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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