Aer Lingus 2012 Annual Report Download - page 21

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2012 FINANCIAL REVIEW Aer Lingus Group Plc
ANNUAL REPORT 2012
19
62.4
41.8
6.7
13.2
55.7
56.0
28.0
13.0
74.0
23.0
Total Greenfield
targeted savings
(original plan 2009)
Revised February
2011
2011 exit run rate New savings
achieved 2012
Annual value of
savings at December
2012
28.6
Staff Non Staff Other
Net exceptional items
2012 net exceptional costs of €26.5 million compare to a net exceptional gain of €37.2 million recorded in 2011. The 2012 exceptional costs include
€17.2 million for restructuring, a large portion of which relates to costs associated with the relocation of A330 hangar maintenance from Shannon to
Dublin. As the majority of our A330 fleet is based in Dublin for operational purposes, the relocation of this maintenance activity will provide future
efficiencies in maintenance operations for the Group. €4.0 million relates to capital asset value write downs. This includes a €2.2 million impairment in
the carrying value of an A320 aircraft which was available for sale for most of 2012 but which now will be deployed on our mainline short haul services in
2013. An amount of €9.8 million was incurred in legal and professional fees associated with the third Ryanair offer for the Group in 2012. The costs noted
were offset by the release of an impairment provision of €4.8 million.
Finance income and expense
€ million 2012 2011 % Increase/
(decrease)
Finance income 15.3 15.4 (0.6%)
Finance expense (17.1) (17.3) 1.2%
Net finance expense (1.8) (1.9) 5.3%
Average cash 996.8 929.0 7.3%
Average debt 560.7 560.0 0.1%
The net finance expense for the year of €1.8 million is 5.3% lower than the net finance expense in 2011. Finance income decreased by 0.6% in spite
of a 7.3% increase in average cash due to lower average interest rates secured on our deposits in 2012 compared to 2011 (i.e. 1.4% in 2012 compared
to 1.6% in 2011). Finance expense decreased by €0.2 million as a result of a decrease in the overall average finance lease rate incurred (2.5% in 2012
compared to 2.6% in 2011). Average debt in 2012 was 0.1% higher than in 2011 in spite of debt repayments made in the year primarily as a result of the
US$ strengthening against the euro and the timing of aircraft acquisitions in 2011.
Tax charge
€ million 2012 2011
Total tax charge/(credit) 6.5 13.2
Effective tax rate 16.1% 15.6%
Carried forward tax losses 438.2 424.9
The total tax charge in the current year of €6.5 million primarily relates to movements in deferred tax with minimal cash taxes payable (see Note 12). The effective
rate of 16.1% is largely driven by permanent disallowable items.