ANNUAL REPORT 2017 Director-General's Statement
ANNUAL REPORT 2017 LFV is with you on the travel
ANNUAL REPORT 2017 This is LFV
ANNUAL REPORT 2017 The Year in Brief
ANNUAL REPORT 2017 Operating Environment and Marke
t
ANNUAL REPORT 2017 Strategy and Objectives
ANNUAL REPORT 2017 Customer Focus
ANNUAL REPORT 2017 Environment
ANNUAL REPORT 2017 Aviation Safety
ANNUAL REPORT 2017 Innovation
ANNUAL REPORT 2017 Cooperation and Partnerships
ANNUAL REPORT 2017 Employees
ANNUAL REPORT 2017 Board of Director's Report
ANNUAL REPORT 2017 Income Statement, Comments on t
he Income Statement
ANNUAL REPORT 2017 Balance Sheet
ANNUAL REPORT 2017 Comments on the balance sheet a
nd funds statements COMMENTS ON THE BALANCE SHEET AND FUNDS STATEMENTS VIGNETTE COMMENTS ON THE BALANCE SHEET AND FUNDS STATEMENTS Unless otherwise stated, all amounts are reported in SEK (millions). Information in brackets concerns the previous year. Fixed assets and Investments LFV’s investments in 2017 amounted to a total of SEK 227 million (161), whereof capitalised production costs amounted to SEK 31 million. The two major investment projects in 2017 concerns investments to strengthen capacity and continuity in the operations of the control centers, and voice communication equipment , respectively. Other large investment projects are upgrades of radar stations to so called Mode-S, entailing access to additional information, which raises the aviation safety, among other things. In addition, continued development and adaption of the aviation navigation management system within the COOPANS collaboration, has been conducted in 2017. Other large projects during the year are a commenced investment in a central for remote air traffic services at Arlanda to serve four of Swedavia's airports in the coming years, as well as technology installations and implementation for remote management of Linköping City Airport from Remote Tower Center in Sundsvall. In 2017 the investment plan, including intangible and tangible fixed assets, amounted to SEK 225 million in total, which largely corresponds to budget. The outcome is affected by capitalised production costs not being budgeted. Long-term receivables and liabilities LFV’s revenue attributable to en route operations adheres to a charging model within the EU that involves risk being allocated between air navigation service providers and airlines. The conditions are set out in a performance plan for a given reference period. The allocation of risk is applied with respect to deviations relative to a designated traffic forecast, with the provider being responsible for the entire risk for deviations of up to 2 per cent from the forecast in the performance plan. 44 Between 2 and 10 per cent, the provider carries 30 per cent of the risk. In addition, exceptions are made for uncontrollable cost increases. In the case of Sweden, changes to pension costs fall into this category. LFV has allocated the previous years’ and this year’s recyclable deficit to periods, which is reported under the items Other long-term receivables and Other non-interest-bearing long-term liabilities. The long-term receivables have increased this year, from SEK 937 million to SEK 1,180 million. Of this change, SEK 349 million relates to the allocation of risk between LFV and the airlines in line with the national performance plan for 2017 and SEK -104 million relates to a reduction in previous years’ receivables. The long-term, other non-interest-bearing receivables, have increased this year, from SEK 245 million to SEK 239 million. Of this change, SEK -120 million relates to the allocation of risk between LFV and the airlines in line with the national performance plan for 2017 and SEK -134 million relates to a reduction in previous years’ receivables. Cash and cash equivalents The liquidity of the LFV group remains good. Cash and cash equivalents amounts to SEK 5,322 million (4,890), an increase since 1 January 2017, of SEK 432 million. Of cash and cash equivalents on the balance sheet date, SEK 0 million (100) is invested in short-term commercial paper and SEK 801 million (162) is invested in short-term bonds maturing in 2018. Pension provisions In November 2017, the National Government Employee Pensions Board (SPV) decided on a new calculation basis for pension provisions for state-owned enterprises’ commitments concerning pension provisions as of 1 January 2018. The gross rate was set at -0.6 per cent (-0.3) and, following deductions for yield tax of 0.1 per cent (0.1) and overheads of 0.2 per cent (0.2), the net rate amounts to -0.9 per cent (-0.6). LFV applies the calculation basis for 2017 in the annual accounts for 2018. In the in the annual accounts for 2016, LFV applied the calculation basis for 2017, with a net rate of -0.6 per cent. Pension provisions, including special payroll tax, amount to SEK 6,539 million (5,803) as per 31 December 2017, which is an increase of SEK 736 million compared to 31 December 2016. This is change consists of indexation and interest of net SEK -7 million (-45), pension payments SEK -87 million (-79), accrued pension benefits for the year SEK 426 million (391), and the effect of changes to the calculation basis, SEK 390 million (343). Tax and dividend The tax equivalent of the year amounts to SEK -17 million (4), of which SEK 4 million (1) concerns tax in subsidiaries, deferred tax of SEK 21 million (0) from tax losses, due to temporary differences between the accounting and tax balance of the year. The tax equivalent is calculated in accordance with the government guidelines. LFV is to issue a dividend for the financial year 2017, equivalent to 15 per cent of income after tax equivalent. In regard to the balance of the year consists of a loss, no dividend is proposed to be issued 2017. Return on equity and solidity The government's financial objective for LFV regarding return on equity is that it, after tax equivalent over a business cycle, shall amount to 4 per cent of equity and that the equity/assets ratio shall equate to 15 per cent in the long term. As of 31 December 2017, the return on equity is negative (1 per cent the previous year), and the equity/asset ratio amounted to 9 per cent (11). The fact that the return on equity and the equity/asset ratio do not reach the target is due to the effects of lower interest rate levels in the basis for LFV ANNUAL REPORT 2017
ANNUAL REPORT 2017 Financing
ANNUAL REPORT 2017 Accounting and Valuation Princi
ples
ANNUAL REPORT 2017 Notes
ANNUAL REPORT 2017 Investments
ANNUAL REPORT 2017 Reporting in Accordance with Pe
rformance Plan
ANNUAL REPORT 2017 Reporting in Accordance with Ap
propriation Directions
ANNUAL REPORT 2017 Risk Management
ANNUAL REPORT 2017 Dividend Proposal
ANNUAL REPORT 2017 Audit Report
ANNUAL REPORT 2017 Board of Directors
ANNUAL REPORT 2017 Group Management
ANNUAL REPORT 2017 Five Years at a Glance
ANNUAL REPORT 2017 Abbreviations and Explanations