EasyJet 2013 Annual Report Download - page 29

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27
www.easyJet.com
Strategic report
SHAREHOLDER RETURNS
The aviation market is a highly capital intensive
industry and it is important for airlines to give careful
consideration to their financing and balance sheet
positions to balance risk, growth, access to funding
and shareholder returns. A strong balance sheet
allows easyJet to withstand external shocks such as
an extended closure of airspace, significant fuel price
increases or a sustained period of low yields, whilst
being in a position to drive growth and returns
forshareholders.
easyJet has a policy of returning excess capital to
shareholders and it first announced a dividend policy
in November 2010. The policy was to pay out 20%
of profit after tax to shareholders and in respect of
the 2011 financial year, this resulted in a payment to
shareholders of £46 million (10.5 pence per share).
As a result of the strong performance of the business
throughout the 2011 financial year, easyJet also paid
a special dividend to shareholders of £150 million
(34.9 pence per share).
In November 2012, easyJet increased the payout
ratio in respect of the ordinary dividend from one fifth
to one third of profit after tax which resulted in an
ordinary dividend of £85 million (21.5 pence per share)
paid to shareholders.
Following another year of strong financial performance
in the 2013 financial year easyJet has proposed an
ordinary dividend of £133 million (33.5 pence per share)
and a special dividend of £175 million (44.1 pence per
share). This is a result of the strong balance sheet
position, the low level of gearing and the highest profit
after tax in the Company’s history.
Following the payment of these dividends, easyJet will
have returned £589 million to shareholders since its
maiden dividend in 2011.
44.1 pence
per share
proposed special dividend
(2012: nil)