Ryanair 2012 Annual Report Download - page 122

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generally is subject to taxation at a maximum rate of 15%. The deductibility of capital losses is subject to
limitations.
Deposits and withdrawals of Ordinary Shares by U.S. Holders in exchange for ADRs will not result in
the realization of gain or loss for U.S. federal income tax purposes.
Non-U.S. Holders. A holder of Ordinary Shares or ADRs that is, with respect to the United States, a
foreign corporation or a nonresident alien individual (a ―Non-U.S. Holder‖) generally will not be subject to U.S.
federal income or withholding tax on dividends received on such Ordinary Shares or ADRs unless such income
is effectively connected with the conduct by such holder of a trade or business in the United States. A Non-U.S.
Holder of ADRs or Ordinary Shares will not be subject to U.S. federal income tax or withholding tax in respect
of gain realized on the sale or other disposition of Ordinary Shares or ADRs, unless (i) such gain is effectively
connected with the conduct by such holder of a trade or business in the United States or (ii) in the case of gain
realized by an individual Non-U.S. Holder, such Non-U.S. Holder is present in the United States for 183 days or
more in the taxable year of the sale and certain other conditions are met.
DOCUMENTS ON DISPLAY
Copies of Ryanair Holdings‘ Articles may be examined at its registered office and principal place of
business at its Corporate Head Office, Dublin Airport, County Dublin, Ireland.
Ryanair Holdings also files reports, including annual reports on Form 20-F, periodic reports on Form 6-
K and other information, with the SEC pursuant to the rules and regulations of the SEC that apply to foreign
private issuers. You may read and copy any materials filed with the SEC at its Public Reference Room at 100 F
Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference
Room by calling the SEC at 1-800-SEC-0330.
Item 11. Quantitative and Qualitative Disclosures About Market Risk
GENERAL
Ryanair is exposed to market risks relating to fluctuations in commodity prices, interest rates and
currency exchange rates. The objective of financial risk management at Ryanair is to minimize the negative
impact of commodity price, interest rate and foreign exchange rate fluctuations on the Company‘s earnings, cash
flows and equity.
To manage these risks, Ryanair uses various derivative financial instruments, including cross currency
interest rate swaps, foreign currency forward contracts and commodity forwards. These derivative financial
instruments are generally held to maturity and are not actively traded. The Company enters into these
arrangements with the goal of hedging its operational and balance sheet risk. However, Ryanair‘s exposure to
commodity price, interest rate and currency exchange rate fluctuations cannot be neutralized completely.
In executing its risk management strategy, Ryanair currently enters into forward contracts for the
purchase of some of the jet fuel (jet kerosene) that it expects to use. It also uses foreign currency forward
contracts intended to reduce its exposure to risks related to foreign currencies, principally the U.S. dollar.
Furthermore, it enters into interest rate contracts with the objective of fixing certain borrowing costs and
hedging principal repayments, particularly those associated with the purchase of new Boeing 737-800s. Ryanair
is also exposed to the risk that the counterparties to its derivative financial instruments may not be creditworthy.
Were a counterparty to default on its obligations under any of the instruments described below, Ryanair‘s
economic expectations when entering into these arrangements might not be achieved and its financial condition
could be adversely affected. Transactions involving derivative financial instruments are also relatively illiquid
as compared with those involving other kinds of financial instruments. It is Ryanair‘s policy not to enter into
transactions involving financial derivatives for speculative purposes.
The following paragraphs describe Ryanair‘s fuel hedging, foreign currency and interest rate swap
arrangements and analyze the sensitivity of the market value, earnings and cash flows of the financial
instruments to hypothetical changes in commodity prices, interest rates and exchange rates as if these changes
had occurred at March 31, 2012. The range of changes selected for this sensitivity analysis reflects Ryanair‘s
view of the changes that are reasonably possible over a one-year period.