Ryanair 2010 Annual Report Download - page 92

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LIQUIDITY AND CAPITAL RESOURCES
Liquidity. The Company finances its working capital requirements through a combination of cash
generated from operations 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”
for more information about risks relating to liquidity and capital resources. The Company had cash and liquid
resources at March 31, 2010 and 2009 of 12,813.4 million and 12,278.2 million, respectively. The increase at
March 31, 2010 primarily reflects cash generated from operating activities of 1871.5 million and proceeds from
the sale of three Boeing 737-800 aircraft and two spare engines, offset in part by the cash used to fund the
purchase of property, plant, and equipment – primarily 42 new Boeing 737-800 aircraft. During the 2010 fiscal
year, the Company funded its 1997.8 million in purchases of property, plant, and equipment with 1788.1 million
in loans and the balance from cash generated from operations. Cash and liquid resources included 167.8 million
and 1291.6 million in “restricted cash” held on deposit as collateral for certain derivative financial instruments
entered into by the Company with respect to its aircraft financing obligations and other banking arrangements at
March 31, 2010 and 2009, respectively. With respect to aircraft deliveries between November 2009 and January
2011, the Company announced on July 31, 2009, that it had entered into an agreement with a syndicate of banks
consisting of BNP Paribas, Crédit Agricole Corporate and Investment bank and Sumitomo Mitsui Banking
Corporation to provide US $1.6 billion of financing for these aircraft to support Ryanair’s Export Import Bank
of the United States (the “Ex-Im Bank”) euro-denominated export credit facilities. See “Item 8. Financial
InformationOther Financial InformationLegal Proceedings.”
The Company’s net cash inflows from operating activities in the 2010 and 2009 fiscal years amounted
to 1871.5 million and 1413.2 million, respectively, reflecting the increase in the Company’s operating
profitability. 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 737-800s and related flight
equipment, payments on related indebtedness and payments of corporation tax as well as share buy-backs. Cash
generated from operations has been the principal source for these cash requirements, supplemented primarily by
aircraft-related bank loans.
The Company’s net cash used in investing activities in fiscal years 2010 and 2009 totaled 11,549.1
million and 1388.3 million, respectively, primarily reflecting the Company’s capital expenditures, and
investment of cash with maturities of greater than three months, as described in more detail below.
The Company’s net cash provided by financing activities totaled 1572.3 million in the 2010 fiscal year
and 187.5 million in the 2009 fiscal year, largely reflecting the receipt of proceeds from long-term borrowings
of 1788.1 million and 1459.0 million in fiscal years 2010 and 2009, respectively, offset in part by repayments of
long-term borrowings of 1230.3 million and 1327.1 million in fiscal years 2010 and 2009, respectively.
Capital Expenditures. The Company’s net cash outflows for capital expenditures in fiscal years 2010
and 2009 were 1997.8 million and 1702.0 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 Ex-Im Bank. At March 31, 2010,
Ryanair had a fleet of 232 Boeing 737-800 aircraft, the majority of which (151 aircraft) 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 (20 of the aircraft
in the fleet as of March 31, 2010) and commercial debt financing (6 of the aircraft in the fleet as of March 31,
2010). 55 Boeing 737-800 aircraft in Ryanair’s fleet at March 31, 2010 were financed through operating lease
arrangements. All of the 18 new Boeing 737-800 aircraft which Ryanair took delivery of between April 1, 2010
and June 30, 2010, were financed through Ex-Im Bank-guaranteed financing. 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 2011 fiscal year.