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FINANCIAL STATEMENTS Aer Lingus Group Plc
ANNUAL REPORT 2012
81
The table below analyses the Group’s derivative financial instruments, which will be settled on a gross basis, into relevant maturity groupings based on
the remaining period at the statement of financial position date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows. There were no amounts with maturity dates in excess of two years.
Less than 1 year 1 – 2 years Total
€’000 €’000 €’000
At 31 December 2012
Interest rate swap
Outflow 595 -595
Inflow - - -
Forward foreign currency contracts
Outflow 339,364 72,585 411,949
Inflow 333,936 72,748 406,684
Forward fuel price contracts
Outflow 193,147 22,928 216,075
Inflow 192,269 23,522 215,791
At 31 December 2011
Interest rate swap
Outflow - - -
Inflow - - -
Forward foreign currency contracts
Outflow 414,059 37,668 451,727
Inflow 436,436 39,274 475,710
Forward fuel price contracts
Outflow 203,094 22,915 226,009
Inflow 205,358 22,603 227,961
3.2 Capital Risk Management
The Group’s objectives when managing capital (comprising total equity and net debt) are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal prudent capital structure to
reduce the cost of capital.
The Board regularly reviews the Aer Lingus statement of financial position with a view to improving flexibility for the future. As part of this
process, Aer Lingus Group plc sought and received shareholder approval to increase its distributable reserves by means of a capital reduction at
an Extraordinary General Meeting held in November 2011 and the matter was heard by the High Court in July 2012. Objections were made
by the trustees of both the Irish Airlines Superannuation Scheme and the Irish Airlines (Pilots) Superannuation Scheme. Since the judgement was
issued, a hearing to allow further submissions as to the appropriate order to be made has been adjourned on a number of occasions in order to
allow progress to be made in discussions regarding the funding shortfall in the pension schemes. On 26 February 2013, the High Court set 6 March
2013 as the date on which it would hear submissions as to the appropriate order to be made. Submissions were made on behalf of the parties on
6 March 2013 and the High Court is expected to deliver its judgement regarding the form of the order on 13 March 2013.
In May 2012 the Group announced a revised dividend policy whereby dividends will be paid for those years in which the Group make a profit,
provided that payment of such dividend is appropriate and prudent in the context of its financial position, strategic objectives and prospects.
A maiden dividend of 3 cent per share (€16.0 million) was paid in 2012 in respect of the 2011 financial year. Refer to Note 38 regarding
recommendations in respect of a 2012 dividend payment.
Notes to the consolidated financial statements (continued)