Ilmailulaitos - Vuosikertomus 2005

Report by the Board 2005

Report by the Board

Trends in the CAA's business environment in 2005 CAA service goals for 2005 CAA Finland group organization Earnings trend Personnel Changes to the board The outlook for 2006 Profit and loss account Balance sheet Cash flow statement

Notes to the financial statements

1 Consolidated accounting principles 2 Turnover by business area 3 Salaries for the financial period 4 Personnel employed by the CAA Group 5 Financial income and expenses 6 Intangible and tangible assets and amortisation and depreciation 7 Shares and holdings and other investments 8 Group companies 9 Receivables from other Group
subsidiaries 10 Substantial receivables carried forward 11 Increase and decrease in own equity items 12 Provisions 13 Non-current liabilities 14 Deferred tax liability 15 Debt to other CAA Group subsidiaries 16 Relevant items of accrued expenses 17 Funding from the State budget 18 Personnel covered by State funding 19 Funding from local authorities 20 Funding from the EU 21 Guarantees, pledges and liabilities 22 The CAA in the proposed state budget 2005 23 Official activities and their finances 2005 / 2004 24 CAA electric power grid operations 25 Emission rights

Proposal for the use of profit Auditors' report

The Flight Safety Authority Airport Architecture

22 The CAA in the proposed state budget 2005

During the financial year, EUR 48.2 million was spent on capital investments, whereas the budget estimated that such spending would amount to a maximum of EUR 60.0 million. The CAA was authorised to make capital investment-related commitments in the amount of EUR 100 million, of which only EUR 19.5 million was actually used.

The CAA was authorised to borrow EUR 30.0 million, none of which was actually used.

The CAA was authorised to directly provide enforceable guarantees to its subsidiaries that provide airport and air navigation services and to its property companies that are involved in the operations of the CAA without requiring counter guarantees as collateral for loans up to a total of EUR 60 million. During the year, the subsidiaries did not take out any new long-term loans.

Key figures	CAA
	2002 actual	2003 actual	2004 actual	2005 budgeted	2005 actual
Turnover (EUR millions)	202,4	219,0	233,8	227,3	243,1
- change %	-2,1	8,2	6,8	1,0	4,0
Operating margin (EUR millions)	52,0	59,3	57,1	49,9	63,6
- margin as % of turnover	25,7	27,1	24,4	21,9	26,2
Operating profit	7,9	18,5	17,2		23,6
-operating profit as % of the turnover	3,9	8,4	7,4		9,7
Profit (EUR millions)	4,1	16,6	15,0	7,8	22,2
- profit as % of turnover	2,0	7,6	6,4	3,4	9,1
Return on capital invested % 1)	1,6	3,3	2,8	1,9	3,8
Return on basic equity %	2,2	9,0	8,1	4,2	12,0
Return on total equity %	0,6	2,5	2,1	1,1	3,1
Solvency ratio-% 2)	74,0	75,1	76,2	76,2	76,4
Investments as % of the turnover	25,2	19,7	20,6	22,0	19,8
Average traffic price change % 3)	2,9	9,3	-2,3		-0,5
Number of personnel	1816	1803	1819	1859	1807

Formulae:
1) Profit before extraordinary items + financing expenses / invested capital (balance sheet total - interest-free debt)

2) Own equity + provisions/ balance sheet total

3) The price change in 2003 includes the new safety fee introduced as a consequence of an increasing number of security inspections.

Key figures	GROUP
	2001 actual	2002 actual	2003 actual	2004 actual	2005 actual
Turnover (EUR millions)	210,0	206,8	229,4	246,0	258,6
Operating margin (EUR millions)	64,7	60,6	67,2	64,0	75,9
- margin as % of turnover	30,8	29,3	29,3	26,0	29,4
Operating profit	18,4	13,4	22,8	18,5	30,2
-operating profit as % of the turnover	8,8	6,5	9,9	7,5	11,7
Profit (EUR millions)	12,3	6,9	18,0	13,9	25,8
- profit as % of turnover	5,9	3,3	7,8	5,7	10,0
Return on capital invested % 1)	3,4	2,4	3,6	2,9	4,4
Solvency ratio-% 2)	66,1	65,3	66,5	67,6	67,7
Investments (EUR millions)	86,7	58,9	51,3	52,7	62,7
Investments as % of the turnover	41,3	28,5	22,4	21,4	24,2