Ryanair 2004 Annual Report Download - page 42

14 SHARE CAPITAL AND SHARE PREMIUM ACCOUNT (continued)
Share options and share purchase arrangements
On May 21, 1997 the company granted seven senior managers options over ordinary shares with an equivalent value of IR£200,000
(253,948) each at the Initial Public Offering (the “IPO”) strike price of IR£1.95 (2.48) less a discount of 10% resulting in the issue
of 717,948 options (equivalent to 2,871,792 after stock splits in both December, 2001 and February, 2000). At March 31, 2004, the
equivalent of 2,861,716 of these options have been exercised. Thebalance of these optionshave been exercisedsince the yearend.
In addition, the group adopted a stock option plan (the “stock option plan”) following shareholders’ approval in 1998. Under the
stock option plan, current or future employees or executive directors of the company may be granted options to purchase an
aggregate of up to approximately 5% (when aggregated with other ordinary shares over which options are granted which have not
been exercised) of the outstanding ordinary shares of Ryanair at an exercise price equal to the market price of the ordinary shares
at the time options are granted. Options were granted each year between 1998 and 2003 . The terms of the stock option plan, and
the number of ordinary shares subject to options granted under the stock option plan, may be changed from time to time. During
2003 the company implemented a new staff share option scheme which has been approved by the revenue authorities in the UK and
Ireland. There were 2,280,177 options granted under the scheme, which under the plan rules will become exercisable in fiscal 2009.
At March 31, 2004, 24,206,538 options inaggregate had been issued under these plans. Under plan rules 10,799,401options issued
under the 1998 plan became exercisable in June 2003. The options outstanding under the various stock option plans are set out
below:
2004 2003
SHARE WEIGHTED AVG SHARE WEIGHTED AVG
SHARE OPTIONS OPTIONS EXERCISE PRICE OPTIONS EXERCISEPRICE
Outstanding at start of year 26,453,855 3.62 20,936,631 3.09
Exercised (4,140,424) 1.68 (100,000) 0.56
Granted 2,280,177 5.71 5,763,407 5.65
Expired (387,070) 5.00 (146,183) 5.00
Outstanding at end of year 24,206,538 4.13 26,453,855 3.62
The mid market price of Ryanair Holdings plc ordinary shares on the Irish Stock Exchange at March 31, 2004 was 4.58. The highest
and lowest prices at which the group’s shares traded on the Irish Stock Exchange in the year ended March 31, 2004 were 7.59 and
4.27 respectively.
15 FINANCIAL INSTRUMENTS
Ryanair utilises financial instruments to reduce exposure to market risks resulting from fluctuations in foreign exchange rates,
interest rates and aircraft fuel prices. The group does not enter into these instruments for speculative purposes.
Derivative financial instruments are contractual agreements with a value which reflects price movements in an underlying asset.
Ryanair uses derivative financial instruments, where appropriate, to generate the desired effective profile of currency, interest and
aircraft fuel price risk. Notes 16 to 18, below, give details as to the group’s financial instruments held, in accordance with the
requirements of Financial Reporting Standard No. 13 “Derivatives and Other Financial Instruments: Disclosures” (the “Standard”).
As permitted by this Standard,short term debtors and creditors have been excluded from all numerical disclosures shown in notes
16 to 18.
For further details of the group’s strategy with regard to the use of derivatives please refer to page 13 which should be read in
conjunction with these notes.
(Continued)
Notes
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