Board of directors' report

Board of directors' 2006 Finavia group organization The deveploment of Finavia's business environment in 2006 Finavia's service objectives Finavia's environmental work Profit deveploment Financial effects of the separation of the flight safety authority Finavia group profit 2006 Finavia income distribution Capital investments 2006 Financing 2006 Personnel Changes in administration Operating risks and risk management Group structure and changes in the group relationships during the financial year Material events after the financial year and prospects for 2007 Income statement Balance sheet Cash flow statement Signatures of the financial statements and annual report Auditors' report

FINANCIAL EFFECTS OF THE SEPARATION OF THE FLIGHT SAFETY AUTHORITY

The expenses for official functions totalled EUR 8.7 million, which included EUR 0.7 million in one-off costs resulting from the separation. The effect of the official activities unit on the entire profit of Finavia in 2005 was EUR 7.8 million. The direct costs created from the separation of the official functions in 2006 included the air traffic monitoring charge, EUR 6.4 million, and service charges, EUR 1.2 million, totalling EUR 7.6 million. In addition to direct costs, the reorganization of the operations resulted in Finavia incurring new costs (around EUR 0.4 million). The costs for official functions reduced Finavia’s profit by EUR 8.0 million in 2006, so the effect of the separation during the first year was EUR 0.2 million.

	2004			2005			2006
1 000 €	CAA	Flight Safety Authority	Business Enterprise	CAA	Flight Safety Authority	Business Enterprise	Finavia
Turnover	233 847	933	232 914	243 089	992	242 097	266 949
Other operating income	4 276	0	4 276	1 172	0	1 172	1 185
Expenses	181 006	8 055	172 950	180 683	8 692	171 991	203 282
Operating margin	57 117	-7 122	64 239	63 578	-7 700	71 279	64 852
Depreciations	39 906	64	39 842	40 024	61	39 962	41 523
Operating profit	17 211	-7 186	24 397	23 554	-7 762	31 316	23 329
Financing, net	-2 183	0	-2 183	-1 352	0	-1 352	-539
Profit	15 027	-7 186	22 214	22 202	-7 762	29 964	22 789