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

CAPITAL INVESTMENTS 2006

In the State budget for 2006, Finavia was granted the right to invest a total of EUR 75 million in 2006. In addition,Finavia was granted the authority to make commitments on investments resulting in expenditure over the coming years totalling EUR 150 million. Only EUR 26.4 million of this right was actually used.

Finavia’s investments for the financial year totalled EUR 59.9 million. The investments were mainly used to maintain the current level of capital assets, but investments towards extensions were carried out or initiated during the year. The most significant, i.e. around EUR 12 million, replacement investments were initiated in renovating the premises and system of air navigation. The new air traffic control tower at Rovaniemi was completed at the end of 2006 and it will be taken into operational use during 2007. In addition the replacement of the radar display systems got underway at the airports in Rovaniemi, Kuopio, Tampere- Pirkkala and Jyväskylä. The flow of traffic was improved by constructing new or by extending old aprons at Helsinki-Vantaa Airport (EUR 10 million). During 2006, construction of the new car park building and extension to the non-Schengen terminal got underway at Helsinki-Vantaa Airport (the cost estimate is EUR 143 million). A new maintenance centre (EUR 3 million ) was completed at Oulu Airport.

Finavia invested EUR 2.2 million in passenger and airport security equipment and structures in 2006. The investments of the entire Group in 2006 totalled EUR 84.2 million. The subsidiary company Lentoasemakiinteistöt Oyj invested EUR 18.0 million, and the company’s biggest project currently under way is the development of an airport hotel. The investments made by IP-Kiinteistöt Oy totalled EUR 4.1 million in 2006.