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The LFV GroupSwedish Airports and Air Navigation ServicesAnnual Report 2007

This is LFVThe LFV Group consists of the State enterprise (Luftfartsverket) and its subsidiaries and associatedcompanies. During 2007, LFV operated 16 airports and was responsible for air navigationservices in Sweden. LFV reported sales of SEK 6.3 billion during 2007. Its operating profit wasSEK 816 M. At year-end, the number of employees was 4,035.Our mission is to generate added value for our customers and promote air travel by operatingcost-effective, safe and well managed airports and air navigation services. Our vision is thatour customers shall single out LFV’s airports and air navigation services as a good examplewhen it comes to cost-effectiveness, safety and functionality.During 2007, a total of 30,112,918 passengers travelled through our airports, where 264,539landings took place. Our revenue comes predominantly from charges attributable to air trafficat our airports and from traffic that passes through Sweden’s airspace.Our other revenue comes from airport shops, parking spaces, conference facilities, restaurantsand so on. Shops, restaurants and the like are run by tenants and business partners, whileparking spaces are mainly run under LFV’s own auspices.ContentsThe year in briefFront flapLFV in the worldFront flapThis is LFVFront flapContentsFront flapComments of the Director General 1-3Important events in 2007 4LFV Group objectives and strategies 6-7LFV’s airports 8-15LFV’s Air Navigation Services 16-19LFV’s environmental work 20-23LFV’s employees 24-25Comments on income statements 26Income statements 27Comments on balance sheetsand funds statements 28Funds statements 29Balance sheets 30-31Notes 32-39Accounts 40-43Performance report accordingto the annual appropriationsdirective for LFV 44-49Proposed dividend 50Auditors’ Report 51Board of Directors and Auditors 52-53Group Management 54Addresses 55Multi-year overview 56-back flapTen-year summaryBack flap> LFV 2007 < This is LFV

Lars Rekke, Director General, together with Carl Andersson, a trainee at Stockholm-Arlanda Airport,and Amalia Friman, legal counsel and member of LFV’s Junior Advisory Council.Comments of the Director GeneralMore people are flying and business is goodLFV’s economic situation continued to develop favourably during 2007. Operating profit amountedto SEK 816 M, which exceeded the previous year. The most important reasons for this are thatair traffic increased and that LFV improved its earnings from commercial operations. The trafficincrease at our airports was attributable to international travel, while domestic traffic decreasedslightly during the year. This is a trend that we believe will continue.Comments of the Director General > LFV 2007 < 1

“Civil aviation is sensitive to economic cycles andis quickly affected when the economy weakens.In addition, if the climate change debate influencespeople’s willingness to fly, it is important for us toquickly be able to take steps to offset any downturnin travel.”Lars RekkeLFV’s economic situation continued todevelop favourably during 2007. Operatingprofit exceeded that of the previousyear and amounted to SEK 816 M.LFV’s pension liability increased by morethan SEK 1 billion. This means that on anet basis, the income statement showeda deficit. The reason is that the NationalGovernment Employees Pensions Boardchanged its actuarial principles for makingpension provisions. This did notaffect our fundamental trend of earnings,but our equity/assets ratio fell to 19 percent. Our target for the equity/assetsratio is 25 per cent and now we will notreach that level until 2010.Expanded security screening resultedin both higher expenses and revenue. Itis a high-priority task to speed up theflow of passengers. At our larger airports,the number of security screening laneswas increased to shorten waiting times.The air traffic controller agreementsigned last summer boosted expensesbut ensures that LFV can offer the capacitythat the market demands. Aside fromthese two areas, the trend of expenseswas favourable.Close collaboration with regionalauthoritiesDuring 2007 the total number of passengersat LFV’s airports continued toincrease. Among the airports with thelargest increases, Kiruna and Visby areworth noting. LFV has invested moneyin efforts to stimulate inbound tourismat both these airports. British touristscan fly non-stop to Kiruna, and duringthe summer there were 14 routesto Visby. During 2008, LFV will againset aside money for projects that attractmore foreign tourists to Sweden. Thiswork will take place in close collaborationwith regional authorities and thelocal tourist industry.LFV also participates in the “SwedishCities” campaign to increase the numberof visitors to our major cities. This is apartnership with the cities of Stockholm,Gothenburg (Göteborg) and Malmö, aswell as the tourism organisation VisitSweden. Göteborg Landvetter Airportplays an important role in the Gothenburgregion’s efforts to attract largeevents, such as the European Championshipsin Athletics. Aside from a newlycompleted parking structure, the airportis now beginning to build a new arrivalhall. Göteborg City Airport, which ispartly owned by LFV, also plays a keyrole in the attractiveness of the Gothenburgregion.LFV is working intensively with regionalauthorities to expand and improve its collaboration.Growth regions are an importantsuccess factor for our airports. Forregions, good accessibility by air is vital,both for the business community and thehospitality industry. Interest in good airtraffic availability has been powerfullydocumented in the official responses ofvarious organisations to the recentGovernment-appointed Airport Inquiry.Improvements for our customersTo LFV, it is important to satisfy thegrowing demand for civil aviation. Thisapplies to passengers, but also to cargo.During 2007 an air cargo terminal wasinaugurated at Malmö Airport, and newcargo facilities are under constructionat both Göteborg Landvetter and Stockholm-ArlandaAirports.The airport capacity needs of passengershave largely been satisfied. LFVsees no needs for major capacity-raisinginvestments over the next severalyears. At Stockholm-Arlanda, the expansionof Pier F was completed and a newproject related to the Central Buildingbetween Terminal 5 and Pier F began.A new parking structure at Landvetterwent into service in January 2008, as didthe expanded arrival hall at Åre ÖstersundAirport.Sweden placed the new Eurocat airtraffic management system in servicein 2005. The system can handle a largernumber of airspace movements andallows straighter flight paths. This bothsaves fuel and spares the environment.Denmark successfully placed similar systemsin service at the end of 2007. Commonsystems increase the potential forairspace harmonisation. Together withseveral other countries in northernEurope, we are working to lower developmentcosts and increase technical andoperational collaboration.LFV has an agreement with theCity of Stockholm on continued aviationoperations at Stockholm-Brommauntil 2038. Regional bodies have shownsupport for this airport, located closeto central Stockholm. The fact that thenumber of passengers there rose by 10per cent during 2007 shows that manypeople share this attitude. The length ofthe agreement will facilitate long-term2> LFV 2007 < Comments of the Director General

investments at the airport and improvethe potential to create good public transportto the airport. The agreementrequires the approval of the StockholmCity Council.Aviation and the environmentPublic debate on climate change increasedin strength during 2007. It has influencedattitudes towards air travel. Aviation doesaffect the climate, but many factuallyincorrect statements occur in the debate.According to the Swedish EnvironmentalProtection Agency, domestic air travelaccounts for 1 per cent of overall carbondioxide emissions in Sweden. Globally,aviation accounts for 2-3 per cent of carbondioxide emissions.The aviation industry must obviouslyassume its environmental responsibility.During 2007 the Swedish Aviation Associationpresented an ambitious 10-pointprogramme which, among other things,implies its approval of economic instrumentsfor addressing emissions and furtherinvestments in technological developmentrelated to aircraft, engines andalternative fuels. More efficient utilisationof European airspace is a high priority,since it can lead to a 10 per cent reductionin emissions. LFV has played a veryproactive role in efforts to implement aSingle European Sky.LFV has been climate neutral since2006. We have sharply reduced our ownemissions − by more than 50 per centsince 2003 − and we have now started anenergy project that will further reducetotal consumption and aim at eliminatingdependence on fossil fuels completely. Weare continuing our efforts to develop the“green flights” concept and to introduce itin other countries as well.The regional Environmental Court didnot believe there are sufficient reasons tochange the permit conditions concerningthe emission ceiling at Stockholm-Arlanda. We have thus begun a processfor environmentally re-assessing theentire operations of the airport. In orderto limit emissions, it is very importantthat railways to and from the airport canbe utilised optimally. The recent regionalproposal for a comprehensive traffic solutionin Greater Stockholm points out thatthe desired development of public transportsupply to Stockholm-Arlanda cannotoccur within the framework of the existingArlanda Link agreement. As part of itsForum Arlanda activities, LFV is pursuingefforts to improve public transport tothe airport. We are also hoping that in theautumn of 2008, the Swedish Governmentwill submit a proposal for better publictransport connections to our airports, forexample a railway between Gothenburgand Borås via Landvetter.The Airport InquiryThe Swedish Parliament is expected todeal with the recent proposals of theGovernment-appointed Airport Inquirythis coming autumn. The report of theinvestigator proposes which airports arenationally strategic and should be Stateowned.Until something else is decided,obviously LFV will assume responsibilityfor operating and improving our sixteenairports. The report also proposesthat LFV be turn into a limited liabilitycompany. We see advantages in a clearerallocation of responsibilities between theowners, the Board of Directors and managementthat this organisational mechanismprovides. In Europe it is commonfor air navigation services and airportoperations to be run by different organisations.The dissimilarities in the businessconditions that apply to these operationssupport the Airport Inquiry’s proposalfor two separate companies.Regardless of legal mechanism, wewill continue our important task of satisfyingthe demands of the aviation industryand passengers for safe, cost-effective,smoothly functioning airports and airnavigation services. Civil aviation is sensitiveto economic cycles and is quicklyaffected when the economy weakens. Inaddition, if the climate change debateinfluences people’s willingness to fly, itis important for us to quickly be ableto take steps to offset any downturn intravel.To me it is a pleasure to work in anindustry that is so important to societyand its development. The aviation industryis characterised by great enthusiasmand dedication, which stimulates jobsatisfaction. I would like to close bythanking all our employees for a jobwell done in 2007.Lars Rekke, Director GeneralComments of the Director General > LFV 2007

Air cargo is continuing to increase at LFV’s airports. Cathay Pacific is one of four cargo operators serving Stockholm-ArlandaAirport several times a week using Boeing 747s. The cargo version of this jumbo jet can carry a payload of more than 100 tonnes.LFVs koncernmål och Flygplatser strategier > LFV 2007

Target fulfilmentAn action programme that began in 2001 has provided lasting improvements in earnings totalling more than SEK 1 billion on an annual basis.Together with restrictive capital spending and the recovery of the civil aviation market, this has improved LFV’s financial position. Lower capitalspending through improved utilisation of available capacity, together with improved earnings, are contributing to positive cash flow and a reduceddebt burden. In 2007 the National Government Employees’ Pensions Board approved new actuarial principles for LFV’s pension liability. Due to alower discount rate and changes in life expectancy assumptions, pension liability rose by SEK 1,113 M in 2007 as a nonrecurring effect in additionto the increase that would have occurred using the previous actuarial principles. Due to increasing passenger numbers, greater cost-effectivenessand improved return on commercial ventures, excluding this nonrecurring effect, profit improved by SEK 121 M and amounted to SEK 568 M afterfinancial items.LFV works actively to attract new traffic. Starting on January 1, 2007, it implemented a price cut for airport infrastructure totalling more thanSEK 60 M, focusing on international traffic at Stockholm-Arlanda Airport and Göteborg Landvetter Airport. During 2007 many new internationalroutes began service at LFV’s airports, partly as a result of collaboration with regional bodies and targeted efforts to increase inbound chartertraffic. Expansion and establishment of new operations also occurred in air cargo during the year. Domestic traffic growth was again weak in 2007.A number of steps were taken during the year at LFV’s larger airports to simplify and improve the time efficiency of the travel experience. Thecustomer value at Stockholm-Arlanda Airport continued to increase, according to the quarterly Airports Council International (ACI) survey.Profit from commercial operations is largely following the existing plan and totalled SEK 734 M in 2007. Major economic potential is found at LFV’slarger airports. Collaboration between LFV and Schiphol Airport in the Netherlands within the framework of Arlanda Schiphol Development CompanyAB (ASDC) continued to expand. During the year, LFV also worked actively with commercial development at its smaller airports. The main focus ison car parking and advertising products, but with Karlstad Airport as a test platform, further commercial ventures were tested during 2007.In recent years, LFV has increased its productivity and has thus been able to lower its en route air navigation charges. This has been possiblethrough a combination of cost restraint and a continued increase in the number of overflights. Training programmes for new air traffic controllersincreased during the year, which will guarantee the supply of air traffic controllers in a longer perspective. During the second half of 2007, a newagreement for existing air traffic controllers helped make it possible for LFV to offer the capacity the market is demanding. Efforts to create aSingle European Sky are continuing and have resulted in the establishment of alliances among air navigation services in Europe to seek collaborationand more efficient use of common airspace. LFV is continuing to pursue intensive efforts to expand Northern European collaboration.Since 2006 LFV has been climate neutral. To offset the emissions that still occur, LFV buys emission reduction certificates, that is, participationsin projects that lead to equivalent reductions in the carbon dioxide content of the atmosphere. To achieve long-term reduction in the number ofpeople exposed to noise, LFV is reviewing how noise exposure around its airports may look in the future. This description will be used in long-termlocal development planning. LFV also carries out noise-insulating measures in residential buildings that today are exposed to noise levels thatexceed the threshold limit values set by Parliament. During 2007 new and renovated purification units at some of LFV’s larger airports contributedto reduced emissions of organic substances in run-off water. During the year, LFV gave passengers the opportunity to offset their emissions whentravelling from Stockholm-Arlanda Airport. LFV also played a leading role in efforts to develop “green flights” and improved the public transportconnections to some of its airports during 2007.LFV continued its introduction of a Group-wide human resources policy. We are continuing to develop employee skills based on LFV’s business strategyand objectives. Employees have begun to receive individual objective-related contracts connected to performance, values and salary trends.LFV has continued to develop the role of managers and leadership through a common management development programme. Strategic skills havebeen defined, and a trainee programme has been carried out in order to cover future competency needs. LFV’s attractiveness as an employer isbeing measured both externally and internally.LFV’s air navigation services are competitive and weare successfully participating in the development ofcross-border air navigation services in Europe.LFV Group objectives and strategies > LFV 2007

Charlotte Sandberg is in charge of the Marketing Department at Göteborg Landvetter. One of her tasks is to improve the range ofexciting shops and pleasant restaurants at the airport.Flygplatser > LFV 2007

In Stockholm, LFV’s partnershipwith regional bodies wasmanifested during 2007 insuch events as the World RouteDevelopment Forum, a globalaviation market conferencethat was organised in collaborationwith the Stockholm VisitorsBoard, Stockholm BusinessRegion and other organisations.Routes was attended by about300 airlines and 600 airports,represented by 2,200 delegatesfrom 110 countries.Traffic trend at LFV’s airports, 2007Passengers Number Change from 2006 Landings Number Change from2006European traffic 15,146,469 4% European traffic 94,216 -1%Rest of world 1,990,916 14% Rest of world 5,803 5%Total international 17,137,385 5% Total international 100,019 -1%Domestic traffic 12,975,533 -3% Domestic traffic 112,616 –5%Total 30,112,918 2% Total scheduled and charter 212,635 –3%Taxi flights and general aviation 51,904 -12%Total 264,539 -5%LFV’s airports > LFV 2007

Airport charges per passenger and single journey, 2007Air routeAircraft typeStockholm-Bromma to GothenburgAvro RJ 100Göteborg Landvetter to LondonBoeing 737-600Stockholm-Arlanda to CopenhagenBoeing 737-600Cabin factor 70% 70% 70%Aircraft-related charges 1(SEK) 40 49 52Passenger charge (SEK) 55 91 101Total 95 140 1531 Take-off, exhaust and noise charges plus Terminal Navigation Charge (TNC).TNC covers costs of air navigation services at the airport and in its vicinity.The Swedish Civil Aviation Authority invoices SEK 44.50 per departing passenger to cover such costs as security screening.routes in the initial stage.In Gothenburg, the airport has collaboratedfor years with Business RegionGöteborg and Göteborg & Co. During2007, coordinated marketing of theregion enabled the airport to offer arecord number of non-stop destinations.All other LFV airports strengthenedtheir collaboration with regionalbodies in various ways during theyear. At Ängelholm Helsingborg Airport,such collaboration resulted in anew air route to Oslo and an increasein the number of tourists from the LakeMälaren region around Stockholm. InKarlstad and Sundsvall, close collaborationwith the regional business communityenabled the airports to announce anew non-stop route between these cities.In 2007 the LFV inbound tourismfund yielded results in the form of scheduledtraffic between Kiruna and Londonduring the winter of 2007/2008 as partof the Swedish Lapland project. VisbyAirport is another example of investmentsin inbound tourism that boostedthe number of foreign tourists duringthe summer, thanks to a number of newinternational routes.Keen competition for new airroutesAirlines primarily choose to serveregions that they consider attractive andthat can generate sufficient passengersin both directions. If these fundamentalprerequisites exist, they require an airportwith attractive conditions and aninfrastructure that allows an efficient,cost-effective process for the airline andits passengers. During 2007 LFV continuedworking to improve its airportsin order to ensure that they meet theabove requirements. One sign that it haslargely succeeded is that during the year,Stockholm-Arlanda Airport earned atop ranking in the Skytrax global surveyof how passengers perceive the flows atsecurity screening checkpoints. Accordingto another survey conducted by theInternational Air Transport Association(IATA), customer value at the airportalso increased more in recent yearsthan in the capital city airports in ourneighbouring countries. However, continuousimprovements and adjustmentsare needed to more effectively handle agreater number of passengers.In particular, purely low fare airlinesare becoming increasingly mobile.If LFV is unable to meet these airlines’requirements for smooth, cost-effectiveprocesses, there is a major risk thatthey will move their capacity elsewherein Europe. However, LFV is in the forefrontin terms of investing large sumsduring 2007 to improve the airport experiencefor all customers. By being amongthe leaders in this area, LFV createsopportunities to both attract new airlinesto its airports and persuade existingairline customers to expand theiroperations. This means a larger numberof destinations and frequencies, whichis of great importance in improving theattractiveness of a given region. To speedup this work, in 2007 LFV continued tostrengthen its marketing investments. Asdescribed in earlier sections, this largelyoccurs in collaboration with each respectiveregion.Lower chargesAt Stockholm-Arlanda Airport andGöteborg Landvetter Airport, at thebeginning of 2007 LFV lowered its passengercharges. There was room for thisthanks to a strong focus throughout LFVon cutting costs in the organisation atthe same time as it successfully increasedcommercial revenue. The lower chargessaved airline customers about SEK 60 Mduring 2007. Meanwhile LFV set asideSEK 15 M for inbound tourism projects,in order to stimulate new flows of touristsand other travellers.Airport operations productsEarnings from airport operations productsduring 2007 were SEK -237 M. Thismeans that revenue from airlines is toolow to cover the costs of the airports.This deficit is instead covered by commercialoperations, which generated aprofit during 2007.Extensive improvements in airportefficiency have been implemented inrecent years. This is necessary to enableLFV to achieve its owner’s return targetsand meet the need of airlines for lowcharges in a long-term perspective. AllLFV airports have various forms of efficiency-improvementprogrammes. Consideringthe spare capacity that is generallyavailable to LFV’s airports, capitalspending will be limited in order to keepcosts down.Commercial productsProfit from commercial products wasSEK 734 M during 2007. This was anincrease of SEK 41 M compared tothe preceding year. Commercial productsnow generate 44 per cent of revenueat LFV airports. Leasing of commercialspace and land as well as car parkingat LFV’s airports accounted for most ofcommercial revenue during the year.The market for commercial operationsis constantly changing, driven bycustomer demands and market competition.The customer is the focus of developmentwork in LFV’s commercial business,regardless of whether that customeris a tenant, a passenger or has some otherrelationship to the airport.Looking ahead, LFV will continueto work actively to increase commercialrevenue at our airports. Among otherthings, it is a matter of developing newproducts, exploiting a larger proportionof terminal areas where passengers spendtime and attaching greater importance tocommercial aspects when planning renovationsand new construction. Environ-12 > LFV 2007 < LFV’s airports

mental considerations play a central rolein this work.At all LFV airports, commercialaspects were a priority during 2007. Dueto heavy demand, the focus at Stockholm-ArlandaAirport during the yearwas on capacity growth in essentiallyall areas, including office space, hotels,cargo, retail shops and services. Developmentwork takes place in collaborationwith Amsterdam Airport Schipholthrough the jointly owned companyArlanda Schiphol Development CompanyAB (ASDC). This company isresponsible for the commercial developmentof shops, restaurants and serviceestablishments.Advertising sales increased during2007, largely due to favourable economicconditions. During the year, LFV workedto coordinate certain advertising effortsbetween airports, which elicited a positiveresponse from advertisers.The airports outside Stockholm workon the basis of a business model calledABC (see the box below). All work, allactivities and all changes carried out atthe airports are performed within theframework of this model.As for commercial products, a largenumber of activities of varying sizes wereimplemented during the year. KarlstadAirport served as a test airport for developingnew commercial concepts which,if they prove successful, may be implementedat other airports. At Malmö Airport,a unique terminal concept − with acommon terminal for both domestic andinternational passengers − is creatingnew opportunities to develop shops andrestaurants, which was also done duringthe year.LFV creates easier travelIn recent years a higher number of passengers,combined with such changes astighter security requirements, has createdmajor challenges at a number ofLFV’s airports. During 2007 LFV workedintensively to make the airport experience,as well as travel to and from airports,as smooth as possible.Accessibility issues are important at allairports. Stockholm-Arlanda Airportneeds well functioning areas for thosewho need to travel to the airport by car.By improving other ground transport tothe airport, Stockholm-Arlanda is workingactively to reduce the number ofpassengers who need to arrive by car.During 2007 this resulted in a largelyunchanged number of cars parked, at thesame time as the number of passengersincreased by 2 per cent. This is entirelyconsistent with the environmental targetsthat LFV has established.During 2007, LFV decided to expandTerminal 5 at Stockholm-Arlanda Airportby directly connecting the old terminalwith Pier F. The building will becompleted in 2009 and will offer 4,500square metres of space for shops, restaurantsand services plus a larger securityscreening point on two levels.Stockholm-Bromma Airportimproved the capacity of its securityscreening point, among other things.During 2007 Karlstad Airport inau-ABC – business model for LFV’s airports outside StockholmAttractive AirportA focus on making airports attractive meeting places and increasing non-aviation-relatedrevenue.Basic AirportA focus on running as efficient an airport operation as possible, which amongother things means that every employee has several different job assignments.Breakdown of Group commercial productrevenue, 2007Real estate products 38% (39%)Advertising 3% (3%)Ground handling 11% (12%)Miscellaneous 24% (22%)Car parking incl.bus fee 24% (24%)Connecting AirportA focus on actively searching for collaboration and business partners in orderto market regions and improve airline services.Commercial operationsCommercial operations offer services to travellers and generate a financial surplusthat makes it possible to maintain lower prices for airport operations products.Trend by product categorySales, SEK M2007 2006Real estateLFV’s largest commercial business is real estate products, which have the highest sales. In many cases,LFV applies sales-based rents, which means that LFV shares financial risks with tenants. 824 809Car parking etc.Car parking is an important activity, enabling airports to serve as hubs in the transport system.Air traffic growth during 2007 led to an increase in both sales and profit. 518 487Other commercial productsIn recent years, advertising products have had diminishing profitability due to tough competition with other media, but during2007 the trend reversed. Among other products with favourable growth were conference operations at Stockholm-ArlandaAirport, ground handling and aircraft parking.812 753LFV’s airports > LFV 2007

gurated a “check-in shop”. This meansthat while making purchases at the airportshop, passengers can also check in.A new parking structure was built duringthe year at Göteborg Landvetter Airportand went into service in January2008. The structure accommodates 2,000cars and is directly connected to the terminals.In Luleå, LFV tested fully automatedbaggage check-in together withSAS during the year. The airport, SASand passengers were all satisfied andthere are hopes of expanding this systemat LFV in the next few years.In collaboration with various localbodies, Malmö Airport started a busservice between Svedala Station and theairport. The bus is part of the regionalpublic transport system and is coordinatedwith the Pågatåget commutertrains that run between Malmö and Simrishamn.This creates an efficient publictransport connection, while awaitingdirect train service to the airport.Measures that improved conditions for passengers atStockholm-Arlanda Airport during 2007• Renovation and expansion of the Terminal 4 departure hall. Together witha separate flow for arriving passengers and a new hamburger restaurant, theservice level improved significantly.• The SkyCity commercial and conference building between Terminals 4 and5 was re-inaugurated during the autumn. With its train station offering newconnections to northern Stockholm, Uppsala and other destinations, moreseating and a broader range of services, more than ever SkyCity is the heartof the airport.• A new arrival hall in Terminal 5, including the new Arlanda Visitor Center,which provides assistance to arriving passengers in collaboration with thehospitality industry.• Terminal hosts circulate around the terminal system to answer passengers’questions.• During the autumn, the number of security screening lanes in Terminals 2, 3and 5 increased.• In Pier F, three additional aircraft gates opened during the year, enabling thebuilding to handle five intercontinental routes simultaneously.Airport statistics, 2007PASSENGERS LANDINGS STAFF FINANCIAL DATATotalnumber Changeof whichinternat.,number ChangeTotalnumber ChangeFull-timeequivalentnumberFixedassets 1SEK MCaptalspendingSEK MSalesSEK MProfitSEK MStockholm-Arlanda 17,912,997 2% 12,864,261 5% 109,275 -4% 790 8,327 506 2,902 756Göteborg Landvetter 4,355,471 2% 3,112,652 6% 32,167 -3% 459 973 209 659 190Malmö 1,869,456 -1% 737,783 5% 20,041 -5% 104 457 48 268 44Stockholm-Bromma 1,805,649 10% 138,855 10% 31,048 10% 122 127 14 211 33Luleå 930,180 2% 59,133 13% 8,732 -3% 41 78 11 86 1Umeå 810,696 1% 42,454 15% 10,880 2% 85 103 7 92 12Ängelholm Helsingborg 394,723 9% 8,934 6,819 14% 29 86 6 40 1Åre Östersund 374,380 -6% 22,285 4% 4,170 5% 42 85 14 40 -16Sundsvall Härnösand 336,345 0% 20,764 66% 6,496 -2% 47 108 13 54 -11Visby 317,466 9% 13,438 64% 10,334 -12% 38 39 2 38 -7Skellefteå 235,928 7% 12,154 35% 3,779 7% 38 59 16 28 -10Ronneby 219,514 5% 1,545 3,540 -22% 5 34 2 21 -6Kiruna 191,383 12% 2,556 148% 3,140 3% 16 87 2 33 -18Örnsköldsvik 132,468 1% 3,319 -11% 1,673 -4% 32 42 2 19 -18Karlstad 119,107 6% 57,496 42% 5,286 2% 37 38 2 24 -23Jönköping 107,155 -15% 39,756 -31% 7,159 -2% 31 41 2 28 -161) 1 Book value14 > LFV 2007 < LFV’s airports

Paul Hedlund is Airside Safety Duty Officer at Stockholm-Arlanda Airport. He oversees and monitors aviation safety work onairside, i.e. inside the airport perimeter fence.Flygplatser > LFV 2007

Air Navigation Services IMPORTANT EVENTS• LFV remains active in the development of a common European airspace.• New data-based communication between air traffic controllers and pilots will make air trafficcontrol safer and more efficient.• Vigorous training efforts are ensuring the future supply of air traffic controllers.LFV’s Air Navigation Services (ANS)Division is responsible for air traffic controlat all airports in Sweden and in Swedishairspace. It is also responsible for theinformation that pilots need when planningtheir flights as well as for training ofair traffic controllers. The ANS Divisionalso participates in a number of internationaldevelopment projects to moderniseand improve air traffic managementAir traffic trendsThe number of flights in Swedish airspacecontinued to increase during 2007.Overflight traffic is growing the most,while domestic traffic is decreasing. Thistrend is especially clear if we look back afew years.Especially remarkable is the sharpincrease in overflight traffic, both its relativeshare of all traffic and the absolutenumbers.gation to accept overtime service. Theagreement means higher staff expensesbut is meanwhile expected to ensure thatLFV can offer the capacity that the marketis demanding, which is very important.Training effortDuring 2007 a larger number of air trafficcontrollers than expected left LFV.Meanwhile the supply of new air trafficcontrollers was limited. To resolve this,the ANS Division has made a vigorouseffort to train new air traffic controllers.Over the next few years, the objective isto train 180 air traffic controllers. Thisplaces great demands on both the airtraffic controller academy, Entry PointNorth, and on the ANS Division’s owntraining resources. It may become necessaryto delegate training to sub-contractorsin other countries.Clear strategiesTo enable LFV to maintain its role inan international perspective and meetthe needs of its customers, the Group isworking actively and systematically todevelop the strategies of the ANS Division.Among the aims is to identify areaswhere improvements are needed so thatLFV will remain a respected and strongservice provider. A clear focus on aviationsafety and customer-adapted deliverycapacity are important elements incrafting these strategies.Smoothly functioning controlcentresThe new control centres in Stockholmand Malmö are meeting expectations ofoperationally stable and user-friendlyfacilities. Thanks to these new facilities,LFV can handle the sharp increase intraffic, which is mainly being generatedby overflight traffic in the Baltic Sea area.This would not have been possible withthe system LFV previously used.Swedish airspace movements in 2007 compared to 2003Domestic International Overflights Total2003 176,401 230,773 197,197 604,371Percentage of movements 29% 38% 33%2007 159,187 246,978 295,810 701,975Percentage of movements 23% 35% 42%Higher staff expensesThe imbalance between the supply anddemand for air traffic controllers inparticular was accentuated during thespring, when air traffic management wasplagued by recurring staff shortages andaccompanying disruptions and delays fortravellers at Stockholm-Arlanda Airport.For this reason, LFV signed a newsalary agreement with the air trafficcontroller unions. In this agreement,employees pledge − among other things− to give up their right to four weeksof summer holidays if needed in orderto ensure stable operations and capacity.The agreement also includes an obli-Euro/SU9080706050403020100En route charges, 2007United KingdomBelgiumGermanyNorwayFranceDenmarkNetherlandsSwedenFinlandIrelandAverage16> LFV 2007 < LFV’s Air Navigation Services

Marie Hansson, an air traffic controller at Åre Östersund Airport, works in the control tower to help aircraft land and take off safelyon the island of Frösön, where the airport is located.Flygtrafiktjänster Flygplatser > LFV 2007

ANS Division certifiedDuring 2006, the Air Navigation Services(ANS) Division of LFV was certifiedaccording to the standards of theSingle European Sky. Early in 2007, LFValso received an ISO 9001:2000 qualitymanagement certificate. During theyear a certification audit was conducted,with a successful outcome. A combinedISO 9001 and ISO 14001 (environmentalmanagement) certificate was issuedearly in 2008.Aviation safetyAviation safety enjoys top priority inthe work of the ANS Division. Extensiveresources and energy are devotedto maintaining a high level of aviationsafety. No accidents were caused by theoperations of ANS during 2007.LFV on the offensiveDevelopments in the air navigationfield as a consequence of the EU’s SingleEuropean Sky initiative are continuing,and 2007 was another very eventful year.However, there is criticism from variousquarters that progress is occurringtoo slowly. During the second quarterof 2008 the European Commission willunveil what it calls “a second package” ofSES legislation. The intensified focus onenvironmental issues during 2007 madeclear that major emission reductions arepossible with a common European airspace.LFV has assumed an active role inadvancing the Single European Sky process.Previously established Nordic cooperationin this field has continued andmoved forward. A major, highly publicisedstep took place early in 2007when the Irish Aviation Authority (IAA)joined this effort, transforming what hadbeen Nordic air navigation cooperationinto Northern European cooperation.Work is currently focusing on devisinga common “master plan” together withcustomers, aimed at offering them theservices they need at the lowest possiblecosts. For some time, air navigationcooperation has included a number ofconcrete activities in which various partnersparticipate. Examples worth mentioninginclude:• The Nordic Upper Area Control Centre(NUAC), a collaborative effortbetween LFV and Denmark’s Naviairaimed at establishing a joint air navigationorganisation in Danish andSwedish airspace. The first report onthe project has been completed andcurrent work includes an analysisof what effects implementation willhave.• COOPANS, a cooperative effortbetween LFV, Naviair and IAA aimedat cost-effectively improving theEurocat 2000E air traffic managementsystem − the backbone of LFV’s controlcentres − together with the system’ssupplier, Thales. Other organisationsthat use the same air trafficmanagement system have also shownan interest in joining COOPANS.Negotiations are under way for thispurpose.Development of Air NavigationServicesLFV uses data linksData links are a vital element in developingair navigation services, for a numberof reasons. One important reason isthat such links make it possible to avoidthe sources of misunderstandings thattoday’s radio communication may entail.Another reason is they facilitate communicationbetween often highly advancedaviation systems and ground-based airtraffic management systems and canresult in significant optimisation of flightpaths. This, in turn, has a positive impacton the environment, since aircraft fuelconsumption can be greatly lowered.Data links also enable pilots to obtain asignificantly better picture of other aircraftin their vicinity.During 2007 LFV continued itsacquisition of equipment which, in theinitial stage, will operate concurrentlywith existing radar-based systems. Anumber of airlines have also obtainedsuch equipment for their aircraft, whichmeans that operational usable applicationscan soon begin to be implemented.18 > LFV 2007 < LFV’s Air Navigation Services

The new control centres in Stockholmand Malmö are meeting expectations ofoperationally stable and user-friendlyfacilities. Thanks to these new facilities,LFV can handle the sharp increasein traffic, which is mainly being generatedby overflight traffic in the BalticSea area.SESARIn conjunction with the Single EuropeanSky initiative, a new company calledSESAR Joint Undertaking (SESAR JU)has been established in order to coordinateand pursue the development of theEuropean air traffic management system.The European Commission and Eurocontrolare key players behind this companytogether with airlines, airports,manufacturers and not least suppliers ofair navigation services. During 2007, as arepresentative of the Northern Europeanpartnership, LFV has applied for membershipin SESAR JU. Negotiations onthis will occur during 2008.Green flightsThe trend towards greater use of“green aviation” in general and “greenapproaches” in particular is continuing,in partnership with airlines and airports.Green approaches are already being carriedout when possible by aircraft fromparticipating airlines. At present, thisconsists of collaboration between ScandinavianAirlines, Stockholm-ArlandaAirport and LFV’s Air Navigation Services.The hope is to be able to introducegreen flights soon at all LFV airports.SAS’ evaluations indicate that this trafficcontrol method can reduce fuel consumptionby several hundred kilos perflight. Reduced fuel consumption meanscost savings and environmental improvements.The project has thus attractedgreat interest even among non-participants.For Stockholm-Arlanda Airport,every measure that can reduce environmentalload is of great interest, sincethe current emission ceiling constitutesa clear barrier to the airport’s expansion.The technique also makes it possibleto avoid unnecessary queues on theground and in the air. This will lead tofurther fuel savings and higher punctuality,which benefits passengers.EU directive on service chargesDuring 2007, the European Commission’sdirective on a common systemof charges for air navigation serviceswent into effect. The directive doesnot imply any decisive changes relatedto the financing of services connected toen route operations, but there are substantialchanges concerning air navigationservices at airports. For these services,the directive will go into effect inits entirety in 2010. The costs of air navigationservices at airports must be allocatedbetween an en route charge zoneand a terminal charge zone. This impliesa direct financial relationship betweenthe organisation that provides air navigationservices at airports and those thatuse airspace, which means that the airportwill no longer invoice this charge.The directive contains a numberof exemptions that EU member statescan apply. For example, it is possible toexempt air navigation services providedat airports with fewer than 50,000 commercialaircraft movements per year,as well as at airports with fewer than150,000 movements per year if they procureair navigation services on a competitivebasis. Sweden has not yet decidedwhether to use any of these exemptions.LFV’s Air Navigation Services > LFV 2007

LFV’s environmental work IMPORTANT EVENTS• Carbon dioxide emissions from LFV’s operations continued to diminish.• Public transport connections to several airports improved during 2007.• Green flights reduced carbon dioxide emissions by 350 tonnes during the year.Thanks to extensive and systematic environmentalwork, LFV has drasticallyreduced its carbon dioxide emissions inrecent years. Emissions will diminish byan average of 4 per cent annually until2010. Environmental concern permeatesLFV’s operations and is weighed intoevery decision. LFV’s airports are examinedregularly in compliance with theSwedish Environmental Code, and LFVendeavours to be a role mode in everyrespect in terms of sustainability.Continued reductions in carbondioxide emissionsSince 2003, carbon dioxide emissions inLFV’s own operations have decreased by47 per cent. During 2007 LFV continuedto reduce carbon dioxide emissions further.Its environmental target in terms ofatmospheric emissions implies that LFVwill reduce its own carbon dioxide emissionsby 4 per cent annually during theperiod 2007 – 2010. During 2007, emissionstotalled 8,400 tonnes, which representeda reduction by 25 per cent comparedto the preceding year.Climate neutral companyLFV has made extensive reductions in itsgreenhouse gas emissions in recent years.For example, LFV purchases green electricitycertificates equivalent to its totalannual consumption. However, its operationsstill emit a certain quantity of carbondioxide every year. To take responsibilityfor these emissions as well, LFVbuys emission credits through theUnited Nations-regulated Clean DevelopmentMechanism (CDM). For the period2006 – 2008, LFV has bought emissioncredits that will lead to emission reductionsof 45,000 tonnes elsewhere in theworld.LFV enables passengers to offsettheir emissionsDuring 2007 LFV introduced a mechanismfor passengers to offset their emissionswhen departing from Stockholm-Arlanda Airport. The service is availableon the LFV website, and there are plansduring 2008 to make it possible to offsetemissions when departing from all LFVairports.Arlanda Energi saves energy andmoneyIn 2006 Stockholm-Arlanda Airportestablished its own energy supplier.Arlanda Energi was formed that year asa separate unit at the airport. ArlandaEnergi delivers a predetermined indoorclimate to the airport organisation itselfand to other airport-based companiesthat request it. Its task is to do this withthe least possible environmental impactand at the lowest possible cost. The unitis also responsible for serving as a sourceof technical backup to LFV on energyissues. Among other things, during 2007it started the “Energy Cooperation LFV”project to reduce overall LFV energy use.During 2007 Arlanda Energi continuedto develop its own production of longtermsustainable heating and cooling.The reduction in energy use at Stockholm-ArlandaAirport that ArlandaEnergi has contributed to is equivalent tothe total energy use at an airport the sizeof Göteborg Landvetter.Local environmental effortsSeveral of LFV’s airports have implementedvarious energy-saving measures.In 2008, Malmö Airport expectsto replace oil-fired heating with pelletbasedheating. This will reduce fossil carbondioxide emissions by an estimated85 per cent. As part of an ongoing environmentalreview at Göteborg Landvetter,the airport has produced an actionplan that will lead to significant reductionsin carbon dioxide emissions overthe next several years. During the year,the airport also proposed a new flightpath system.Green flights and green departuresCollaboration with SAS related to greenflights continued during 2007. A totalof 1,100 green flights have taken place,which is estimated to have eliminatedmore than 300 kg of carbon dioxideemissions per flight. Through continuousexchange of information throughoutthe flight, both speed and throttle positioncan be optimised, while flight timecan be calculated more exactly. Asidefrom reduced carbon dioxide emissions,green flights result in lower noise,since aircraft glide during much of theirapproach. During 2007, LFV also testedgreen departures on a small scale. Thisinvolves calculating departure time andground taxiing time more exactly, whichamong other things enables the aircraftto remain at the gate with the engineturned off instead of queuing on the wayto the runway for take-off.NoiseDuring 2007, noise awareness was classifiedat LFV’s airports. The purposeof this work is to make airports moreaware of their noise abatement workand thereby enable better, more activeefforts to limit noise. Some airports haveno clear noise requirements and thuscould not be classified. The classificationconsists of four stages: passive, reactive,proactive and reforming. All the airportsthat were classified have reached atleast the reactive stage, and many haveachieved several of the criteria for thereforming stage.Discharges to soil and waterwaysThe task of inventorying polluted areasat LFV’s airports continued during 2007.Polluted soil was found, among otherlocations, at the Stockholm-Arlanda Airportfire-fighting exercise area. The totalcost of remedial measures at all airportsis estimated at SEK 25-40 M.During 2007 Stockholm-ArlandaAirport also carried out extensive renovationof its water purification plant.Malmö Airport completed the constructionof a new water purification plant.Both these measures will lead to loweremissions of organic substances in runoffwater from the airport.20> LFV 2007 < LFV’s environmental work

Sandra Boström, Environmental Coordinator at Göteborg Landvetter, works towards improving the activities of the airport inways that will minimise its impact on the environment.Flygtrafiktjänster LFVs miljöarbete > LFV 2007

Director General Lars Rekke (right) greets former US Vice President Al Gore at a spring 2007 meeting in Stockholm on climate issues.Also shown is Håkan Bryngelsson of the Vasakronan property company, which like LFV is a member of BLICC. Photo: Michael SteinbergReduced emissions from groundtransport to and from airportsDuring 2007 LFV continued its effortsto increase travel by public transport toairports. It is very important to increaserail traffic to Stockholm-Arlanda Airport.The “Upptåget” commuter traincompleted its first full year. This trainhas attracted many passengers becauseit provides a significantly smoother rideto the airport for passengers and airportbasedemployees living in the northernsuburbs of Stockholm and aroundUppsala. During part of the year, GöteborgLandvetter offered airport-basedemployees free bus cards in order toboost the percentage of people travellingto the airport on public transport. Anew shuttle bus between Malmö Airportand Svedala Station linked the airportto the Pågatåget commuter trains thatrun between Malmö and Simrishamn,thereby creating better public transportconnections between the airport andlarge portions of Skåne County.LFV plays leading role in BLICCSince 2003, LFV has been a member ofthe Business Leaders Initiative on ClimateChange (BLICC). BLICC is a networkof companies that are active on climateissue and in bringing about a transformationaimed at reducing energy consumptionand carbon dioxide emissions.During 2007, LFV was an active participantin BLICC. Sharing knowledge withnumerous other large companies hashelped speed up the transition to renewableenergy sources. Meanwhile LFVhas been able to impart its experience toother members.As a member of BLICC, during2007 LFV was one of some 40 Swedishcompanies that issued a declaration(Näringslivets Klimatupprop) acceptingthe challenge of doing business in waysthat do not contribute to global warming.Together with the other signatorycompanies, LFV has pledged to try toidentify models and tools for achievingclimate neutral operations and disseminatingthis knowledge to the businesscommunity as a whole.Environmental restrictions atStockholm-ArlandaDuring 2007 the regional EnvironmentalCourt turned down LFV’s request fora change in the airport’s emission ceiling.Aside from a maximum number oftake-offs and landings, the airport alsohas a ceiling on carbon dioxide and otheremissions. This ceiling includes emissionsfrom ground transport to and fromthe airport, even though large portionsof the growing Stockholm region lackgood public transport connections to theairport. LFV has appealed the ruling andis meanwhile doing preparatory work toapply for a new environmental permitfor Stockholm-Arlanda Airport.New tools improve quality ofenvironmental workDuring 2007 LFV decided to replace 22different environmental managementsystems with a common system. Thisstep will lead to significant efficiencygains and higher quality in LFV’s environmentalwork. Concurrently, a newenvironmental data reporting systemwent into service, which will make thereporting and compilation of environmentaldata easier.Aircraft-related emissionsActual emissions from the landingand take-off (LTO) cycle, which iscounted up to an altitude of 915 metres,decreased by 1 per cent during the year.Compared to 2006, after subtractingemissions at Kalmar and NorrköpingAirports − which were transferred fromLFV’s operations during 2006 − thereduction was 0.3 per cent. One reasonwhy nitrogen oxide emissions rosewhile other emissions fell was the sharpincrease in jumbo jet traffic, mainlycargo aircraft, at Stockholm-ArlandaAirport.Carbon dioxide emissions by source, 2007Vehicles andfuels 4,984 tonnes (60%)Spaceheating 3,035 tonnes (36%)Rescue service 363 tonnes (4%)Carbon dioxide emissions, 2003-2007tonnes20,00015,00010,0005,0000030405060722> LFV 2007 < LFV’s environmental work

Emissions during LTO cycle from civil aviation at LFV airportsYear CO 2[ktonnes] NO X[tonnes] HC[tonnes] SO 2[tonnes]2003 246 845 129 782004 266 928 148 842005 259 917 144 822006 262 911 145 832007 259 924 136 82Energy consumption by type, 2007Electricity 151 GWh (66%)Oil 10 GWh (4%)Biofuels 16 GWh (7%)District heating 54 GWh (23%)Energy consumptionSince 2006 LFV reduced its total energyconsumption by about 14 per cent. Thisoutcome was partly due to mild weatherbut also to energy-saving efforts carriedout by the Group.Among the measures introduced byLFV has been time regulation of ventilationand lighting. Electricity, includingelectric heating, accounts for 66 percent of total energy consumption. Electricityuse fell by nearly 14 per cent comparedto 2006. The reason why electricityaccounted for a slightly higher percentageof total energy consumption was thatthe energy used for space heating fellcompared to the preceding year.More informationFurther information on LFV’s environmentalimpact, environmental targetsand emissions from its own operationswill be reported on the LFV website,www.lfv.se. For more detailed information,see the websites of the variousairports.By switching from oil-fired to pellet-based heating at many airports, LFV has greatly reduced fossil carbon dioxide emissions.Here pellets are being shovelled into the opening of a combustion unit at Göteborg Landvetter Airport.LFVs miljöarbete > LFV 2007

LFV’s employees IMPORTANT EVENTS• New trainee programme is helping cover future competency needs.• New human resources organisation and methods will improve support to LFV managers.• Continued efforts to publicise and improve LFV’s competitive employment conditions.LFV must be an attractive employer witha positive image among current employees,potential employees, customers andsuppliers. During 2007, about 4,000 peoplewere employed at LFV.Attractive employerThe introduction of a new humanresources policy at LFV continued duringthe year. The policy describes LFV’sexpectations from its employees andwhat it offers as an employer. Living upto this human resources policy requiresclear management by objectives, longtermhuman resource development,good workplace health and safety, recognitionof good performance as well asmanagers who improve operations andpromote professional development. LFVis thus continuing its efforts to introducetarget-related contracts and performance-orientedsalary changes.During 2007 LFV continued to pursuesystematic health and safety work,ran management training programmesand conducted a talent managementanalysis aimed at ensuring a long-termsupply of managers and responding toplanned retirements.LFV offers competitive benefits andemployment conditions, but there is aneed to gather, publicise and developthese so that they become better knownamong both current and new employees.This task began during 2007.In order to measure how attractive anemployer LFV is compared to othercompanies, we participated in the UniversumGraduate Survey for Sweden. Inthe 2007 survey, LFV came out in themiddle of the participating companies.By marketing LFV at universities,other higher education institutions andupper secondary schools, we will showthe broad range of interesting jobs thatwe can offer and attract people with thecompetencies required by LFV’s airportsand air navigation services, today and inthe future. This largely involves variousairport operations positions.Finding people with the right skillsTo ensure that LFV pursues a long-termstrategy in dealing with future recruitmentneeds, strategic competencies havebeen identified. LFV completed onetrainee programme and started a newone during 2007, for the purpose of coveringportions of its future competencyneeds. The FOKUS 2007 employee surveywas conducted during the year.The results were analysed andimprovement areas were identified. Oneimprovement area that was noted is theprocess of formulating management byobjectives.Staff resourcesFor the fifth straight year, the number offull-time equivalent employees fell, whilepassenger numbers grew. The number offull-time equivalent employees during2007 was 3,413 (3,418).LFV’s new HR organisationA comparative study of human resources(HR) work was conducted in the autumnof 2006 and showed variations in qualityand accessibility, a lack of holistic viewsand efficiency-raising potential due tosub-optimisation in previous personnelwork. In light of this, reformed workingmethods and a new organisational structurewere introduced during 2007.This reform effort improved accessibility,quality and efficiency, among otherthings by creating• clearer roles and greater expertise inhands-on HR work• coordination of specialised expertiseand reduced duplication by means ofa common HR Business Centre• well developed HR support foremployees on the LFV intranet andestablishment of the HR Service Desk• Group-wide processes for HR issues.The result will be to ensure that LFV hascost-effective, modern HR work that isready to face future operational challenges.Employee statistics, average full-time equivalent positions 12007 2006 ChangeGroup Airports Division 1 051 1 038 13ANS Division 1 036 1 047 -11Stockholm Division 912 891 21Other units and subsidiaries 414 442 -28Total 3 413 3 418 -51 Including permanent and limited-time contract employees.24> LFV 2007 < LFV’s employees

One of Veronica Sjödin’s many tasks at Åre Östersund Airport is to work with preventive and emergency fire and rescue services.LFVs Flygtrafiktjänster medarbetare > LFV 2007

Accounts for 2007Comments on income statementsOperating revenueLFV’s sales increased in 2007 by 5 percent or SEK 293 M. Operating revenuetotalled SEK 6,273 M (5,980), dividedbetween SEK 3,985 M (3,877) in aviationrevenue and SEK 2,288 M (2,103) inother operating revenue.Aviation revenue increased by SEK108 M or 3 per cent despite a reductionin passenger charges for internationaltraffic equivalent to more than SEK 60M. One strong contributing factor wasthe favourable passenger trend in internationaltraffic, which increased by morethan 5 per cent. Charges for air navigationservices and security screening alsoincreased, since they are structured to becost-related (that is, revenue is continuouslyadjusted to be equivalent to costsin these areas). Air Navigation Servicesexpenses increased due to the training ofnew air traffic controllers and higher salaryand pension expenses. Stricter securityrequirements related to screening ofpassengers and baggage meant higherexpenses for airport security screening.Other operating revenue rose by SEK185 M or 9 per cent. The increase in passengernumbers contributed substantiallyto this increase, due to greaterdemand for commercial services andproducts provided at airports. Among thechanges during 2007 were expanded utilisationof terminal space at major airportsin the form of shops, restaurantsetc. Higher revenue from car parking andgreater demand for specialist and consultantservices also resulted in higher revenue.This trend is well in line with LFV’sstrategy of gradually increasing its earningsfrom commercial products, in orderto permit unchanged or reduced chargesfor airport infrastructure.Revenue also included a repaymentof more than SEK 60 M in real estate taxfrom the Swedish Tax Agency. This repaymentis the effect of a ruling of the AdministrativeCourt of Appeal related to a disputebetween LFV and the Tax Agencyconcerning real estate tax for the SkyCityproperty at Stockholm-Arlanda Airport.Operating expensesOperating expenses totalled SEK 5,458M (5,240), which was SEK 218 M or 4per cent higher than the preceding year.Staff expenses totalled SEK 2,270 M(2,138). SEK 59 M of the increase ofSEK 132 M consisted of a nonrecurringeffect of the increase in pension liabilityin the 2007 accounts. The remainingincrease of SEK 73 M was primarily dueto salary increases. During the summerof 2007, LFV signed a multi-year salaryagreement with operational staff in theAir Navigation Services Division, whichincreased expenses but also helped safeguardthe capacity that the aviation marketdemands.Various external expenses amounted toSEK 2,028 M (1,915), which was SEK 113M higher than the preceding year. A significantportion of the cost increase was dueto stricter security standards for screeningof passengers and their baggage at airports,especially because of the new liquidrules that were introduced in the autumnof 2006. At Stockholm-Arlanda and otherairports, security screening points arestaffed by an outside operator. Aside fromthe direct expenses of security screeningpoints, LFV invested in measures to easepassenger flows and reduce queuing times.LFV increased its training of air trafficcontrollers in order to boost the longtermcapacity of Air Navigation Services,which resulted in higher expenses.Part of the increase in expenses also consistedof activities under way to expandcommercial operations. Special expensesfor future needs related to environmentalimprovement activities were also set asidein the accounts.Depreciation/amortisation amountedto SEK 1,160 M (1,187).Operating profitOperating profit amounted to SEK 816M (731), an improvement of SEK 85 Meven though profit for the year includeda nonrecurring effect of SEK 59 M inhigher pension liability. Operating profitincluded LFV’s share in the earnings ofthe associated companies Cityflygplatseni Göteborg AB, Nordic Airport PropertiesAB and Entry Point North AB, totallingSEK 0 M (-9). The main reason forthe improvement compared to the precedingyear was that on December 31,2006, LFV sold its stake in Västerås FlygplatsAB, which was included amongassociated companies during 2006.Net financial itemsFinancial expenses included SEK 1,054M related to a nonrecurring increase inpension liability. Excluding this expense,financial income and expenses (net financialitems) totalled SEK -307 M (-284)and included a capital loss from the saleof the subsidiary Sturup Handling AB toNovia Sverige AB. The company was soldin November and represented a loss ofSEK 25 M in the accounts.Interest expenses on borrowings fromthe National Debt Office declined by SEK22 M compared to the preceding year dueto lower debt. The interest portion of theyear’s pension expenses, excluding thenonrecurring effect, rose by SEK 22 M.Profit after financial itemsProfit after financial items in 2007 amountedto SEK -545 M (447). Excluding thenonrecurring effect of the pension liability,profit amounted to SEK 568 M and wouldthus have been the best profit since 2000.LFV Holding ABLFV Holding AB was established in 1995to coordinate and manage the activitiesof LFV’s limited liability companies.In 2007, sales of LFV Holding ABwere SEK 219 M (214). During the year,sales increased mainly at Swedavia ABand Arlanda-Schiphol Development AB.In November 2007, Sturup Handling ABwas sold to Novia Sverige AB.Profit before taxes was SEK 14 M(24). The decline was due to a capital lossin connection with the sale of SturupHandling AB.SubsidiariesSwedavia AB is a wholly owned subsidiaryof LFV entrusted with carrying out exportorientedconsulting operations in the fieldof civil aviation.LFV AirportCenter AB (LAC) is awholly owned subsidiary that manages theArlanda 2:2 site leasehold, which is leasedto Stockholm-Arlanda Airport.Flygplatsfastigheter i Landvetter ABis a wholly owned subsidiary that mainlyworks with owning, managing and leasingcargo terminals to other companies, landand forest management, leasing of realestate for residential and leisure purposesand administrative services.The subsidiary Arlanda SchipholDevelopment Company AB (ASDC AB)is 60 per cent owned by LFV Holding AB,and the remainder is owned by the Netherlands-basedSchiphol International BV.The company further develops commercialbusinesses in the terminals at Stockholm-Arlanda Airport.Associated companiesLFV owns Nordic Airport PropertiesAB (NAP) together with GEGAC VikingAB, a company in the General ElectricGroup. The two owners each hold 50 percent and the purpose of the company isto develop and acquire mainly cargorelatedproperties at Swedish airports.Cityflygplatsen i Göteborg AB runscivil aviation operations at Säve Airport inGothenburg, focusing mainly on low farecarriers. LFV owns a 40 per cent stake. Theother owners are Volvo AB with a 40 percent stake and the Municipality of Gothenburgwith 20 per cent.LFV owns 33 per cent of Entry PointNorth AB. The company engages in air trafficservices training and is co-owned byDenmark’s Naviair and Norway’s Avinor AS.26> LFV 2007 < Comments on income statements

Income statementsAmounts in SEK M LFV Group State enterpriseNote 2007 2006 2007 2006OPERATING REVENUEAviation revenue 1 3,985 3,877 3,985 3,877Other operating revenue 2 2,288 2,103 2,160 1,9816,273 5,980 6,146 5,859OPERATING EXPENSESStaff expenses 3 -2,270 -2,138 -2,203 -2,066Various external expenses 4 -2,028 -1,915 -2,030 -1,925Depreciation/amortisation and write-downsof tangible and intangible fixed assets5 -1,160 -1,187 -1,127 -1 154-5,458 -5,240 -5,359 -5,146Profit on holdings in associated companies 6 0 -9 - -Operating profit 816 731 787 713Profit from financial investmentsProfit from holdings in Group companies -18 3 - -Profit from fixed-asset securitiesand receivables - - - -Interest income 7 42 36 37 33Interest expenses and similar items 8 -1,385 -323 -1 385 -323-1,361 -284 -1 348 -290Profit after financial items -545 447 -561 423Income tax and tax equivalent 9 149 -131 156 -125Minority share of after-tax profit -7 -6 - -Profit for the year -403 309 -404 298Income statements > LFV 2007

Comments on balance sheetsand funds statementsLFV operates 16 airports, which belongto a system with essentially the samestandards at all airports. The estimatedvalue of the fixed assets at the airportsexceeds the book value of the entire system.The book value of the airports thatshow deficits amounted to about SEK723 M.Since LFV is part of an industryundergoing major changes, LFV willcontinuously review the principles andassumptions on which the valuation ofits fixed assets is based. The book valueof LFV’s fixed assets at all its airportsamounted to SEK 10,685 M. Earningsand book value of fixed assets per airportare presented in the table on page 14.Capital spendingDuring 2007, capital expenditurestotalled SEK 1,088 M (808). Duringthe past four years, 2004 – 2007, LFVinvested SEK 3.4 billion, which was a significantlylower figure than in the precedingfour-year period 2000 – 2003,when LFV’s capital spending totalledSEK 9.3 billion.During 2007, Pier F at Stockholm-Arlanda Airport was completed. A newarrival centre was placed in service inTerminal 5 at Stockholm-Arlanda, operatedby LFV in collaboration with theMunicipality of Sigtuna and the StockholmVisitors Board.Work was performed on runways andaprons at Stockholm-Arlanda. At GöteborgLandvetter and Skellefteå Airport,runways were also repaved.During 2007, biofuel-fired heat generatingunits were placed in service atGöteborg Landvetter and Malmö Airport.These units contribute positivelyto lowering the airports’ environmentalimpact by substantially reducing fossilcarbon dioxide emissions. A newparking structure at Göteborg Landvetterwent into service. Early in 2008, theexpanded arrival hall at Åre ÖstersundAirport was inaugurated.Among major ongoing capitalinvestments at Stockholm-Arlandaare an expansion of the Central Buildingbetween Terminal 5 and Pier F andinvestments in infrastructure for the airport’sair cargo business. Expansion ofcargo infrastructure is also under way atGöteborg Landvetter and Malmö.The arrival hall for international passengersat Göteborg Landvetter hasinsufficient capacity and is now beingrenewed, among other things through arenovation that includes a new entrance,new baggage conveyor belts andimproved areas for meeting arriving passengers.In Air Navigation Services, developmentand upgrading of the air trafficmanagement system is under way. This isbeing handled together with Denmark’sNaviair, Ireland’s IAA and the supplierThales.Otherwise, capital spending during2007 consisted mainly of replacementinvestments to make possible a safe,competitive and environmentally soundcivil aviation system.Pension provisionsThe National Government Employees’Pensions Board decided in December2007 that new actuarial principlesfor calculating LFV’s pension liabilitywould apply starting on January 1,2008 and that provisions in compliancewith the new rules may be applied tothe 2007 accounts. Due to a lower discountrate and changes in life expectancyassumptions, pension liability increasedby SEK 1,113 M as a nonrecurring effect.In addition, pension liability increasedby SEK 143 M due to normal changesrelated to indexation, newly vestedemployees and interest.Liability to the National Debt OfficeBy means of principal payments during2007, LFV reduced its liability to theNational Debt Office from SEK 4,728 Mto SEK 4,561 M.Dividend, tax and tax equivalentThe year’s tax equivalent amounted toSEK 0 M (131). Tax equivalent is calculatedaccording to the Government’sguidelines. During 2007, subsidiariespaid SEK 4 M (4) in income tax.Return and equity/assets ratioThe increase in LFV’s pension liabilitydue to the nonrecurring effect of SEK1,113 M in the 2007 accounts adverselyaffected LFV’s return and equity/assetsratio in the short term.Return on equity after income tax andtax equivalent deteriorated, due to theincrease in pension liability, to -13 percent (9). The target of at least 8 per centestablished by the Government can againbe achieved in 2008. Return on capitalemployed was 6 per cent (6), and returnon total assets increased to 6 per cent (5).Due to the increase in pension liability,the equity/assets ratio fell to 19 percent (23).Capital spending, 2003-2007Return on equity, 2003-2007Equity/assets ratio, 2003-2007SEK M1,5001,20090060030000304050607%129630–3–6–9–12–150304050607%2520151050030405060728> LFV 2007 < Comments on balance sheets and funds statements

Funds statementsAmounts in SEK M LFV Group State enterprise2007 2006 2007 2006OPERATIONSProfit after financial items -556 443 -572 419Adjustments for items not included in cash flow 2,450 1,352 2,408 1,3261,894 1,795 1,836 1,745Tax paid -113 -15 -103 -58CASH FLOW FROM OPERATING ACTIVITIESBEFORE CHANGES IN WORKING CAPITAL 1,781 1,780 1,733 1,687Cash flow from changes in working capitalIncrease (-)/Decrease (+) in inventories 3 -6 3 -5Increase (-)/Decrease (+) in operating receivables -218 -19 -200 -20Increase (+)/Decrease (-) in operating liabilities -44 -441 8 -391CASH FLOW FROM OPERATING ACTIVITIES 1,522 1,314 1,543 1,270INVESTING ACTIVITIESShareholder contributions provided - -8 - -Divestments of subsidiaries -21 - - -Acquisitions of intangible fixed assets - -6 - -6Acquisitions of tangible fixed assets -1,089 -799 -1,088 -792Change in long-term receivables 1 -8 -5 -19Investments in financial assets 1 -3 1 10Divestments of fixed assets 11 4 11 4CASH FLOW FROM INVESTING ACTIVITIES -1,097 -820 -1,081 -803FINANCING ACTIVITIESIncrease (+)/Decrease (-) in borrowings -165 -464 -181 -465Dividend paid -164 -5 -157 -CASH FLOW FROM FINANCING ACTIVITIES -329 -469 -338 -465CASH FLOW FOR THE YEAR 96 25 124 2LIQUID ASSETS, JANUARY 1 164 139 31 29LIQUID ASSETS, DECEMBER 31 259 164 155 31Funds statements > LFV 2007

Balance sheetsAmounts in SEK M LFV Group State enterpriseNote Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2006ASSETSFixed assetsIntangible fixed assetsGoodwill - - - -Licences 10 4 9 4 94 9 4 9Tangible fixed assetsBuildings 11 4,758 4,852 4,709 4,802Land 11 120 112 120 112Field structures 11 4,203 4,267 3,287 3,323Electrical installations 11 1,218 1,296 1,218 1,296Telecommunications equipment 11 1,264 1,195 1,264 1,195Vehicles 11 933 963 933 950Leased fixed assets 11 31 31 31 31Construction in progress 11 805 694 804 69013,332 13,409 12,366 12,400Financial fixed assetsHoldings in Group companies 12 - - 75 75Holdings in associated companies 13 14 5 5 5Receivables from associated companies - - 15 17Other long-term receivables 14 67 69 26 2180 74 122 118Total fixed assets 13,416 13,491 12,492 12,526Current assetsInventories etc 44 47 44 47- StocksCurrent receivables- Trade debtors 470 450 443 421- Receivables from Group companies - - 21 23- Receivables from associated companies 23 22 25 21- Tax receivables 3 - - -- Other receivables 346 222 327 215- Prepaid expenses and accrued revenue 15 310 245 300 2351,151 938 1,116 915Cash and bank balancesGroup limit SEK 400 M (400) 259 164 155 31Total current assets 1,455 1149 1,315 994TOTAL ASSETS 14,871 14,640 13,807 13,52030> LFV 2007 < Balance sheets

Amounts in SEK M LFV Group State enterpriseNote Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2006EQUITY AND LIABILITIESEquityRestricted equity 16- State funds 1,476 1,476 1,476 1,476- Restricted reserves 727 1,136 719 1,1212,203 2,611 2,194 2,597Unrestricted equity 16- Profit/loss brought forward 1,078 516 998 455- Profit for the year -403 309 -404 298675 826 594 753Total equity 2,878 3,437 2,788 3,350Minority interest 8 7 - -Deferred tax liabilities 9 264 422 264 420ProvisionsInterest-bearing provisions- Pension provisions 17 4,838 3,582 4,835 3,568Non-interest-bearing provisions- Miscellaneous provisions 18 103 89 102 885,206 4,093 5,202 4,076Long-term liabilitiesInterest-bearing liabilities- Liabilities to leasing companies 19 36 35 36 35- Liability to National Debt Office 20 3,961 4,628 3,961 4,628Non-interest-bearing liabilities- Miscellaneous non-interest-bearingliabilities 21 929 962 15 154,925 5,624 4,012 4,678Current liabilitiesInterest-bearing liabilities- Liability to the National Debt Office 20 600 100 600 100- Overdraft facility - 23 - 23- Other interest-bearing liabilities 9 - 9 -Non-interest-bearing liabilities- Trade creditors 437 536 418 513- Liabilities to Group companies - - 11 12- Liabilities to associated companies 29 0 29 0- Tax liabilities - 104 - 104- Other non-interest-bearing liabilities 58 69 55 65- Accrued expenses and prepaid revenue 22 721 646 683 5991,854 1,478 1,805 1,416TOTAL EQUITY AND LIABILITIES 14,871 14,640 13,807 13,520Memorandum itemsContingent liabilities 23 10 11 9 10Assets pledged None None None NoneBalance sheets > LFV 2007

NotesAmounts in SEK M (figures in brackets in running textrefer to 2006).NOTE 1Aviation revenueLFV Group State enterprise2007 2006 2007 2006Passenger charges 1,140 1,165 1,140 1,165En route charges 1,238 1,171 1,238 1,171Take-off charges 781 794 781 794Aviation security 434 389 434 389Ground handling charges 199 186 199 186Compensation forair navigation services 179 160 179 160Other aviation revenue 15 13 15 133,985 3,877 3,985 3,877NOTE 2Other operating revenueLFV Group State enterprise2007 2006 2007 2006Rents and leases 749 696 730 678Car parking charges 511 477 511 477Commercial services 450 394 452 417Ground handling 239 252 184 174Property services 105 98 105 98Advertising revenue 70 63 70 63Capitalised work forown account 59 39 59 39Miscellaneous 105 83 49 362,288 2,103 2,160 1,981Of other State enterprise revenue, 2.7 per cent (3.2) camefrom Group companies.Wages, salaries and other remuneration, SEK MBoard,Director GeneralandManaging DirectorsOtheremployees2007 2006 2007 2006State enterprise 2 2 1,352 1,292Subsidiaries and associatedcompanies 4 5 39 42Total, LFV Group 6 7 1,391 1,334The Director General and Group Chief Executive was paidSEK 1.3 M (1.3) in salary and remuneration during 2007.The Chairman of the Board was paid SEK 105,100. Each ofthe other Board members received between SEK 15,000 andSEK 32,060.The Director General holds a special limited-term appointmentaccording to the rules for Swedish State executives.His position entitles him to a pension according to the PA 91State pension agreement.If the Director General should be dismissed or not be offeredequivalent new employment after his term of employmentexpires, a pension will be payable according to the ordinanceon pensions to appointed officials.The other members of Group Management are covered by thePA 03 State pension agreement and have notice periods fortermination in compliance with the State enterprise agreementand the security of employment agreement in the Statesector.The employment terms of the Managing Directors of subsidiariesare described in the annual report of each respectivecompany.Appointments held by the Director General and Board membersin other public authorities and limited liability companiesare listed on pages 52-53.Note 3Staff expenses and disclosures about staff, DirectorGeneral, Managing Directors, Boards of Directors andAuditorsLFV Group State enterprise2007 2006 2007 2006Wages and salaries 1,397 1,341 1,354 1,294Employer social welfarefees 778 681 756 659Other staff expenses 95 116 92 1132,270 2,138 2,203 2,066Among employer socialwelfare fees werepension expenses,including specialpayroll tax, of 312 232 305 229Absence due to illness (sick leave)State enterprise2007 2006Total absence due to illness as a shareof regular working hours: 4.2% 4.6%Share of total absence due to illnessrelated to continuous absenceof 60 days or more 65.5% 71.9%Absence due to illness, by gender:Men 3.3% 3.4%Women 5.9% 6.7%Absence due to illness, by age category:Age 29 or younger 2.4% 2.2%Age 30-49 3.6% 3.7%Age 50 or older 5.7% 6.9%32> LFV 2007 < Notes

Fee to auditorsLFV Group State enterprise2007 2006 2007 2006Swedish National Audit Office- Auditing assignments 1 1 1 1KPMG- Auditing assignments 1 1 - 0- Other assignments 0 0 - -- Ernst & Young 1 1 0 1- Öhrlings PricewaterhouseCoopers - 1 - 1- Other fees to auditors 0 - 0 -3 4 2 3NOTE 4Various external expensesLFV Group State enterprise2007 2006 2007 2006Re-sale expenses 169 153 113 105Property and rent expenses 295 308 277 289Materials, maintenanceand transport 299 332 294 325Travel expenses 64 60 54 54Outside services 960 829 1,071 939Administrative expenses 241 233 220 2132,028 1,915 2,030 1,925Of “Various external expenses” in the State enterprise,3.1 per cent (3.4) came from Group companies.NOTE 5Depreciation/amortisation and write-downsLFV Group State enterprise2007 2006 2007 2006Depreciation/amortisation:Intangible assets(amortisation) 5 5 5 5Buildings 356 341 354 341Field structures 266 265 238 237Electrical installations 157 155 157 155Telecommunicationsequipment 142 129 142 129Vehicles, machinery etc. 224 237 221 234Leased installations 10 9 10 9Write-downs:Intangible assets - - - -Buildings - 15 - 14Field structures - 20 - 20Electrical installations - 3 - 3Telecommunicationsequipment - 2 - 2Vehicles, machinery etc. - 5 - 5Leased installations - - - -Land 0 - 0 -1,160 1,187 1,127 1,154NOTE 6Profit on holdings in associated companiesLFV Group State enterprise2007 2006 2007 2006Associated companies:Västerås Flygplats AB- Share of profit inassociated company - -9 - -Cityflygplatsen iGöteborg AB- Share of profit inassociated company 0 0 - -Nordic Airport Properties AB- Share of profit inassociated company 0 0 - -Entry Point North AB- Share of profit inassociated company 0 - - -NOTE 7Interest income0 -9 - -LFV Group State enterprise2007 2006 2007 2006Interest income from banks 8 4 4 1Interest income fromshort-term financialinvestments 26 28 26 28Interest income fromfrom short-termreceivables 2 2 2 2Other interest income 6 2 6 242 36 37 33NOTE 8Interest expensesLFV Group State enterprise2007 2006 2007 2006National Debt Office 211 229 211 229Banks 1 1 1 1Interest portion ofpension expense 1,165 89 1,165 89Finance leases 2 1 2 1Other interest expenses 7 3 6 21,385 323 1,385 323Notes > LFV 2007

NOTE 9Income tax and tax equivalentState enterprise2007 20061 Income tax payable for the year- Group profit, excluding share ofassociated companies, before taxes -545 456Minus:- change in depreciation for tax purposes 483 -262- change in provision to tax allocationreserve 76 90- interest on tax allocation reserve 2 4Basis for calculation of income taxpayable for the year 16 28728% of this 4 80Minus: taxes paid by subsidiaries andassociated companies -4 -4Income tax payable for the year 0 772 Change in deferred tax- Depreciation for tax purposes -483 262- The year’s change in tax allocationreserve -76 -90-559 17228% of this -156 48Total deferred income tax -156 48Total income tax and tax equivalent -156 125The income statements of both the State enterprise and theLFV Group include income tax payable for the year as well asdeferred income tax.The total tax expense was calculated as follows:LFV Group State enterprise2007 2006 2007 2006Income tax payable forthe year 7 83 0 77Deferred tax -156 48 -156 48-149 131 -156 125Deferred tax liability isattributable to:Tax allocation reserve 0 76 0 76Accumulated depreciationfor tax purposes 942 1,433 942 1,426942 1,509 942 1,502NOTE 10Intangible assetsLFV Group State enterprise2007 2006 2007 2006Acquisition value onJanuary 1 30 24 30 24Acquisitions for the year - 6 - 6Acquisition value onDecember 31 30 30 30 30Amortisation andwrite-downs onJanuary 1 -21 -16 -21 -16Amortisation for the year -5 -5 -5 -5Accumulatedamortisation andwrite-downs onDecember 31 -26 -21 -26 -21Residual value onDecember 31 4 9 4 9NOTE 11Tangible fixed assetsBuildingsLFV Group State enterprise2007 2006 2007 2006Acquisition value onJanuary 1 8,486 8,382 8,418 8,327Acquisitions for the year 261 156 260 144Divestments/disposals -56 -53 -56 -53Other adjustments - - 0 -Acquisition value onDecember 31 8,691 8,486 8,623 8,418Depreciation andwrite-downs onJanuary 1 -3,634 -3,330 -3,616 -3,314Depreciation for the year -356 -338 -354 -336Write-downs for the year - -15 - -15Divestments/disposals 56 50 56 50Other adjustments 1 - 1 -Accumulateddepreciation andwrite-downs onDecember 31 -3,933 -3,634 -3,914 -3,616Residual value onDecember 31 4,758 4,852 4,709 4,802Deferred tax liability(28%)) 264 422 264 42034> LFV 2007 < Notes

LandLFV Group State enterprise2007 2006 2007 2006Acquisition value onJanuary 1 112 110 112 110Acquisitions for the year 8 2 8 2Other adjustments - - - -Acquisition value onDecember 31 120 112 120 112Depreciation andwrite-downs onJanuary 1 - - - -Adjustment of openingbalance - - - -Depreciation for the year - - - -Accumulated depreciationand write-downs onDecember 31 - - - -Residual value onDecember 31 120 112 120 112Electrical installationsLFV Group State enterprise2007 2006 2007 2006Acquisition value onJanuary 1 2,775 2,732 2,775 2,732Acquisitions for the year 79 46 79 46Divestments/disposals -39 -25 -39 -25Other adjustments 1 22 1 22Acquisition value onDecember 31 2,816 2,775 2,816 2,775Depreciation andwrite-downs onJanuary 1 -1,479 -1,327 -1,479 -1,327Acquisitions for the year -157 -154 -157 -154Write-downs for the year - -3 - -3Divestments/disposals 39 24 39 24Other adjustments -1 -18 -1 -18Acquisition value onDecember 31 -1,597 -1,479 -1,597 -1,479Residual value onDecember 31 1,218 1,296 1,218 1,296Aside from land values reported in the balance sheet, LFVmanages State lands at Örnsköldsvik, Skellefteå and GöteborgLandvetter Airports. This land was turned over by the respectivemunicipalities at no cost and is booked at SEK 0.Field structuresLFV Group State enterprise2007 2006 2007 2006Acquisition value onJanuary 1 6,770 6,684 5,625 5,540Acquisitions for the year 201 88 201 88Divestments/disposals -52 -25 -52 -25Other adjustments - 22 - 22Acquisition value onDecember 31 6,919 6,770 5,775 5,625Depreciation andwrite-downs onJanuary 1 -2,503 -2,234 -2,302 -2,062Depreciation for the year -266 -263 -238 -235Write-downs for the year - -15 - -15Divestments/disposals 52 23 52 23Other adjustments - -13 - -13Accumulateddepreciation andwrite-downs onDecember 31 -2,717 -2,503 -2,488 -2,302Residual value onDecember 31 4,203 4,267 3,287 3,323The Arlanda Link is included in the Group accounts. The acquisitionvalue of the facility consists of railway facilities atStockholm Central Station, Södra Böjen (The South Curve),a railway inside Stockholm-Arlanda Airport and other railwayfacilities inside the airport. The facility also includes toso-called Norra Böjen (North Curve), i.e. the portion of thefacility that is not used by the airport shuttle and that wasfinanced by a State grant. In addition, certain work was performedfor future commuter train services, financed using aState appropriation.Telecommunications equipmentLFV Group State enterprise2007 2006 2007 2006Acquisition value onJanuary 1 2,439 2,463 2,439 2,463Acquisitions for the year 210 44 210 44Divestments/disposals -46 -67 -46 -67Other adjustments - - - -Acquisition value onDecember 31 2,603 2,439 2,603 2,439Depreciation andwrite-downs onJanuary 1 -1,244 -1,180 -1,244 -1,180Depreciation for the year -142 -128 -142 -128Write-downs for the year - -2 - -2Divestments/disposals 46 66 46 66Other adjustments - - - -Accumulateddepreciation andwrite-downs onDecember 31 -1,339 -1,245 -1,339 -1,245Residual value onDecember 31 1,264 1,195 1,264 1,195Vehicles, machinery etc.LFV Group State enterprise2007 2006 2007 2006Acquisition value onJanuary 1 2,888 2,927 2,858 2,888Acquisitions for the year 208 154 208 153Divestments/disposals -142 -193 -142 -183Other adjustments - - - -Divestments of subsidiaries -29 - - -Acquisition value onDecember 31 2,924 2,888 2,923 2,858Notes > LFV 2007

Vehicles, machinery etc, continuedLFV Group State enterprise2007 2006 2007 2006Depreciation andwrite-downs onJanuary 1 -1,925 -1,876 -1,908 -1,852Depreciation for the year -224 -236 -221 -233Write-downs for the year - -5 - -5Divestments/disposals 142 192 142 182Other adjustments -4 - -4 -Divestments of subsidiaries 20 - - -Accumulateddepreciation andwrite-downs onDecember 31 -1,991 -1,925 -1,990 -1,908Residual value onDecember 31 933 963 933 950Leased fixed assetsLFV Group State enterprise2007 2006 2007 2006Acquisition value onJanuary 1 53 65 53 65Depreciation for the year 12 16 12 16Divestments/disposals -9 -8 -9 -8Other adjustments - -19 - -19Acquisition value onDecember 31 56 53 56 53Leased residual valuesLFV Group State enterprise2007 2006 2007 2006Buildings - - - -Electrical installations - - - -Telecommunicationsequipment - - - -Vehicles, machinery etc 31 31 31 31Construction in progressLFV Group State enterprise2007 2006 2007 2006Acquisition value onJanuary 1 694 411 690 404Acquisitions duringthe year 1,075 770 1,074 771Completed newfacilities -960 -488 -960 -485Divestments ofsubsidiaries -3 - - -Acquisition value onDecember 31 805 694 804 690During 2007, LFV received investment grants of SEK 5 M(3) from central government authorities, SEK 3 M (0) frommunicipal bodies, SEK 5 M (4) from the EU and SEK 1 M (0)from other parties.Depreciation andwrite-downs onJanuary 1 -23 -36 -23 -36Depreciation for the year -10 -9 -10 -9Write-downs for the year - - - -Divestments/disposals 7 5 7 5Other adjustments - 18 - 18Accumulated depreciationand write-downs onDecember 31 -25 -23 -25 -23Residual value onDecember 31 31 31 31 31NOTE 12Holdings in Group companiesCorporate ID Number Percentage Nominal Booknumber of shares of share capital value valueDirect holdingsShares in Group companies, State enterprise-LFV Holding AB 556374-8432 75,000 100 75 75 1Indirect holdings (via LFV Holding AB)Shares in Group companies- LFV AirportCenter AB 556381-1057 13,000 100 - -- Swedavia AB 556193-1469 3,000 100 - -- Flygplatsfastigheter i Landvetter AB 556142-8334 110,022 100 - -- Arlanda Schipol Development Company AB 556653-6628 10,000 60 - -1 Original acquisition value SEK 75 M.During 2007, the shares in Sturup Handling AB were sold.36> LFV 2007 < Notes

NOTE 13Holdings in associated companiesLFV Group State enterprise2007 2006 2007 2006On January 1 61 52 5 5AdditionVästerås Flygplats - 9 - -DivestmentVästerås Flygplats - 0 - -Share of profit inassociated companiesfor the year 8 - - -69 61 5 5Accumulated acquisitionvalueOn January 1 -56 -48 - -Share in net profit ofassociated companiesfor the year 0 -9 - -Change in equity ofassociated companiesfor the year 1 - - --55 -56 0 0NOT 14Other long-term receivablesLFV Group State enterprise2007 2006 2007 2006On January 1 69 60 21 14Items addedSettlement, Eurocontrol 5 16 6 16Other long-termreceivables -6 2 - -Depreciation on fixedassets paid in advance -1 -9 -1 -967 69 26 21Book value 67 69 26 21Book value 14 5 5 5NOTE 13 continuedHoldings in associated companiesSpecification of State enterpriseand LFV Group holdings inassociated companiesCorporate - Number Percentage Nominal Share of Book valueID number of shares of share capital value adjusted LFV Stateequity Group EnterpriseDirect holdings-A-Banan Projekt AB 556395-6928 5,000 50 5 5 - 5 1Indirect holdings(via LFV Holding AB)- Cityflygplatsen i Göteborg AB 556195-5823 5,244 40 0 1 2 -- Nordic Airport Properties AB 556598-5941 1,000 50 2 1 1 -- Nordic Airport Properties KB 969673-0143 1 50 0 3 11 -- Entry Point North AB 556682-8272 100,000 33 0 0 0 -14 51 Original acquisition value SEK 5 M.In the income statement of the Group, the share of profit from associated companies is reported under two items. One isprofit before taxes. The other is the share in the associated company’s taxes paid, which is reported along with the Group’staxes (see Note 9).Notes > LFV 2007

NOTE 15Prepaid expenses and accrued revenueLFV Group State enterprise2007 2006 2007 2006Miscellaneous prepaidexpenses 64 55 64 54Accrued revenue,sales-based rent 60 56 60 54Other accrued revenue 186 134 176 127310 245 300 235NOTE 16Restricted reserves and unrestricted equityLFV Group State enterpriseRestricted Unrestricted Restricted Unrestrictedreserves reserves reserves reservesOpening balance,2007, accordingto adopted balancesheet 1,136 826 1,121 753Dividend - -157 - -157Changes attributableto the Group’sassociated companies - - - -Transfer betweenunrestricted andrestricted equity -409 409 -402 402Profit for the year - -403 - -404Closing balance, 2007 727 675 719 594NOTE 17Pension provisionsLFV Group State enterprise2007 2006 2007 2006On January 1 3,582 3,419 3,568 3,406The year’s pensionprovisions 1,408 286 1,408 1 285The year’s pensiondisbursements -141 -123 -141 -123Divestments ofsubsidiaries -11 - - -4,838 3,582 4,835 3,5681 New principles for calculating pension liability resulted in anonrecurring provision of SEK 1,113 M.NOTE 18Other provisionsLFV Group State enterprise2007 2006 2007 2006Restructuring expenses 23 40 23 38Job security funds 26 23 26 23Other provisions 55 26 54 26103 89 102 88NOTE 19Liabilities to leasing companiesLFV Group State enterprise2007 2006 2007 2006Leasing companies 36 35 36 3536 35 36 35NOTE 20Liability to the National Debt OfficeLFV Group State enterprise2007 2006 2007 2006On January 1 4,728 5,053 4,728 5,053New borrowings 194 1,178 194 1,178Payment of loan principal -361 -1,503 -361 -1,503On December 31 4,561 4,728 4,561 4,728The total liability to the National Debt Office was SEK 4,561 M.The total projected principal payment of SEK 600 M during2008 was reported as a current liability.Maturity date,1-5 years form balance sheet date SEK 3,452 MMaturity date,more than 5 years from balance sheet dateSEK 1,109 MThe average remaining maturity of interest refixing periodsas of December 31, 2007 was 3.0 years (2.6), including interestrate derivative instruments.The approved ceiling on borrowing was SEK 7,700 M in 2007and is SEK 6,000 M in 2008.“Pension provisions” represent the actuarially calculatedcommitments under the PA 91 and PA 03 pension agreements,according to the National Government Employees’ PensionsBoard, including actuarially calculated pension paymentsgranted.38> LFV 2007 < Notes

NOTE 21Miscellaneous long-term non-interest-bearing liabilitiesLFV Group State enterprise2007 2006 2007 2006Prepaid traffic rights,Arlanda Link 914 947 - -Interest-free loans 15 15 15 15929 962 15 15NOTE 22Accrued expenses and prepaid revenueLFV Group State enterprise2007 2006 2007 2006Wages, salary andother remuneration 18 10 18 9Holiday pay liability 130 127 130 124Employer socialwelfare fees 89 85 89 84Accrued interest expenses 62 61 62 61Other accrued expenses 299 229 295 220Prepaid revenue 123 134 90 100721 646 683 599NOTE 23Contingent liabilitiesLFV Group State enterprise2007 2006 2007 2006Pension obligations tosubsidiaries andassociated companies 1 8 1 8Capital coverage guarantees 1 1 - -Other contingent liabilities 8 2 8 210 11 9 10See also the description of the obligations related to A-BananProjekt AB in the Report of the Directors.State budget income items2114 Surplus remitted by LFV 157Notes > LFV 2007

AccountsThe Government’s instructions to LFV(SFS 1988:78) specify that LFV and thecompanies in which the Swedish State,through LFV, directly or indirectly has acontrolling influence together form a Stateenterprise group, the LFV Group.The Group consists of the State enterpriseLFV, the wholly owned holding companyLFV Holding AB plus the limited liabilitycompanies LFV Airport Center AB(LAC AB), Flygplatsfastigheter i LandvetterAB and Swedavia AB, which are whollyowned by the holding company. The subsidiaryArlanda Schiphol DevelopmentCompany AB (ASDC AB) is 60 per centowned by the holding company. The holdingcompany’s shares in the subsidiarySturup Handling AB were sold in Novemberto Novia Sverige AB. The associatedcompanies Nordic Airport Properties AB(NAP AB) and Nordic Airport PropertiesKB (NAP KB) are 50 per cent owned.The associated companies Cityflygplatseni Göteborg AB and Entry Point NorthAB are 40 per cent and 33 per cent owned,respectively. Cityflygplatsen i GöteborgAB, in turn, owns 100 per cent of theshares in Säve Airport AB. On behalf ofthe Swedish State, the State enterprisealso owns 50 per cent of the shares in A-Banan Projekt AB, which is thus an associatedcompany of the State enterprise.According to a decision by the SwedishGovernment, the shares in A-Banan ProjektAB will be transferred to the GovernmentOffices during 2008. LFV operatedcivil aviation traffic at 16 airports duringthe full year 2007. At two of these airports,LFV was in charge of civil aviationtraffic, which was made available througha cooperation agreement with the SwedishArmed Forces. On January 1, 2007, LFVsold Kalmar Airport to the municipality.LFV is in charge of air navigation servicesin Sweden. It operated local air trafficcontrol services at 35 airports. Two airtraffic control centres, in Malmö andStockholm, were responsible for trafficmanagement in airspace outside airportareas.The airports operated by LFV belong toa single system. The financial results at agiven airport are affected by traffic volumegenerated both at that airport and elsewherein the system. This is particularlyobvious at the airport that forms the hubof the system, Stockholm-Arlanda, whichhandles traffic that feeds in from manylocations around Sweden.The criterion for an airport to contributepositively to the system is not necessarilythat it shows a surplus whenviewed in isolation. Based on this systemapproach, deficits that arise at some airportshave been covered by surpluses atother airports. However, some airportsshow such large deficits that not even acosting analysis that takes into account allrevenue that these airports generate forthe system as a whole will show positiveearnings.Accounting principlesLFV’s accounts for the State enterpriseand the Group follow the Ordinance onAnnual Reports and Budget Material (SFS2000:605), the regulations and generaladvice of the Swedish National FinancialManagement Authority (ESV) and generallyaccepted accounting practices as providedby the Ordinance on the Accountsof Public Authorities (2000:606). To theextent there is a lack of standard settingtargeted directly to public authorities andState enterprises, LFV applies the valuationrules in the recommendations of theSwedish Financial Accounting StandardsCouncil in the manner reported in eachrespective section below.In preparing their annual reports, thesubsidiaries of LFV apply the AnnualAccounts Act and generally acceptedaccounting principles for limited liabilitycompanies.Formats and supplementarydisclosuresThe income statements, balance sheetsand funds statements have been formattedin compliance with the rules for Stateenterprises and State enterprise groups.Recommendation No. 4 of the SwedishFinancial Accounting Standards Councilon accounting for extraordinary itemsand disclosure for comparative purposesis applied.Changes in accounting principlesetcIn the income statements, balance sheets,funds statements and the notes to these,certain marginal adjustments and relocationshave been made in 2006 figures.Principles of consolidationThe consolidated accounts include theState enterprise (LFV) and those Groupcompanies in which the State enterprisedirectly or indirectly possesses more thanhalf the voting power for all shares or otherwiseexercises a controlling influence, aswell as those other companies (associatedcompanies) in which the State enterprisehas a substantial influence as a consequenceof its shareholding.SubsidiariesThe consolidated accounts have been preparedaccording to the acquisition methodof accounting.Goodwill is amortised, when applicable,over the expected utilisation period.Negative goodwill that corresponds toexpected future expenses is withdrawn asexpenses arise.The Group’s accounting principlesfor postponed (deferred) tax effects aredescribed below under the heading “Taxesand tax equivalent”.Associated companiesReported as associated companies arecompanies in which the State enterprisecan exercise substantial influence due toits holding of more than 20 per cent butno more than 50 per cent of the votingpower. With the exception of A-BananProjekt AB, these companies are reportedin the consolidated accounts accordingto the equity method of accounting.Since the Swedish State – throughLFV and the National Rail Administration(Banverket, BV) – owns 100 per centof the shares in A-Banan Projekt AB, LFVreports this associated company accordingto the proportional consolidationmethod of accounting, in compliance withthe Ordinance on Annual Reports andBudget Material. The proportional consolidationmethod means that in its balancesheet and income statement, each respectiveowner company reports its proportionof the assets and liabilities as well as theearnings of the associated company.General balance sheet valuationprincipleUnless otherwise stated, assets, liabilitiesand provisions have been valued at acquisitionvalue.Fixed assetsTangible fixed assetsTangible fixed assets are valued at theiracquisition value less depreciation. Whenapplicable, a writedown is made in themanner described below. When constructingfacilities costing substantialsums, in compliance with the Ordinanceon Annual Reports and Budget Material,interest during the construction period isincluded in acquisition value. The capitalisedamount has been determined accordingto the alternative permitted in RecommendationRR 21 of the Swedish FinancialAccounting Standards Council on borrowingcosts.LFV has no such obligations relatedto disassembly, removal, soil decontaminationand similar measures that mustbe included in the depreciable amount offixed assets.Depreciation is calculated by apportioningthe acquisition value on a straightlinebasis over the estimated utilisationperiod. Depreciation commences when anasset is ready to be placed in service for itsintended purpose. When an asset includes40 > LFV 2007 < Accounts

components with different utilisation periods,LFV applies the rules in RR 12 concerning“component depreciation”.Ongoing capital spending projects arereported under the heading “Constructionin progress”. Any writedown requirementsare examined, and LFV applies RecommendationRR 17 of the Swedish FinancialAccounting Standards Council on impairmentof assets.For many years, in the valuation of airports,LFV has applied a system approach.Since the airports are operated as one system,an individual airport has been valuedon the basis of its usefulness to the systemrather than on the basis of reported profit.Because the airports are operated as asystem, it is not possible in a meaningfulway to isolate the cash flow that is attributableto individual airports that are partof the system. When applying RR 17, theairport system has therefore been treatedas a single cash-generating unit. In casethere are facilities at an airport that are notneeded in the system, a separate valuationof these occurs. Since the airport systemis treated as a single cash-generating unit,the need for write-downs will essentiallybe set in compliance with the same principlesas prescribed in the Ordinance onAnnual Reports and Budget Material.Intangible fixed assetsLFV applies ESV’s instructions and generaladvice concerning the reporting ofdevelopment expenditures. According tothese instructions, development expendituresthat meet specified requirementsshall be reported as intangible fixed assets.Research expenditures may not be capitalised.Since ESV’s rules are based on thesame principles as Recommendation RR15 of the Swedish Financial AccountingStandards Council on intangible assets,LFV has obtained guidance on variousapplication questions from RR 15. Purchasedsoftware with an economic servicelife estimated at more than three years isreported as an asset.Depreciation and amortisation periodsStarting with the financial year 2001, LFVhas applied depreciation periods of 40Amortisation, intangible fixed assetsSoftwareGoodwill3 years5 yearsDepreciation, tangible fixed assetsBuildings(SkyCity facility)Field structures(Arlanda Link)Electrical installationsTelecommunications equipmentVehicles, machinery etcComputers on loan to employees5 – 40 years30 years10 – 40 years40 years5 – 20 years8 – 15 years3 – 10 years3 years1 Personal computers other than computers on loanto employees are estimated to have an economicservice life of less than 3 years. The acquisitioncost is thus expensed immediately.years for frames of terminal buildings andfield structures. Applying RecommendationRR 12 of the Swedish FinancialAccounting Standards Council on tangiblefixed assets, components with a shortereconomic service life are depreciated overthe estimated shorter utilisation period ofeach component. The depreciation periodsapplied are re-examined on a continuousbasis.LeasesLeases are classified either as finance oroperating leases. Classification is done byapplying Recommendation RR 6:99 of theSwedish Financial Accounting StandardsCouncil on leasing agreements.Leases that are classified as financeleases are reported as assets and liabilitiesin the consolidated balance sheet and, asappropriate, in the State enterprise balancesheet. The amounts reported are treated inthe manner stated in the Council recommendation.InventoriesInventories are valued at acquisition valueor net realisable value, whichever is lower.Revenue recognitionThe State enterprise applies general accrualaccounting principles when reportingboth aviation revenue and other operatingrevenue. The principles applied are compatiblewith Recommendation RR 11 ofthe Swedish Financial Accounting StandardsBoard on revenue recognition.LFV’s subsidiaries apply RR 11 in theirrevenue recognition. The subsidiarySwedavia thus applies the rules in RR 11on service assignments (percentage ofcompletion method) when reporting revenueresulting from ongoing consultingprojects.Trade debtorsProvisions for expected loss risks relatedto outstanding trade debtors have beenbased on individual examinations.Receivables and liabilities in foreigncurrenciesReceivables and liabilities in foreigncurrencies have been translated at theexchange rate prevailing on the balancesheet date, in compliance with RecommendationRR 8 of the Swedish FinancialAccounting Standards Council on reportingthe effects of changes in exchangerates.To the extent receivables and liabilitieshave been hedged by forward contracts,they are translated at the contractedexchange rate.Provisions and contingent liabilitiesLFV applies Recommendation RR 16 ofthe Swedish Financial Accounting StandardsCouncil on provisions, contingent liabilitiesand contingent assets in its reportingof provisions and contingent liabilities.Under provisions, LFV reports any futureobligations related to employees who havebeen terminated due to shortage of workand are aged 55 years or older. Within asix-year period, such individuals may begranted pension benefits as stipulated byan agreement with the Swedish Job SecurityFoundation, provided that they havenot obtained other permanent employment.The assessment of the size of theprovision was made on the basis of theinsurance premium that governmentauthorities (not State enterprises) mustpay to the Job Security Foundation whenan employee is terminated due to shortageof work.A-Banan Projekt AB has future rentcommitments to the Swedish passengerrail company SJ and LFV related to rentfor train station and airport areas. Theseamounts have not been reported as liabilitiesin the accounts of A-Banan ProjektAB, since this company must pay the samecompensation to SJ and LFV as the companyreceives from the operator, A-TrainAB, under the Project Agreement.PensionsBeginning with 2003, a new pensionagreement, PA 03, has applied to SwedishState employees born in 1943 or later. Foremployees born in 1942 or earlier, pensionagreement PA 91 still applies. Pensionliability is calculated by the NationalGovernment Employee Pensions Board(SPV). PA 03 includes retirement pension,survivors’ pension and disability pensioncoverage. SPV’s Board of Directors hasapproved new actuarial principles for calculatingpension liability. Due to a lowerdiscount rate and changed life expectancyassumptions, LFV’s pension liabilityincreased by SEK 1,113 M as a nonrecurringeffect on December 31, 2007.PA 03 includes the following retirementpensions:• Defined-contribution pensions − individualretirement pension and supplementaryretirement pension, KÅPAN.Premiums are paid for these, and• Defined-benefit pensions − retirementpension on income above 7.5 “baseamounts” as defined by Swedish socialinsurance rules, and retirement pensionaccording to transitional rules foremployees born from 1943 to 1972.These commitments are reportedunder provisions.The year’s provision for pension liabilities,together with premiums paid, wasexpensed. The interest portion of theyear’s pension expense was reported asa financial expense. Indexation of certainbenefits beyond the interest rate, 2.5per cent, included in the basis for calculatingpension liability was also reportedin the interest portion. During 2007, theportion of the nonrecurring effect, aboutAccounts > LFV 2007

95 per cent of SEK 1,113 M, that was dueto a lower discount rate was classified asa financial expense. About 9 per cent ofemployees were not updated, which meansthat the pension liability for them was calculatedon a standardised basis. “Updated”means that SPV carries out a completereview of all of a State employee’s jobs forthe State, as well as for local authorities orprivate employers. If there are gaps in theemployment period, pension liability iscalculated on a standardised basis. Amongother things, this means that SPV assumesthat an employee has had a State job fromthe age of 28 and that liability is calculatedusing a factor of 0.95. This implies thatthe actual liability may be either larger orsmaller. The portion of pension liabilitycalculated on a standardised basis, includingspecial payroll tax, amounted to SEK30 M. In LFV’s judgement, its liability isnot understated. LFV has chosen to reportthe pension liability calculated by SPV.The reported pension liability consistsof LFV’s actuarially projected obligationsunder the PA 91 and PA 03 pensionagreements. This pension liability is calculatedaccording to the principles establishedby the Board of SPV. Pension liabilityincludes obligations to both activeand retired employees. Unvested commitments,i.e. those related to employees withretirement ages below 65, are includedin the liability, since these employees areexpected to qualify for pensions.The State enterprise pays the specialpayroll tax on pension disbursements. Theprovision for the special payroll tax is thusbased on the size of the pension liability atthe end of the financial year.Taxes and tax equivalentThe subsidiaries of LFV pay corporationtax. LFV is not liable for income tax but,in addition to the dividend, must remit a“tax equivalent” amount that is equivalentto the income tax that would be paid if itsoperations occurred in the form of a limitedliability company.The tax equivalent payable for the yearis to be calculated on the basis of reportedGroup profit according to the consolidatedaccounts, minus tax-exempt appropriationsequivalent to those available tolimited liability companies and minus thecorporation tax payments made by subsidiaries.The State enterprise reports a liabilityrelated to the estimated tax equivalent forthe financial year. The Government willdetermine the final dividend amount andthe year’s tax equivalent amount when itadopts the 2007 accounts of LFV.Both the State enterprise and theGroup report postponed (deferred) tax onthe difference between reported profit andprofit for tax purposes, in compliance withRecommendation RR 9 of the SwedishFinancial Accounting Standards Council.The equity portion of the untaxedreserves of subsidiaries and the utilisedportion of the State enterprise’s potentialextra depreciation on fixed assets areincluded in restricted reserves, which arereported both in the accounts of the Stateenterprise and the Group. The State enterprisehas the opportunity to carry outextra depreciation on fixed assets, SEK1,654 M as of December 31, 2007. SEK942 M was used for calculation of taxequivalent for 2007 and prior years.LFV pays State real estate taxes and thespecial payroll tax on pension expensesand is liable for taxation under the law onvalue-added tax. LFV also pays advertisingtaxes on revenues from renting outadvertising space at airports as well asenergy tax related to its energy consumption.MiscellaneousThe figures that are reported have beenrounded off in some cases. This meansthat tables and estimates do not alwaysadd up. In texts and tables, figures 0 and0.5 are reported as 0. If there is no figure,a dash is used.Profit for the yearThe LFV Group’s profit after financialitems in 2007 amounted to SEK -545 M(447), a deterioration of SEK 992 M comparedto the preceding year. The reasonfor the deterioration in profit was the nonrecurringeffect that occurred due to thenew actuarial principles for calculation ofpension liability. Operating profit excludingthe nonrecurring effect for higher pensionliability would have amounted to SEK568 M, which is an improvement of SEK121 M compared to 2006 − an improvementprimarily due to a favourable passengertrend, improved commercial earningsand the implementation of efficiencyraisingmeasures.Profit forecast for 2008Profit in 2008 is expected to be positive.RisksA-Banan Projekt ABA-Banan Projekt AB (A-Banan) is an associatedcompany of the State enterprise.The shares in A-Banan are owned on a50-50 basis by LFV and the National RailAdministration (Banverket, BV). In theautumn of 2007, the Swedish Governmentdecided that the Ministry of Enterprise,Energy and Communications will takeover management of the shares starting onJanuary 1, 2008. In conjunction with this,LFV no longer has any representative onthe Board of Directors of A-Banan, whichlimits LFV’s detailed knowledge of itsoperations. The issue of the unlimited capitalcoverage guarantee and of LFV’s obligationto compensate A-Banan for costsassociated with the project has not beenfinally settled.The task of A-Banan is to erect, ownand manage the “Arlanda Link”, whichconnects Arlanda Airport with theState-owned railway network and is alsoentrusted with overseeing the State’s rightsand obligations under the ArlandabananProject Agreement as well as participatingin the development of rail services atStockholm-Arlanda Airport. Through theProject Agreement, A-Train AB (A-Train)was assigned to build, finance and operatethe Arlanda Link, as well as be in chargeof the Arlanda Express airport shuttletrain service between Stockholm CentralStation and Stockholm-Arlanda Airport.A-Banan has limited equity. LFV andBV have issued an unlimited liquidity andcapital coverage guarantee that the companywill always be able to fulfil its contractualobligations. This commitment isbased on a decision by Parliament, whichthe Government conveyed to the twoauthorities in its appropriation directives.LFV and BV have signed a share managementand cooperation agreement. Sincethe contractual rights and obligations ofthe Swedish State in the project have beengathered in A-Banan, the State’s risk exposurewill be managed by that company.According to the Project Agreement,A-Train carries the entire commercial andtechnical risks of the project. LFV’s risk inthe project consists of actions by A-Bananor by LFV itself that affect these operations,plus the fact that as an owner ofA-Banan, LFV may be indirectly affectedby any problems with the project.The Arlanda Link is a very complexproject, since it concerns infrastructurethat is part of the national railway systemand essential for developing environmentallysounder ground transport servicesto Stockholm-Arlanda Airport. The contractualperiod is very long, and changesoccur and have occurred in its surroundingsthat are important to the Project.One such example is the new Railway Actand demands that more tasks within managementof railway infrastructure shallrequire permits from the Swedish RailAgency. A-Banan has applied for a permitto grant traffic service rights on theArlanda Link. Such a permit is crucial toenable A-Banan to fulfil its assignmentunder Sweden’s national traffic policy concerningthe development of rail traffic toStockholm-Arlanda Airport. This issue iscurrently being examined by the DalarnaCounty Administrative Court.In compliance with contracts andagreements, for many years A-Train hassubmitted information about technical,financial and traffic developments in theProject. A-Train has limited its submissionof information, which makes it moredifficult for A-Banan to follow changes inthe Swedish State’s risks in the Project. A-Train has proposed that dividends to theowner shall be allowed. In the opinion ofA-Banan and the National Debt Office,there are no contractual provisions fordividends. A-Train has requested that theissue be examined through arbitration.If A-Train does not fulfil its assignment42 > LFV 2007 < Accounts

and the company’s lenders do not takeadvantage of their “step-in right”, A-Bananre-assumes responsibility for the railwayfacility and traffic service rights on theState’s track facilities. A-Banan has theright and under certain conditions theobligation to take over six of the seventrains used in the Arlanda Express airportshuttle train service. For the seventh train,there is no such contractual obligation.According to the appropriation directives,LFV and BV shall compensate A-Bananfor expenses associated with the projectthat would otherwise have been performedby LFV and BV. Compensation from LFVin 2007 was SEK 2.3 M (3.9).Financial risksThe financial operations and financial riskmanagement of LFV are coordinated ina separate profit centre, LFV Finance. Itsoperations are based on a financial policydocument adopted by LFV’s Board ofDirectors, which states the limits withinwhich LFV may be exposed to financialrisks in the areas of funding, finance andoperating leases, financial investments andforeign exchange transactions.Interest rate risk in LFV’s borrowingportfolio is limited by defining an averageinterest refixing period of 2.5 years with apermitted deviation of ±12 months. Theinterest payments in the borrowing portfolioshould be uniformly distributed.Within a 12-month period, a maximum of50 per cent of liabilities outstanding maybe rolled over.Derivative instruments are activelyused to control interest rate exposure,for example by extending or shorteningthe average fixed-interest period withoutchanging the underlying loan. Surplusliquidity is invested in certificates ofdeposit and with counterparties that havea creditworthiness equivalent to categoryK1 according to the Nordisk Rating systemor its equivalent. Financial investmentsmay not have a maturity period of morethan 12 months.LFV’s exchange risks are primarilyrelated to payments for capital expenditures.According to LFV’s financial policy,disbursements shall be hedged, for exampleby using currency forward contracts.CreditsLFV has a credit council that continuouslyreviews the credit situation of all customers.The objective is to collect accountsreceivable more quickly and to minimiseLFV’s credit losses.Other risksAviation market developments LFV’sfinances are strongly dependent on aviationmarket developments. Revenue ishighly volume-dependent while costs arelargely fixed. As a result, changes in aviationtraffic volume have a major impact onLFV’s earnings.Developments in the domestic marketdue to increased competition for shortdistancetrips as well as the risk that theprivate market may decline in internationaltraffic because aviation is perceivedas too environmentally disruptive aredeemed to be the greatest threats.During 2012, a system for trading inemission allowances for civil aviationwithin the EU is highly likely to be created.This means that it is less likely thatany other environmentally related chargesor taxes will be introduced during theperiod. If civil aviation is not included inemission trading, however, the issue ofother taxes and charges can be expectedto be raised. In a short-term perspective,a national tax on aircraft fuel (or on carbondioxide emissions) is deemed to bethe greatest risk.Action:Maintain strict cost control and reasonablecapital spending volume to achieve a goodproductivity trend. In case of a sharp downturnin traffic, price increases may eventuallybecome necessary. Restructuring mayalso be required in order to adapt operationsto the prevailing traffic volume.Environmental permit conditionsmay limit LFV’s developmentpotentialToday several of LFV’s airports do nothave environmental permits that allowsufficient production. Most important isthe emission ceiling at Stockholm-ArlandaAirport, which must be changed if longtermtraffic growth is to be possible. Atsome airports with valid environmentalpermits, the increasing demands of outsidebodies may lead public authoritiesto re-examine LFV’s operations. This, inturn, may lead to production ceilings andtightened environmental permit conditionsthat limit future development potential.A class-action suit has been filedagainst LFV claiming continuing damagesdue to aircraft noise from flights abovecentral Upplands Väsby since the thirdrunway went into service at Stockholm-Arlanda Airport. The suit is classified asa claim for “pure economic loss”. Accordingto information from the court, about6,000 individuals have joined the classactionsuit.Action:More intensive dialogue with neighboursand other stakeholders to describe LFV’sactions in managing environmental problemsrelated to noise and emissions.Increased efforts to stimulate greater useof public transport to and from airports.Efforts to bring about changes in the emissionceiling at Stockholm-Arlanda Airportin a way that, in the long term, will allowfull utilisation of the airport’s capacity.Weaker growth for airport commercialproductsLFV’s financial plan includes a numberof aggressive investments in commercialoperations that imply a major increase inearnings from airport commercial products.If revenue does not increase asplanned, this will adversely affect earnings.An increased number of disputeswith tenants and other commercial playersat airports may also affect future profitability.Action:LFV follows developments in other countriescarefully to track market trends.Clearer follow-up in order to spot negativedivergences early and focus on developingnew product categories. In case of weakergrowth, LFV may need to take compensatorysteps for aviation-related products.Growth in operating expensesRecently there have been significantincreases in operating expenses for airnavigation services and security screening.The increase in air navigation servicesmainly consists of higher salary and pensionexpenses. If LFV does not succeed inimplementing efficiency-raising measuresto offset the adverse consequences of thesecost increases, LFV’s charges and the airlines’expenses will increase. In securityscreening, the increases are mainly due tostricter screening requirements and thushigher staffing. Any further changes insecurity screening requirements may havean adverse impact on LFV’s expenses andthus on charges to airlines for this product.Action:An efficiency-raising plan is being developedat Air Navigation Services.Streamlining and review of the securityscreening process aimed at limiting expensesand active efforts to influence regulatoryauthorities in order to achieve cost-effectivesolutions without sacrificing the levelof security.Capital spending needsThe pace of capital spending at LFV isincreasing, while economic growth in itssurroundings is slowing. If traffic growthshould be weaker than expected and capitalspending requirements in infrastructureshould still increase, for example dueto new security regulations or infrastructureneeds due to peak-period requirements,LFV’s profitability will deteriorate.Action:Improved follow-up of capital spending andstrict requirements for thorough financialprojections in commercial projects.Accounts > LFV 2007

Performance report according to the annualappropriations directive for LFV PERFORMANCE REPORT• On December 15, 2006, the Swedish Government approved the annual appropriations directive for LFVfor 2007. The directive presents the objectives of transport policy, of civil aviation and of the SwedishState’s civilian airports and air navigation services.• The directive also stipulates the performance report that the LFV shall submit concerning how LFVhas contributed to achieving such objectives. The following section presents the main contents of thedirective and, inserted below each statement of objective, LFV’s performance report.Policy field: Transport policyThe overall transport policy objective is to ensure that citizensand businesses in all parts of the country are provided with transportthat is efficient in terms of the economy as a whole and sustainablein the long term.Branch of operations:State civil aviation airports and air navigationservicesLFV shall contribute to the transport policy objectives for airtravel in an economically efficient and profitable manner byoperating and improving cost-effective, safe and well managedairports and air navigation services.Performance report requirementsLFV shall report its return on equity and equity/assets ratio.• The long-term target for return on equity is that profit aftertax equivalent shall amount to 8 per cent of equity.• The 2007 target for the equity/assets ratio is 25 per cent,after which equity/assets ratio shall amount to at least 25 percent long-term.• As a restriction on price increases, traffic charges excludingair navigation charges en route, aviation security chargesand noise-related charges may increase by no more than theNet Price Index, measured starting in 2001.Performance reportReturn on equity amounted to -13 per cent.The equity/assets ratio was 19 per cent.During 2007, LFV remained below the price ceiling.An accessible transport system and favourableregional developmentAccessibility for citizens and businesses between regions and theworld at large shall be improved. The percentage of people withspecial needs who can utilise air travel shall increase. No laterthan 2010, the air transport system should be accessible topeople with disabilities.Performance report requirementsLFV shall report how it takes into account the needs of peoplewith disabilities when making major changes in the terminalareas of its airports.LFV shall report how it is working to improve accessibilityfor citizens and businesses between regions and the worldat large.Performance reportLFV is working to achieve the disability policy objective thatno later than 2010, the air transport system shall be accessibleto people with disabilities.As one of various examples of this work, for years there hasbeen a well-developed assistance and information service at allLFV airports.During 2006 the EU decided through a regulation(1107/2006) that responsibility for providing assistance to passengersat airports shall be transferred from airlines to airportsstarting on July 26, 2008. The regulation gives all persons withdisabilities and reduced mobility the right to assistance, regardlessof whether these conditions are due to disability, age orother factors.One of the most important requirements means that pointsof arrival shall be designated, where people with disabilities orreduced mobility can announce their arrival and request assistance.One purpose is to facilitate transfers between modes oftransport at airports.LFV believes that the regulation will result in improvedopportunities to achieve uniform high quality in the task ofassisting such passengers, while the costs will be borne equitablyby all passengers.During 2007, LFV began the task of preparing to carry outthe EU’s regulation 1107/2006 at all LFV airports.LFV pursues active aviation marketing work for the purposeof expanding its range of flight connections for passengerand cargo transport and is thereby contributing to improvingaccessibility for citizens and businesses between regionsand the world at large. During 2007, for example, this resultedin many new international routes to European destinations,three new intercontinental non-stop routes from Stockholm-Arlanda Airport and an expanded range of cargo capacity atseveral LFV airports. The bankruptcy of FlyMe, the SAS cabinstaff strike during the spring and problems during the autumnwith the Dash 8 Q400 aircraft type adversely affected frequenciesand reliability during the year. Charter flights grew at severalsmaller airports during 2007.High transport quality standardsDelays in commercial air travel shall diminish, among otherthings through improvement and efficient management ofthe State’s airport system and air navigation services.Performance report requirementsLFV shall present statistics on delays in air traffic as well asan overall report on their causes. Causes that lie within LFV’ssphere of responsibility shall be reported separately. In addition,the steps that LFV has taken shall be reported.44> LFV 2007 < Performance report

Pär Blom works at Stockholm-Arlanda Airport to ensure that runways are skid-free, so that aircraft can take off andland safely even in the winter.Rapportering enligt regleringsbrevet LFVs Flygtrafiktjänster medarbetare för LFV > LFV 2007

Performance reportLFV monitors the punctuality of Swedish air travel monthlythrough the Delay Analysis Report at Swedish Airports(DARSA) system, which records delays at Stockholm-ArlandaAirport. Due to the airport’s function as a central hub fordomestic traffic, these statistics can − in all essential respects− be regarded as representative of Swedish air travel. Meanwhileother airports have extremely few delays. Statistics indicatethat between 2006 and 2007, delays at Stockholm-Arlandaincreased by about 2.3 percentage points. The single mostcommon reason for shortcomings in punctuality is normallythe influence of weather, a factor that causes variations in thereporting from year to year.Most shortcomings in punctuality for departing internationalpassengers are attributable to aircraft arriving late fromabroad, conditions where aircraft are kept in Sweden as a resultof traffic congestion in European airspace or a lack of landingopportunities. Swedish domestic traffic works comparativelywell, with few serious delays.The Air Navigation Services normally cause few delays.Those that nevertheless occur can mainly be attributed to staffingproblems and technical faults in the system. Eurocontrol’sstatistics indicate that in an international comparison, Swedenhas few delays.During the first half of 2007, however, staff shortages arosein air traffic control, among other places at Stockholm-ArlandaAirport, due to abnormally many absences due to illness andleave, which increased delays during this period and resulted inunusually many cancelled flights. This staffing shortage unfortunatelycoincided with salary negotiations for air traffic controllers.Statistics show that the number of cancelled flightsincreased by a full 28 per cent between 2006 and 2007. It canbe noted that these cancelled flights coincided closely in timewith the period when staffing shortages occurred among airtraffic controllers at Stockholm-Arlanda. (It should be notedthat cancelled flights are not reported in LFV’s delay statistics.)LFV participates in international efforts to solve the congestionproblem in Central Europe. Meanwhile LFV airportsmake continuous investments aimed at improving their passengerand aircraft flows.Delays are reported according to the 99 delay codes of theInternational Air Transport Association (IATA). Of these, onlyabout six are related to airports and two are related to air trafficcontrol systems. This provides an indication of the numberof reasons for delays that may be connected to other circumstancesand organisations.The most common cause of delays at LFV’s large airports istechnical problems. Despite very thorough and well-plannedmaintenance and reserve capacity in systems, such problemsnevertheless sometimes arise. One key facility of great importanceto the airport is the one that handles sorting and securityscreening of cargo hold baggage. The external electricity supplyis also of vital importance to the smooth functioning of anairport.To combat delays, Stockholm-Arlanda Airport deliberatelymaintains an infrastructure with built-in margins that allowthe airport to handle constantly varying aircraft sizes duringpeak traffic. In addition, Stockholm-Arlanda Airport uses avery efficient but resource-intensive snow removal methodologyin order to minimise delays during snow removal.Overall, because of these and numerous other measures,from a statistical perspective Stockholm-Arlanda Airport doesnot cause delays but instead helps to reduce delays caused elsewherein the air travel system. Put simply, aggregate delay timefor arriving passengers during 2007 was larger than aggregatedelay time for those departing from the airport during thesame year.Data from the Association of European Airlines (AEA)show that Stockholm-Arlanda Airport is among the foremostairports in Europe in terms of punctuality.A good environmentLFV shall help achieve the subsidiary objectives of nationalenvironmental policy. It shall take steps to ensure increasedtravel by public transport to and from Stockholm-ArlandaAirport.Performance report requirementsLFV shall report:- how much it has reduced its atmospheric emissions of fossilcarbon dioxide from its own operations,- the number of people exposed to aviation noise exceedingthe threshold limit values for indoor noise approved by Parliamentand what steps it has taken to reduce the noise load,- how it has worked to reduce the adverse effects of airportoperations on run-off water recipients,- its progress in phasing out chemicals found on the SwedishChemicals Inspectorate’s PRIO list that are used in LFVoperations- the percentage of public transport riders at LFV’s airports aswell as its efforts to increase the percentage of public transportriders to and from LFV airports, as well as other measuresto reduce the environmental impact of ground transportservices.Passengers3,000,0002,500,0002,000,0001,500,0001,000,000500,000Stockholm-Arlanda AirportPunctuality, domestic traffic, 2007Passengers7,000,0006,000,0005,000,0004,000,0003,000,0002,000,0001,000,000Stockholm-Arlanda AirportPunctuality, international traffic, 20070DepartingpassengersArrivingpassengers0DepartingpassengersArrivingpassengersTotal number of passengersDelay of 16-30 min.Delay of 31-60 min.Delay > 60 min.Total number of passengersDelay of 16-30 min.Delay of 31-60 min.Delay > 60 min.46 > LFV 2007 < Performance report

Emissions from LFV’s own operationsYear CO 2[tonnes] NO X[tonnes] HC[tonnes]2003 15,800 94 192004 14,900 100 172005 12,800 101 172006 11,200* 93 142007 8,400 55 5* Revised since 2006.CO 2kg/passenger0,80,60,40,2Emissions per passenger2003-20074321NO Xg/passengerPerformance reportAccording to the appropriations directive for 2007, LFV shallreport how it reduced its environmental impact at LFV facilities.Atmospheric emissions of fossil carbon dioxideAtmospheric carbon dioxide emissions from LFV’s operationscontinued to diminish for the sixth straight year. Comparedto 2006, the decrease was about 25 per cent. This resultwas achieved by such measures as reduced consumption andswitching from fuel oil to biofuels as well as reduction in vehiclefuel use. This reduced consumption may be partly due tothe mild winter. Kalmar and Norrköping no longer remain inLFV’s operations as well. For 2007 calculations, LFV updatedits calculation model and emission factors. 1 As for emissionsfrom district heating systems and electricity consumption atthe Head Office in Norrköping, only carbon dioxide is includedin the results. Emissions from operation and test operation ofreserve power units are not included.The table below reports the number of people exposed toaviation noise exceeding the threshold limit values for indoornoise approved by Parliament. Note that at Göteborg LandvetterAirport, the same individual may be exposed to both typesof noise levels.The number of changed flight paths during the year was27, which meant a saving of about 1,400 kg of carbon dioxideper occasion when using these flight paths. The numberof landings and departures changed during the year was five.For example, to avoid noise over the city of Linköping, holdingposition speed was limited, which means that a smaller area isaffected during landing.During 2007, LFV performed 197 noise insulations in all. Atotal of about 664 properties have been noise insulated, and theinvestment to date has amounted to SEK 82.8 M, with a depreciationperiod of 10 years.0,0030405CO 2kg/passengerNO xg/passengerEmissions from LFV’s operations per passenger.Reducing the effects of run-off waterThe use of glycol as a de-icing agent decreased by 23 per centduring the year.Several airports expanded their inspection programmes forwater testing and reviewed their procedures. Some airportsintroduced new inspection programmes.Malmö Airport completed its construction of equalisationponds, and Stockholm-Arlanda Airport carried out extensiverenovation of its water treatment plant. In test period studies,Göteborg Landvetter presented proposals for run-off watermanagement to reduce the effects on recipients. The GroupAirports Division is carrying out centralised procurement ofrun-off water analyses.Phase-out of chemicals on PRIO listDuring the year, LFV introduced Group-wide procedures forreducing the quantity of chemical products used in its operationsthat are hazardous to the environment or to health. During2007 about 40 product assessments were performed froman environmental and workplace health and safety standpoint.One out of five products approved during 2007 contains substancesfound in the Swedish Chemical Inspectorate’s prioritysettingguide (PRIO). A total of one out of four products usedin LFV’s operations contains substances found on the PRIO list.The chemical information system was supplemented with afunction that updates product information continuously, whichfacilitates the identification of products containing substanceson the PRIO list. A procedure for risk assessment and decisionson phase-out or special protection measures was connected tothis function.060701 Certain emissions were previously calculated locally, while those in 2007 were calculated using a single system.Number of people exposed to different noise levelsAirportNumber exposed tonoise levels exceedingLAeq24h 30db(A),indoorsNumber exposed tonoise levels exceedingLAmax, 3 times/night 45 dB(A),indoorsStockholm-Arlanda Airport 0 1 000Göteborg Landvetter Airport 50 200Malmö Airport 0 50Umeå Airport 0 0Sundsvall Härnösand Airport 0 0Jönköping Airport 0 0Stockholm-Bromma Airport 465 0Total 515 1 250Consumption of anti-skid agents,2003-2007Tonnes3,0002,5002,0001,5001,0005000030405Urea, tonnesAcetate, tonnesFormiate, tonnes0607Performance report > LFV 2007

Chemical products in LFV’s operations are inventoried continuously.The number of chemical products in LFV’s operationshas decreased by one third since September 2006 and is nowabout 3,000. Paint shop products at Göteborg Landvetter Airportwere subjected to targeted action, leading to the phaseoutof eight products and their replacement by products thatare better from an environmental and health and safety standpoint.Public transport ridersAccording to survey conducted during 2007 at LFV airports,public transport passengers as a share of all ground transportpassengers to and from airports rose by 3 percentage pointscompared to 2006. Their share amounted to 34 per cent.Steps taken to increase the share of public transportriders to and from LFV airportsThe airport coaches at Stockholm-Bromma Airport improvedtheir frequency. Signage about public transport was alsoimproved. Parking charges were raised and a charge was introducedfor taxis driving to the airport.The number of journeys on the Upptåget commuter trainto and from Stockholm-Arlanda Airport increased by 230per cent between July 1, 2006 and July 1, 2007. A new coachroute, Arlandalinjen, operates daily from Karlstad and Örebroin both directions. Line 583 to Stockholm-Arlanda isserved by ethanol-powered buses during 57 per cent of scheduledruns. Stockholm Transport (SL) has a total of 12 ethanolbuses in service to the airport. The route has been expanded,with additional morning and evening runs between Märstaand Stockholm-Arlanda.Arlanda Parkering, the airport’s parking company, workswith an environmental index that signifies that 30 per cent ofthe increase in passengers should choose other ways of travellingto the airport besides their own car. This means that theover time, the percentage of passengers using parking facilitieswill decrease compared to the percentage using publictransport. One way of achieving this index is that LFV hashigh parking charges, which were also raised during 2007.Stockholm-Arlanda Airport participates in the internationalproject TravelPlan+. Its objective is to quantify and settargets for efficiency improvements in transport and graduallylower ground transport-related carbon dioxide emissionsand other air pollution. In concrete terms, this implies anincrease in public transport.Information for Stockholm-Arlanda passengers abouttimetables, fares, rail services etc is available on the airport’swebsite, which also includes links to informational pagesabout LFV’s climate neutrality efforts and emission allowances,enabling passengers to offset the climate-changingimpact of their journeys.On a trial basis, a bus has provided shuttle service betweenthe Svedala train station and Malmö Airport. The airportimproved its public transport bus stops and intensified itscontacts with Region Skåne, which is in charge of publictransport in Skåne County. The public transport companyThe newly renovated terminal at Malmö Airport. In the autumn of 2007, LFV joined forces with Region Skåne,Malmö Turism and Visit Sweden to increase non-stop routes from Malmö to major urban regions around Europe.48 > LFV 2007 < Rapportering enligt regleringsbrevet för LFV Rapportering enligt regleringsbrevet LFVs Flygtrafiktjänster Flerårsöversikt medarbetare för LFV > LFV 2007

Blekingetrafiken opened airport coach service between Karlskronaand Ronneby Airport.Several airports took steps to make it easier for buses toreach the terminal and expanded the number of bus stops.For example, Göteborg Landvetter Airport renovated thestreet in front of the terminal to create a common stop fordomestic and international passengers, with a sign showingthe next bus departure time. LFV is working actively tospeed up the construction of a double-track railway betweenGothenburg and Borås, which will pass beneath the airportin a tunnel. Other airports improved public transport optionsby adapting timetables better to departure and arrival times.Kiruna and Visby Airports have been trying to get a local busroute that includes the airport.Other steps to reduce the environmental impact ofground transportStockholm-Arlanda Airport is continuing its efforts to establisha vehicle fleet powered by renewable fuels, through a longtermcommitment to environmentally clean vehicles. The targetis to double the quantity of biogas consumed, by addingthree new biogas-powered buses during 2008. This meansthat three diesel-powered buses will be taken out of service. Inpreparation for an upcoming procurement of vehicle fuels, theairport decided to introduce ethanol. This will make it possiblefor the future bus fleet to be powered by biogas and ethanol. Ifall diesel buses at Stockholm-Arlanda can be replaced by biofuel-poweredbuses, this would be equivalent to a reduction ofnearly 1,000 tonnes of fossil carbon dioxide.Today there are more than 800 ecotaxis in the Stockholm-Arlanda queue system. Discussions are under way on how toreduce empty taxi runs from the airport.Several airports are offering their employees training in ecodrivingand in reducing, or completely eliminating, engineidling. Skellefteå Airport is offering its long-term parking customersengine heaters, and Luleå Airport rewards environmentallycertified taxi operators when signing new agreements bycharging them lower fees for entering the airport.Visby Airport has installed pumps for E85 (85 per cent ethanol)fuel, and during 2008 the airport will study the possibilityof offering concessions for environmentally friendly vehiclesthat come to the airport. Örnsköldsvik Airport has replaced itsown vehicles with newer, more modern ones. Working hourplanning has also made an improved ride-sharing system possibleamong employees. Örnsköldsvik is also endeavouring toimprove co-ordination of taxi trips.Performance reportThe official transport policy objectives related to civil aviationdeal largely with regional development, accessibility and similarconcerns. In recent years, LFV has approved and also implementeda strategy based on lowering its traffic charges to theextent this is financially feasible. It has carried out such reductionsin recent years and this strategy is very much intendedto strengthen aviation and promote its importance both forregional development and for accessibility for all categories ofcitizens.LFV used highly developed marketing efforts to expandservice to existing destinations while adding new destinationduring 2007. This contributes to regional development andincreases accessibility.Organisational managementLFV shall endeavour to achieve a balanced allocation ofpower and influence between women and men. In LFV’smanagement teams, by 2010 neither gender shall haveless than 40 per cent representation.Performance report requirementsLFV shall report its efforts to achieve a balanced gender allocationinternally and report the gender allocation of its managementteams.Performance reportThis inventory encompasses Group Management, the managementteams of all Group staff units, airports and business areasor the equivalent. A total of 229 individuals belong to LFV’smanagement teams, of whom 35 per cent are women.An inventory of gender allocation in LFV’s managementteams was carried out. During 2008 LFV will compile adescription of the gender allocation situation in existing managementteams and describe how it is working to achieve thetarget of at least 40 per cent of the underrepresented gender by2010.LFV shall have a balanced gender allocation in all operations.This shall be achieved through recruitment and activitiescarried out as part of its campaign to achieve the target ofbeing an attractive employer.A transport system that promotes gender equalityand regional developmentOther subsidiary objectives in Sweden’s official transportpolicy should be followed up from a gender equality perspective.The air transport system should help make regionalexpansion sustainable for women and men, in order toachieve well- functioning labour market regionsPerformance report requirementsLFV shall report on its efforts to integrate a gender equalityperspective into its operations. It shall also report its followupof other transport policy subsidiary objectives from a genderequality perspective. One prerequisite for this is that individual-basedstatistics are consistently presented and analysedfrom a gender standpoint, unless there are special reasons fornot doing so. LFV shall report how it works to help regionalexpansion become sustainable for women and men in order toachieve well-functioning labour market regions.Performance report > LFV 2007

Proposed dividendThe dividend target is one third of profit for the year. For 2007, LFV is reporting a loss of SEK 403 Mand thus no dividend is proposed. Income tax payable amounts to SEK 0 M.Norrköping, February 22, 2008Göran Tunhammar, Chairman Lars Rekke, Director General Karin Strömberg, Vice ChairmanLars Andersson Agneta Gille Anna Grönlund KrantzPer Lundqvist Gun Nilsson Sven-Erik OlssonSture PalmgrenAnnette StavenowThe Auditors’ Report of the Swedish National Audit Office regarding this Annual Report was submittedon February 26, 2008.Leif LundinAnne BryneDefinitionsAbsence due to illness (accord-tion of the State enterprise’s actualEquity/assets ratioequivalent as a percentage of aver-ing to ESV general advice)interest expenses that would have− Equity as a percentage of totalage equity. Equivalent to return on− Total absence due to illness asbeen avoided if the capital expendi-assets.adjusted equity after tax equivalent.a percentage of total employeeture had not occurred.working hours. Absence due toFixed assetsReturn on total assetsillness refers to absence duringCurrent liabilities− Assets intended for use over three− Profit after depreciation plusthe period that an employee is− Liabilities due for payment duringor more years.financial income, as a percentage ofentitled to sick pay from his/herthe coming accounting year.the average balance sheet total.employer, daily sickness allowanceLong-term liabilitiesfrom the Swedish Social InsuranceDebt/equity ratio− Liabilities due for payment noService unit (unit rate)Administration, temporary sick-− Interest-bearing liabilities as aearlier than in one year.− An aircraft that weighs 50 tonnesness benefit or activity compensa-percentage of equity.and flies 100 km in Swedish air-tion from the Social InsuranceReturn on capital employedspace must pay an air navigationAdministration. The initial unpaidDepreciation− Profit after depreciation pluscharge for one service unit.day is included in absence due to− The acquisition cost of a fixed assetfinancial income as a percentageillness.divided into equal annual amountsof the average balance sheet totalState fundsduring its estimated economic serv-minus non-interest-bearing current− Funds provided by the State, onCapitalised interestice life.liabilities.which a return is due.− Interest expenses attributable tofacilities under construction areEquityReturn on equity (after incomeTax equivalentincluded in acquisition value. Such− State funds plus restrictedtax and tax equivalent)− Equivalent to corporation tax.interest expenses comprise the por-reserves and unrestricted equity.− Profit after income tax and tax50> LFV 2007 < Proposed dividend and definitions

Auditors’ ReportFebruary 26, 2008The GovernmentMinistry of Industry, Employment and CommunicationsAuditors’ report for Luftfartsverket (LFV) and the LFV GroupThe Swedish National Audit Office (Riksrevisionen) has examined LFV’s Annual Report, approved on February 22,2008, for the financial year 2007.The Group Management of LFV is responsible for running LFV efficiently and according to law. This responsibilityincludes providing the Government with a reliable account of operations in the Annual Report.It is the responsibility of the National Audit Office to examine LFV’s Annual Report in accordance with generalaccepted auditing standards in Sweden in order in order to assess whether the financial statements and the underlyingaccounts are reliable and the accounts are true and fair, as well as to examine whether the administration of theGroup Management complies with applicable regulations and special Government rulings.We conducted our audit in accordance with generally accepted auditing standards. Those standards require that weplan and perform the audit to obtain reasonable assurance to determine whether the Annual Report is true and fair.The examination thus involved a selection of important transactions and administrative decisions.In the judgement of the National Audit Office, the audit that we have completed has provided sufficient and appropriateauditing evidence for our opinion set out below.The Annual Report has been prepared in compliance with the Ordinance on Annual Reports of Public Authoritiesand Budget Material, the Government’s annual appropriations directives and other decisions concerning LFV.In the opinion of the National Audit Office, the Annual Report is true and fair in all essential respects.Leif Lundin, Audit Director, has taken this decision. Anne Bryne, Senior Auditor, has served as rapporteur.Leif LundinAudit DirectorAnne BryneSenior AuditorAuditors’ Report > LFV 2007

Board of Directors and AuditorsGöran TunhammarSture PalmgrenLars RekkePer LundqvistAgneta GilleGöran Tunhammar, Governor of SkåneCounty, Chairman, Board of Directors, LFV,2003-. Chairman of the Board, AMF Pension;Board member, Pension Guarantee MutualInsurance Company, 2003-.Lars Rekke, Director General. DirectorGeneral and Board member, LFV, 2001-,Nordic Airport Properties (NAP), 2002-;Board member, National GovernmentEmployees Pensions Board, 2004-; Chairmanof the Board, Danderyds Sjukhus AB;member, Advisory Council of the SwedishNational Financial Management Authority,2004-; Board member, AIK Fotboll AB,2004-; Chairman of the Board, LFV HoldingAB, 2001-.Karin Strömberg, Vice Chairman of theBoard, LFV, 2004-, Board member, LFV,2003-; Board member, ATG, 2007-; businessowner, 2002-.Lars Andersson, Senior Repair Technician.Board member (employee representative),LFV, 1995-.Agneta Gille, Member of Parliament,Social Democrats. Board member, LFV,2004.; member, Parliamentary Committeeon Finance, 2002-; Chairman, UpplandsLokaltrafik, 2003-; member, Board of theUppsala County Administration, 2003-.Anna Grönlund Krantz,Consultant, JKL,2006-; Board member, LFV, 2001-; Chairmanof the Board, Botniabanan AB, 2007-.Gun Nilsson, CEO, Gambro HoldingAB. Board member, LFV, 2005-; Boardmember, Husqvarna, 2006-; Swedish GolfFederation, 2002-; Duni, 2007-.52> LFV 2007 < Board of Directors and Auditors

Gun NilssonKarin StrömbergAnnette StavenowSven-Erik OlssonLars AnderssonAnna Grönlund KrantzPer Lundqvist, Senior Consultant. Boardmember, LFV, 2007-; Procordia PensionFoundation I.Sven-Erik Olsson, Field and Apron Supervisor.Board member (employee representative),LFV, 2003-. Chairman, AviationDepartment, Swedish Federation of CivilServants (ST), 2003-.Sture Palmgren, Senior Partner, KreabGroup. Board member, LFV, 2004-; Boardmember, Alstom Transport AB, 2004-,Magnora AB, 1994-.Annette Stavenow, Head of Marketing andDevelopment, GUC Media upper secondaryschool. Board member, LFV, 2003-. Member,Uppsala Municipal Council, 2002-,Christian Democrats; Chair, ChristianDemocratic Enterprise Council, 2003-;member, Uppsala Regional DevelopmentCouncil, 2002-.Auditors for LFVLeif Lundin, Audit Director, SwedishNational Audit Office (Riksrevisionen).Anne Bryne, Senior Auditor, SwedishNational Audit Office.Board of Directors and Auditors > LFV 2007

Group ManagementLars Rekke,Director General,Executive Management TeamKerstin Lindberg Göransson,Airport Director,Head of Stockholm Division,Deputy General Director,Executive Management TeamOlle Sundin,Head of Group Airports Division,Executive Management TeamHåkan Jonforsen,Technical DirectorMikael LarssonFinance Director,Executive Management TeamThomas Allard,Head of Air Navigation Services Division,Executive Management TeamPer Edström,DirectorHuman ResourcesLars Röhne,DirectorGroup CommunicationsDan Lundvall,DirectorGroup MarketingPer Grönwall,DirectorGroup Legal Affairs54 > LFV 2007 < Group Management

AddressesTo dial these telephone and fax numbers from inside Sweden, omit the international access code (+46),then add zero in front of the area code when dialling the rest of the number.LuftfartsverketSE-601 79 Norrköping, SwedenTelephone +46 11-19 20 00Fax +46 11-19 25 75Göteborg Landvetter AirportSE-438 80 Landvetter, SwedenTelephone +46 31-94 10 00Fax +46 31-94 10 99Airport Director: Gunilla RittgårdJönköping AirportSE-555 93 Jönköping, SwedenTelephone +46 36-31 11 00Fax +46 36-31 11 17Airport Director: Hazze SandströmKarlstad AirportVåldalen 570SE-655 91 Karlstad, SwedenTelephone +46 54-55 60 00Fax +46 54-55 60 90Airport Director: Peter LandmarkKiruna AirportBox 831SE-981 28 Kiruna, SwedenTelephone +46 980-680 00Fax +46 980-680 08Airport Director: Peter SalomonssonLuleå AirportFlygstationsvägen 4SE-972 54 Luleå, SwedenTelephone +46 920-24 49 00Fax +46 920-24 49 06Airport Director: Susanne JangdahlMalmö AirportBox 14SE-230 32 Malmö-Sturup, SwedenTelephone +46 40-613 10 00Fax +46 40-613 12 15Airport Director: Lennart BjörkRonneby AirportMailbox 2000SE-372 92 Kallinge, SwedenTelephone +46 457-255 90Fax +46 457-245 84Airport Director: Jim MagnussonSkellefteå AirportSE-931 92 Skellefteå, SwedenTelephone +46 910-576 00Fax +46 910-576 45Airport Director: Robert LindbergStockholm-Arlanda AirportSE-190 45 Stockholm-Arlanda, SwedenTelephone +46 8-797 60 00Fax +46 8-797 86 00Airport Director and Head of StockholmDivision: Kerstin Lindberg GöranssonStockholm-Bromma AirportSE-168 67 Bromma, SwedenTelephone +46 8-797 68 00Fax +46 8-98 35 43Airport Director: Marie-Louise ReiniusSundsvall Härnösand AirportSE-861 83 TimråTelephone +46 60-19 76 00Fax +46 60-19 76 19Airport Director: B-O LindgrenUmeå AirportSE-904 22 Umeå, SwedenTelephone +46 90-71 61 00Fax +46 90-71 62 90Airport Director: Karin Larsson-TängdénVisby AirportSE-621 41 Visby, SwedenTelephone +46 498-26 31 00Fax +46 498-26 31 45Airport Director: Gunilla DufourÅre Östersund AirportSE-832 96 Frösön, SwedenTelephone +46 63-19 30 00Fax +46 63-19 30 90Airport Director: Annika GrönkvistÄngelholm Helsingborg AirportSE-262 91 Ängelholm, SwedenTelephone +46 431-48 45 01Fax +46 431-48 45 02Airport Director: Rose-Marie ÖstbergÖrnsköldsvik AirportVästanåSE-890 35 Husum, SwedenTelephone +46 660-874 00Fax +46 660-874 07Airport Director: Robert GyllrotDivision FlygplatsgruppenSE-438 80 Landvetter, SwedenTelephone +46 31-94 10 00Fax +46 31-94 13 39Head of Group Airports Division:Olle SundinDivision FlygtrafiktjänstenSE-601 79 Norrköping, SwedenTelephone +46 11-19 20 00Fax +46 11-19 26 40Head of Air Navigation Services Division:Thomas AllardLFV Holding ABSE-601 79 Norrköping, SwedenTelephone +46 11-19 20 00Fax +46 11-19 27 90Managing Director: Mikael LarssonArlanda SchipholDevelopment Company ABBox 39SE-190 45 Stockholm-Arlanda, SwedenTelephone +46 8-797 60 00Fax: +46 8-797 62 40Managing Director: Anne-Marie ZuidwegFlygplatsfastigheter iLandvetter ABBox 2105SE-438 13 Landvetter, SwedenTelephone +46 31-94 28 70Fax +46 31-94 28 73Managing Director: Elsa ThuressonLFV AirportCenter ABBox 24SE-190 45 Stockholm-Arlanda, SwedenTelephone +46 8-797 61 40Fax +46 8-59 36 20 61Managing Director: Jan EgenäsSwedavia ABSwedish Aviation Development ABSE-601 79 Norrköping, SwedenTelephone +46 11-19 20 00Fax +46 11-13 07 11Managing Director: Sture EricssonTEXT: Group Finance, Communications and LFV Group SupportGRAPHIC DESIGN: Creation, TRANSLATION: Victor Kayfetz, PHOTOGRAPHY:Kenneth Hellman, PRINTED BY: LFV Tryckeri, PAPER: Scandia 2000, 200/130 g.Addresses > LFV 2007

Multi-year overview• LFV showed a loss of SEK 545 M in 2007. This earnings figure included a nonrecurring item of SEK 1.1billion due to new actuarial principles for calculating future pension obligations. Excluding this nonrecurringitem, 2007 was another successful year. International traffic continued to grow. Togetherwith cost-cutting measures and favourable earnings from commercial ventures, this represented anearnings improvement of SEK 120 M. Without pension expenses affecting comparability, for the firsttime LFV could also have met its financial targets for both the equity/assets ratio and return on equity.The events of September 2001 togetherwith a deep and lengthy economic downturncaused passenger volume at LFV’sairports to decline by 15 per cent overthe three-year period 2001 – 2003. Afterthis sharp downturn, passenger numbershave again climbed in recent years,especially when it comes to internationaltraffic. The increase in the numberof international passengers that beganin 2004 continued at a rate of between 5and 8 per cent annually, but the upturnin domestic traffic during 2004 and 2005came to an end. The number of domesticpassengers decreased in 2007 for the secondstraight year.During the traffic downturn of 2001 –2003, LFV completed the largest capitalspending programme in its history. Thismainly included a third runway and anexpanded terminal system at Stockholm-Arlanda Airport plus a new air trafficmanagement system. The traffic downturnas well as increased capital andoperating expenses due to the capitalspending programme led to earningsreductions at LFV of about SEK 1 billion.To offset this deterioration in earnings,in the autumn of 2001 LFV initiatedan action programme calling for alasting improvement in LFV’s earningsof SEK 1 billion by the end of 2006. Thisaction programme achieved its desiredeffect earlier, meeting its target by theend of 2005. During 2006 and 2007, LFVattached great importance to consolidatingthe effects of the action programmeand ensuring good cost control and continuousfavourable growth in commercialproducts.In recent years, LFV has reduced itsnumber of airports by three, with themunicipalities of Halmstad, Kalmar andNorrköping fully assuming ownershipand operation of their respective airports.These changes have enabled LFVto improve its efficiency.RevenueOver the past decade, LFV’s revenue rosefrom SEK 4,469 M in 1998 to SEK 6,273M in 2007, an increase of SEK 1.8 billionor an average of nearly 4 per cent annually.During the same period, the numberof air travel passengers at LFV’s airportsincreased by nearly 2.6 million, or anaverage of only 1 per cent annually. Duringthe late 1990s, the aviation industryexperienced a very expansive period,with passenger increases in the rangeof 5-6 per cent annually and roughlyequally large revenue increases for LFV.Beginning in 2001, a sharp downturn inpassenger volume began. During a threeyearperiod, this very adversely affectedthe entire aviation industry, and thusalso the finances of LFV.Equity/assets ratio and return onequity 1998-2007%40Revenue and capital spending1998-2007SEK M7,000Profit after financial items1998-2007SEK M6006,00045025100-55,0004,0003,0002,0001,0003001500-150-300-450-2098 99 00 01 02 03 04 05 06 07098 99 00 01 02 03 04 05 0607-60098 99 00 01 02 03 04 050607Equity/assets ratioReturn on equityCapital spendingOf which, Arlanda LinkRevenueProfit after financial itemsProfit excluding “items affectingcomparability”The above three charts show developments during the 1998- 2007 decade in terms of equity/assets ratio, return on equity, capital spending and revenue,as well as profit after financial items. The downturn in earnings, equity/assets ratio and return in 1999 was due to the district court ruling in adispute with SAS concerning rental income at Terminal 2 at Stockholm-Arlanda Airport (item affecting comparability of SEK -659 M) plus the investmentin A-Banan Projekt AB (SEK 1,144 M). The changes after 2000 were a consequence of decreased traffic and large investments. Between 2000 and 2003,passenger volume fell by 15 per cent, while major investments were completed and extensive steps were taken to improve airport security. The 2007downturn in earnings, equity/assets ratio and return on equity was due to a decision by the National Government Employees Pensions Board (SPV) tochange its actuarial principles concerning provisions for future pension obligations, which represented a nonrecurring expense of SEK 1,113 M for LFV.56> LFV 2007 < Multi-year overview

Ten-year summary2007 2006 2005 2004 2003 2002 2001 2000 1999 1998Air traffic (000)Number of landings 265 278 298 309 301 322 346 360 366 350Number of passengers 1 30,113 29,601 28,837 27,560 26,135 28,063 30,481 30,846 28,982 27,508Cargo and mail forwarded (tonnes) 251 229 224 217 237 255 234 249 227 218Financial data (SEK MIncome statementOperating revenue 6,273 5,980 5,683 5,821 5,402 5,384 5,088 5,007 4,719 4,469Operating expenses -5,458 -5,240 –5,132 –5,306 –5,109 –4,884 –4,919 –4,151 –4,549 –3,694- of which, items affecting comparability - – – – – – – –671 –155Profit on holdings in associated companies -9 –7 –7 –9 –11 20 –31 –8 13Operating profit 816 731 544 508 284 489 189 825 162 788Financial income 42 36 13 17 10 15 27 15 34 32Financial expenses 3 -1,385 4 -323 –318 –401 –342 –353 –196 –207 –178 –214Profit after financial items -545 447 238 124 –48 151 20 633 18 606Income tax and tax equivalent 149 -131 –72 –37 11 –46 –7 –186 –10 –171Minority share -7 -6 –5 2 – – – – – –Profit for the year -403 309 161 89 –37 105 13 447 8 435The reason was that many factors withnegative effects on the aviation industryroughly coincided: an economic downturn,the attacks on the World TradeCenter in New York, the Iraq war and theSARS epidemic in East Asia were all factorsthat directly or indirectly affectedthe aviation industry and people’s inclinationto travel. The main reason whyLFV maintained its revenue levels duringthese years was that the extensivesecurity measures enacted after September11, 2001 were largely financed bycharges.Starting in the autumn of 2004, however,there was a turnaround in air trafficvolume. Higher traffic volume, togetherwith aggressive investments in commercialoperations, have led to continuedincreases in revenue and improved earnings.To further stimulate the market,LFV has also been able to lower prices inrecent years.ExpensesOver the past decade, operating expensesrose from SEK 3,694 M in 1998 to SEK5,458 M in 2007. This represented anaverage annual increase of more than 4per cent, despite the extensive efficiencyraisingefforts carried out since the turnof the millennium. As a direct consequenceof higher security screening andairport security standards, expenseshave risen by more than SEK 400 M since1998. During 2007, expenses for ensuringAir Navigation Services operations andcapacity rose by more than SEK 100 M,due to increased investments in trainingof air traffic controllers as well as anew long-term salary agreement withoperational staff. During the period1998-2007, depreciation and amortisationincreased by nearly SEK 600 M dueto the extensive investment programmecarried out by LFV. Meanwhile this programmealso implied higher operatingexpenses for the care and maintenance ofnew and expanded facilities.EarningsDuring this decade, profit after financialitems varied sharply between a maximumof SEK 633 M (in 2000) and SEK-545 M (2007). The 2007 figure includeda nonrecurring item for pension provisionsof more than SEK 1.1 billion.Excluding this provision, in terms ofearnings, 2007 would have been the mostprofitable year since 2000.During the late 1990s, LFV generatedvery favourable earnings, which wasalso a prerequisite to achieving its objectives,considering the extensive capitalspending programme it had initiated.The exception to the positive trend of the1990s was LFV’s earnings in 1999 (SEK18), reflecting items affecting comparabilityof SEK -659 M due to a provision,because LFV lost a legal dispute withSAS related to Terminal 2 at Arlanda andwas ordered by a district court to repayrental income to SAS.During the years 2001 – 2003, LFV’sprofitability fell sharply due to the crisisin the aviation industry. In 2003,LFV reported a loss for the first time(SEK -58 M). The next few years representedan earnings recovery. LFV’sfinances are once again in balance and(with the exception of the 2007 pensionprovision, which affected comparability),they meet the owner’s establishedtargets for equity/assets ratio and returnon equity.Capital spendingDuring the period 1998-2007, LFV’s capitalspending totalled more than SEK16.5 billion. Spending peaked in 2000and 2001 at nearly SEK 3 billion per year.Most investments have been related toexpansion and modernisation of Stockholm-ArlandaAirport as well as a newair traffic management system. Becausecapacity expansions are now expected tomeet market demand, over the past fiveyears LFV’s capital spending levels havebeen significantly lower, averaging lessthan SEK 1 billion per year.Balance sheetFixed assets 13,416 13,491 13,865 14,273 14,677 14,736 13,559 11,375 9,603 7,349Current assets 1,455 1,148 1,099 1,093 1,163 1,175 1,419 1,192 1,613 1,613Equity 2,878 3,437 3,130 2,998 2,908 2,985 2,882 2,805 2,354 2,403Deferred tax, provisions and long-term liabilities etc 10,139 9,725 9,833 10,787 11,691 10,977 10,243 8,202 7,142 5,499Current liabilities 1,854 1,478 2,001 1,581 1,241 1,949 1,853 1,560 1,467 1,060Total assets 14,871 14,640 14,964 15,366 15,840 15,911 14,978 12,567 10,963 8,962MiscellaneousCapital spending 1,088 808 785 735 1,358 2,081 3,224 2,660 2,898 2 881Financial ratios, %Equity/assets ratio 19 23 21 20 18 19 19 22 21 27Return on equity (after income tax and tax equivalent) -13 9 5 3 –1 4 0 17 0 20Return on capital employed 6 6 4 4 2 4 2 8 2 10Return on total assets 6 5 4 3 2 3 2 7 2 9StaffNumber of full-time equivalent employees 3,413 3,418 3,489 3,786 3,810 3,789 3,829 3,738 3,633 3,5401 Starting in 2000, this figure includes both the number of arriving and departing passengers in domestic traffic.Until 1999 only departing passengers were reported when the number of passengers was summarised.In the table above, the figures for 1998-1999 have been recalculated according to the new reporting method.2 Of which, SEK 1,754 M in LFV capital spending and SEK 1,144 M in initial valuation of the Arlanda Link.3 Beginning in 2001, the interest portion of pension expenses is reported as a financial expense.Pension expense was previously reported under operating expenses.NOTE: Until the end of 2004, the Swedish Aviation Safety Authority and the Aviation and Public Sector Departmentwere included in the table. Since 2005, these units have been part of the Swedish Civil Aviation Authority.4 Including nonrecurring effects of the increase in pension liability due to new actuarial principles, in the amount of SEK -1,054 M.Multi-year overview > LFV 2007 LFV 2007

SE-601 79 Norrköping, Sweden. Telephone: +46 11-19 20 00. Fax: +46 11-19 25 75.Swedish corporate ID number 202100-0795. E-mail: lfv@lfv.se. Website: www.lfv.se