Ryanair 2010 Annual Report Download - page 168

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166
(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, 2010, 2009 and 2008. Such amounts have been translated using the following year-end
foreign currency rates in 2010: 1/£: 0.8898; 1/$: 1.3479 (2009: 1/£: 0.9308; 1/$: 1.3308, 2008: 1/£: 0.7958; 1/$
1.5812).
March 31, 2010 March 31, 2009 March 31, 2008
GBP U.S.$
euro
equiv. GBP U.S.$
euro
equiv. GBP U.S.$
euro
equiv.
£M $M 1M £M $M 1M £M $M 1M
Monetary assets
U.K. pounds
sterling cash and
liquid resources
.........
35.6 - 40.0 24.4 - 26.3 48.5 - 60.9
USD cash and
liquid resources
.........
-
12.4
9.2
-
13.9
10.4
-
7.1
4.5
35.6 12.4 49.2 24.4 13.9 36.7 48.5 7.1 65.4
All of the Company’s financial liabilities are denominated in euro.
The following table gives details of the notional amounts of the Company’s currency forward contracts
as at March 31, 2010, 2009 and 2008:
March 31, 2010 March 31, 2009 March 31, 2008
Currency forward contracts U.S.$
euro
equiv. U.S.$
euro
equiv. U.S.$
euro
equiv.
$M 1M $M 1M $M 1M
U.S. dollar currency forward
contracts
- for fuel purchases
......................
1,437.4 770.4 1,780.1 1,268.8 1,434.4 1,011.7
- for aircraft sales
.........................
- - (101.5) (75.8) (105.0) (70.9)
- for aircraft purchases
.................
1,123.8 1,021.8 1,464.0 985.0 1,771.5 1,208.1
2,561.2 1,792.2 3,142.6 2,178.0 3,100.9 2,148.9
March 31, 2010 March 31, 2009 March 31, 2008
Currency forward contracts Stg £
euro
equiv. Stg £
euro
equiv. Stg £
euro
equiv.
£M 1M £M 1M £M 1M
U.K pounds sterling currency
forward contracts
.........................
122.3 140.3 - - - -
122.3 140.3 - - - -
(e) Equity risk
The Company has exposure to equity price risk primarily in relation to its 29.8% investment in Aer
Lingus. The Company does not have significant influence over Aer Lingus and accordingly, this investment is
classified as an available-for-sale financial asset rather than an investment in an associate.