EasyJet 2013 Annual Report Download - page 11

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9
www.easyJet.com
Strategic report
What we
have achieved
Chief Executive’s review
FINANCIAL PERFORMANCE
easyJet delivered record profit before tax
of £478 million up by £161 million from 2012
with a profit before tax margin of 11.2%.
Profit before tax per seat rose by £2.22 year
on year to £7.03.
Return on capital employed(1) grew by 6.1 percentage
points to 17.4% and total shareholder return grew
by 143.8%. easyJet generated operating cash of
£616 million in the year. In light of the continued
strong financial performance, cash generation
and the robustness of the easyJet balance sheet,
the Board has decided, in addition to the regular
ordinary dividend of 33.5 pence per share, to
recommend a special dividend of 44.1 pence per
share, equivalent to £175 million.
The strong performance in the year was driven by:
• a benign capacity environment in many
key markets;
• strong revenue performance across the UK,
Switzerland, Germany, France, Italy and Portugal;
• the successful introduction of allocated
seating across the easyJet network which
drove incremental revenue without impacting
on-time performance or unit costs;
• returns focused changes to the easyJet
network including the reallocation of the eight
Madrid based aircraft to bases and routes with
the potential to drive higher returns including
Edinburgh, Manchester, London Gatwick,
Geneva, Lisbon and Lyon;
• routes and bases introduced in previous financial
years maturing and driving up overall returns; and
• a focus on maintaining easyJet’s cost advantage
driven by both the easyJet lean programme and
the scale advantages from increasing the
proportion of the larger A320 aircraft in the fleet.
Carolyn
McCall OBE
Chief Executive
(1) Unless otherwise stated Return on Capital Employed (ROCE) shown is adjusted for leases with
leases capitalised at seven times.
£478m
profit before tax
(2012: £317m)
17.4%
ROCE
(2012: 11.3%)
33.5
pence per share
proposed ordinary dividend
(2012: 21.5 pence per share)
44.1
pence per share
proposed special dividend
(2012: nil)