EasyJet 2012 Annual Report Download

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Annual report and accounts 2012

Table of contents

  • Page 1
    Annual report and accounts 2012

  • Page 2
    ...Management Team Corporate governance Shareholder information Directors' remuneration report Statement of Directors' responsibilities s 39 40 42 44 49 50 62 BUSINESS REVIEW CORPORATE RESPONSIBILITY s 08 09 12 13 16 Accounts & other informa tion s 32 32 33 36 37 07 Strategic framework Performance...

  • Page 3
    Overview easyJet at a glance Key performance indicators Chairman's Introduction 02 04 06

  • Page 4
    ...2011 2012 2008 2009 2010 2011 2012 Our network is truly pan-European We have increased the number of routes offered to our passengers and focused this growth across continental Europe. Number of routes by country 340 151 130 125 97 55 40 144 64 United Kingdom France Italy Spain...

  • Page 5
    easyJet plc Annual report and accounts 2012 03 Overview Our presence across Europe 23 Bases 214 Aircraft 605* Routes UK Number of routes London Gatwick Bristol London Luton Edinburgh Manchester London Stansted Liverpool Belfast Glasgow London Southend Newcastle Others 98 44 38 30 29 26 26 23 ...

  • Page 6
    ... and bases to build on our leading presence across Europe. 08-17 Airports where we are No.1 or No.2 airline 16 18 19 19 21 Market share of airports % 46 38 37 13 11 See Business review for more information 2008 2009 2010 2011 2012 London Gatwick Geneva Milan Malpensa Lisbon Paris CDG

  • Page 7
    ... for more information 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 * 2010: Satisfaction was 35%, engagement was 23% Financially strong We are committed to improving shareholder returns whilst remaining prudently financed with a strong, liquid balance sheet. 19-30 Revenue per seat £ 45.51...

  • Page 8
    ... the base in Madrid is being closed. The Company has redeployed the capacity released to more profitable opportunities in France, Switzerland, UK and Italy where the potential for shareholder value is improved. To ensure easyJet remains competitive on cost and aircraft performance the team are...

  • Page 9
    Business review Strategic framework Performance during the year Market overview Strategic progress Looking forward 08 09 12 13 16

  • Page 10
    ... Annual report and accounts 2012 Business review Strategic framework AMBITION Europe's preferred short-haul airline, delivering market leading returns CAUSE To make travel easy and affordable STRATEGIC INTENT Leverage easyJet's cost advantage, leading market positions and brand to deliver point...

  • Page 11
    ... Executive A Total revenue per seat grew by 5.9% (7.5% at constant currency) to £58.51, driven by improved load factors; the annualisation of changes to fees and charges made in 2011; the careful targeting of capacity to markets with the strongest returns potential; improvements to easyJet.com...

  • Page 12
    ... line with market practice. Robust operations easyJet's strong operational and cost performance is built around ensuring aircraft depart and arrive on time. This both minimises the costs of disruption, and improves customer satisfaction and repeat purchase, which in turn increases revenue. easyJet...

  • Page 13
    ... 43% market share(4). The capacity increase has enabled easyJet to launch 7 new routes and add frequencies on core routes such as Berlin, Barcelona and London. easyJet now operates 19 aircraft out of its Swiss bases. Business review France easyJet grew capacity in France by 8.2% in the year and is...

  • Page 14
    12 easyJet plc Annual report and accounts 2012 Business review Chief Executive's introduction continued Market overview Competitive landscape There are 3,000 short-haul aircraft in operation in Europe and around half of overall capacity is ï¬,own by the top five carriers: Ryanair, IAG, Lufthansa...

  • Page 15
    ...per annum and tangible returns to shareholders of an annual ordinary dividend of three times cover. (4) Market share data from OAG. Size of European market based on internal easyJet definition. Historic data based on the 12 month period from October 2011 to end September 2012. Forward looking data...

  • Page 16
    ... fares. easyJet has the number 1 or 2 market share position in 21 valuable slot constrained airports such as London Gatwick, Paris Orly, Milan Malpensa, Amsterdam and Geneva. easyJet has built up key positions in slot constrained airports over a number of years which provide the Company with...

  • Page 17
    ...media. easyJet has continued to focus on attracting business travellers to improve unit revenues. Key to success in this market is to establish effective partnerships with Global Distribution System (GDS) providers, travel management companies (TMCs) and large scale corporate customers. The emphasis...

  • Page 18
    ...globally(11) with close to 400 million visits to easyJet.com over the last 12 months. 60% of visitors originate from outside the UK. easyJet.com's new content management system was introduced to improve operational efficiency, increase agility, and target specific users with relevant route pricing...

  • Page 19
    ... total revenue per seat at constant currency is expected to be up by low to mid-single digits; as is usual at this time of the year, it is too early to have any visibility on second half revenue per seat performance. easyJet expects cost per seat (excluding fuel and currency movements) to increase...

  • Page 20
    Performance and risk Key performance indicators Exchange rates Financial performance Cash ï¬,ows and financial position Going concern Significant contracts and creditor policy Principal risks and uncertainties 19 21 21 23 25 25 26

  • Page 21
    ... closely correlated and both old and new measures indicate returns in excess of cost of capital. ROCE including operating leases adjustment for the year was 11.3%, an increase of 1.5 percentage points from the previous year. Return on equity improved by 0.6 percentage points to 14.6%. This increase...

  • Page 22
    ... was driven by improved ticket prices, with the balance mainly from the annualising of changes to fees and charges introduced last year. Excluding fuel, cost per seat fell by 1.0% to £36.25, however it grew by 1.8% at constant currency. easyJet experienced aboveinï¬,ation increases in charges at...

  • Page 23
    ... deployed in bases outside the UK. While this resulted in increased cash ï¬,ows denominated in euros, the weakness of the euro against the pound meant that the overall currency profile of the business was little changed year-on-year: Revenue 2012 2011 2012 Costs 2011 Revenue per seat improved by...

  • Page 24
    ... by significant increase at airports operated in Spain by AENA and a doubling of charges for on-ground navigation services in Italy. The further increases in AENA charges were a factor in our decision to withdraw the six aircraft based in Madrid from December 2012. Crew cost per seat increased by...

  • Page 25
    ... cash 2012 £ million 2011 £ million Change £ million In line with prior years, easyJet generated strong operating cash ï¬,ow in the year principally driven by growth in forward bookings and revenue per seat. Operating cash ï¬,ow exceeded capital expenditure and the ordinary dividend paid in line...

  • Page 26
    24 easyJet plc Annual report and accounts 2012 Performance and risk Financial review continued Operational measures 2012 2011 Change Seats ï¬,own (millions) Passengers (millions) Load factor Available seat kilometres (ASK) (millions) Revenue passenger kilometres (RPK) (millions) Average sector ...

  • Page 27
    ... of system development; AD OPT Technologies who provide our pairings and roster optimiser; and Unit 4 who provide our accounting system, Agresso. As at 30 September 2012 easyJet had 23 bases and they were operated by: BAA AdP Manchester Airports Group Abertis Aeroports de Lyon Global Infrastructure...

  • Page 28
    ... customers and people. We operate a strong safety management system through: A Fatigue Risk Management System. A Incident reporting. A Safety Review Board. A Safety Action Group. A Management and control system for our operations SAFETY FIRST including weekly operations meetings and reporting...

  • Page 29
    ... demand for secondhand aircraft. IT system failure easyJet is currently dependent on a number of key IT systems and processes operated at London Luton airport and other key facilities. A loss of systems and access to facilities including the website, could lead to significant disruption and have an...

  • Page 30
    28 easyJet plc Annual report and accounts 2012 Performance and risk Financial review continued Strategic impact Risk description and potential impact Current mitigation EFFICIENT ASSET UTILISATION Asset allocation easyJet has a leading presence on the top 100 routes in Europe and positions at ...

  • Page 31
    easyJet plc Annual report and accounts 2012 29 Strategic impact Risk description and potential impact Current mitigation Major shareholder / investor relationship issues easyJet has a major shareholder (easyGroup Holdings Limited) controlling over 25% of ordinary shares. Shareholder activism ...

  • Page 32
    30 easyJet plc Annual report and accounts 2012 Performance and risk Financial review continued Strategic impact Risk description and potential impact Current mitigation EXTERNAL RISKS Competition and industry consolidation easyJet operates in competitive marketplaces against both ï¬,ag ...

  • Page 33
    Corporate responsibility Introduction Safety first Our people easyJet and the environment easyJet actions 32 32 33 36 37

  • Page 34
    ... safety report to the Board each month. Captain David Prior has a direct line through to the Chairman which reinforces the independence of safety oversight. Safety innovators easyJet has continued to work closely with UK, EU and European governments and authorities to ensure a coordinated response...

  • Page 35
    ... 2012, easyJet employed 8,446 people (2011: 8,288) based across Europe as illustrated below: United Kingdom Switzerland France Spain Italy Germany Netherlands Portugal Total 5,132 698 840 583 822 294 1 76 8,446 People strategy This year we have reviewed our people strategy and have set ourselves...

  • Page 36
    ...our new European Graduate programme. This got off to a ï¬,ying start with easyJet being listed as 35th Best Company to work for in The Job Crowd publication of "Top Companies for Graduates to work for 2012/13" . This report is based on reviews and feedback from graduate employees. easyJet rated 4.18...

  • Page 37
    ...into different markets and help us anticipate and provide what our customers want from us. Senior management team % Corporate responsibility Female Male 26 74 New easyJet European Charity Committee set-up This past year a dedicated European Charity Committee was set up to oversee the partnership...

  • Page 38
    36 easyJet plc Annual report and accounts 2012 Corporate responsibility continued Political donations easyJet does not make donations to any political party. This in not in line with our values and would be deemed as inappropriate. Aviation and the environment Aviation has three main ...

  • Page 39
    ...years before there is a new short-haul aircraft. easyJet will continue to push the manufacturers to develop a next-generation short-haul aircraft. It is also vital that the policy framework set out by governments supports the objective of increasing the environmental efficiency of aviation. easyJet...

  • Page 40
    Governance Chairman's statement on corporate governance Board of Directors Executive Management Team Corporate governance Shareholder information Directors' remuneration report Statement of Directors' responsibilities 39 40 42 44 49 50 62

  • Page 41
    ... been put into the sharing of that strategic vision and other relevant information with our shareholders: easyJet continues to run an active investor relations programme and in the past year has hosted a number of well attended events including a capital markets day and a number of site visits aimed...

  • Page 42
    ... record of delivering operational improvement and has deep knowledge and invaluable experience of working in senior financial and commercial positions within high profile, international, fast changing consumer facing businesses. Adèle Anderson Independent Non Executive Director (1965) David...

  • Page 43
    ... Inc. Prior to joining Apple in 2012, John was Chief Executive Officer of Dixons Retail plc for four years and also held a number of Executive Director positions at Tesco plc, including Operations Development Director, Group Strategy Director and running Tesco.com from 2000 to 2004 where he was...

  • Page 44
    ... Director responsible for Fleet management, airport, central procurement and regulation. In October 2010 he was appointed Director of Group Operations. He has extensive airline and broad business experience at senior level and within the Aviation sector has lead and managed high growth low cost...

  • Page 45
    ... roles at easyJet including Head of Ground Operations, Head of Airport Development and Procurement and Head of Network Development. In April 2011, she was appointed as Customer and Revenue Director, and to Group Commercial Director in April 2012. Before joining easyJet, Cath spent 12 years in retail...

  • Page 46
    ...the governance section of easyJet's corporate website, http://corporate.easyJet.com. Day-to-day management responsibility rests with the Executive Management Team ("EMT"), which comprises ten Executives (including the Executive Directors of the main operating company, easyJet Airline Company Limited...

  • Page 47
    ... Committee is to assist the Board in fulfilling its oversight responsibilities by reviewing the financial reports and other financial information in advance of publication, reviewing on a continuing basis the systems of internal controls regarding finance and accounting that management and the Board...

  • Page 48
    ... of easyJet's corporate website, http://corporate.easyJet.com. The key terms set out that the Audit Committee will: â†' Serve as an independent and objective party to monitor the quality and timeliness of the financial reporting process and monitor the internal financial control system â†' Review...

  • Page 49
    ... rests with the Directors of the Company. The responsibility for establishing and operating detailed control procedures lies with the Chief Executive. However, the internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and by their...

  • Page 50
    ... Internal Audit reviews at the Executive Management Team meetings during the course of the year. Internal Audit's key objectives are to provide independent and objective assurance on risks and controls to the Board and senior management and to assist the Board in meeting its corporate governance and...

  • Page 51
    easyJet plc Annual report and accounts 2012 49 Shareholder information Share capital Details of the movements in authorised and issued share capital during the year are provided in note 17 to the accounts. The rights and obligations attaching to the Company's ordinary shares are set out in the ...

  • Page 52
    ...as a whole. The key objective of the review process was to ensure that remuneration arrangements support the successful delivery of the strategy of the Company. We also compared our arrangements against a 'best practice' point of view and took on board shareholder comments. As a result we are making...

  • Page 53
    ... in line with the recommendations of the UK Corporate Governance Code 2010 and UKLA Listing Rules. What does the Committee consider when setting remuneration? When setting the policy for Executive Directors' remuneration, the Committee takes into account the pay and employment conditions elsewhere...

  • Page 54
    ... easyJet plc Annual report and accounts 2012 Governance Directors' remuneration report continued How was pay linked to performance in 2012? Annual bonus For 2012, the annual bonus was based on the following performance targets: Measure As a percentage of maximum bonus opportunity CEO CFO Company...

  • Page 55
    ... calibre to execute our business strategy Annual review with any change effective from 1 October Set by reference to companies of a similar size and complexity targeted at or around median Scope of the role and responsibilities, performance, experience and potential retention issues are also...

  • Page 56
    54 easyJet plc Annual report and accounts 2012 Governance Directors' remuneration report continued Element Purpose and link to strategy Operation for 2013 Performance metrics Changes effective for 2012 / 13 financial year and associated rationale Matching share awards To incentivise and ...

  • Page 57
    easyJet plc Annual report and accounts 2012 55 How much could the Executive Directors earn under the current remuneration guidelines? As mentioned earlier in this report, a significant proportion of remuneration is linked to performance, particularly at maximum performance levels. Neither ...

  • Page 58
    ... will provide a balance between incentivising improved financial performance and creating market-leading returns for shareholders. ROCE (including operating leases adjustment) targets ROCE targets for 2013 grants have been reviewed against the Company's three year business plan. Following extensive...

  • Page 59
    ... is determined by the Committee in advance of the award by reference to the share price following announcement of results. Note 2: For LTIP awards made in March 2011, vesting is based on ROCE (excluding operating leases adjustment) performance for the year to 30 September 2013, according to the...

  • Page 60
    ... the issue of new shares. What are the Directors' interests? The following current Directors hold direct interests in the share capital of easyJet: Number 30 September* 30 September 2012 2011 What are the Executive Directors' terms of employment and external appointments? Executive Directors Name...

  • Page 61
    easyJet plc Annual report and accounts 2012 59 What are the terms of appointment of the Non Executive Directors? Non Executive Directors Details of the service contracts and letters of appointment currently in place for Directors who served during the year are as follows: Date of current service ...

  • Page 62
    ... Annual report and accounts 2012 Governance Directors' remuneration report continued Directors' emoluments (audited) Details of emoluments paid or payable by easyJet to the Directors of easyJet plc who served in the financial year ended 30 September 2012 are as follows: Pension contributions Fees...

  • Page 63
    easyJet plc Annual report and accounts 2012 61 Total shareholder return performance The chart below sets out the performance of the Company relative to the FTSE 250 and a group of European airlines. The FTSE 250 has been chosen as we are a member of that Index. Total shareholder return £ 140 120 ...

  • Page 64
    62 easyJet plc Annual report and accounts 2012 Governance Statement of Directors' responsibilities The Directors are responsible for preparing the Annual Report, the Report on Directors' remuneration and the accounts in accordance with applicable law and regulations. Company law requires the ...

  • Page 65
    ... & other information Independent auditors' report Consolidated income statement Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash ï¬,ows Notes to the accounts Company statement of...

  • Page 66
    ... of the Corporate Governance Statement relating to the Company's compliance with the nine provisions of the UK Corporate Governance Code specified for our review; and â†' certain elements of the report to shareholders by the Board on Directors' remuneration. Scope of the audit of the accounts An...

  • Page 67
    ...Annual report and accounts 2012 65 Consolidated income statement Year ended Year ended 30 September 30 September 2012 2011 Notes £ million £ million Seat revenue Non-seat revenue Total revenue Fuel Ground operations Crew Navigation Maintenance Selling and marketing Other costs EBITDAR Aircraft...

  • Page 68
    66 easyJet plc Annual report and accounts 2012 Accounts & other information Consolidated statement of comprehensive income Year ended Year ended 30 September 30 September 2012 2011 Notes £ million £ million Profit for the year Other comprehensive income Cash flow hedges Fair value gains in the...

  • Page 69
    easyJet plc Annual report and accounts 2012 67 Consolidated statement of financial position 30 September 30 September 2012 2011 £ million £ million Notes Non-current assets Goodwill Other intangible assets Property, plant and equipment Derivative financial instruments Loan notes Restricted ...

  • Page 70
    68 easyJet plc Annual report and accounts 2012 Accounts & other information Consolidated statement of changes in equity Share capital £ million Share premium £ million Hedging reserve £ million Translation reserve £ million Retained earnings £ million Total £ million At 1 October 2011...

  • Page 71
    easyJet plc Annual report and accounts 2012 69 Consolidated statement of cash flows Year ended Year ended 30 September 30 September 2012 2011 Notes £ million £ million Cash flows from operating activities Cash generated from operations (excluding dividends) Ordinary dividends paid Special ...

  • Page 72
    ... strategic plans, fuel prices, exchange rates, long-term economic growth rates for the principal countries in which it operates and its pre-tax weighted average cost of capital. Aircraft maintenance provisions (note 16) easyJet incurs liabilities for maintenance costs in respect of aircraft leased...

  • Page 73
    ... The consolidated accounts incorporate those of easyJet plc and its subsidiaries for the years ended 30 September 2011 and 2012. A subsidiary is an entity controlled by easyJet. Control exists when easyJet has the power, directly or indirectly, to govern the financial and operating policies of...

  • Page 74
    ...off the cost, less estimated residual value of assets, on a straight-line basis over their expected useful lives. Expected useful lives are reviewed annually. Expected useful life Aircraft Aircraft spares Aircraft improvements Aircraft - prepaid maintenance Leasehold improvements Fixtures, fittings...

  • Page 75
    ... are measured at fair value. Derivative financial instruments designated as cash flow hedges are used to mitigate operating and investing transaction exposures to movements in jet fuel prices and currency exchange rates. Hedge accounting is applied to these instruments. Changes in intrinsic fair...

  • Page 76
    ... the year in which they are incurred. The expected cost of compensated holidays is recognised at the time that the related employees' services are provided. Share capital and dividend distribution Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new...

  • Page 77
    ... market through employee share trusts. The cost of such purchases is deducted from retained earnings in the period that the transaction occurs. Segmental disclosures easyJet has one operating segment, being its route network, based on management information provided to the Executive Management Team...

  • Page 78
    76 easyJet plc Annual report and accounts 2012 Accounts & other information Notes to the accounts continued 1 Accounting policies continued New standard and interpretations not applied The following standards and interpretations issued by the International Accounting Standards Board have not been...

  • Page 79
    ...Short-term employee benefits Share-based payments 7 4 11 6 2 8 Accounts & other information The Directors of easyJet plc and the other members of the Executive Management Team are easyJet's key management as they have collective authority and responsibility for planning, directing and controlling...

  • Page 80
    78 easyJet plc Annual report and accounts 2012 Accounts & other information Notes to the accounts continued 5 Tax charge Tax on profit on ordinary activities 2012 £ million 2011 £ million Current tax United Kingdom corporation tax Foreign tax Prior year adjustments Total current tax charge / (...

  • Page 81
    ...shareholders' equity Current tax credit on share-based payments Deferred tax credit / (charge) on share-based payments 1 2 3 - (1) (1) (7) 9 Deferred tax The net deferred tax liability in the statement of financial position is as follows: Accelerated Short-term capital timing allowances differences...

  • Page 82
    80 easyJet plc Annual report and accounts 2012 Accounts & other information Notes to the accounts continued 6 Earnings per share Basic earnings per share has been calculated by dividing the profit for the year by the weighted average number of shares in issue during the year after adjusting for ...

  • Page 83
    ... cost of capital) Fuel price (US dollars per metric tonne) Exchange rates: US dollar Euro Swiss franc Both fuel price and exchange rates are volatile in nature, and the assumptions used represent management's view of reasonable average rates. Operating margins are sensitive to significant changes...

  • Page 84
    ... book value of £154 million (2011: £159 million) are held under finance leases. easyJet is contractually committed to the acquisition of 18 (2011: 37) Airbus A320 family aircraft, with a total list price of US$1.0 billion (2011: US$1.9 billion) before escalations and discounts for delivery in the...

  • Page 85
    ... provide collateral should an aircraft be returned in a condition that does not meet the requirements of the lease and is refunded when qualifying heavy maintenance is performed, or is offset against the costs incurred at the end of the lease. Allowance for credit losses Movements in the provision...

  • Page 86
    ...repriced within 185 days based on prevailing market rates of interest. Carrying value is not significantly different from fair value. Restricted cash comprises: 2012 £ million 2011 £ million Pledged as collateral to third parties: Payment card acquiring Aircraft operating lease deposits Other 130...

  • Page 87
    ... fair value of aircraft that have been sold and leased back under operating leases. This balance will be realised in the income statement over the next eight years. 16 Maintenance provisions £ million At 1 October 2011 Exchange adjustments Charged to income statement Utilised At 30 September 2012...

  • Page 88
    ... change in the total value of the Company's issued share capital. The weighted average share price for options exercised during the year was £4.57 (2011: £4.31) easyJet's employee share trusts hold the following shares. The cost of these has been deducted from retained earnings: 2012 2011 Number...

  • Page 89
    ...or return on capital employed targets being achieved. Sharesave Sharesave is open to all employees on the UK payroll. Participants may elect to save up to £250 per month under a three year savings contract. An option is granted by the Company to buy shares at a discount of 20% from market price at...

  • Page 90
    ... easyJet plc Annual report and accounts 2012 Accounts & other information Notes to the accounts continued 18 Share incentive schemes continued The fair value of grants under the discretionary and sharesave is estimated by applying the Binomial Lattice option pricing model using the following key...

  • Page 91
    ... Annual report and accounts 2012 89 19 Reconciliation of operating profit to cash generated from operations 2012 £ million 2011 £ million Operating profit Adjustments for non-cash items: Depreciation Loss on disposal of property, plant and equipment Amortisation of intangible assets Share-based...

  • Page 92
    ... instruments to line items presented in the statement of financial position. Fair value calculation methodology Derivative financial instruments are forward contracts that are valued based on market rates and market-accepted models. Fair value for financial instruments held at amortised cost has...

  • Page 93
    ... affects the income statement. easyJet uses forward contracts to hedge US dollar transaction currency risk (comprising fuel, leasing and maintenance payments), jet fuel price risk and euro and Swiss franc revenues. Where these hedges are assessed as highly effective, gains and losses are deferred in...

  • Page 94
    ... Other costs Aircraft lease costs 21 51 1 1 74 9 142 1 - 152 Derivatives designated as held for trading easyJet has material net monetary liabilities denominated in US dollars at each balance sheet date. In accordance with IAS 21, monetary assets and liabilities are revalued using exchange rates at...

  • Page 95
    ... the statement of financial position. As the accounting position is now not expected to change before easyJet's 2016 financial year at the earliest, it has been decided to amend the ROCE calculation to reflect appropriately the impact on return on capital of aircraft held under operating leases. The...

  • Page 96
    94 easyJet plc Annual report and accounts 2012 Accounts & other information Notes to the accounts continued 22 Financial risk and capital management continued The percentage of operating leased aircrafts at 30 September 2012 was 26% (2011: 30%). Board policy is to hold around 30% of the fleet ...

  • Page 97
    ...month period. The currency sensitivity analysis is based on easyJet's foreign currency financial instruments held at each balance sheet date taking into account forward exchange contracts that offset effects from changes in currency exchange rates. The increased sensitivity in the US dollar and euro...

  • Page 98
    ...2 3 6 easyJet holds 55 aircraft (2011: 64 aircraft) under operating leases, with initial lease terms ranging from seven to ten years. easyJet is contractually obliged to carry out maintenance on these aircraft, and the cost of this is provided based on the number of flying hours and cycles operated...

  • Page 99
    ... and holds 26.07% of the issued share capital of the Company. Under the Amended Brand Licence signed in October 2010, an annual royalty of 0.25% of total revenue (fixed at £3.95 million for the year ended 30 September 2011 and £4.95 million for the year ended 30 September 2012) is payable for...

  • Page 100
    98 easyJet plc Annual report and accounts 2012 Accounts & other information Company statement of financial position 30 September 30 September 2012 2011 £ million £ million Notes Non-current assets Investments in subsidiary undertakings Current assets Amounts due from subsidiary undertakings ...

  • Page 101
    easyJet plc Annual report and accounts 2012 99 Company statement of changes in equity Share capital £ million Share premium £ million Retained earnings £ million Total £ million At 1 October 2011 Total comprehensive income Profit for the year Dividends paid Share incentive schemes ...

  • Page 102
    100 easyJet plc Annual report and accounts 2012 Accounts & other information Company statement of cash flows Year ended Year ended 30 September 30 September 2012 2011 Notes £ million £ million Cash flows from operating activities Cash generated from / (used by) operations Interest received ...

  • Page 103
    ... by easyJet Airline Company Limited. The Executive Directors of easyJet plc are employed and paid by easyJet Airline Company Limited. Details of directors' remuneration are disclosed in the Report on Directors' remuneration and in note 4 to the consolidated accounts. b) Investments in subsidiary...

  • Page 104
    ... easyJet plc Annual report and accounts 2012 Accounts & other information Notes to the Company accounts continued c) Reconciliation of operating profit to cash generated from operations 2012 £ million 2011 £ million Operating profit Adjustments for non-cash items: Unrealised foreign exchange...

  • Page 105
    ...2011 £ million 2010 £ million 2009 £ million 2008 £ million Income statement Revenue EBITDAR Operating profit (EBIT) Profit before tax Profit for the year Profit before tax (underlying) Earnings per share (basic) Earnings per share (diluted) Statement of financial position Non-current assets...

  • Page 106
    ...-way revenue flight. Operated aircraft utilisation Average number of block hours per day per aircraft operated. Other costs Administrative and operational costs not reported elsewhere, including some employee costs, compensation paid to passengers, exchange gains and losses and the profit or loss...

  • Page 107
    ... environmental improvement, and both are FSC® certified. If after reading, you no longer wish to retain this report, please pass it on to other interested readers or dispose of it in your recycled paper waste. This report is available at: http://corporate.easyjet.com/investors/reports-and-accounts...

  • Page 108
    www.easyJet.com Hangar 89 London Luton Airport Luton Bedfordshire LU2 9PF