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Finnair Capital Market Day, 3 Dec 20121

Back in Black

Erno Hildén

CFO

Improved business performance in Jan -

Sep 2012...

Finnair Capital Market Day, 3 Dec 20122

-29,338,622,7

20,611,0

-21,1 -18,1 -1,7 -96,3

147,711,1

11,5 -19,3 -50.0

0.050.0100.0150.0200.0250.0

M€

Operational EBIT build-up Jan - Sep 2012

Finnair Capital Market Day, 3 Dec 20123

...driven by increased traffic and unit revenue improvement

Q3 RASK

+8.7% PLF +4.5%-p

RPK yield

+2.2% •Unit revenue per available seat kilometre (RASK) up by 8.7% in Jan-Sep

2012 as both passenger load factor (PLF, +4.5%-p) and yield per revenue

passenger kilometre (RPK yield, +2.2%) improved y-o-y

Implementation of €140 million

restructuring and cost savings program ahead of target 25%
24%

14%10%9%8%

8% 2%

Target €140 million

maintenance staff other lease sales catering ground handling fuel

155%38%148%109%105%102%43%26%57%

62%
57%

74%43%

0% 100%

fuelground handlingcateringsalesleaseotherstaffmaintenanceTOTAL

Savings progress to €140

million target

Finnair Capital Market Day, 3 Dec 20124

€50 million €90 million New €60 million savings programme will ensure reaching our target of 6% operational EBIT margin•The aim is to achieve a permanent reduction in costs of €60 million by the end of 2014 •The new programme complements the existing €140 million structural change and cost reduction programmelaunched in 2011

Finnair Capital Market Day, 3 Dec 20125

€60 million2014 201520132012Savings timeline for in total €200 millionsustainable savings from 2010

cost level

Hands-on approach to drive our costs down

•Dedicated project organisation and well defined responsibilities and timelines for each savings initiative •Regular Executive Board level monitoring of advancements •All Executive Board members and persons responsible for initiative implementation are incentivised in achieving the targets •9 Program streams and over 200 savings initiatives in total

Finnair Capital Market Day, 3 Dec 20126

Our financial targets•Operational profit (EBIT) margin 6% -over €120 million in the coming few years •EBITDAR margin 17% -over €350 million in the coming few years •Economic profit -To create positive value over pretax WACC of 9.5% •Adjusted gearing <140% •Dividend policy pay-out ratio minimum one thirdof the EPS

Finnair Capital Market Day, 3 Dec 20127

The path towards our profitability target

Continuous

unit cost reduction (ex. fuel)• Fixed cost leverage through growth and outsourcing

Improved

productivity and quality• Fleet and network optimisation • Operational quality top class

Revenue

maximi- zation New product offering•New destinations •Next generation

Airbus 350

XWB

Capital

efficiency and strong balance sheet

Finnair Capital Market Day, 3 Dec 20128

Finnair Capital Market Day, 3 Dec 20129

Finnair fleet and

future investments

Strong financial position supports business

development and future investments -20020406080100120

2008 2009 2010 2011 09/2012

Strong balance sheet

Equity ratioGearingAdjusted gearing%

Finnair Capital Market Day, 3 Dec 201210

-1500150300450600750

2008 2009 2010 2011 1-9/2012

Good cash position over years

despite significant investments Net cash flow from operationsInvestment, grossShort term cash and cash equivalentsM€

Fleet renewal is key for successful strategy

implementation - leads to reduced unit costs and improved fuel efficiency•First phase in 2008-2010 -In Long haul, MD11 fleet replaced with Airbus 330/340 •Second phase in 2012 -Reducing 9 aircraft from European fleet -Embraer traffic transferred to Flybe •Third phase in 2013-2014 -Boeing 757 fleet to be replaced with Airbus A321 ERs •Fourth phase from H2 2015 -Airbus 350 XWB, partly to replace current A340s, partly to increase capacity

Finnair Capital Market Day, 3 Dec 201211

Harmonized

Airbus fleet

brings asset and crew utilization benefits

Finnair invests in new technology

050100150200250300350400

2013 2014 2015 2016 2017

Gross cash flows totalling

€1.2 billion

M€

•5 Airbus 321 ER and 11 Airbus

350 XWB aircraft

•Net effect of investments is materially lower -lease expiries for current aircraft

Finnair Capital Market Day, 3 Dec 201212

We have several funding sources available

for aircraft investmentssecured by aircraft as collateral, loan to values 70-100% depending on the vehicle Asset backed loansAsset backed loans

Export

creditExport credit (Japanese) operating lease(Japanese) operating lease Asset backed bondsAsset backed bonds

Finnair Capital Market Day, 3 Dec 201213

In the long-run,

owning aircraft is the most cost- efficient way to finance fleet.

Finnair's strategy

is >50% ownership of the core fleet 435
37
6 42
53
8 0 2 4

681012

A-319 A-320 A-321 A-330 A-340 E170 E190 ATR-72

Unencumbered 12/2013

Encumbered 12/2013

4

2243543

4 22
53
7 0 2 4 6 81012

A-319 A-320 A-321 A-330 A-340 E170 E190 ATR-72

Unencumbered 9/2012

Encumbered 9/2012

We can finance investments with our

increasing debt capacity

Finnair Capital Market Day, 3 Dec 201214

•Currently26unencumbered aircraft = 68%of the total fleet value of €1.05 billion •In 15 months35unencumbered aircraft

Our funding strategy is to use different funding

sources to ensure the lowest total funding cost with maximum operational flexibility and continuity •Fleet investments through secured financing, unsecured loans for refinancing and flexibility -Commercial paper programme of €200 million, €61 million outstanding. -Revolving credit facility of €200 million expires in Q2/2013. Unutilized, last time of utilisation 2002. Only facility with a covenant. •Other potential funding sources -Non-core fleet sale and leasebacks -Asset optimization -Pension loan -Senior unsecured bond

Finnair Capital Market Day, 3 Dec 201215

We have a balanced loan maturity profile

Finnair Capital Market Day, 3 Dec 201216

54134
101
53

3513189

0255075100125150175200

10Ͳ12/2012 2013 2014 2015 2016 2017=>

M€

Guarantee facility

(backed by mortgaged

4*A330) to be renewed,

the underlying EIB loan expires in 2019

Maturing loans in total €598 million

Our actual lease liabilities are lower than

reported due to expiring lease agreementsLease commitments, in total €186 million Aircraft operating lease liabilities

Finnair Capital Market Day, 3 Dec 201217

01020304050607080

M€

0100200300400500600

Lease liability based on formula

(7*annual rentals) Operating leases are off-balance sheet liabilities. When capitalised using the common method of 7*annual aircraft lease payments, the adjusted gearing on

30 Sep 2012 is 90.1%.

Finnair has the strongest balance sheet in

the Nordics 18

Key ratios as of 30 September 2012

Finnair Investor Presentation - Nov 2012

0255075100125150175200

Equity ratio Gearing Adjusted gearing

Finnair

SAS

Norwegian

>400% •Norwegian adjusted gearing >400% •Pension liabilities excluded from SAS adjusted gearing

Summary•Profitable Q3 result

•Cost savings are progressing as planned •We have a strong balance sheet •Finnair will be the first European airline to fly new A350s in long haul traffic •We have a good funding position to finance future investments

Finnair Capital Market Day, 3 Dec 201219

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