Ryanair 2016 Annual Report Download - page 102

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The Company’s net cash inflows from operating activities in the 2015 and 2014 fiscal years amounted to €1,689.4
million and €1,044.6 million, respectively. The €644.8 million increase in net cash flows from operating activities for fiscal
year 2015 compared to fiscal year 2014 was principally due to an increase in profit after tax of €343.9 million and an
increase in accrued expenses of €364.4 million. This movement, which primarily relates to cash received in advance for
flights, and receipt of other receivables and increases in other payables balances, generated €407.0 million in cash in 2015,
compared with €133.9 million in 2014. This increase in net cash generated from working capital of €273.1 million, or
approximately 204%, was primarily due to an increase in cash receipts from advance bookings.
The Company’s net cash used in investing activities in fiscal year 2016 totaled €283.6 million, primarily reflecting
the Company’s capital expenditures, the disposal of the available for sale asset and the decreased investment in cash with
maturities of greater than three months, as described in more detail below.
The Company’s net cash from investing activities in fiscal year 2015 totaled €2,888.2 million, primarily
reflecting, as compared to fiscal year 2014, the Company’s higher profitability and increased investment of cash within
maturities of greater than 3 months.
Net cash used in financing activities totaled €1,488.1 million in the 2016 fiscal year, largely reflecting shareholder
returns of €1,104.0 million (including a €398 million return via a B share scheme following the sale of the 29.8% stake in
Aer Lingus) and repayments of long term borrowings of €384.9 million.
Net cash from financing activities totaled €653.3 million in the 2015 fiscal year, largely reflecting the issuance of
€850.0 million unsecured Eurobonds in both June 2014 and March 2015 offset by a special dividend of €520.3 million,
repayments of long-term borrowings of €419.7 million and shares purchased under a share buy-back program of €112.0
million.
Net cash used in finance activities totaled €856.1 million in the 2014 fiscal year, largely reflecting the repayments
of long-term borrowings of €390.8 million and shares purchased under a share buy-back program of €481.7 million, offset
in part by shares issued of €16.4 million.
Capital Expenditures. The Company’s net cash outflows for capital expenditures in fiscal years 2016 and 2015
were €1,217.7 million and €788.5 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 Export-Import Bank of the United States (“Ex-Im Bank”). At March
31, 2016, Ryanair had a fleet of 341 Boeing 737-800 aircraft, 194 of which 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 (26 of the aircraft in the fleet as of March 31, 2016) and
commercial debt financing (6 of the aircraft in the fleet as of March 31, 2016). Of Ryanair’s total fleet of 341 Boeing 737-
800 aircraft at March 31, 2016 there were 43 aircraft which were financed through operating lease arrangements, 52 aircraft
were financed from Ryanair’s own resources on an unsecured basis and the remaining 20 aircraft have no outstanding debt
remaining. 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 2017 fiscal year.