury shares
Dividend paid
Transfer of exercised and expired share
based awards

Balance at March 31, 2016

Share Premium Retained

Issued

Ordinary Share
Shares
M

Capital
€M
9.2

1,447.1

-
-

5.7
-
-

-
-

-
-
-

Account
€M
687.8

-
-

16.4
-
-

Other
Undenom-
inated
Earnings Capital

Other
Reserves Total

€M
338.3

€M

0.8

€M
14.1 1,050.2

€M

700.0
700.0

-
-
(481.7)

-
-

-
-
-

-
-

700.0
700.0

-
1.9
-

16.4
1.9
(481.7)

(69.5)

(0.4)

0.4

-
1,383.3

-
8.8

-
704.2

-
-

5.0
-
-

-
-

-
-
-

-
-

14.4
-
-

7.0
563.6

500.0
500.0

-
-
(108.8)

-
1.2

-
(7.0)
9.0 1,286.8

-
-

-
-
-

-
-

500.0
500.0

-
0.5
(3.2)

14.4
0.5
(112.0)

(10.6)
-

(0.1)
-

-
-

-
(520.3)

0.1
-

-
-

-
(520.3)

-
1,377.7

-
8.7

-
718.6

5.9
440.4

-
1.3

(5.9)
-
0.4 1,169.4

-
-

0.3
(33.8)
-
-

-
(0.7)
-
-

(53.6)
(0.3)
-

(0.3)
-
-

-
-

0.8
-
-
-

-
-
-

1,199.7
1.199.7

-
-

- 1,199.7
- 1,199.7

-
-
-
(698.8)

-
(3.2)
(397.9)

-
0.7
-
-

0.3
-
-

-
-
5.9
(7.3)

0.8
-
5.9
(706.1)

-
3.2
-

-
-
(397.9)

-
1,290.3

-
7.7

-
719.4

0.3
540.5

-
2.3

(0.3)
-
1.9 1,271.8

The accompanying notes are an integral part of the financial information.

200

Notes forming part of the Company Financial Statements

29 Basis of preparation and significant accounting policies

The Company financial statements have been prepared in accordance with International Accounting Standards and
International Reporting Standards (collectively “IFRS”) as adopted by the European Union (EU), which are effective for
the year ended and as at March 31, 2016. In addition to complying with its legal obligation to comply with IFRS as
adopted by the EU, the consolidated financial statements comply with IFRS as issued by the International Accounting
Standards Board (“(IASB”). The consolidated financial statements have also been prepared in accordance with the
Companies Acts, 2014. On publishing parent entity financial statements together with group financial statements the
Company is taking advantage of the exemption contained in Section 304 of the Companies Act, 2014 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. In addition
to complying with its legal obligation to comply with IFRS as adopted by the EU, the Company financial statements
comply with IFRS as issued by the IASB. The Company financial statements have also been prepared in accordance with
the Companies Acts, 2014.

The directors have reviewed all new or revised IFRS standards and IFRIC interpretations, effective for future
financial years, as set forth in Note 1 to the consolidated financial statements, and have concluded their adoption will not
have a significant impact on the parent entity financial statements.

Share-based payments

The Company accounts for the fair value of share options granted to employees of a subsidiary as an increase in its
investment in that subsidiary. The fair value of such options is determined in a consistent manner to that set out in the
Group share-based payment accounting policy and as set out in Note 15 (c) to the consolidated financial statements.

Income taxes

Income taxes are accounted for by the Company in a manner consistent to that set out in the Group income tax

accounting policy.

Financial assets

The Company holds investments in subsidiary companies, which are carried at cost less any impairments.

201

Guarantees

The Company occasionally guarantees certain liabilities of subsidiary companies. These are considered to be
insurance arrangements and are accounted for as such i.e. a contingent liability until such time as it becomes probable
that the Company will be required to make a payment under the guarantee. Additional details are provided in Note 34 to
the company financial statements.

Loans and borrowings

All loans and borrowings are initially recorded at the fair value of consideration received, net of attributable
transaction costs. Subsequent to initial recognition, non-current interest bearing loans are measured at amortised cost,
using the effective interest yield methodology.

30 Investments in subsidiaries

Year ended Year ended Year ended
March 31,
March 31,
March 31,
2014
2015
2016
€M
€M
€M

Balance at start of year

105.8

105.3

103.4

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

5.9
-
111.7

0.5
-
105.8

1.9
-
105.3

31 Loans and receivables from subsidiaries

Year ended Year ended Year ended
March 31,
March 31,
March 31,
2014
€M

2016
€M

2015
€M

Due from Ryanair Limited (subsidiary)

1,189.3
1,189.3

1,095.9
1,095.9

1,214.1
1,214.1

All amounts due from subsidiaries are interest free and repayable upon demand.

32 Amounts due to subsidiaries

Year ended Year ended Year ended
March 31,
March 31,
March 31,
2014
€M

2015
€M

2016
€M

Due to Ryanair Limited

35.2
35.2

At March 31, 2016, Ryanair Holdings plc had borrowings of €35.2 million (2015: €35.2 million; 2014: €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.

202

The euro is the functional and presentation currency of the Company’s balance sheet and all transactions entered into

by the Company are euro denominated. As such, the Company does not have any significant foreign currency risk.

The credit risk associated with the Company’s financial assets principally relates to the credit risk of the Ryanair
group as a whole. Ryanair has received a BBB+ (stable) credit rating from both Standard and Poor’s and Fitch Ratings.
Additionally, the Company had guaranteed certain subsidiary company liabilities. Details of these arrangements are given
in Note 34 of the Company financial statements.

34 Contingencies

a) The Company has provided €5,274.6 million (2015: €7,663.0 million; 2014: €4,803.4 million) in letters of
guarantee to secure obligations of subsidiary undertakings in respect of loans, bank advances and long dated foreign
currency transactions.
b) In order to avail itself of the exemption contained in Section 357 of the Companies Act, 2014, 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 requirement to annex their statutory financial
statements to their annual returns. Details of the Group’s principal subsidiaries have been included at Note 27. The
Irish subsidiaries of the Group covered by the Section 17 exemption are listed at Note 27 to the consolidated financial
statements also. Eight additional Irish subsidiaries covered by this exemption, which are not listed as principal
subsidiaries at Note 27 to the consolidated financial statements, include 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 22, 2016.

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Directors

Directors and Other Information

D. Bonderman
M. Cawley
C. McCreevy
D. McKeon
K. McLaughlin
H. Millar
D. Milliken
M. O’Brien
M. O’Leary
J. O’Neill
J. Osborne
L. Phelan

Chairman

Chief Executive

Secretary

J. Komorek

Registered Office

Auditors

Principal Bankers

Solicitors &Attorneys at Law

Airside Business Park
Swords
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

Philip Lee Solicitors
7/8 Wilton Terrace
Dublin 2
Ireland

Cleary Gottlieb Steen & Hamilton
LLP
One Liberty Plaza
New York, NY 10006
United States

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APPENDIX A

GLOSSARY

Certain of the terms included in the section on Selected Operating and Other Data and elsewhere in this annual report

on Form 20-F have the meanings indicated below and refer only to Ryanair’s scheduled passenger service.

Average Booked Passenger Fare

Average Daily Flight Hour Utilization

Average Fuel Cost Per U.S. Gallon

Average Length of Passenger Haul

Ancillary Revenue per Booked Passenger

Baggage Commissions

Booked Passenger Load Factor

Break-even Load Factor

Cost Per Booked Passenger
Net Margin
Number of Airports Served

Number of Owned Aircraft Operated

Operating Margin
Part 145

Revenue Passengers Booked
Sectors Flown

Represents the average fare paid by a fare-paying passenger who has
booked a ticket.
Represents the average number of flight hours flown in service per day
per aircraft for the total fleet of operated aircraft.
Represents the average cost per U.S. gallon of jet fuel for the fleet
(including fueling charges) after giving effect to fuel hedging
arrangements.
Represents the average number of miles traveled by a fare-paying
passenger.
Represents the average revenue earned per booked passenger flown from
ancillary services.
Represents the commissions payable to airports on the revenue collected
at the airports for excess baggage and airport baggage fees.
Represents the total number of seats sold as a percentage of total seat
capacity on all sectors flown.
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.
Represents operating expenses divided by revenue passengers booked.
Represents profit after taxation as a percentage of total revenues.
Represents the number of airports to/from which the carrier offered
scheduled service at the end of the period.
Represents the number of aircraft owned and operated at the end of the
period.
Represents operating profit as a percentage of total revenues.
The European regulatory standard for aircraft maintenance established
by the European Aviation Safety Agency.
Represents the number of fare-paying passengers booked.
Represents the number of passenger flight sectors flown.

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