2016 Responsibility report

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Responsibility at Finavia A part of society Safety Staff wellbeing Environmental responsibility GRI Financial targets and operational prerequisites Financial targets have been set for Finavia’s operations, so that we are able to maintain our competitive position, develop our operations and implement the special tasks set for us. The financial targets for the year 2016 were the same as in 2015. We set our earnings, balance sheet and financing targets so that we are able to ensure the continuity and development of our operations in the manner required by aviation safety, and customers’ expectations. Finavia has been given a special task related to the maintenance of the airport network and the production of airport and air navigation services required by State aviation. Of these tasks, the development of our operational cost-effectiveness has progressed according to plan and has yielded good results for several years. See the financial statements for more information on the financial results for the period! Financial targets Objective Realisation in 2016 Efficiency: Competitive prices in comparison with the rest of Europe Financial performance: Sufficient cash flow to secure operational development and guarantee financing Equity ratio: At least 40 per cent 58.9 per cent (60.5) Dividends: Finavia pays dividends to the State of Finland within the constraints of its financial results and distributable funds Our special tasks Task In 2016 Cost-effective handling of special missions for society The airport and air navigation services required by State aviation are produced at cost price Operations are financed by income from our own operations Finavia may receive partial public support for the construction of airports Helsinki Airport remains the fourth least expensive airport among the 23 main airports in Europe. Helsinki Airport remains the least expensive hub in Europe for airlines, with airport charges as much as 50 per cent below average. The Group's cash flow from operations amounted to EUR 97.7 million (75.1), which was sufficient to secure financing for the running and development of operations. The Group made a profit of EUR 28.3 million (40.0) for the financial period. The Board of Directors proposed that no dividends should be distributed for the 2016 financial period. The improvement of the efficiency of Finavia’s operations have continued systematically and with good results for a number of years. The allocation of airport investments and the adaptation of the operation of the airport network was heavily continued i according to demand. Finavia ended its operations at Malmi Airport in Helsinki, in accordance with the land sale concluded with the City of Helsinki in 2014. The ownership and control of Malmi Airport was transferred to the City of Helsinki on 1 January 2017. For basic services, the Air Force and the Finnish Border Guard pay the price specified in the terms and conditions of service. For special services, they pay the agreed price, which covers the costs. The operations of Finavia are not subsidised by tax revenue. Finavia covers the losses incurred in maintaining airports and producing air navigation services with the income from commercial services at Helsinki Airport. In 2013, the State of Finland granted Finavia a capital investment of EUR 200 million for the Helsinki Airport development programme. The investment must be returned to the State as yield. The EUR 900 million development programme commenced in 2013. Finavia did not receive public sector support for its construction projects during 2016. Responsibility report 2016 16
Responsibility at Finavia A part of society Safety Staff wellbeing Environmental responsibility GRI Efficiency and profitability Efficiency is the backbone of airport competitiveness. Further improvements were made in Finavia’s operational efficiency in 2016. The fees charged from airlines still remained among the lowest in Europe. Operational efficiency means a smooth passenger path, short transfer times and short aircraft turnaround times. Cost efficiency means that we cut our unit costs per passenger and landing. Cost efficiency provides us with a competitive advantage because it allows us to keep our airport charges at reasonable levels. Increase in Finavia’s efficiency Helsinki Airport’s international competitiveness: air traffic charges 2016 – Airbus A320 EUR 30,000 25,000 150 20,000 15,000 100 10,000 5,000 50 0 RIX TLL VNO HEL ARN WAW OSL DUB CPH PRG AMS BRU KEF LIS MAD BUD LED FCO ATH CDG VIE MUC FRA LHR 0 2012 2013 2014 2015 2016 Revenues 1,000 €/fte Passengers/fte Tax Air traffic charge RIX=Riga,TLL=Tallinn, VNO=Vilnius, HEL= Helsinki, ARN=Arlanda, WAW=Warsaw, OSL=Oslo, DUB=Dublin,CPH=Copenhagen, PRG=Prague, AMS=Amsterdam, BRU=Brussels, KEF=Keflavik, LIS=Lisbon, MAD=Madrid, BUD=Budapest, LED=Pulkovo, FCO=Fiumicino, ATH=Athens, CDG=Charles De Gaulle, VIE=Vienna, MUC=Münich, FRA=Frankfurt, LHR=Heathrow Source: Airportcharges.com Responsibility report 2016 17
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2016 Responsibility report

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