Davy Research

Ryanair Holdings
Low cost airlines

Aircraft order indicates that the focus is on controlled growth; we raise our price target to 7
DAVY VIEW
Ryanairs order of 175 aircraft allows for renewed, controlled growth at 3-5% per annum, facilitating an increase in EU market share from c.15% to c.20%. Given that Ryanair's cost base (ex-fuel) is c.50% below that of its competitors, this should provide ample growth opportunity across Europe. Volume order pricing is described as not dissimilar to the last agreement. As we indicated in our January research note on the narrow-body aircraft market, slot positions were clearly available to the right buyers where there was an opportunity for bulk discounts to keep the production line going on the existing B737-800 NGs aircraft ahead of the production of the new, so-called Boeing MAX. The controlled growth will be funded from internal resources, and capex requirements should allow share buybacks/special dividends to resume when appropriate. The controlled growth should, in our view, protect unit revenue while enhancing the growth multiple. We therefore increase our price target from 6 to 7 and retain our 'Outperform' rating.

Ryanair Holdings

OUTPERFORM
Closing price:608c

March 20 2013 Stephen Furlong

stephen.furlong@davy.ie / +353 1 6148924

Transport, Distribution and Logistics Team

Stephen Furlong, Joshua Goldman, Ross Harvey research@davy.ie

Share Price Performance

620 580 120 540 500 460 100 420 380 340 80 300 260 Mar 10 70 Mar 13 90 110 130

Sep 10

Mar 11

Sep 11

Mar 12

Sep 12

Ryanair Holdings price (c)

Price rel E300 travel & leisure (rhs)

Key financials (m)

Year end Revenue EBITDAR Mar13E Mar14F Mar15F 4838.1 5116.5 5288.7 1100.4 1136.4 1206.9 613.9 37.3 37.2 60.0 34.0 266.6 16.4 7.8 5.6 2.3 8.0 10.5 N/A 670.6 41.6 41.5 64.4 0.0 307.9 14.6 9.2 N/A 2.0 7.0 17.8 N/A 733.1 45.4 45.4 68.7 0.0 353.3 13.4 8.6 N/A 1.7 5.9 23.9 N/A

Controlled growth of 3-5% per annum

Ryanair has signed an agreement to purchase 175 new 737-800 aircraft worth nearly $15.6bn at current list prices. Approximately 75 of these new aircraft will replace some of Ryanairs existing fleet of 305 B737s; the remainder will drive growth rates out to 2019 of 3-5% per annum. The Ryanair fleet has inherent flexibility, allowing for lease/disposals of c.105 aircraft. This can of course be flexed to enhance growth as opportunities arise. In a base case, the fleet should grow to c.375 aircraft and 100m passengers by FY2019.

PBT EPS Basic EPS Diluted (Adj) Cash EPS (Diluted) Dividend NBV Valuation P/E FCF Yld (pre div) (%) Dividend Yield (%) Price / Book EV / EBITDAR Group Int. Cover (x) Debt / EBITDAR (x)

Boeing 737-800NGs the right aircraft at the right price

Ryanair has indicated that this volume order pricing was not dissimilar to the last agreement. Keeping the production going on this line of aircraft is likely to have been attractive to Boeing. Recent mega Airbus orders from Turkish, Pegasus and Lion Air are illustrative of the competitive dynamics of the narrow-body market. Although the order is of existing NGs, Ryanair will evaluate a re-engined B737 MAX order in the future.

Short-haul market provides plenty of growth; business model continues to generate cash
The Ryanair business model continues to generate very substantial free cash flow. We view this order, in the context of previous growth and its current size (179 airports, 57 bases), as very achievable in terms of profitable growth and sustainability of yields.

Financial Data
Ryanair Holdings :Financial model and valuation analysis Low cost airlines Sector Review

See the end of this report for important disclosures and analyst certification

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Ryanair Holdings

March 20 2013

The growth will be funded through internal cash resources, and Ryanair has indicated that share buybacks/special dividends will resume when appropriate. With its c.50% cost advantage (ex-fuel), we see significant potential for growth across Europe including the UK (potentially Stansted), Italy, Poland, Germany and Greece. A look at the short-haul delivery schedules across Europe shows that Ryanair is very well placed to enhance its leading position as it rolls out its high-margin business model. We see returns expanding from the mid- to high-teens over the coming years. Figure 1: Ryanair has largest short-haul aircraft order in Europe (cumulative deliveries 2013-2018)l
200 180 160 140 120 100 175 80 60 40 20 0 Ryanair Norwegian Lufthansa Air Berlin IAG easyJet AF-KLM 118 75 47 19 14 3 0 Vueling

Source: Boeing; Airbus; Ryanair; CAPA

Delivery schedule will result in 100m+ passengers by FY2019

Given Ryanair's strong free cash flow generation, share buybacks/dividends could occur in the middle part of the decade. Ryanair's delivery and disposal schedule will allow it to carry at least 100m passengers by FY2019. There is some flexibility in the disposal of aircraft, and we would expect Ryanair to adjust this if it sees opportunities. On the conference call, Ryanair indicated that gross capex will likely be in the 400-600m range in FY2014 and FY2015, just over 1bn in FY2016 through FY2018 and to trail off to 700-800m in FY2019. Given the airline's strong free cash flow generation, share buybacks/dividends could occur in the middle part of the decade. Table 1: Ryanair aircraft delivery and disposal schedule
Year FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Total Deliveries 0 19 27 50 50 29 175 Lease returns/disposals -15 -3 -10 -30 -26 -21 -105 YE fleet 290 306 323 343 367 375 Pax (m) 81 83 86 90 95 100 Growth +3% +3% +3% +5% +5% +5% -

Source: Ryanair; Davy

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As the low-cost leader, Ryanair has room to grow

A look at the CY2012 intra-European market share shows that Ryanair still has significant room to grow. It has nearly 12% market share of intra-European capacity (as measured by seats). In the US, Southwest has c.21% of the intra-US market. Ryanair's substantially lower cost base offers a competitive advantage that should allow for continued growth. Figure 2: Intra-European market share (seats, 2012)
Lufthansa, 14.7%

Other, 35.3% Ryanair, 11.3%

AF-KLM, 9.4%

Flybe, 1.6% Wizz Air, 1.6% Aer Lingus, 1.6% Vueling, 2.3% Norwegian, 2.9% IAG, 7.2% easyJet, 7.7% Turkish Airlines, 4.4%

Source: Capstats

Figure 3: Ryanair is the low-cost leader

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Operating cost (ex-fuel) per ASK (c)

0 RYA * SAVE LUV EJZ * VULG NWC AB *

Route Charges Airport/Handing Charges Operating Leases Maintenance Advertising/Selling Exp Dep. & Amor. Compensation/Benefits Other

*RYA is FY2012 (March y/e); EZJ is FY2012 (September y/e); AB (FY2011) SAVE: Spirit Airlines; VULG: Vuelling; NWC: Norwegian; AB: Air Berlin Source: Company reports; Davy

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Forward P/E
The controlled growth should, in our view, protect unit revenue while enhancing the stock's growth multiple. We note that Ryanair is trading below its 10-year forward P/E. Typically, the P/E multiple is higher before and in the early stages of a growth cycle. We see returns expanding from mid-to-high teens over the coming year, which should aid multiple expansion. Figure 4: Ryanair forward P/E (3 years)
18 17 16 15 14 13 12 11 10 9 8 Trough: 9.6x Average: 12.4x Current: 13.7x Peak: 16.5x

Figure 5: Ryanair forward P/E (10 years)

25 Peak: 20.5x 20

Average: 14.7x 15

10

Trough: 9.5x Current: 13.7x

Source: Factset

Source: Factset

Figure 6: Ryanair P/E versus capacity growth

60% 18 17 16 40% 15 14 13 12 10% 11 10 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2010 FY 2011 FY 2012 FY 2013 Capacity Change (lhs) Fwd P/E
* FY 2009 removed for better comparability Source: Factset; Davy

50%

30%

20%

0%

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Figure 7: Ryanair forward P/E versus ROIC

18 24% 17 22% 16 15 14 13 12 11 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2010 FY 2011 FY 2012 FY FY FY FY 2013E 2014E 2015E 2016E ROIC (rhs) 20% 18% 16% 14% 12% 10%

Fwd P/E

* FY 2009 removed for better comparability Source Factset; Davy:

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Ryanair Holdings

Analyst: Stephen Furlong/Joshua Goldman Email: stephen.furlong@davy.ie/joshua.goldman@davy.ie Phone: +353 1 6148924/+353 1 6148743 Sector: Low cost airlines

Xetra: RY4 Bloomberg: RYA ID RIC: RYA.I www.ryanair.com

Price (c) 608

Shares (m) 1454.3

Mkt. Cap (m) 8841.9 Mar11 3629.5 -2745.1 884.4 95.2 273.0 0.0 516.2 0.0 -0.6 515.6 -65.0 0.0 -65.0 -29.7 420.9 -46.3 0.0 374.6 1485.7 1490.1 25.2 26.9 45.2 34.0 198.8 199.0 789.2 70.5 0.0 859.7 -897.2 -37.5 3.9 -5.9 0.0 0.0 -39.5 -500.0 0.0 0.0 3.3 0.0 -29.8 -566.0 5071.6 46.8 0.0 -956.2 0.0 4162.2 2953.9 0.0 0.0 708.8 0.0 0.0 0.0 499.5 4162.2 2.3 4164.5 3665.0 Mar11 82.4 12.2 2.39 2.8 8.2

E.V. (m) 7937.4 Mar12 4324.9 -3307.1 1017.8 90.7 309.2 0.0 617.9 0.0 4.3 622.2 -64.9 0.0 -64.9 75.7 633.0 -72.6 0.0 560.4 1473.7 1477.0 38.0 34.0 55.0 0.0 225.9 226.1 927.1 101.8 0.0 1028.9 -290.4 738.5 -1.1 -13.6 0.0 0.0 723.8 0.0 0.0 0.0 -124.6 0.0 0.0 599.2 5078.2 46.8 0.0 -1084.7 0.0 4040.3 3308.0 0.0 0.0 109.6 0.0 0.0 0.0 622.7 4040.3 2.3 4042.6 3419.9 Mar12 82.5 15.7 2.74 6.6 5.0

Mkt. Cap. / EV (%) 111.4 Mar13E 4838.1 -3737.7 1100.4 96.0 329.8 0.0 674.6 3.8 0.0 678.4 -64.5 0.0 -64.5 0.0 613.9 -76.0 0.0 537.9 1442.4 1447.0 37.3 37.2 60.0 34.0 266.6 266.8 1004.4 82.1 0.0 1086.5 -322.5 764.0 -29.5 -41.0 0.0 0.0 693.5 0.0 0.0 0.0 0.0 0.0 -491.6 201.9 5071.0 46.8 0.0 -1166.8 0.0 3951.0 3845.9 0.0 0.0 -92.3 0.0 0.0 0.0 197.4 3951.0 2.3 3953.3 3755.9 Mar13E 81.9 5.8 3.19 3.0 5.2 Mar14F 5116.5 -3980.1 1136.4 96.0 329.8 0.0 710.6 0.0 0.0 710.6 -40.0 0.0 -40.0 0.0 670.6 -70.4 0.0 600.2 1444.0 1444.8 41.6 41.5 64.4 0.0 307.9 308.1 1040.4 82.2 0.0 1122.6 -200.0 922.6 -40.0 -70.4 0.0 0.0 812.2 0.0 0.0 0.0 0.0 0.0 0.0 812.2 4941.2 46.8 0.0 -1249.0 0.0 3739.0 4446.1 0.0 0.0 -904.5 0.0 0.0 0.0 197.4 3739.0 2.3 3741.3 3543.9 Mar14F 82.4 2.1 3.14 1.5 2.5 Mar15F 5288.7 -4081.8 1206.9 105.4 336.4 0.0 765.1 0.0 0.0 765.1 -32.0 0.0 -32.0 0.0 733.1 -77.0 0.0 656.1 1444.0 1444.8 45.4 45.4 68.7 0.0 353.3 353.5 1101.5 77.6 0.0 1179.0 -311.5 867.5 -32.0 -77.0 0.0 0.0 758.5 0.0 0.0 0.0 0.0 0.0 0.0 758.5 4916.4 46.8 0.0 -1326.5 0.0 3636.7 5102.3 0.0 0.0 -1663.0 0.0 0.0 0.0 197.4 3636.7 2.3 3639.0 3441.6 Mar15F 82.4 2.2 3.18 2.2 1.0

Mkt. Weight (%) 14.8 VALUATION

Free Float (%) 95.8

Daily No. Shares Traded (m) 6.589 Mar13E 16.4 5.6 7.8 2.28 1.81 8.0 11.4 11.5 2.33 1.17 Mar14F 14.6 0.0 9.2 1.97 1.55 7.0 9.8 8.6 2.24 Mar15F 13.4 0.0 8.6 1.72 1.36 5.9 8.2 8.3 2.09

Daily Value Traded (m) 36.302 Dec12E Dec13F Rel to Sector 1.0 1.1 1.7 N/A 1.3 1.3 Dec14F 1.2 N/A 1.3

SUMMARY ACCOUNTS INCOME STATEMENT (M) Revenue Total operating expenses EBITDAR Aircraft rental Depreciation Amortisation of intangibles Operating profit Other income from operations Share of associate / JV after-tax profits PBIT before exceptionals Group net interest Other finance costs Total finance costs Exceptionals PBT Tax Minorities (incl. pref. divs.) Earnings (basic) Average no. of shares (m) - basic Average no. of shares (m) - diluted PER SHARE DATA (C) EPS Basic EPS Diluted (Adj) Cash EPS (Diluted) Dividend NBV NBV (incl. amortisation of intangibles) CASH FLOW (M) EBITDA Change in working capital Share-based payments Cash generated from operations Net capital expenditure Operating cashflow Net interest Tax Dividends from associates Dividends to minorities Free cash flow Dividends to shareholders Acquisitions & investments Business disposals Share Issues / (Buybacks) Translation differences Other Change in net cash / debt BALANCE SHEET (M) Property, plant & equipment Intangible assets Investments in associates / jv's Working capital Other Capital Employed Financed by Equity capital & reserves Minority interests Preference shares Net Debt/(Cash) Deferred consideration/debt-related Retirement benefit obligations Net deferred tax Other long-term liabilities Capital Employed Intangibles amortised Capital employed inc. intangibles Invested capital inc. intangibles INDUSTRY DRIVERS Load factor (%) Yield (% change) Oil price (Jet per gallon USD) Ex-fuel costs (% change) Capacity growth (%)

P/E Dividend Yield (%) Free Cash Flow Yield (pre divs) (%) Price / Book EV / Revenue EV / EBITDAR EV / EBITA EV / Operating Cashflow EV / Invested Capital PEG (Hist P/E/4yr gwth)

PRICE PERFORMANCE (%) Absolute Rel to ISEQ Rel to E300 Rel to E300 Travel & Leisure PRICE AND P/E HIST ORY 2013 2012 2011 2010 2009 2008

1 Wk 4.1 2.2 4.0 3.1

1 Mth 5.2 -1.4 3.2 2.9 Price Low 476 368 282 303 274 197 Mar11 25.0 21.5 20.7 23.8 24.4 14.2 0.95 13.5 13.8 13.8 7.3 13.6 7.9 0.8 24.0 N/A 15.3 N/A 0.8 N/A 328.6 11.0

3 Mths 27.4 9.6 21.7 18.4

6 Mths 38.8 15.7 29.7 21.8

YTD 28.6 11.0 22.1 18.3 Hist P/E Low 14.0 11.3 10.5 16.3 8.8 6.3 Mar14F 11.7 5.8 3.3 3.6 22.2 13.9 1.33 18.5 14.5 17.4 N/A 28.4 17.8 N/A N/A N/A N/A N/A N/A N/A 60.6 10.5

1 Yr 42.5 20.7 31.8 16.3

High 608 500 398 420 377 459

Yr End 473 363 377 330 297 Mar12 26.5 19.2 15.1 17.5 23.5 14.3 1.05 15.1 16.0 15.5 6.1 15.7 9.6 0.1 3.3 0.2 15.9 N/A N/A N/A 93.9 11.5

High 17.9 16.7 18.5 57.6 53.2 17.8 Mar13E 9.2 11.9 8.1 8.3 22.7 13.9 1.21 17.0 15.0 16.6 N/A 17.1 10.5 N/A N/A N/A N/A N/A 1.1 N/A 97.8 12.4

Average 16.3 13.9 14.0 31.1 30.7 10.3 Mar15F 9.3 3.4 6.2 5.9 22.8 14.5 1.43 20.7 13.7 19.6 N/A 37.7 23.9 N/A N/A N/A N/A N/A N/A N/A 92.6 10.5 % 14.0 9.2 5.0 5.0 4.3

KEY RATIOS GROWTH EPS Diluted (Adj) (%) Revenue (%) EBITDAR (%) EBITDA (%) PROFITABILITY / ACTIVITY EBITDAR margin (%) EBITA margin (%) Revenue / Capital Employed (x) RETURN ROCE (before tax, ex. invs) (%) ROE (after tax) (%) Ret. on Inv. Cap. (after tax) (%) WACC (%) FINANCIAL / GENERAL EBITDAR Interest Cover (x) Group Interest Cover (x) Debt / EBITDAR (x) Debt / Equity (%) Debt / Free Cash Flow (x) Avg. Cost of Debt (before tax) (%) Ret. benefits deficit / market cap (%) Dividend Cover (x) Working Capital / Revenue (%) Net Capex / Depreciation (%) Tax rate (%) (unadjusted) CAGR(%) Revenue (%) EBITDA (%) EPS Diluted (Adj) (%) Cash EPS (Diluted) (%) Dividend (%) TSR

CALENDAR Interims Finals AGM Updated

Date 05-11-12 20-05-13 21-09-12 28-01-13

Ex-Div 15-09-10

5 Year 10 Year 12.3 19.1 7.0 12.5 3.4 9.1 7.2 11.3 N/A N/A 18.5 7.6

MAJOR SHAREHOLDERS The Capital Group Companies Gilder Gagnon Blackrock Credit Suisse Securities Janus Capital

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Important Disclosures
Analyst certification
I, Stephen Furlong hereby certify that: (1) the views expressed in this research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this report and (2) no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendation or views expressed in this report.

Investment ratings
Ryanair Holdings rating: Outperform Issued: 07/12/09 Previous: Neutral Issued: 02/11/09

Investment ratings definitions

Davy ratings are indicators of the expected performance of the stock relative to its sector index (FTSE E300) over the next 12 months. At times, the performance might fall outside the general ranges stated below due to near-term events, market conditions, stock volatility or in some cases company-specific issues. Research reports and ratings should not be relied upon as individual investment advice. As always, an investor's decision to buy or sell a security must depend on individual circumstances, including existing holdings, time horizons and risk tolerance. Our ratings are based on the following parameters: Outperform: Outperforms the relevant E300 sector by 10% or more over the next 12 months. Neutral: Performs in-line with the relevant E300 sector (+/-10%) over the next 12 months. Underperform: Underperforms the relevant E300 sector by 10% or more over the next 12 months. Under Review: Rating is actively under review. Suspended: Rating is suspended until further notice. Restricted: The rating has been removed in accordance with Davy policy and/or applicable law and regulations where Davy is engaged in an investment banking transaction and in certain other circumstances.

Distribution of ratings/investment banking relationships

Investment banking services/Past 12 months Rating Outperform Neutral Underperform Under Review Suspended Restricted Count 58 30 11 3 0 1 Percent 56 29 10 2 0 0 Count 26 5 0 2 0 0 Percent 78 15 0 6 0 0

This is a summary of Davy ratings for all companies under research coverage, including those companies under coverage to which Davy has provided material investment banking services in the previous 12 months. This summary is updated on a quarterly basis. The term 'material investment banking services' includes Davy acting as broker as well as the provision of corporate finance services, such as underwriting and managing or advising on a public offer.

Regulatory and other important information

J&E Davy, trading as Davy is regulated by the Central Bank of Ireland. Davy is a member of the Irish Stock Exchange, the London Stock Exchange and Euronext. For branches in the UK, Davy is authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Services Authority. Details about the extent of our regulation by the Financial Services Authority are available from us on request. No part of this document is to be reproduced without our written permission. This publication is solely for information purposes and does not constitute an offer or solicitation to buy or sell securities. This document does not constitute investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The securities/strategy discussed in this report may not be suitable or appropriate for all investors. The value of investments can fall as well as rise and there is no guarantee that investors will receive back their capital invested. Past performance and simulated performance is not a reliable guide to future performance. Projected returns are estimates only and are not a reliable guide to the future performance of this investment. Forecasted returns depend on assumptions that involve subjective judgment and on analysis that may or may not be correct. Any information related to the tax status of the securities discussed herein is not intended to provide tax advice or to be used as tax advice. You should consult your tax adviser about the rules that apply in your individual circumstances. This document has been prepared and issued by Davy on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst all reasonable care has been taken in the preparation of this document, we do not guarantee the accuracy or completeness of the information contained herein. Any opinion expressed (including estimates and forecasts) may be subject to change without notice. We or any of our connected or affiliated companies or their employees may have a position in any of the securities or may have provided, within the last twelve months, significant advice or investment services in relation to any of the securities or related investments referred to in this document. While reasonable care has been taken in the preparation of the information contained in this document, no warranty or representation, express or implied, is or will be provided by Davy or any of its shareholders, subsidiaries or affiliated entities or any person, firm or body corporate under its control or under common control or by any of their respective directors, officers, employees, agents, advisers and representatives, all of whom expressly disclaim any and all liability for the contents of, or omissions from, this document, the information or opinions on which it is based and/or whether it is a reasonable summary of the securities in this document and for any other written or oral communication transmitted or made available to the recipient or any of its officers, employees, agents or representatives. Neither Davy nor any of its shareholders, subsidiaries, affiliated entities or any person, form or body corporate under its control or under common control or their respective directors, officers, agents, employees, advisors, representatives or any associated entities (each an "Indemnified Party") will be responsible or liable for any costs, losses or expenses incurred by investors in connection with the information contained in this document. The investor indemnifies and holds harmless Davy and each Indemnified Party for any losses, liabilities or claims, joint or several, howsoever arising, except upon such Indemnified Partys bad faith or gross negligence.

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Share ownership policy

Davy allows analysts to own shares in companies they issue recommendations on, subject to strict compliance with our internal rules governing own-account trading by staff members. We are satisfied that our internal policy on share ownership does not compromise the objectivity of analysts in issuing recommendations.

Conflicts of interest
Our conflicts of interest management policy is available at www.davy.ie/ConflictsOfInterest. Davy acts as stockbroker to Ryanair Holdings. The remuneration of the analyst(s) who prepared this report is based on various factors including company profitability, which may be affected to some extent by revenues derived from investment banking. Davy is a registered market-maker in the securities of Ryanair Holdings on the Irish Stock Exchange. Davy is a registered market-maker in the securities of Ryanair Holdings on the London Stock Exchange. Davy may have acted, in the past 12 months, as lead manager/co-lead manager of a publicly disclosed offer of the securities in Ryanair Holdings. Investors should be aware that Davy may have provided investment banking services to, and received compensation from, Ryanair Holdings in the past 12 months or may provide such services in the future. The term investment banking services includes acting as broker as well as the provision of corporate finance services, such as underwriting and managing or advising on a public offer. From time to time, Davy may hold a position or deal in the securities referred to in this report. Should an instance arise where Davy has a holding that exceeds 5% of the issued share capital of a company, this will be disclosed in this report.

Other important disclosures

A description of this company is available at www.davy.ie/RegulatoryDisclosures. A summary of our standard valuation methods is available at www.davy.ie/ValuationMethodologies. All prices used in this report are as of close on the previous trading day unless otherwise indicated. A summary of existing and previous ratings for each company under coverage, together with an indication of which of these companies Davy has provided investment banking services to, is available at www.davy.ie/ratings. The data contained in this research note have been compiled by our independent analysts, based on a combination of publicly-available information and the analysts assumptions and modelling. Further information is available upon request. This document does not constitute or form part of any offer, solicitation or invitation to subscribe or purchase any securities, nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. Any decision to purchase or subscribe for securities in any offering must be made solely on the basis of the information contained in the prospectus or other offering circular issued by the company concerned in connection with such an offering. This document has been prepared by its authors independently of the company or companies covered. Davy has no authority whatsoever to give any information, or make any representation or warranty on behalf of the company or companies. In particular, the opinions, estimates and projections expressed in it are entirely those of the analysts and are not given as an agent or financial adviser of the company or companies. In the UK this document is restricted to (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order.

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This report is only distributed in the US to major institutional investors as defined by S15a-6 of the Securities Exchange Act, 1934 as amended. By accepting this report, a US recipient warrants that it is a major institutional investor as defined and shall not distribute or provide this report or any part thereof, to any other person.

Distribution of research to clients of Davy Securities in the US

Davy Securities distributes third-party research produced by its affiliate, J & E Davy. Davy Securities is a member of FINRA and SIPC and is regulated by the Central Bank of Ireland. Davy Securities does not act as a market-maker. Neither Davy Securities nor its affiliates hold a proprietary position and/or controls on a discretionary basis more than 1% of the total issued share capital of this company/these companies. This information was current as of the last business day of the month preceding the date of the report. An affiliate of Davy Securities may have acted, in the past 12 months, as lead manager/co-lead manager of a publicly disclosed offer of the securities in Ryanair Holdings. Investors should be aware that an affiliate of Davy Securities may have provided investment banking or non-investment-banking services to, and received compensation from, Ryanair Holdings in the past 12 months or may provide such services in the next three months. The term investment banking services includes acting as broker as well as the provision of corporate finance services, such as underwriting and managing or advising on a public offer.

Confidentiality and copyright statement

Davy, Research Department, Davy House, 49 Dawson St., Dublin 2, Ireland. Confidential Davy 2013.

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