Ilmailulaitos - Vuosikertomus 2005

Report by the Board 2005

Finavia

Report by the Board

Trends in the CAA's business environment in 2005 CAA service goals for 2005 CAA Finland group organization

Earnings trend

The CAA’s Profit for 2005 Capital spending 2005 CAA income distribution Financing 2005

Personnel Changes to the board The outlook for 2006 Profit and loss account Balance sheet Cash flow statement Notes to the financial statements Proposal for the use of profit Auditors' report

The Flight Safety Authority Airport Architecture

FINANCING 2005

The Council of State authorised the CAA to take out new long term loans to a maximum total of 30 million euros. In addition the CAA was authorised to provide absolute unsecured guarantees for loans to a maximum total of 60 million euros to its subsidiaries providing airport and air navigation services and to CAA property companies, to ensure their loans.

The CAA took out no new long term loans during the year, nor did it provide absolute guarantees for loans taken out by its subsidiaries. The Group did raise 6.0 million euros in long-term borrowed capital on behalf of one of its subsidiaries but without CAA guarantees.

The Group’s interest-bearing debt at the end of the year amounted to 211.5 million euros, which was 1.4 million euros less than for the previous year. At the end of the year, the Group’s long term interest-bearing debt totalled 193.0 million euros.

The financial status of the commercial enterprise at the end of the year remained good. Cash flow again developed positively compared with the previous year. Because of the positive development the cash flow on business activities before capital investments came to 64.8 million euros, a rise over the previous year of 8.1 million euros. Cash flow after capital spending items was a positive sum of 16.4 million euros.

The commercial enterprise had interest-bearing debt of 124.9 million euros at the end of the year, of which long term loans accounted for 116.4 million euros. During the year the CAA reduced its debt burden by 5.1 million euros.

The average interest on interest-bearing loans at the end of the year was about 2.8 %. In accordance with the financial risk management policy on fluctuation limits, about a third (32 %) of the debt burden was protected against interest rate changes by derivative agreements. The effect of protective contracts has been taken into account in calculating the average interest on debt. In addition to the derivative contracts, short and long term interest rate investments in the balance sheet also help to reduce interest fluctuation risks. Derivative contracts and interest rate investments together comprised about two thirds of the CAA’s loan portfolio and other liability related interest risks at the end of the year.

All financial investments are valued in the balance sheet according to their purchase price or a lower probable sale price.