AIR NAVIGATION SERVICES OY Annual Report 2019

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 1 Air Navigation Services Finland Ltd (ANS Finland) Contents is responsible for managing the use of Finnish airspace as well as providing flight route and air navigation services at in Finland Year 2019 CEO’s review 3 Highlights 2019 5 ANS Finland provides safe, accurate and competitive air naviga- Year 2019 in numbers 7 tion services in Finland, the most environmentally friendly air- Strategy 2020–2024 8 space in the world. The aim is for air traffic to support Finland’s International co-operation 10 success in a comprehensive way. Services and units Air navigation services include Finland’s Air Traffic Control Centre • managing the use of Finnish airspace as well as providing and Helsinki Air Traffic Control 11 en-route and air navigation services at 22 Finnish airports The network’s ATS services 13 • designing and maintaining the infrastructure and systems Technical air navigation 14 required for air navigation in compliance with international Avia College 15 requirements • special tasks relating to air rescue coordination and Governance territorial surveillance Board of Directors 16 • training and consulting services Strategic management 19 Organisation 22 Air Navigation Services Finland Oy is part of the Traffic Management Finland Group. Safety and responsibility 23

Board of Directors’ report and financial statements 27

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 2 CEO’S REVIEW ANS Finland guarantees the safety of Finnish air traffic

In 2019, flights ANS Finland ensures that air At the beginning of 2019, the ownership During the year, the company developed traffic is safe and has no delays of the company was transferred to the new the Multi-ROT concept uniquely in Europe were not cancelled and guarantees that Finland Traffic Management Finland. After this, the together with the operator , due to reasons is accessible, which is strongly air navigation strategy was updated for the allowing a single air traffic controller to man- next five-year period. In its operations, air age the air navigation of several airports via attributable to air navigation. based on air traffic, 24/7/365. navigation aims at customer orientation, remote connections. Remote air traffic con- Also the safety goals were In addition, it has special tasks smoothness and efficiency. Skilled employ- trol towers aim to enhance the cost efficien- relating to air rescue coordination ees are its biggest asset. cy of air navigation services and maintain met. and territorial surveillance. ANS Finland fulfilled its service promise an adequate level of service at airports with with determination amidst the change: area low volumes as well. The concept was sub- control and network airports had no delays mitted to the Finnish Transport and Com- whatsoever during the year, and no flights munications Agency Traficom for approval in were cancelled due to reasons attributable 2019. In 2020, the company will make the to air navigation. The safety targets were final decision on both the technical system also met. In 2019, the company also renewed and airports where any operations will be the collective agreement for air traffic con- started together with Finavia. trollers and improved its cost efficiency: air Unmanned remote-controlled aerial vehi- navigation service fees will decrease by ap- cles and drones are developing and quickly proximately 12 per cent in area control and becoming more common. Therefore, it is im- in 2020. portant to find solutions to flexibly and safe-

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 3 ly coordinate conventional and unmanned FINEST project, unique in Europe, which is aviation. Regulations on drones are still de- implemented by ANS Finland together with veloping, and it was not found out during Estonian Air Navigation Services (EANS). 2019 how low-level (U-space) services will The FINEST programme aims to create an be provided to users, so the work will con- environment in which air navigation servic- tinue in 2020. es can be provided across national borders. An air traffic controller training pro- The service allows service providers in ei- gramme has begun at the company’s own ther country to provide services to the oth- educational institution, Avia College, each er as necessary – meaning that a pilot can be autumn. Avia College also continuously served by Estonian or Finnish air traffic con- trains foreign air traffic controllers for the in- trol in shared airspace. FINEST will increase ternational market. The aim is to also delib- the efficiency of operations and decrease erately take part in competitive bids for air emissions with the jointly managed airspace navigation services opening in Europe. The providing airlines with optimum flight routes European Union wants to harmonise the Eu- that are as short as pos-sible. The implemen- ropean airspace and increase competition tation of the project, one of ANS Finland’s in service production, and the company will spearhead projects, began in 2019. The aim aim to ensure the competitiveness of its op- is to adopt the operating model pursuant to erations in the changing market in this way, the FINEST project in three phases, the last among other means. of which will take place in 2022. The European Union is requiring its Mem- ber States to reduce the costs of air traffic. Raine Luojus One of the responses to this demand is the CEO

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 4 Highlights 2019

ATCC - Finland’s Air Traffic Control Centre Network airports Safety • 25 April Internal changes within the area of respon- • Regular scheduled traffic to and from resumed • The changes required by the new EU legislation in the sibility of regional air traffic control centre (sector- on 09/2019 and will be provided with an air traffic Safety Management System were implemented as planned isation), updating the standard approach routes at control service • The degree of achievement of safety targets was good Helsinki Airport to support a more environmentally • Planning of the remote-operated air traffic control friendly air traffic management, change of the ATC • The refresher training of the entire company’s person- (MROT) continued with simulations in May in Ger- callsign of the regional air traffic control centre to nel on the Safety Management System was successfully many, for which a report was received in August. A Helsinki Control and the deployment of air traffic implemented concept-level proposal with safety reviews was sub- controller–pilot data connections (CPDLC). mitted to the authorities in November • The testing and practising service contingency by providing operational Area Control Centre (ACC) and Aproach Control (APP) services 24 hours at re- serve premises. • Testing and practising Helsinki Airport tower (EFHK TWR) services contingency by providing opeartion- al services at temporary tower on 18 November. • Record number of IFR flights in Finland, 276,362 on 31 December.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 5 Marketing and customer relations Avia College Technical Air Navigation • The Gulf of Finland project (drone flights) and the • One air traffic controller training course (LJK) qual- • The renewal of the ILS precision approach system of associated tests, culminating in the Volocopter ified in March 2019, and the next course started in Helsinki Airport in record time Drone taxi flight at the Helsinki Airport. August 2019 • In data communications, the transition from the TDM • A seminar on route optimisation in Beijing, China in • Students from Bosnia–Herzegovina continued in the based network to the use of an TDM over IP network cooperation with Traficom and Finnair regional air traffic control training throughout the • The deployment of the TopMax phone system year, one group of students graduated in summer • Consulting with airlines on route optimisation issues 2019 • The deployment of the updates of the MSSR monopulse and thereby increasing air traffic over Finland secondary surveillance radar system at Tampere-Pirkkala • The students from the Latvian air navigation com- and Kuopio airports pany LGS (Latvijas Gaisa Satiksme) and the Swedish air navigation company ACR (Aviation Capacity Re- • The first validations of the satellite-based SBAS LPV ap- sources AB) continued their studies and graduated proach procedures in flight checking in October 2019 • Tendering the VoIP VCS system and entering into a con- • A new course of the Latvian LGS started in August tract with the winning supplier 2019 • 11 new employees recruited in the Technology unit, work begins in early 2020

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 6 Year 2019 in numbers

KEY FIGURES PERSONNEL (31.12.2019) DISTRIBUTION OF LOCATIONS Revenue Employees Vantaa 301

Northern Finland 43 Enontekiö 1 438 Ivalo (Inari) 1 Kajaani 4 80.2 Kemi 2 eur million Kittilä 3 Average age of employees (years) Kuusamo 3 Oulu 13 Rovaniemi 16 Operating profit 45.5 Eastern Finland 37 Joensuu 5 Jyväskylä 12 Average duration of Halli (Jämsä) 1 Kuopio (Siilinjärvi) 12 5.9 employment relationships Lappeenranta 2 eur million Savonlinna 2 Utti (Kouvola) 3

17.7 Western Finland 57 Operating profit/revenue (%) Kokkola (Kruunupyy) 4 Maarianhamina 5 Absences due to sickness rate Tampere-Pirkkala 19 Pori 6 Turku 15 Vaasa 8 7.3% 2.6 TOTAL 438

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 7 Strategy 2020–2024

• Our strategic customers include Finnair, Some of the support services of the sub- • The integration of low-flying airspace into Finavia, Finnish state aviation operations sidiaries will be centralised in the Group, traditional aviation is seen as a new chal- as well as overflights. The customers of and the Group will also build new business lenge, while enabling the emergence of a ANS Finland expect the operations to stay platforms utilising ecosystem thinking. completely new business area as, for ex- safe and punctual. ample, drone activities develop. • New traffic management operations are • The competition on offering ATM services being developed to improve the quality • In order to continue as a successful play- cross borders is increasing, and it’s already and cost-effectiveness of basic services. er in the market and to increase its share a reality in some areas. Therefore, it is very The key projects of the strategy period are of the Nordic air navigation market, ANS important for ANS Finland to improve its cross-border air traffic control services Finland has to adapt to the operating envi- performance with which the company can (the so-called FINEST project) as well as ronment. ANS Finland aims to develop its maintain its position and further improve enabling future air traffic control services turnover further and to remain profitable its competitiveness compared to other of airports with a remote air traffic control in the strategy period 2020-2024. This is service providers. model. achieved by improving cost-effectiveness, implementing key strategic projects alone • From the beginning of 2019, ANS Finland • Climate change is affecting society’s atti- or through partnerships, and leveraging was incorporated into the established Traf- tudes, and air travel trends may fluctuate new business innovations. fic Management Finland. The corporatisa- in Europe. States are considering the intro- tion of four traffic management functions, duction of various air travel taxes (already the harmonisation and integration of op- in place in some countries). ANS Finland erations, the growing role of services and is continuously developing more environ- related development activities are made mentally efficient flight methods and air possible by digitalisation, automation and traffic control services to minimise the en- information sharing. It also lays the foun- vironmental impact of flying. dation for improving customer orientation.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 8 ANS FINLAND The world’s safest, smoothest and most environmentally friendly airspace

We have the world’s environmentally friendly airspace. Our competent professionals are the key resources for new, traffic data services, that produce major benefits for our customers and the whole of society.

Objectives

Safe and smooth Cost-effective Patnerships and air traffic operations new services

Major programs

• Multi Remote Tower Services Concept (MROT) Good leadership We are running our • Joint cross-border air navigation services with Estonia (FINEST) and ability to renew operations on the our expertise basis of social impact • Start providing ATS services in new markets • Designated U-Space service provider in Finland • Sales activities in training services and consulting

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 9 International co-operation

EU objectives define operations EU sets prices for air navigation services Functional airspace block NEFAB mation and coordination between the various Air navigation services are strongly regulat- and performance targets for service provid- and FINEST parties is becoming increasingly important in ed, and the terms of ANS Finland’s license ers in four main areas: Finland is part of the North European Func- order to ensure the smoothest possible traf- come directly from the EU. This gives the tional Airspace Block (NEFAB) together fic. ANS Finland participated in the activities company a chance to offer air navigation ser- • the safety management systems must with Latvia, Norway and Estonia. NEFAB of the Network Manager as a representative vices anywhere in Europe. The sector is in- meet the set criteria is one of the nine European Functional Air- of NEFAB. creasingly opening up to international com- • the delays allowed for air traffic must stay space Blocks established in connection with petition, and ANS Finland is also preparing within the set limits the SES project. Within the Airspace Blocks, Other operations for this development. • flight routes must be as short and unre- states and service providers, including ANS ANS Finland is part of the Borealis Alliance, Air navigation operations are getting pre- stricted as possible Finland, cooperate in developing operations. a consortium of nine air navigation service pared for the changes in the operating envi- • costs must be below the set maximum ANS Finland has an ongoing FINEST pro- providers. Together the members of the Alli- ronment caused by, for example, unmanned level. ject together with the Estonian air navigation ance make use of, for example, the free rout- aerial vehicles, short-range traffic and cyber- service provider EANS. It aims to develop a ing airspace on the same principles as in Fin- security requirements. The EU leads the Eu- Single European Sky network performance common air traffic control system in 2020– land. ANS Finland is also an active member of ropean ATM Master Plan. plan (RP3 2020-2024) includes strict targets 2022, in which each operator could provide a the association of air navigation service pro- Single European Sky (SES) is an EU pro- for service providers, and states are expected service on behalf of the other. viders, Civil Air Navigation Services Organi- ject. SES seeks to harmonise practices in to improve their air navigation performance sation CANSO. CANSO seeks to improve the different countries. The SES is based on in all areas. For Finland, the targets concern- The management of the air traffic operating conditions of air navigation service binding EU regulations and complementa- ing ANS Finland were drafted during 2019 by network providers and to influence the regulations ry rules on harmonised measures. For ex- the Ministry of Transport and Communica- Eurocontrol acts as the Network Manager governing them. Raine Luojus, the CEO of ample, airlines and aviators benefit from tions and the Finnish Transport and Commu- in Europe, appointed by the EU. The signifi- ANS Finland, has acted as the Vice Chairman the free routing airspace already in use in nications Agency Traficom. cance of the Network Manager operations is of Europe CANSO CEO Committee. Finland, which allows them to choose their expected to increase in the future. With the preferred route. increase in air traffic, the exchange of infor-

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 10 SERVICES AND UNITS Finland’s Air Traffic Control Centre and Helsinki Air Traffic Control

Area control Aerodrome control (TWR) Area control manages the entire Finland’s Aerodrome control is also referred to as Flight Information region (EFIN). Area con- “Tower”. It manages air traffic in the con- trol centre service is provided from 13 sec- trolled traffic region (CTR) of the airport, ex- tors, managed from 1–5 air traffic control tending approximately 15 kilometres from work stations, depending on the traffic sit- the airport. The Tower also manages aircraft uation. The average number of flights man- taxiing on ground and using runways, as well aged per day is 730. In 2019, the area con- as vehicles using the traffic area. trol centre processed 272 205 flights, of which 62 472 were overflights. Approach control service (APP) The approach control service is responsible Helsinki Airport air traffic control for the terminal manoeuvring area (TMA), Air traffic control at Helsinki Airport includes extending approximately 50–70 kilometres both aerodrome and approach control. The from the airport. The most important tool of hourly maximum operation volumes at Hel- approach control is the radar. Most air traf- sinki Airport are 48 arriving and 42 de- fic controllers work both in the Tower and in parting aircraft per hour, however with- approach control. out exceeding the total hourly limit of 80 operations. In 2019, Helsinki Airport had 190,220 op- erations. The average number of operations per day was 521.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 11 In 2019, 52,713 Finland’s Flight sinki Airport air traffic control centre (APP/ Finland’s Flow Management ATS messages was Planning Centre (FPC) TWR) and regional air traffic control centre The task of Finland’s Flow Management po- The FPC provides pilots with pre-flight in- (ACC). FDA (Flight data assistant) and RASS sition is to regulate how much and where air processed and formation service throughout Finland, par- (Radar Assistant) operationally maintain air traffic is permitted in case of military exer- 13,291 Finnish NOTAM ticipates in the process of airspace manage- traffic control systems and coordinate be- cises, for example. Flow management is in- ment and keeps the data of air traffic control tween different air traffic control bodies, the ternational co-operation. messages prepared. system up-to-date. task of the AMC (Airspace Management Cell) The Flight Planning Centre includes the is to coordinate the management of airspace Finland’s Air Rescue Coordination Air Traffic Services Reporting Office ARO, reservations. Centre (ARCC) aviation weather service MET (subcontract- Aeronautical telecommunication servic- The Aviation Act prescribes Finland’s Air ed to the Finnish Meteorological Institute), es (COM): The Flight Planning Centre guides Rescue Coordination Centre (ARCC Finland) aeronautical information services (AIS, NO- and monitors the use of the telecommunica- to take care of aviation search and rescue TAM) and aeronautical telecommunication tion service system and design solutions to services in Finland’s Search and rescue re- services (COM) as well as the operational communication problems. gion. This service refers to measures to assist tasks of Helsinki Airport air traffic control The centre is known as the aeronautical aircraft in an emergency or accident and lo- and regional air traffic control centre (and oc- fixed telecommunications network (AFTN) cate missing aircraft. In addition, the Air Res- casionally AMC). centre. The international NOTAM office cue Coordination Centre provides contrac- Air Traffic Services Reporting Office ARO (NOF) is located at the Flight Planning Cen- tual support services to safety authorities. is a unit established to receive reports con- tre unit. It is responsible for the drafting and The centre maintains 24-hour readiness for cerning air traffic services and flight plans publication of national and international NO- launching operations. Every year, there are submitted before departure. TAMs concerning the territory of Finland. approximately 400 aviation search and res- The role of the aviation weather service In 2019, it processed 52,713 ATS mes- cue alerts, of which on average 5% are emer- (MET) is to provide aeronautical weather sages and prepared 13,291 Finnish NOTAM gencies, 35% alarms and 60% uncertainty briefings and meteorological information to messages. situations. both operators and crew for flight planning. The Finnish Meteorological Institute is re- Airspace Management Cell sponsible for the aviation weather service in The Airspace Management Cell operating in Finland, but the service is subcontracted to conjunction with the area control centre co- Finavia. ordinates daily airspace reservations. The tasks of the air traffic control opera- tor include the operational functions of Hel-

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 12 The network’s ATS services

ANS Finland provides aerodrome control and approach control Northern Finland 43 services for 22 airports. Enontekiö 1 Ivalo (Inari) 1 Ivalo Kajaani 4 Kemi 2 Enontekiö Kittilä 3 Kuusamo 3 Oulu 13 Kittilä Rovaniemi 16 Eastern Finland 37 Joensuu 5 Enontekiö Jyväskylä 12 Kuusamo Halli (Jämsä) 1 Kemi-Tornio Kuopio (Siilinjärvi) 12 Lappeenranta 2 Savonlinna 2 22 Utti (Kouvola) 3 Oulu Western Finland 57 Kajaani Kokkola (Kruunupyy) 4 Maarianhamina 5 Kokkola-Pietarsaari Tampere-Pirkkala 19 Pori 6 Vaasa Turku 15 Kuopio Vaasa 8 Joensuu Jyväskylä Halli Savonlinna Pori Tampere Lappeenranta Utti Turku Helsinki-Vantaa Maarianhamina * Network employees at the end of the year 2019

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 13 Technical air navigation

Technical air navigation comprises es to air navigation systems, and they are ANS Finland is responsible, on a contrac- Safety assessments equipment, systems and tools approved by the authority (Traficom) be- tual basis, for civil aviation flight measure- are made of fore they can be implemented. Traficom also ments in Finland as well as in Estonia. used in air traffic service. These intended changes include information, radio and radar conducts its own safety assessment on the Technical investments will replace outdat- most significant changes. Annually, approxi- ed technology and they help in responding systems located across the country to air navigation systems, mately 200 different technical amendments to the new requirements coming from reg- as well as equipment used by are made. ulation. Investment needs are also assessed and they are approved by the aircraft for navigation and landing. Technology develops continuously, and from the business point of view. authority (Traficom) before the employees’ professional skills are kept The most important task of technical air up-to-date through training. Subcontractors they can be implemented. navigation is to maintain the equipment and are used in addition to ANS Finland’s in- systems so that operations are safe and effi- house personnel, and factory maintenance cient and comply with the agreed response contracts have been concluded with the times. In part, safety is ensured by requir- equipment suppliers for the most important ing ATSEP (Air Traffic Safety electronics per- systems. sonnel) qualification from everyone entitled In air navigation, safety is always our to the technical maintenance of the sys- first priority. Therefore, the technology to tems. Obtaining it requires passing specified be adopted must always be tried and test- courses. The validity of this qualification is ed in practice. According to the indicators supervised. in use, ANS Finland reached the 2019 safe- The maintenance of equipment and sys- ty targets. Traficom audits the operations of tems takes place as specified in advance, technical air navigation on an annual basis and safety is ensured in many ways. Safety and tackles the possible shortcomings when assessments are made of intended chang- needed.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 14 Avia College

Avia College is a vocational special Working as air traffic controller is attrac- education institution owned tive so there is a lot of interest towards the and maintained by ANS Finland training. The selection is rigorous and in- providing air navigation training cludes several phases. The selection pro- cess includes, in addition to written tests, services meeting international also interviews by the training provider and standards and recommendations. a psychologist. For the course that started in 2019, there were 1134 applicants of whom Avia College provides vocational air traf- 10 passed the selective assessment and fic controller training. In addition, it offers started the training. refresher, conversion, follow-up and spe- cialisation training in various fields of air navigation. The 1.5-year air traffic controller train- ing is very pragmatic and focuses on learn- ing the basic skills. As the training is not equipment-bound, the acquired knowledge gives the students the qualification to work in other countries as well. Students who have completed the training and the on- the-job-training thereof, are ready to work as ATCs and they receive the ATC licence at graduation.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 15 GOVERNANCE Board of Directors

Chairman of the Board of Directors

Pertti Korhonen Teemu Penttilä Asta Sihvonen-Punkka Ilkka Virtanen Acting CEO, Traffic Management Finland Director of Department, Ministry of Defence Executive Vice President, Markets, Fingrid Oyj CFO, Traffic Management Finland Chairman of the Board of Directors since 10 October Member of ANS Finland’s Board of Directors as of 17 Member of ANS Finland’s Board of Directors as of 17 Member of ANS Finland’s Board of Directors as of 1 2017 March 2017 March 2017 April 2019

Professional experience and key positions of Professional experience and key positions of Professional experience and key positions of Professional experience and key positions of trust: trust: trust: trust: Outotec Oyj, CEO 2010–2016. Elektrobit Oyj, CEO 2006– Ministry of Defence of Finland, Director of the Admin- Fingrid Oyj, Executive Vice President, Markets, 2019–. Fin- Ministry of Transport and Communications, Senior Spe- 2009. Nokia Corporation, member of the Board of Direc- istration Policy Department 2007–. Finnish Defence grid Datahub Oy, Managing Director 2017–. Fingrid Oyj, cialist, Steering Unit/Ministerial Governance Department tors 2002–2006. Nokia Corporation, CTO 2004–2006. Forces, Principal Legal Adviser, Head of Legal Division Director, Electricity market 2016–. Finnish Communica- 2017–2019. Entrepreneur, traffic engineer student, busi- Nokia Mobile Software, SVP 2001–2003. Several executive 2002–2007. Finnish Defence Forces, Deputy Head of tions Regulatory Authority, director general 2011–2015. ness consultant 2012–2017. VTI Technologies (Murata positions at Nokia Mobile Phones 1990–2001. Member of Legal Division 2000–2002. Leijona Catering Oy, mem- The Energy Market Authority (Energy Authority), director Electronics), CFO 2007–2010. Outokumpu Technology the Board of Directors of several listed and growth compa- ber of the Board of Directors. Air Navigation Services general 2002–2011. The Energy Market Authority (Säh- (Outotec), CFO 2002–2006. Outokumpu Pyrometallur- nies, e.g.: Business Finland, Chairman of the Board 2017–. Finland Oy, member of the Board of Directors 2017–. kömarkkinakeskus), director 1998–2002. Gasgrid Finland gy, CFO 1999–2002. Outokumpu Technology, VP Project Oy, Member of the Board 2020–. and Trade Finance 1995–1999. AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 16 The Board of Directors of ANS Finland sees committees. The Board of directors assess- rectors. The company’s CEO has been Raine 2019, the performance bonus scheme cov- to the administration of the company and es its operations regularly itself and, if nec- Luojus. ered the management team and other execu- the appropriate organisation of the compa- essary, using an external auditor. The com- In addition to the CEO (chair), the strate- tives, managers and experts. The purpose of ny’s operations. In addition, the Board of Di- pany’s Board of Directors is elected by the gic management team of ANS Finland com- the performance bonus scheme is to encour- rectors ensures that the company’s accounts general meeting of shareholders in accord- prises Chief Corporate Services Officer age the executives and management to per- and asset management are appropriately ance with the provisions of the Limited Lia- Matts-Anders Nyberg, Director of Network form above average and commit them to the organised. The Board of Directors complies bility Companies Act. The chairman of the Airports Tapio Nurmela, Air Navigation Ser- company. The CEO has a personal employ- with the Articles of Association, governance Board of directors was Pertti ­Korhonen vices Chief Technical Officer Jukka ­Piilola ment contract and remuneration scheme, policy, agreement on authorisations, Limit- (29.1., 4.3., 11.10. and 22.11.) and Juko (Jani Suomela), Director ATCC Finland Kar- while other members of the management ed Liability Companies Act and other valid Hakala (22.5., 7.6. and 23.8.). The other ri Hannula, Director of Development and have their own personal objectives and bo- legislation. members of the Board of directors have been Quality Kari Kerke, Director of Marketing nus schemes. The guidelines on remunera- The Board of directors has ratified a Board Asta Sihvonen-Punkka, Teemu ­Penttilä and and Customer Relations Pasi Nikama, VP tion in state-owned companies ratified by the Charter, specifying the key tasks of the Board Ilkka Virtanen (as of 1.4.). The chairman of Development and Quality Stina Anders- government are complied with in terms of re- of Directors and the key procedures associ- the Board of directors is paid eur 2,300 per son-Jalkanen and VP Network Christer muneration. The performance bonus scheme ated with Board work. In addition to the du- month and members eur 1,500 per month. In Björkman. The strategic management team confirmed by the Board of Directors specifies ties set forth in the Limited Liability Com- addition, Board members are paid a meeting convened on a weekly basis. its key provisions, such as the grounds of de- panies Act, the Board of Directors’ duties fee of eur 600 per meeting. In addition to the members of the strategic termination and measurement of objectives, include approving and monitoring the long- The Board of directors has convened 7 management team, the company’s manage- possible maximum bonuses and the entry and term strategy, confirming the annual objec- times. The members of the Board of directors ment team comprises Director of Safety Tom exit rules of the scheme. tives and budget and monitoring their reali- have attended the meetings as follows: Pertti Hätinen, Business Controller Jarkko Luoma The company’s Board of Directors decides sation, approving the essential organisation Korhonen 4/7, Juko Hakala 3/7, Asta Sihvo- and, as representative of the personnel, air on the payment of performance bonuses at structure, approving significant investments, nen-Punkka 7/7, Teemu Penttilä 7/7 and Ilk- traffic controller Vesa Tarvainen. The man- the management team level after the adop- establishing the investment policy, approv- ka Virtanen 5/7. agement team convened once a quarter. tion of the financial statements. The Board ing the principles of risk management and of directors can amend the rules of the sys- other similar key control systems, appointing CEO and management team Remuneration Schemes tem or decide not to pay performance bonus- the CEO and confirming the appointment of The CEO sees to the day-to-day manage- The company’s Board of directors con- es. Challenging and measurable objectives management team members, confirming the ment of the company in accordance with the firmed a remuneration scheme for the com- are set for everyone in the performance bo- remuneration paid to the senior management instructions and orders issued by the Board pany’s management and experts in 2019. nus scheme. The objectives are based on the and approving the company’s performance of Directors. The CEO is appointed and the The employees covered by the remunera- company’s strategic themes: safety, improv- bonus schemes. CEO’s remuneration and other terms of em- tion scheme are annually confirmed by the ing operational efficiency, growth, customer The Board of Directors has no separate ployment are confirmed by the Board of Di- company’s Board of Directors. At the end of satisfaction, management of personnel and

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 17 management of operations/implementation verse changes on en-route service and area of projects. The weightings of the objectives traffic control operations. vary by position and role. The annual com- Rapidly increased drone activity places bined total amount of remuneration variable new challenges on ANS Finland. The com- based on objectives is a maximum of 15 per pany has to consider ways for best manag- cent of the bonus earner’s fixed annual salary. ing the effects of drones on its own service. If the performance of the company and the ANS Finland actively cooperates with the bonus earner is exceptionally good, the total authorities, supporting the flow of infor- maximum amount of bonuses paid can be a mation by reporting and considering tech- maximum of 30 per cent of fixed salary. In ad- nical and operational means for minimis- dition to the management and specialists, all ing the negative impacts together with the permanent employees are covered by a sep- authorities. arate performance bonus scheme. It is not During 2019, the air traffic control op- possible to be included in the scope of two erations of Helsinki Airport were taken to a different systems at the same time. ANS Fin- back-up location twice in exercises. It is lo- land also has a personnel fund. cated in the immediate vicinity of Helsin- ki Airport, and it features the technical re- Risk Management sources required for operations. The Flight The company’s risk management comprises planning Centre has also conducted emer- two parts. In addition to Safety and Com- gency exercises. They have proved that ser- pliance, the company addresses risk man- vice provision can also be ensured in the agement relating to financial, IT, investment, back-up premises. cash flow, income and insurance risks, for example. A risk management plan was pre- Auditing pared when the company began operations, The company’s auditor is Ernst & Young Oy. and it is updated on a regular basis. Risk management is an integral part of the in- ternal control system and safety and quality management. The company aims to analyse and identify predictively the impacts of di-

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 18 Strategic management

Raine Luojus Member of the Board in several projects and organi- Stina Andersson-Jalkanen Christer Björkman b.1966 sations, e.g. CANSO, Chairman of the Europe region b. 1975 b. 1968 CEO management group (EC3) 2020– & Vice Chairman VP, Deputy Director, Development and Quality VP, Deputy Director, Network Airports 2018–2020. Finnish Meteorological Institute, mem- Professional experience and key positions of trust: Air ber of the Advisory Board 2018–. Chairman of the Air Navigation Services Finland Oy, VP, Deputy Di- Air Navigation Services Finland Oy, VP, Deputy Navigation Services Finland Oy, CEO 2017. Finavia Cor- FINEST Management Board 2019–. North European rector Development 1.12.2018–. Air Navigation Ser- Director, Network 1.12.2018–. Finavia Oyj, Air poration, Director, air navigation business 2011–2017. Functional Airspace Block (NeFAB) CEO Board, Chair- vices Finland Oy, Area Manager, ATS units in West- Navigation Business, Manager, Enroute services, Finavia Corporation, COO, Air Navigation Business man 2015–2017. NEFAB CEO Board, member 2012–. ern Finland 2017–2018. Finavia Oyj, Air Navigation 2008–2018. CAA Finland/ Finavia, Air Navigation 2008–2011. Finnish Civil Aviation Administration/Fina- Civil Air Navigation Services Organisation (CANSO) business/ANS Finland, Quality Manager, 2016–2018. Business, Planning Manager, 2000–2008. via, Deputy and operational manager for air traffic con- EC3, member 2011–. Borealis Alliance CEO Board, Finavia Oyj, Risk Management, Safety Analyst, 2008– Oy Propilots Ab Ltd, CEO, 1999–2000. CAA Finland, trol at Helsinki Airport 2002–2008. Finnish Civil Aviation Chairman 2014–2015. Borealis Alliance CEO Board, 2016 and Analyst Manager 2010–2011. CAA Fin- EFES, Chief Instructor, 1996–1998. CAA Finland, Administration, managerial positions and chief instructor member 2013–. NEFAB Management Board, member land/Finavia, Helsinki Airport, Air Traffic Controller EFES, Operations, 1995–1999. CAA Finland, EFES, Air of air traffic control at Helsinki Airport 1999–2002, air 2009–2011. 1998–2008. Traffic Controller 1990–1999. traffic controller 1991–.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 19 Karri Hannula Kari Kerke Pasi Nikama Tapio Nurmela b.1968 b. 1965 b.1968 b. 1975 SVP, ATCC Finland SVP, Development and Quality SVP, marketing and customer relations SVP, Network Airports

Air Navigation Services Finland Oy, SVP, ATCC Fin- Air Navigation Services Finland Oy, SVP, Development Air Navigation Services Finland Oy, SVP, Marketing Air Navigation Services Finland Oy, SVP, Network Air- land 1 April 2017–. Finavia Oyj, Director, ATCC Finland and Quality 1.12.2018–. Air Navigation Services and Customer Relations, 1 April 2017–. Finavia, Air ports, 1.12.2019–. Finavia Oyj/ANS Finland, Area Man- 2015–2017. Ilmailulaitos/Finavia, Helsinki Airport, Finland Oy, PMO, Manager 2017–. Finavia Oyj, Air Navigation Business, VP, Marketing and Customer ager in Northern Finland 2013–4/2019. Finavia Oyj/ Chief of ATC 2008–2015, chief of ATC training 2004– Navigation Business, PMO, Manager 2016. Finavia Relations 2015–2017. Finavia, Chief of Area Control ANS Finland, , Chief of ATC 2010– 2008. CAA Finland/Finavia, Air Traffic Controller, Hel- Oyj, Air Navigation Business, Specialist 2012–2016. Centre Finland, Southern Finland Air Navigation Cen- 2/2019. CAA Finland/Finavia, Air Traffic Controller, sinki Airport 1995–2015. CAA Finland, Pori Airport, CAA Finland/Finavia, Air Navigation Business, Project tre 2010–2015. Finavia, , Traffic Manag- Rovaniemi 2001–2009. Air Traffic Controller, 1992–1995. Manager/Systems Specialist 2005–2012. CAA Finland, er, 2007–2010. Finavia, Avia College, Instructor and EFES, Air Traffic Controller 1988–2005. Chief Instructor, 2002–2007. CAA Finland, Southern Finland Air Navigation Centre, Air Traffic Control- ler, 1997–2002. CAA Finland, Ivalo and Halli airport, Air Traffic Controller, 1995–1997. CAA Finland, Tam- pere-Pirkkala Airport, Southern Finland Air Navigation Centre, Air Traffic Controller Assistant, summer 1994, 1991–1992.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 20 Matts-Anders Nyberg Jukka Piilola b. 1961 b.1959 SVP, Company Services SVP, Technical Air Navigation (act. Jani Suomela) Air Navigation Services Finland Oy, Chief Administra- tive Officer, 1 April 2017–. Finavia, Air Navigation Busi- Air Navigation Services Finland Oy, SVP, Technical ness, Head of Business Innovations, 2012–2017. Fina- Air Navigation, 1 April 2017–. Finavia, Air Navigation via, NEAP Programme Office Manager, 2009–2012. Business, Chief Technical Officer 2016–2017. CAA CAA Finland/Finavia, Air Navigation Business, Plan- Finland/Finavia, Technical Production Control Man- ning Director, 2008. CAA Finland/Finavia, Deputy De- ager 2008–2016. CAA Finland, Air Navigation Techni- partment Manager 2001–2008. CAA Finland, Deputy cal Unit Manager 2005–2008. CAA Finland, Engineer Director 1994–2001. CAA Finland, Air Traffic Control 1999–2005. CAA Finland, Sector Manager, 1998– Inspector 1992–1994. CAA Finland, Northern Finland 1999. CAA Finland, Navigation Engineer 1996–1998. Air Navigation Centre & Rovaniemi Airport, Air Traffic CAA Finland, Service Manager and Message Engineer Controller 1983–1993. (NAV Team Supervisor) 1989–1996.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 21 Organisation 31.12.2019 Air Navigation Services Finland is part of the Traffic Management Finland Group (TMF). TMF is a wholly state-owned Group with spe- cial assignment operating under the owner- CEO Luojus ship steering of the Ministry of Transport and Communications. The special assignment set for us safe- EXECUTIVE SAFETY & INTERNATIONAL AVIA guards the essential traffic control services ASSISTANT COMPLIANCE AFFAIRS COLLEGE required by society, the authorities and com- Tamlander Hätinen Jaakkola Nyberg merce. The special assignment also ensures reliability of operations in case of disturbanc- es under normal conditions and in exception- al circumstances. MARKETING TECHNICAL SUPPORT TMF’s other subsidiaries and their re- NETWORK, COO ATCC, COO DEVELOPMENT CUSTOMER Piilola SERVICES spective areas of responsibility: Nurmela Hannula Kerke SERVICES Suomela (va) Nyberg • Finrail Oy is responsible for rail traffic con- Nikama trol and management. NORTH ENROUTE MAINTENANCE PMO HR, LEGAL • Intelligent Traffic Management Finland Oy Rajaniemi Loiske HA, ATCC, AC Kerke SERVICES, (ITM Finland) is responsible for road traffic Sahala ADMINISTRATION WEST EFHK, ATC DEVELOPMENT control and management. Ilkka Lanteri, MAINTENANCE QUALITY COMMUNICA- • Vessel Traffic Services Finland Oy (VTS Hannuksela NETWORK Kerke TIONS ­Finland) is responsible for marine traffic EAST AIRPORTS Järvinen FPC Latomäki INFORMATION control. Lehervo MANAGEMENT SYSTEM TMF Group employs over 1,000 profession- DEVELOPMENT FINANCE Peltonen PROCUREMENT als across Finland.

SYSTEM INFORMATION MANAGEMENT SECURITY Suomela

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 22 SAFETY AND RESPONSIBILITY Safety

Safety is ANS Finland’s first SMS is an integral part of ANS Finland’s man- three times a year and larger units once a Safety programme (FASP). It requires avia- and foremost value which we agement system. This ensures the priority of year. one of the indicators of an encouraging tion organisations to conduct a survey of risk will not compromise under any safety also at the practical level. reporting culture and good safety culture is factors and set separate target levels for the circumstances. ANS Finland The assessment of safety impacts is part the number of observations and incident re- risks and regularly monitor them. of our daily processes. In 2019, the compa- ports. The number of reports shows that our continuously develops the safety ny conducted a total of 294 assessments of reporting culture is at an excellent level. Airspace block NEFAB of its operations and related safety impacts related to changes which part- performance scheme quality assurance activities. Each ly demonstrates the commitment of our en- Performance goals and safety Finland is part of the functional airspace employee also carries personal tire personnel to safety assurance. Even the The performance Scheme set by the Europe- block comprising the NEFAB countries. The responsibility for safety. smallest changes are assessed so that the an Commission sets stringent goals for Fin- purpose of the NEFAB area is to lower the company can ensure that the changes are land regarding the punctuality, safety, envi- costs of European airspace and thereby im- ANS Finland has a licence for providing air managed, and adequate safety can be en- ronmental efficiency and charges collected prove Europe’s competitiveness. In 2015, navigation service issued by the Finnish sured in conjunction with them. We also as- in air traffic. The performance Scheme of air the European Commission approved the ref- Transport Safety Agency. This means that sess the safety impacts of changes that our navigation prepared as part of European air- erence period 2 (rp 2) of the NEFAB area’s the company continuously proves that it has cooperation partners make, for example in space development is binding on the state of performance Scheme for the reference pe- a well-functioning and effective safety man- the airport environment, that may have an ef- Finland and the air navigation service provid- riod 2015–2019 among the first function- agement system (SMS) meeting the common fect on air navigation. ed by ANS Finland, and it steers the develop- al airspace blocks (FABs). The performance European requirements of the SES regula- Good safety and quality management also ment of air navigation services. The obliga- Scheme for the NEFAB area complies with tion. The system’s compliance is controlled by includes internal audits and an encourag- tions under the performance Scheme have the europe-wide goals set by the European inspections, information requests and audits, ing reporting culture. The number of inter- been set by the Finnish Transport and Com- Commission. among others. The authority regularly con- nal audits in 2019 was 8. In accordance with munications Agency Traficom. In addition, trols our safety management operations. The the audit plan, we audit our own units at least safety goals are set in the Finnish Aviation

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 23 Responsibility

The operations of ANS Finland The third success factor is the smoothness of affect the day-to-day lives of air traffic: there were no delays in 2019 due many Finns in one way or another. to ANS Finland’s en-route services. ANS Finland provides en-route Corporate responsibility is a natural part of the operating culture and corporate iden- service and aerodrome control tity of ANS Finland even by the nature of the and approach control services for company’s operations. The concrete guide- airports. In practice, the company lines on corporate responsibility are derived ensures smooth take-offs and from the company’s values, strategy, risk landings at Finnish airports management policy, government guidance and that crossing the Finnish and international regulation on the air navi- airspace is smooth and safe. gation sector. The operations of ANS Finland are guided by several international regula- Air traffic enables the global citizenship tions, such as the performance level require- of Finns. It allows tourism and business to ments laid down by SES (Single European thrive and provides employment to tens of Sky) legislation for 2015−2019 and the sub- thousands of Finnish people. ANS Finland sequent five-year period. Finnish air traffic works to ensure that air traffic supports Fin- control is expected to operate more efficient- land’s success in a comprehensive way. Air ly year by year. In practice, this means that traffic allows Finland to stay active 24/7. flight routes must be as short and unrestrict- ANS Finland’s most important custom- ed as possible, delays minimised, safety level er promise is the safety of its services which high and costs accurately defined. also is the foundation for all its operations. Another key factor is to keep the Finnish air- space open in every day of the year, 24/7.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 24 Stakeholders

ANS Finland’s key stakeholders op its operations and the entire industry in an In all, 235 persons responded the survey. work and training and by complying with col- include airlines, the country of increasingly sustainable direction. ANS Fin- 185 of them were pilots, 33 represented air- lective labour agreements and labour legisla- Finland, state aviation, employees land operates with an emphasis on safety, in line operator, 15 represented the manage- tion. Good management of personnel is a key and shareholder. The responsibility a customer-oriented way and in accordance ment and 2 persons other staff. The feedback element of ANS Finland’s strategy. ANS Fin- with the Code of Ethics. received is used to constantly develop the land looks after the equal and fair treatment for stakeholders is manifested in Finavia, the company operating Finnish quality of services. of its employees. An equality and fairness ANS Finland’s goals and values. airports, is a significant customer for ANS plan was drawn up together with the per- Finland. ANS Finland provides both air traffic Military and state aviation sonnel in 2018, and it is updated whenever Customer hearings control services and technical services, such We support the mission of the Finnish de- needed. In 2018 ANS Finland has consulted its cus- as system servicing, maintenance and flight fence Forces by providing the required air- ANS Finland has signed a cooperation tomers in several joint and customer-specific measurements, for it. space reservations and monitor the airspace agreement with the healthcare service com- meetings. The official customer consultations of the Gulf of Finland in cooperation with the pany Terveystalo to promote occupational of 2019 were: Airline customers Finnish Air Force. We are obligated to serve health and well-being of employees accord- • The Finnish Border Guard consultation on A customer satisfaction survey was carried the Finnish state aviation also by law. Con- ing to a plan. Preventive campaigns were December 17. out at the end of 2019. The respondents as- tacts with the Finnish Air Force and the Bor- chosen as a means to influence employees’ • The Finnish Airforce consultation on No- sessed the different functions on a scale of der Guard are regular and aim at continuous absence due to sickness and working capaci- vember 5. 1−5 (5=very good, 1=very poor). The compa- improvement of operations. ty. In addition, preparations have been made • Airlines consultation on September 11. ny’s operations were ranked competent, reli- for diverse corrective measures, such as re- • Air and space for you - seminar for stake- able, professional and safe. Cooperation with Personnel in a key role storing the working capacity of chronically ill holders on November 29. ANS Finland was ranked good (4,0). The cus- In an area of special expertise such as air nav- employees. • Consultation on Helsinki Airport traffic re- tomers were most satisfied with the route op- igation, skilled and competent employees In 2019, the absence due to sickness rate strictions for airline operators on March 11. timization (4,6) and achieved safety level (4.4). play a central role. ANS Finland is a responsi- was 2.6. In customer service, the customers particular- ble employer. The company takes care of the ANS Finland is engaged in continuous and ly appreciated the attitude of ANS Finland em- well-being, health, competence and safety of open dialogue with its stakeholders to devel- ployees (4.4) and their expertise (4.4). its employees by providing good managerial

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 25 Interaction with employees sumption and CO2 emissions as well as noise. Share on green landings (CDO) of all ANS Finland uses a harmonised performance Flights are thus annually shortened by a dis- landings at Helsinki Airport appraisal model. The development discus- tance that equals 25 trips around the world. 07–22 22–07 sions pursuant to it are carried out with all employees on an annual basis. The person- New descent approach decreases 2013 58% 61% nel is kept up-to-date on company issues by CO2 emissions 2014 64% 69% monthly reviews via email and by commu- ANS Finland aims to be the world’s most en- 2015 67% 70% nicating on the intranet. The company has vironmentally efficient air navigation com- 2016 68% 75% a Cooperation Council and a Central Com- pany. Helsinki is already the best European 2017 69% 76% mittee for occupational health and Safety. metropolis in terms of the share of fuel-sav- 2018 72% 82% The organisation has prepared an occupa- ing continuous descent approaches. Opera- 2019 72% 82% tional health and safety action plan for the tions are developed in cooperation with air- company. line customers and the airport operator, and The environmental permit of Helsinki Airport includes target levels for CDO landings. During daytime, at 7–22, the target the new approach methods were deployed level is 70%, at night time at 22–7 it is 80% . In 2019, the target Responsibility for the environment in spring 2019. In 2019, there were 70,646 levels were reached. ANS Finland cooperates with internation- continuous descent approaches, accounting Source: Finavia al industry organisations and parties to re- for 75 per cent of all approaches. Continuous duce the negative environmental impacts of descent operations decreased the CO2 emis- air traffic. The most important means of in- sions of air traffic by approximately 23,000 fluence in this work include planning as short tonnes. The decrease in emissions were as possible flight routes, taking advantage equal to the annual CO2 emissions from ap- of weather conditions, using efficient flight proximately 11,000 passenger cars. techniques, keeping delays to a minimum and using the entire European airspace as effi- ciently as possible. Helsinki Airport adopted new standard ar- rival routes in April 2019, shortening flights. They also maximise the use of the continuous descent approach, thus reducing fuel con-

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 26 Financial statements 1 January–31 December 2019

Board of Directors’ report 28 Income statement 33 Balance sheet 34 Cash flow statement 36 Notes to the income financial statements 37 Signatures of the financial statements and Board of Directors’ report 41 Auditor’s report 42

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 27 Board of Directors’ report 2019

Mission and group relationship Communications in spring 2017 and imple- Finnish State is the sole owner of the Group. will be achieved by improving cost efficiency Air Navigation Services Finland Oy (ANS Fin- mented as of the beginning of 2019, aiming The strategic FINEST project established and quality of services, by e.g. developing new land) is responsible for special tasks relating to improve the capability of the administra- jointly by ANS Finland and the Estonian air ways of controlling traffic (such as remote air to air navigation, such as airspace manage- tive sector to respond to changes in custom- navigation services provider progressed sig- traffic control concept) and engaging in clos- ment, area control, services for the state’s er needs and the operating environment and nificantly during 2019. The project surveys er collaboration with other air navigation ser- aviation and aeronautical rescue services. In to strengthen the strategic guidance of the possibilities of offering air navigation ser- vice providers and developing new business addition, the company is responsible for en- administrative sector as well as create syner- vices across national borders. On 12 March through innovation. route services in the Finnish airspace and air gy benefits. As part of the reform, the road 2019, the Estonian company EANS, ANS navigation services at Finavia-owned airports and marine traffic control functions previous- Finland and air navigation service system Revenue and profit and . ANS Finland is ly managed by the Finnish Transport Agency provider Thales signed an agreement where- The revenue of ANS Finland for the finan- also responsible for the design and mainte- were incorporated as part of a wholly state- by the functionality of the air traffic control cial year amounted to EUR 80.2 million and nance of the infrastructure and systems re- owned limited liability company by way of the systems of both countries will be expanded profit to EUR 5.9 million. Flight route reve- quired for air navigation in compliance with Act on incorporating the traffic control and to support cross-border air navigation ser- Key indicators 2019 2018 2017* international requirements. management services of the Finnish Trans- vice. The FINEST project will be complet- ANS Finland’s customers include com- port Agency into a limited liability company ed in three phases. The first module will be Revenue (EUR million) 80.2 81.5 63.9 mercial aviation operators, airports, the (574/2018, government proposal 34/2018) commissioned in autumn 2020. Operating profit (EUR million) 5.9 6.8 9.3 Finnish state aviation operations including as of 1 January 2019. The new incorporated The new strategy of the Group’s parent Operating profit/ military aviation, general aviation and pilot companies Traffic Management Finland Oy, company TMF Oy was approved in autumn revenue (%) 7.3 8.4 14.5 training schools. Intelligent Traffic Management Finland Oy 2019. At the same time, the strategy of ANS Investments (EUR mil- ANS Finland is part of the Traffic Man- and Vessel Traffic Services Finland Oy as well Finland was specified further to match the lion) 5.3 2.1 4.0 agement Finland group of companies (TMF). as the previously established state-owned key objectives of the parent company. Return on equity (%) 14.5 31.2 45.1** traffic control companies Finrail Oy and Air The company’s operations have been stabi- Equity ratio (%) 36.2 37.0 40.8 Key events in the financial year Navigation Services Finland Oy formed the lised further by ensuring the functioning of the Personnel on average Underlying the establishment of the Traf- TMF Group as of the beginning of 2019, with company’s key processes. Investments were (FTE) 405 408 402 fic Management Finland Group is the reform the subsidiaries managing traffic control ser- made in implementing ANS Finland’s strate- * operations began on 1 April 2017 launched by the Ministry of Transport and vices for respective modes of transport. The gy during the year. The strategic objectives ** calculated on the balance sheet values at the closing date

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 28 nue and revenue generated by the Helsinki agement plan was prepared in conjunction Salaries and bonuses paid during the financial meetings and preparations led by the OHS Airport air navigation service developed fa- with the incorporation of the company, and year amounted to EUR 37.1 million. manager between the meetings. An ac- vourably due to the strong development in it is updated on a regular basis. The average age of employees is 45.5 tion plan for occupational health, equality traffic volumes. The revenue is decreased by Air traffic is estimated to continue to grow years and the average duration of employ- and fairness plan and substance abuse pol- regulatory adjustments of EUR 9.1 million in the next couple of years, but not as quickly ment relationships is 17.7 years. Of the em- icy concerning the entire TMF Group were due to SES legislation. The operating profit as during the last couple of years. The most ployment relationships, 92 per cent are per- completed during 2019. margin was 7.3 per cent. significant financial risk is associated with manent and 8 per cent are fixed-term. If the company accrues profit bonuses to overflight traffic. Traffic between the Middle In 2019, ANS Finland complied with the be paid to the personnel, they will be paid Traffic East and North America and traffic between collective labour agreement of Service Sec- to ANS Finland’s personnel fund. There are The traffic volumes of the flight route service Asia and Europe use the Finnish airspace tor Employers Palta and Ilmailutietotekniset three criteria for profit bonuses: finances, and Helsinki Airport air navigation service con- every day, because the route flown over Fin- (ILTT). A collective agreement was reached safety and customer satisfaction. In 2019, tinued to develop favourably in 2019. The vol- land is the shortest or otherwise most eco- with air traffic controllers in accordance with after administrative costs, the profit bonus- ume of the flight route service (service units) nomic one. If changes take place in the air- the proposal of the National Conciliator’s es to be paid to the personnel fund totalled increased by a total of 6.4 per cent year-on- space of a country along this route with Office on 27 February 2019 after long in- EUR 893,602.53. year. The biggest growth was seen in over- regard to safety or availability (typically, a dustrial action. During the dispute, PALTA Joining the TMF Group on 1 January flight traffic (+13.5%). There was also growth military crisis), it may significantly change the also imposed several short lockouts. The in- 2019 did not require any personnel cuts or in international traffic (+3.2%), while domes- routes chosen by airlines and can also affect dustrial action did not have impacts on the structural changes. Nevertheless, statutory tic traffic decreased by 2.0 per cent. The traf- the volume of overflights operated by ANS safety or punctuality of traffic. employer-employee negotiations concern- fic volume of the Helsinki Airport (tn-units) Finland. During the second quarter of 2019, The results of an HR survey conducted ing the transfer of central services to Group increased by a total of 3.5 per cent in 2019. the airspaces of Pakistan and India were part- in late 2018 provided valuable feedback for functions took place in late 2019. A total International traffic (+3.8%) outgrew domestic ly closed due to a military crisis. ANS Finland designing the new organisation. An organi- of eight employees were transferred from traffic (+2.0%) at the Helsinki Airport. estimates this risk to amount to approximate- sational change of technology and develop- finances, communications, occupational ly EUR 4 million at an annual level. ment functions was realised in spring 2019. health and safety, HR and IT services to the Assessment of key operational risks According to the HR survey conducted in parent company on 1 January 2020. and uncertainties Personnel, training and wages late 2019 (people power index), job satis- Refresher training to maintain the pro- The company’s risk management is com- At the end of 2019, the company employed faction is at a moderate level. The industrial fessional skills of operational personnel was prised of two parts. The risk management a total of 438 professionals of different fields, action early in the year may have still been carried out in accordance with the annual unit deals with cases involving the safety of of whom 291 worked in air traffic control. In reflected in the results. plan as either local training or as refresher or air traffic, in addition to which the company addition to administrative and air traffic con- The activities of the statutory employ- conversion training at Avia College. It includ- manages other risks associated with finan- trol personnel, the company employs techni- er-employee advisory board and central ed the training of the personnel of the Air cial, IT, investment, cash flow, revenue and cal air navigation and safety and risk manage- occupational health and safety commit- Traffic Control Centre Finland and air traf- insurance risks, among others. A risk man- ment professionals in 22 units across Finland. tee have been established through regular fic control units elsewhere in Finland. The

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 29 trainings were realised in accordance with way to or from work. 15 occupational safe- tensive risk assessment process and changes prehensively, also when they concern one’s international regulation. ty and health observations were made. The relating to change management in accordance own actions. The number of reports shows In addition to its own work, the technical observations concerned, for example, air with the new requirements imposed a par- that our reporting culture is excellent. personnel completed the refresher or con- quality in the office building, workload and ticular challenge. New change management version training required by regulation. The safety of premises. procedures were submitted for official ap- Performance goals and safety refresher training of the personnel of the In 2019, the absence due to sickness rate proval, which in turn ensured that the com- The Performance Scheme set by the Europe- Flight Planning Centre has been realised at of ANS Finland’s personnel was 2.6% and pany remains compliant with pan-European an Commission sets stringent goals for Fin- the workplace using an electronic training accident rate 1.37 (annual number of acci- legislation going forward. In addition, we co- land regarding the punctuality, safety, envi- platform. dents per million working hours). operated closely in the safety sector with re- ronmental efficiency and charges collected in The Further Qualification in First-Line gard to the joint project of Finnish and Estoni- air traffic. Management for supervisors, launched in Air traffic safety an air navigation service providers (FINEST). The Performance Scheme of air naviga- 2018, will continue until March 2020. Safety is ANS Finland’s first and foremost val- Good safety and quality management tion services prepared as part of European Regarding occupational health and safe- ue that we will not compromise under any also includes internal audits and an encour- airspace development is binding on the state ty in the workplace, ANS Finland focused circumstances. ANS Finland continuously de- aging reporting culture. Eight internal au- of Finland and the air navigation service pro- on measures that promote safe and healthy velops the safety of its operations and the re- dits were conducted during the year. In ac- vided by ANS Finland, and it steers the de- working environments and working condi- lated quality assurance. Each employee also cordance with the audit plan, own units are velopment of air navigation services. The tions, as well as the maintaining the person- carries personal responsibility for safety. audited at least once every three years and obligations under the Performance Scheme nel’s physical and mental ability to work. To Assessment of safety impacts and risks is larger units once a year. One of the indica- have been set by the Finnish Transport Safety improve the working environments and con- part of our day-to-day processes. In 2019, tors of an encouraging reporting culture and Agency (Finnish Transport and Communica- ditions, the employer and the employees pre- the company conducted a total of 294 as- good safety culture is the number of ob- tions Agency Traficom from 1 January 2019). vented or removed work-related hazards. The sessments of safety impacts related to servations and incident reports. Even small In addition, safety goals are set in the aim was to minimise occupational health and changes, which reflects the strong commit- errors and observations are reported com- Finnish Aviation Safety Programme (FASP). safety risks to ensure that no accidents at the ment of the employees to assurance of safe- It requires aviation organisations to conduct workplace occur. Disability due to occupa- ty. The company assesses even the most mi- Reporting activity, internal control a survey of risk factors and set separate re- tional disease or occupational accidents as nor changes to ensure that the changes are and safety assurance of changes in action and acceptability target levels for the 2019 well as close calls were also minimised. managed and safe. We also assess the safe- risks and regularly monitor them. Incident and observation reports by 1,970 In 2019, there was one occupational ac- ty impacts of changes that partners make in the personnel cident and one commuting accident in ANS the airport environment, for example, that Technical notifications related to the 3,419 Airspace block Finland. It seems that the highest physical can affect air navigation. operation of equipment or technical NEFAB performance plan risk for occupational and commuting acci- New EU-level legislation entering into systems Together with Norway, Estonia and Lat- dents of ANS Finland’s personnel is caused force at the beginning of 2020 requiring the Assessments of safety impacts 294 via, Finland is part of the functional airspace by slipping and tripping at work or on the specification and implementation of an ex- Internal audits 8 block comprising the NEFAB countries. The

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 30 Performance targets set for ANS Finland purpose of the NEFAB area is to lower the ed the reaction level, the investigations and costs of European airspace and thereby im- analysis process are still underway, as a re- TARGET IMPLEMENTATION IN 2019 prove Europe’s competitiveness. sult of which the final corrective actions will Safety be specified in accordance with the safe- Efficiency of the safety management system The target was achieved Deviation from the targets ty management system once the organisa- Use of the risk analysis tool (RAT) The target was achieved and related measures tion has completed the required reports for Just Culture The target was achieved The safety targets set by the company for it- decision-making. self play a significant role in the continuous With regard to losses of minimum sep- In addition to the Performance Scheme, ANS Finland has specified its own safety targets: improvement of operations. In order to en- aration, the trend did not match the tar- sure development, it is justified to also set gets because the total number of losses in- TARGET IMPLEMENTATION IN 2019 targets that can be challenging to achieve creased. The causes and incident types have 1) No accidents attributable to ANS Finland The target was achieved. No accidents. and it is not always taken for granted that been analysed and reviewed by the safety 2) No severe hazardous incidents attributable to ANS Finland The target was not achieved due to they are achieved. One severe hazardous in- management organisation. Some of the new one severe hazardous incident. cident took place in operations. This incident incidents took place because an individual 3) Targets pursuant to the Finnish Aviation Safety Programme (FASP) The target was achieved with regard was carefully analysed and several boundary separation regulation has been interpreted Measures/Reaction and acceptability levels in accordance with the Risk to 13 of 16 indicators. One indicator classification (a total of 16 indicators) exceeded the acceptable level and conditions were set for operations to ensure in a new way. The change in the interpreta- required measures (the same as the continued safety. The incident unit deployed tion may have caused incident reports that incident in item 2). Two incidents ex- fixed-term restrictions relating to work meth- would not have been reported in accord- ceeded the reaction level and were carefully assessed. ods and traffic control until the implementa- ance with the old regulation as they would 4) Incidents related to airspace reservations The target was achieved. There were tion of the corrective actions and ensuring not have been incidents. In order to assess Number of severe incidents decreased no severe airspace reservation incidents correct situation information could be veri- the level of safety, the incidents were clas- 5) Updating the safety review of the working methods of Helsinki air traffic The target was achieved. The review fied. The restrictions were cancelled once the sified in accordance with the level of risk. control unit was updated. implementation of the measures had been Based on this, it could be stated that in Updating the previous safety review verified. spite of the increase in the number of inci- 6) Naming the standard departure routes in Helsinki The target was achieved. The departure Renaming to reduce FMS errors route reform has been implemented. With regard to the targets of the Finn- dents, their level of risk represented a low 7) Runway incursions due to ANS Finland’s activities The target was achieved. The declin- ish Aviation Safety Programme, three inci- risk, incident management was at a good Target: A declining trend in the number incursions compared to previ- ing trend took place. dents in which the target was not achieved level in terms of safety and the corrective ous years because the incidents exceeded the reaction actions were, for the most part, appropri- 8) Losses of minimum separation due to ANS Finland’s activities The target was not achieved. The level or acceptability level set for operations ate. In conclusion, it could be stated that Target: A declining trend in the number of incidents trend was an ascending one. were identified. One of these incidents was the numbers of incidents alone had not in- 9) Training the use of back-up locations or working methods in The target was achieved. The train- abnormal conditions and emergencies ing took place. the hazardous incident mentioned above. creased the level of risk because the num- Target: Regular training in accordance with the plan With regard to two incidents that exceed- ber of high-risk incidents was low (except

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 31 for the above-mentioned severe hazard- had been identified worldwide. More than ods will proceed on schedule. In the last de- Shares and share capital ous incident whose correction actions have 100 countries have already reported infec- ployment phase during the second quarter The State of Finland transferred the shares been separately specified). Communication tions. Finnair and several other airlines are of 2022, the companies’ regional air traffic of ANS Finland to Traffic Management Fin- and increasing awareness with regard to reducing their capacity in domestic and Eu- control centres will operate as a single virtu- land Oy on 1 January 2019. Ministry of certain working methods and the impact of ropean traffic. The impacts on revenue and al operator and flight route services can be Transport and Communications is responsi- wind conditions, among other things, is the profit have been minor so far. However, provided from Finland or Estonia in the air- ble for ownership steering. primary measure in the majority of the in- the impacts can be severe if the epidemic spaces of both countries. The company’s share capital is comprised cidents. Trend monitoring will be continued continues. of 330 shares of equal value. The share cap- and additional measures will be specified if Price negotiations of the service agree- Management and auditing ital amounts to EUR 3,300. The company found necessary. ment for network airports between Finavia Pertti Korhonen continued as the Chairman does not hold any treasury shares. and ANS Finland are in progress. of the Board of Directors of ANS Finland Environment until 1 April. The annual general meeting Board of Directors’ proposal ANS Finland cooperates closely with Fina- Estimate of probable elected Juho Hakala as the new Chairman for the distribution of profits via in Finland and internationally with indus- future development of the Board of Directors on 1 April 2019. The company’s distributable assets in the try organisations and parties to reduce the According to current estimates, flight can- Hakala held this position until 27 August, financial statements of 31 December 2019 negative environmental impacts of air traffic. cellations caused by the coronavirus will after which Pertti Korhonen continued as amounted to EUR 21,608,500.84. The In this work, significant means of influence have a significant impact on the revenue of the Chairman. Asta Sihvonen-Punkka and Board of Directors proposes that no divi- include planning flight routes which are as ANS Finland, at least in the first half of the Teemu Penttilä, who have been members dends be distributed and that the profit for short as possible and make use of weath- year. ANS Finland estimates that the com- of the Board of Directors since the incorpo- the financial year, EUR 2,853,075.94, be er conditions, using efficient flight methods pany will lose revenue of approximately EUR ration of the company, continued as mem- carried over in retained earnings. around airports, keeping delays to a mini- 500,000–1,000,000 a month with the can- bers. On 1 April, the annual general meeting mum and using the entire single European cellations announced by airlines so far. The decided to reinforce the Board of Directors airspace as efficiently as possible. full-year flight volumes are now expected to with a fourth member. Ilkka Virtanen was fall short of the level of 2019. The company elected for the position. The Board of Direc- Significant events will commence statutory employer-employ- tors convened seven times during the finan- after the financial year ee negotiations due to production-related cial year. The Board members were paid a Cases of pneumonia identified as caused and financial reasons on 18 March. total of EUR 52,500 in compensation. by a novel coronavirus (COVID-19) were ANS Finland’s key development project The CEO of the company is Raine Luojus. diagnosed in the Chinese Wuhan and Hu- with the Estonian air navigation company The company’s auditor was Ernst & Young bei provinces in January 2020. At the end EANS (FINEST) to create a joint airspace Oy, with Mikko Rytilahti as the auditor in of February, approximately 100,000 cases and increase the efficiency of working meth- charge.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 32 Income statement euro 1.1.–31.12.2019 1.1.–31.12.2018

REVENUE 80,178,759.95 81,470,565.86 Other operating income 436,890.91 375,013.51

Materials and services Materials and supplies Purchases during the financial year 565,408.24 778,314.90 External services 7,098,865.96 7,664,274.20 8,261,314.62 9,039,629.52

Staff expenses Salaries and bonuses 36,965,883.80 35,820,903.51 Indirect staff expenses Pension expenses 6,385,594.47 6,698,312.01 Other indirect staff expenses 1,266,195.96 44,617,674.23 1,238,368.10 43,757,583.62

Depreciation, amortisation and impairment According to plan 3,697,145.43 3,615,406.94

Other operating expenses 18,770,123.52 18,593,672.82

Operating profit 5,866,433.48 6,839,286.47

Financial income and expenses Other interest and financial income 13,150.08 9,397.55 Interest expenses and other financial espenses -19,616.90 -6,466.82 -72,727.71 -63,330.16

Profit before appropriations and taxes 5,859,966.66 6,775,956.31

Appropriations Increase (-) or decrease (+) in depreciation difference -75,301.31 -289,318.27

Income taxes 2,931,589.41 2,832,784.61

Profit for the financial year 2,853,075.94 3,653,853.43

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 33 Balance sheet euro 31.12.2019 31.12.2018

ASSETS

NON-CURRENT ASSETS Intangible assets Intagible rights 6,048,789.12 8,608,964.93 Other capitalised long-term expenditure 1,441,050.73 7,489,839.85 1,700,621.74 10,309,586.67

Tangible assets Machinery and equipment 3,607,446.78 3,950,943.42

Advance payments and construction in progress Purchases of machinery and equipment 4,231,870.51 4,047,798.38 Purchases of licences and software 1,577,967.64 5,809,838.15 390,771.92 4,438,570.30

CURRENT ASSETS Receivables Short-term receivables Accounts receivable 7,729,971.71 7,796,415.53 Receivables from Group companies 26,166,937.68 0.00 Other receivables 71,392.28 51.67 Accrued income 8,964,166.89 42,932,468.56 5,597,864.54 13,394,331.74

Cash and cash equvalents 0.00 18,572,305.65

Total assets 59,839,593.34 50,665,737.78

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 34 Balance sheet euro 31.12.2019 31.12.2018

EQUITY AND LIABILITIES

EQUITY Share capital 3,300.00 3,300.00 Reserve for invested unrestricted equity 8,300,000.00 8,300,000.00 Retained earnings 10,455,424.90 6,801,571.47 Profit for the financial year 2,853,075.94 21,611,800.84 3,653,853.43 18,758,724.90

Cumulative appropriations Depreciation difference 1,122,929.62 1,047,628.34

Statutory provisions Other statutory provisions 130,390.99 268,392.14

LIABILITIES Non-current liabilities Loans from credit institutions 0.00 5,001,895.83 Liabilities for regulatory over-recoveries 12,722,959.00 12,722,959.00 5,332,975.00 10,334,870.83

Current liabilities Accounts payable 2,107,460.56 3,647,044.81 Liabilities to Group companies 1,855,897.43 Other liabilities 2,040,324.23 1,703,019.60 Accrued liabilities 18,247,830.67 24,251,512.89 14,906,057.16 20,256,121.57

Total equity and liabilities 59,839,593.34 50,665,737.78

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 35 Cash flow statement euro 2019 2018

CASH FLOW FROM OPERATING ACTIVITIES

Cash receipts from customers 89,588,243.43 80,674,130.05 Cash paid for operating expenses -69,326,633.99 -63,928,414.61 Cash flow from operating activities before financial items and taxes 20,261,609.44 16,745,715.44 Interest and other financial expenses paid -23,853.01 -74,672.16 Interest received 13,150.08 9,397.55 Transfer of the bank accounts into the cash pool of the Group 1 January 18,572,305.65 0.00 Other financing items from operating activities -25,783,034.51 0.00 Income taxes paid -2,707,639.53 -2,486,202.69 Cash flow from operating activities 10,332,538.12 14,194,238.14

CASH FLOW FROM INVESTING ACTIVITIES

Investments in tangible and intagible assets -5,349,092.71 -2,072,627.98 Proceeds from sale of tangible and intangble assets 18,450.42 0.00 Cash flow from investing activities -5,330,642.29 -2,072,627.98

CASH FLOW FROM FINANCING ACTIVITIES

Repayment of long-term loans -5,001,895.83 0.00 Cash flow from financing activities -5,001,895.83 0.00

NET INCREASE (+)/DECREASE (-) IN CASH AND CASH EQUVALENTS 0.00 12,121,610.16

Cash and cash equivalents 1 January 18,572,305.65 6,450,695.49 Transfer of the bank accounts into the cash pool of the Group 1 January -18,572,305.65 0.00 Cash and cash equivalents 31 December 0.00 18,572,305.65 0.00 12,121,610.16

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 36 Notes to the financial statements REVENUE euro 2019 2018 Air Navigation Services Finland Oy is part of During the financial year 2019, revenue was Staff expenses Salaries and bonuses 36,965,883.80 35,820,903.51 the Traffic Management Finland Group. The reduced by a provision of EUR 9,100,952.00 Fringe benefits 152,637.04 126,256.05 parent company is Traffic Management Fin- based on the requirements of SES legislation Total 37,118,520.84 35,947,159.56 land Oy (business ID 2942108-7), domicile in for the change of en-route charge and Hel- Helsinki. sinki-Vantaa air navigation fees in the future Indirect staff expenses Pension expenses 6,385,594.47 6,698,312.01 A copy of the consolidated financial state- years. Among other things, traffic risk shar- Other indirect staff expenses 1,266,195.96 1,238,365.10 ments of Traffic Management Finland is avail- ing, inflation adjustment, capacity incentives, Total 7,651,790.43 7,936,677.11 able at Palkkatilanportti 1, Helsinki. EU-funding and costs exempted from cost Average number of personnel during the financial year 405 408 risk sharing have been taken into account in Valuation principles the reduction. Personnel at the end of the year VALUATION OF FIXED ASSETS Permanent 403 400 Fixed assets are measured at cost less de- CALCULATION PRINCIPLES OF THE CASH FLOW Temporary 35 47 Total 438 447 preciation according to plan. STATEMENT Depreciation according to plan is calculat- The cash flow statement is based on the Salaries and bonuses of the CEO ed based on the economic useful life of the guidelines of the Accounting Board (KILA). and Board of Directors Chief Executive Officer 288,912.48 287,936.50 assets as follows: The cash flow from operating activities is pre- Members of the Board of Directors 52,500.00 76,200.00 sented using the direct method. The compa- 341,412.48 364,136.50 Computer software ny’s balance in the cash pool accounts of the straight-line depreciation 5 years Group EUR 25,783,034.51 is presented in Depreciation, amortisation and impairment Accorting to plan Other long-term expenditure the cash flow from operating activities. Computer software 2,684,703.29 2,677,382.51 straight-line depreciation 5–10 years Other long-term expenditure 259,571.01 259,571.01 Machinery and equipment Machinery and equipment 752,871.13 678,453.42 straight-line depreciation 5–15 years 3,697,145.43 3,615,406.94 Other operating expenses Other staff expenses 1,289,930.96 1,250,402.71 Travel expenses 805,046.83 1,004,610.78 Rents 6,426,480.69 8,550,502.68 Supplies and fixtures 301,535.66 419,676.94 Other operating expenses 9,947,129.38 7,368,479.71 18,770,123.52 18,593,672.82

Auditor’s fees Audit fee 38,328.00 25,266.86

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 37 Notes to the financial statements euro 2019 2018 euro 2019 2018 Financial income and expenses Tangible assets Interest income 13,150.08 9,397.55 Machinery and equipment Interest expenses -19,616.90 -72,727.71 Acquisition cost 1 January 5,072,918.82 4,837,655.93 Total financial income and expenses -6,466.82 -63,330.16 Increase during the financial year 469,374.49 242,844.82 Decrease during the financial year -60,000.00 -7,581.93 Intangible assets Acquisition cost 31 December 5,482,293.31 5,072,918.82 Computer software Accumulated depreciation -1,121,975.40 -451,103.91 Acquisition cost 1 January 13,238,101.48 12,747,293.90 according to plan 1 January Increase during the financial year 124,527.48 490,807.58 Accumulated depreciation on decrease 0.00 7,581.93 Decrease during the financial year 0.00 0.00 Depreciation according to plan -752,871.12 -678,453.42 Acquisition cost 31 December 13,362,628.96 13,238,101.48 during the financial year Accumulated depreciation Book value 31 December 3,607,446.79 3,950,943.42 -4,629,136.55 -1,951,754.04 according to plan 1 January Accumulated depreciation on decrease 0.00 0.00 Advance payments and constuction in progress Depreciation according to plan Other work and purchases in progress -2,684,703.29 -2,677,382.51 during the financial year Acquisition cost 1 January 4,438,570.30 3,324,251.07 Book value 31 December 6,048,789.12 8,608,964.93 Increase during the financial year 1,965,169.82 2,544,015.18 Decrease during the financial year -593,901.97 -1,429,695.95 Other long-term expenditure Acquisition cost 31 December 5,809,838.15 4,438,570.30 Other capitalized long-term expenditure Acquisition cost 1 January 2,154,871.01 2,154,871.01 Short-term receivables Increase during the financial year 0.00 0.00 Receivables from Group companies Decrease during the financial year 0.00 0.00 Accounts receivable 383,903.17 0.00 Acquisition cost 31 December 2,154,871.01 2,154,871.01 Other receivables 25,783,034.51 0.00 Accumulated depreciation 26,166,937.68 0.00 -454,249.27 -194,678.26 according to plan 1 January Accumulated depreciation on decrease 0.00 0.00 The company’s balance in the cash pool accounts of the Group EUR 25,780,034.51 is presented in Other receivables Depreciation according to plan from Group companies. -259,571.01 -259,571.01 during the financial year Book value 31 December 1,441,050.73 1,700,621.74 Receivables from others VAT receivables 71,392.28

Material items contained in accrued income Accrued income from Eurocontrol 4,449,321.00 4,596,805.00 Accrued income from EU grants 3,631,844.73 0.00 Other accrued income 629,421.13 889,134.45 Receivables from occupational health care 253,520.03 111,925.09 Total 8,964,166.89 5,597,864.54

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 38 Notes to the financial statements euro 2019 2018 euro 2019 2018 Restricted equity Non-current liabilities Share capital 1 January 3,300.00 3,300.00 Loans from credit institutions Share capital 31 December 3,300.00 3,300.00 Balance in the beginning of the financial year 5,000,000.00 5,000,000.00 Restricted equity total 3,300.00 3,300.00 Increase during the financial year 0.00 0.00 Decrease during the financial year -5,000,000.00 0.00 Unrestricted equity Balance at the end of the financial year 0.00 5,000,000.00 Reserve for invested unrestricted equity 1 January 8,300,000.00 8,300,000.00 Reserve for invested unrestricted equity 31 December 8,300,000.00 8,300,000.00 Provisions for regulatory over-recoveries Balance in the beginning of the financial year 8,605,225.00 0.00 Retained earnings 1 January 10,455,424.90 6,801,571.47 Decrease during the financial year -4,462,828.00 Distribution of dividend 0.00 0.00 Increase during the financial year 13,563,780.00 8,605,225.00 Retained earnings 31 December 10,455,424.90 6,801,571.47 Transfer to current liabilities -4,983,218.00 -3,272,250.00 Profit for the financial year 2,853,075.94 3,653,853.43 Balance at the end of the financial year 12,722,959.00 5,332,975.00 Unrestricted equity total 21,608,500.84 18,755,424.90 The regulatory adjustment includes liabilities of EUR EUR 26,600,385,00 and receivables of EUR 8,894,208.00. Total equity 21,611,800.84 18,758,724.90

Distributable equity on 31 December Loans maturing later than within five years Retained earnings 10,455,424.90 6,801,571.47 Bank loan 0.00 0.00 Profit for the financial year 2,853,075.94 3,653,853.43 Provisions for regulatory over-recoveries 4,300,000.00 1,900,000.00 Reserve for invested unrestricted equity 8,300,000.00 8,300,000.00 21,608,500.84 18,755,424.90 The portion of the regulatory over-recoveries maturing after five years is related to customer refunds of EU grants for in- vestments. Statutory provisions Other statutory provisions 130,390.99 268,392.14

A provision amounting to EUR 1,099,727.75 was transferred to the company in the aquisition of business operations in April 2017 to fulfill the commitments relating to the transfer of the operations of Tampere Area Traffic Control Centre. In the beginning of the year the provision amounted to EUR 268.392,14. During the 2019 financial year, EUR 106,000.02 of the provision was used and EUR 32,001.13 was written down.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 39 Notes to the financial statements euro 2019 2018 The company has long-term lease on its busi- Current liabilities ness premises expiring 30 June 2032. Liabilities to Group companies In the financial statements dated 31 Accounts payable 21,847.43 0.00 Accrued expenses 1,834,050.00 0.00 December 2019 the company’s lease li- 1,855,897.43 0.00 ability from this agreement totals EUR Payables to others 10,214,716.94 VAT liability 0.00 3,674.81 Withholding tax liability 1,034,394.76 909,968.98 The company is involved in a few minor Social security contribution liability 22,374.75 23,805.81 disputes relating to the company’s business Other 983,554.72 765,570.00 operations, the outcomes of which will not 2,040,324.23 1,703,019.60 have any material impact on the company’s fi- Material items included in accrued liabilities nancial position. Salary and social security expense accruals 1,756,597.45 1,160,999.02 Holiday pay liabilities including social security 7,944,345.10 8,131,756.60 TRANSACTIONS WITH RELATED PARTIES contributions­ Tax liability 811,925.74 609,175.87 The operating expenses include several Regulation liability 4,983,218.00 3,272,250.00 transactions between the company and its Other accrued liabilities 2,751,744.38 1,731,875.67 related parties that have similar terms than 18,247,830.67 14,906,057.16 the transactions with other parties. Commitments and contingent liabilities

Lease liabilities Payable during the next financial year 795,435.62 373,906.88 Payable in later years 1,048,215.17 585,909.33 Total 1,843,650.79 959,816.21

Lease liabilities are presented at gross amounts (inclusive of VAT)

Other contingent liabilities Due during the next financial year 6,196,252.87 2,425,901.00 Due in later years 3,541,455.83 0.00 Total 9,737,708.70 2,425,901.00

Total commitments and contingent liabitities 11,581,359.49 3,385,717.21

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 40 Signatures of the financial statements and Board of Directors’ report

Vantaa, March 12, 2020 Auditor’s note A statement on the audit performed has been issued today.

Pertti Korhonen Teemu Penttilä Helsinki, March 16, 2020 Chairman of the Board of Directors Member of the Board of Directors

Asta Sihvonen-Punkka Ilkka Virtanen Ernst & Young Oy Member of the Board of Directors Member of the Board of Directors Authorised Public Accountants

Raine Luojus Mikko Rytilahti CEO APA, CPFA

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 41 Auditor’s report (Translation of the Finnish original) TO THE ANNUAL GENERAL MEETING OF AIR NAVIGATION SERVICES FINLAND OY

Report on the Audit of independent of the company in accordance free from material misstatement, whether auditing practice will always detect a material the Financial Statements with the ethical requirements that are ap- due to fraud or error. misstatement when it exists. Misstatements Opinion plicable in Finland and are relevant to our In preparing the financial statements, the can arise from fraud or error and are consid- We have audited the financial statements of audit, and we have fulfilled our other ethi- Board of Directors and the Managing Direc- ered material if, individually or in aggregate, Air Navigation Services Finland Oy (business cal responsibilities in accordance with these tor are responsible for assessing the com- they could reasonably be expected to influ- identity code 2767840-1) for the year end- requirements. We believe that the audit pany’s ability to continue as going concern, ence the economic decisions of users taken ed 31 December, 2019. The financial state- evidence we have obtained is sufficient disclosing, as applicable, matters relating to on the basis of the financial statements. ments comprise the balance sheet, income and appropriate to provide a basis for our going concern and using the going concern As part of an audit in accordance with statement, cash flow statement and notes. opinion. basis of accounting. The financial statements good auditing practice, we exercise profes- In our opinion, the financial statements are prepared using the going concern basis sional judgment and maintain professional give a true and fair view of the company’s fi- Responsibilities of the Board of Directors of accounting unless there is an intention to skepticism throughout the audit. We also: nancial performance and financial position and the Managing Director for the liquidate the company or cease operations, or • Identify and assess the risks of material in accordance with the laws and regulations Financial Statements there is no realistic alternative but to do so. misstatement of the financial statements, governing the preparation of financial state- The Board of Directors and the Managing whether due to fraud or error, design and ments in Finland and comply with statutory Director are responsible for the prepara- Auditor’s Responsibilities for perform audit procedures responsive to requirements. tion of financial statements that give a true the Audit of the Financial Statements those risks, and obtain audit evidence and fair view in accordance with the laws Our objectives are to obtain reasonable as- that is sufficient and appropriate to pro- Basis for Opinion and regulations governing the preparation surance on whether the financial statements vide a basis for our opinion. The risk of We conducted our audit in accordance of financial statements in Finland and com- as a whole are free from material misstate- not detecting a material misstatement re- with good auditing practice in Finland. Our ply with statutory requirements. The Board ment, whether due to fraud or error, and to sulting from fraud is higher than for one responsibilities under good auditing prac- of Directors and the Managing Director are issue an auditor’s report that includes our resulting from error, as fraud may involve tice are further described in the Auditor’s also responsible for such internal control as opinion. Reasonable assurance is a high lev- collusion, forgery, intentional omissions, Responsibilities for the Audit of Financial they determine is necessary to enable the el of assurance, but is not a guarantee that misrepresentations, or the override of in- Statements section of our report. We are preparation of financial statements that are an audit conducted in accordance with good ternal control.

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 42 • Obtain an understanding of internal con- • Evaluate the overall presentation, struc- terially inconsistent with the financial state- Act. We support that the members of the trol relevant to the audit in order to design ture and content of the financial state- ments or our knowledge obtained in the Board of Directors and the Managing Direc- audit procedures that are appropriate in ments, including the disclosures, and audit, or otherwise appears to be materially tor should be discharged from liability for the circumstances, but not for the purpose whether the financial statements rep- misstated. With respect to the report of the the financial period audited by us. of expressing an opinion on the effective- resent the underlying transactions and Board of Directors, our responsibility also ness of the company’s internal control. events so that the financial statements includes considering whether the report of • Evaluate the appropriateness of account- give a true and fair view. the Board of Directors has been prepared Vantaa 16.3.2020 ing policies used and the reasonableness in accordance with the applicable laws and of accounting estimates and related dis- We communicate with those charged with regulations. Ernst & Young Oy closures made by management. governance regarding, among other matters, In our opinion, the information in the re- Authorized Public Accountant Firm • Conclude on the appropriateness of the the planned scope and timing of the audit port of the Board of Directors is consistent Board of Directors’ and the Managing Di- and significant audit findings, including any with the information in the financial state- rector’s use of the going concern basis of significant deficiencies in internal control ments and the report of the Board of Direc- accounting and based on the audit evi- that we identify during our audit. tors has been prepared in accordance with Mikko Rytilahti dence obtained, whether a material un- the applicable laws and regulations. Authorized Public Accountant, certainty exists related to events or con- Other reporting requirements If, based on the work we have performed Chartered Public Finance Auditor ditions that may cast significant doubt Other information on the other information that we obtained on the company’s ability to continue as a The Board of Directors and the Managing prior to the date of this auditor’s report, we going concern. If we conclude that a ma- Director are responsible for the other in- conclude that there is a material misstate- terial uncertainty exists, we are required formation. The other information that we ment of this other information, we are re- to draw attention in our auditor’s report have obtained prior to the date of this au- quired to report that fact. We have nothing to the related disclosures in the finan- ditor’s report is the report of the Board of to report in this regard. cial statements or, if such disclosures are Directors. inadequate, to modify our opinion. Our Our opinion on the financial statements Other opinions conclusions are based on the audit evi- does not cover the other information. We support that the financial statements dence obtained up to the date of our au- In connection with our audit of the finan- should be adopted. The proposal by the ditor’s report. However, future events or cial statements, our responsibility is to read Board of Directors regarding the use of the conditions may cause the company to the other information and, in doing so, con- profit shown in the balance sheet is in com- cease to continue as a going concern. sider whether the other information is ma- pliance with the Limited Liability Companies

AIR NAVIGATION SERVICES FINLAND OY / ANNUAL REPORT 2019 43 Air Navigation Services Finland Oy, Lentäjäntie 1 B, 01530 Vantaa, Finland