Income statementsAmounts in SEK M <strong>LFV</strong> <strong>Group</strong> 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 <strong>Group</strong> 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 > <strong>LFV</strong> 2007
Comments on balance sheetsand funds statements<strong>LFV</strong> operates 16 airports, which belongto a system with essentially the samestandards at all airports. <strong>The</strong> estimatedvalue of the fixed assets at the airportsexceeds the book value of the entire system.<strong>The</strong> book value of the airports thatshow deficits amounted to about SEK723 M.Since <strong>LFV</strong> is part of an industryundergoing major changes, <strong>LFV</strong> willcontinuously review the principles andassumptions on which the valuation ofits fixed assets is based. <strong>The</strong> book valueof <strong>LFV</strong>’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, <strong>LFV</strong>invested SEK 3.4 billion, which was a significantlylower figure than in the precedingfour-year period 2000 – 2003,when <strong>LFV</strong>’s capital spending totalledSEK 9.3 billion.During 2007, Pier F at Stockholm-Arlanda <strong>Airport</strong> was completed. A newarrival centre was placed in service inTerminal 5 at Stockholm-Arlanda, operatedby <strong>LFV</strong> in collaboration with theMunicipality of Sigtuna and the StockholmVisitors Board.Work was performed on runways andaprons at Stockholm-Arlanda. At GöteborgLandvetter and Skellefteå <strong>Airport</strong>,runways were also repaved.During 2007, biofuel-fired heat generatingunits were placed in service atGöteborg Landvetter and Malmö <strong>Airport</strong>.<strong>The</strong>se 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 Östersund<strong>Airport</strong> 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.<strong>The</strong> 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 provisions<strong>The</strong> National Government Employees’Pensions Board decided in December2007 that new actuarial principlesfor calculating <strong>LFV</strong>’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, <strong>LFV</strong> reduced its liability to theNational Debt Office from SEK 4,728 Mto SEK 4,561 M.Dividend, tax and tax equivalent<strong>The</strong> 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 ratio<strong>The</strong> increase in <strong>LFV</strong>’s pension liabilitydue to the nonrecurring effect of SEK1,113 M in the 2007 accounts adverselyaffected <strong>LFV</strong>’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). <strong>The</strong> 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> <strong>LFV</strong> 2007 < Comments on balance sheets and funds statements
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