12 NOVEMBER 2019 Agenda

FINNAIR CAPITAL MARKETS DAY 12 NOVEMBER 2019 Agenda

Finnair strategy update – CEO Topi Manner Network and fleet – CCO Ole Orvér

Break

Operational excellence – COO Jaakko Schildt Modern Premium Airline – SVP Customer Experience Piia Karhu and CCO Ole Orvér

Break

Creating value for shareholders – CFO Mika Stirkkinen Closing words – CEO Topi Manner

Cocktails and networking

2 Finnair Capital Markets Day 2019 Disclaimer

By attending Finnair Capital Markets Day 2019 or by reading this presentation, you acknowledge and agree that the information provided orally or in this presentation (i) is provided in summary form; (ii) is not intended to contain all the information that is or may be material to investors or potential investors; (iii) may be amended and supplemented as Finnair sees fit; (iv) may not be relied upon for the purpose of entering into any transaction and should not be construed as, nor be relied on in connection with, any offer, invitation or recommendation to purchase or subscribe for, underwrite or otherwise acquire, hold or dispose of any securities of Finnair. Any investor or prospective investor considering the purchase, disposal or holding of any securities of Finnair should consult with its own counsel and advisers as to all legal, tax, regulatory, financial and related aspect thereof.

This presentation contains forward‐looking statements. These statements may include the words “believe”, “expect”, “anticipate”, “foresee”, “intend”, “plan”, “estimate”, “focus”, “continue”, “will”, “may”, “targeting” and similar expressions as well as statements other than statements of historical facts including, without limitation, those regarding the financial position, business strategy, development plans, objectives and targets of Finnair. Such forward‐looking statements involve known and unknown risks, uncertainties and other important factors which may affect Finnair’s ability to implement and achieve the economic and monetary policies, budgetary plans, fiscal guidelines and other development benchmarks set out in such forward‐looking statements. Risks related to Finnair’s operations are discussed in the company’s financial disclosures and on the company’s website at https://investors.finnair.com/en/governance/risk-management. Actual results, performance or achievements may be materially different from future results, performance or achievements expressed or implied by the forward‐looking statements. Such forward‐looking statements are based on numerous assumptions regarding Finnair’s present and future policies and plans and the environment in which Finnair will operate in the future. Furthermore, certain forward‐looking statements are based on assumptions or future events which may not prove to be accurate, and no reliance whatsoever should be placed on any forward- looking statements in this presentation. The forward‐looking statements in this presentation speak only as of the date of this presentation, and Finnair expressly disclaims to the fullest extent permitted by law any obligation or undertaking to disseminate any updates or revisions to any forward‐looking statements contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. Nothing in the foregoing is intended to or shall exclude any liability for, or remedy in respect of, fraudulent misrepresentation. The information in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the presentation and the information contained herein. Information in this presentation has been obtained from various sources and Finnair does not guarantee the accuracy or completeness of such information. All projections, valuations and statistical analyses are provided for information purposes only and should not be relied upon as an accurate prediction of future performance.

3 Finnair Capital Markets Day 2019 FINNAIR STRATEGY UPDATE Topi Manner, CEO Capital Markets Day 2019 New phase: sustainable, profitable growth

Sustainable, profitable growth

Accelerated growth • Potential to capture 2018 economies of scale Renewal Disruption • One of the most modern 2015–2017 2008–2010 long-haul fleets

• Stronger brand and customer experience

• Improved digital Restructuring capabilities 2011–2014 • Modernised culture

5 Finnair Capital Markets Day 2019 We have unique strengths and are winning market share

Successful Unrivalled local Strong operational High customer Solid financial strategy network and performance and satisfaction and situation with leveraging unique attractive market safety valued by people experience healthy balance geographical for incoming our customers sheet location tourism

6 Finnair Capital Markets Day 2019 We have achieved our previous targets on growth - need to improve profitability

Delivery on targets Strong growth in EBIT and cash flow

7.7% 6.6% Gearing well below 175% 5.2%

2.4% ROCE at 12.7% average last two years > 7% 1.0%

-1.6% ASK Asia more than double 2014 2015 2016 2017 2018* LTM** EBIT Margin EBIT

20 million passengers by 2030 ahead (13.3 mEur 504 513 2018) 282 220 171 OP profit 6% (average 6.3% last two years) 24

2014 2015 2016 2017 2018* LTM**

* IFRS16 Adjusted Net operating cash flow ** Last 12 months (2018 Q4–2019 Q3) Source: Finnair 2018 Annual report, Finnair restatements 2018, Finnair Interim report for 1 January–30 September 2019

7 Finnair Capital Markets Day 2019 Roadmap to sustainable, profitable growth

Growth in line with market growth

Strengthened customer offer

Increased efficiency

Improved market position in Asia

8 Finnair Capital Markets Day 2019 We leverage our strong hub and focus on the most profitable Asian cities

EU – Asia estimated growth > 4% CAGR* Long history, strong partnerships Strengthening position > 6%** Most environmentally sound Shortest route 24hr rotation

* Boeing commercial market outlook ** Market share on our relevant market

9 Finnair Capital Markets Day 2019 We focus on the core; growth through transfer

Focused strategy Integrated business One culture

COMMITMENT TO CARE 7% 7% 6% COURAGE Revenue 50% share SIMPLICITY 30%

Transfer Passengers Travel Services

Local Passengers Cargo

Ancillaries

Source: Finnair Interim report for 1 January–30 September 2019 and Finnair Internal data

10 Finnair Capital Markets Day 2019 Opportunity to improve our productivity

ASKs CAGR +8% 8% OPEX has Revenue CAGR increased 5.5% faster than revenues

OPEX ex Fuel CAGR +6.1% 6.1%

2014 2015 2016 2017 2018* LTM**

ASK Fuel OPEX ex fuel Revenue

* IFRS16 Adjusted ** Last 12 months (2018 Q4 – 2019 Q3) Source: Finnair 2018 Annual report, Finnair restatements 2018, Finnair Interim report for 1 January–30 September 2019

11 Finnair Capital Markets Day 2019 There are also opportunities to improve our revenues

ASK growth vs RASK development Growth in ancillary revenues per passenger

Cents (€) € +7.8%

12.15 € 12.11 € 11.95 € +8.3% 11.55 € 10.02 € 8.22 €

7.4 7.08 6.83 6.96 6.72 6.55

- 2.4% CAGR

2014 2015 2016 2017 2018* LTM** 2014 2015 2016 2017 2018* LTM**

ASK RASK Ancillary Revenues per passenger

More stable RASK development moving forward as growth moderates We are taking a step-change in retailing to improve on revenues

* IFRS16 Adjusted ** Last 12 months (2018 Q4 – 2019 Q3) Source: Finnair 2018 Annual report, Finnair restatements 2018, Finnair Interim report for 1 January–30 September 2019

12 Finnair Capital Markets Day 2019 Fleet investments to boost efficiency and reduce carbon footprint

3.5 – 4 billion • Modern Premium Experience euros* • Carbon footprint • Fuel efficiency 1/3 Growth • Cost savings Replacement / • Enabling growth 2/3 Renewal

Investments predominantly funded through cash flow

* Estimated investments including already announced commitments

13 Finnair Capital Markets Day 2019 Sustainability is a natural part of everything we do

27% CO2/RTK since 2005

Biofuel We want to be Biofuel flights since 2011 a frontrunner in sustainability 1/2 Single-use plastics (end 2022)

0 Our detailed sustainability plan to Zero landfill waste at HEL be published in early 2020

14 Finnair Capital Markets Day 2019 Long-term roadmap for carbon reduction

Fleet investments to reduce carbon footprint and boost efficiency

Sustainable aviation fuels Voluntary and non-voluntary (Bio and Synthetic) offsetting (including CORSIA)

Operational improvements Intermodality

Emissions trading

15 Finnair Capital Markets Day 2019 Our refined strategy and ambitious new targets

Continued growth In line with market growth • Comparable EBIT > 7.5%*

Strengthened customer offer • Return on Capital Employed (ROCE) > 10%* Leading to stabilised unit revenue • On-time performance (OTP) > 85% Increased efficiency Leading to continually decreasing unit cost • NPS positive development

• eNPS positive development Improved market position in Asia

* Over the cycle (at constant fuel and f/x), 12–18 month build-up period

16 Finnair Capital Markets Day 2019 We have a new leadership team to drive the next stage of our journey… many of whom you’ll meet here today

Topi Manner Ole Orvér Jaakko Schildt Piia Karhu Mika Stirkkinen Chief Executive Officer Chief Commercial Officer SVP Operations SVP Customer Experience Chief Financial Officer

Nicklas Ilebrand Johanna Karppi Tomi Pienimäki Sami Sarelius Arja Suominen SVP Strategy SVP People & Culture Chief Digital Officer SVP and General Counsel SVP Communications and Corporate Responsibility

17 Finnair Capital Markets Day 2019 Customers and employees make it happen

4.25* People are proud Best Airline in Most attractive to work at Finnair Northern Europe employer NPS 38 2,000 Best customer New employees in the experience in Finland Best European past 2 years (Aurinkomatkat) Airline

* 2018 WeTogether survey (1–5 scale)

18 Finnair Capital Markets Day 2019 NETWORK AND FLEET Ole Orvér, CCO Capital Markets Day 2019 Strong network leveraging Helsinki’s geographical position connecting Europe with Asia

Over 8 100 destinations • 14.3 million passengers in the last 12 months* destinations • More than 20,000 origin- destination city pairs in our network

21 * Source: Finnair Interim report for 1 January–30 September 2019 destinations

20 Finnair Capital Markets Day 2019 Transfer traffic between Europe and Asia is an essential part of our business

2/3 of flown ticket revenue from transfer traffic 3/4 of transfer traffic comes from Asia

3% 10%

38% 14%

62% 73%

Transfer Asian Oceanic

Local Intra European Other

Atlantic

* Traffic splits by flown ticket revenue rolling 12 months (Q4/2018–Q3/2019)

21 Finnair Capital Markets Day 2019 Growth in line with market

Finnair growth, ASK billion

3–5% p.a next 3 years +10.5% CAGR

+3.1% 47 CAGR

31 32

2014 2015 2019

Source: Finnair 2018 Annual report, Finnair Interim report for 1 January–30 September 2019, SRS

22 Finnair Capital Markets Day 2019 Our growth is targeted towards Asia with a combination of new destinations and additional frequencies

Continuously strengthening our network with new destinations in Asia

CTS • Daxing - Beijing November 2019 PKX

• Sapporo December 2019 HND • Busan March 2020 PUS • Haneda - Tokyo March 2020

• Over 100 weekly frequencies to destinations in Asia in summer 2020

New in 2019 New in 2020

23 Finnair Capital Markets Day 2019 Leveraging strong partnerships to improve network scale and reach

Strategic Joint Businesses*

SJB – 25% market share Europe Japan We continue to operate as an AJB – 20% market share Europe USA independent airline leveraging on Strategic partnerships our strong partnerships

Norra – operations partner for regional flying

* Source: Year ending Jul 19, DDS O&D + est pax

24 Finnair Capital Markets Day 2019 Cargo is an integrated part of our business

The A350 is an Finnair has the most Digital integration Strengthening our extremely efficient modern air cargo enabling efficient position in special cargo aircraft terminal in Europe operations and high- products and quality delivery services to improve yields

25 Finnair Capital Markets Day 2019 More efficient use of Helsinki hub and assets through four bank structure

Growth outside main bank – illustrative Number of flights (Arrivals and Departures)

5:00–10:00 10:00–14:00 15:00–19:00 19:00–01:00

(main bank) Image by Arkkitehtitoimisto ALA Oy / Arkkitehtitoimisto HKP Oy

Current Future

26 Finnair Capital Markets Day 2019 Fleet growing, with better utilisation of narrow-body aircraft

Approx. 100

83 Approx. 30

Wide-body 22

Narrow-body 37 Approx. 70

Other regional 12

Turboprop 12

2019 2025

2.8 : 1 Narrow-body / Wide-body ratio ~2.3 : 1

27 Finnair Capital Markets Day 2019 Fleet age in line with peers – narrow-body fleet to be renewed

Average fleet age vs peer European network carriers

Wide-body Finnair 10.2 average age of 5.2 years – significant fuel SAS 10.7 and CO2 benefits IAG 11.6 Narrow-body renewal to be initiated within Lufthansa 11.7 the strategy period Air France-KLM 11.8

0.0 5.0 10.0 15.0

Source: Cirium fleets database

28 Finnair Capital Markets Day 2019 Summary

• Well-positioned network and Europe – Asia strategy

• Continued growth – in line with market, 3–5%

• Further improved utilisation of core assets

• Fleet investments for growth, operational efficiency and sustainability

29 Finnair Capital Markets Day 2019 OPERATIONAL EXCELLENCE Jaakko Schildt, COO Capital Markets Day 2019 Operational quality and safety culture are Finnair’s strengths 4.25* • Finnair has an excellent safety record People are proud to work at Finnair

• Our punctuality and regularity are on-par with peers

Best Airline in Most attractive Northern Europe employer • Our customer satisfaction is high with an NPS of 38*

Best customer experience in Finland Best European (Aurinkomatkat) Airline

* Q3 2019 figure. * 2018 WeTogether survey (1–5 scale)

31 Finnair Capital Markets Day 2019 Key initiatives to improve our unit cost performance

Finnair costs have grown faster than revenues

ASKs CAGR +8% 8% On-time performance Revenue CAGR Weight and fuel 5.5% Automation and efficiency OPEX ex Fuel CAGR +6.1% 6.1%

2014 2015 2016 2017 2018* LTM**

ASK Fuel OPEX ex fuel Revenue

* IFRS16 Adjusted ** Last 12 months (2018 Q4 – 2019 Q3) Source: Finnair 2018 Annual report, Finnair restatements 2018, Finnair Interim report for 1 January–30 September 2019

32 Finnair Capital Markets Day 2019 On-time performance improvement offers great potential

Share of on-time arrivals (≤15 min delay) from OAG, 2018 100% Target • On-time performance contributes 90% 83% 85% 78% 85.0% 80% 75% 75% to improved productivity, cost 69% 70% savings and customer satisfaction 60% • Key initiatives to improve 50% 40% • Planning 30% • Execution 20% • Predictability 10% 0% Lufthansa Norwegian SAS Finnair Iberia KLM

Note: Flights are considered on-time if actual departure is within 15 min of scheduled departure. Source: OAG, Finnair internal data

33 Finnair Capital Markets Day 2019 Weight and fuel efficiency are key drivers for unit cost improvement and sustainable operations

Planning and Flight Aircraft Airport forecasting optimisation maintenance operations

34 Finnair Capital Markets Day 2019 Data analytics improves operational excellence

Existing decision model • Static history average flight data • Av100+ data points • Human decision-making

Planned decision model • Real-time passenger flow flight data • 1,000,000+ data points • AI based decision-making

Improved customer experience and financial performance

35 Finnair Capital Markets Day 2019 We will drive our unit costs down

+8%

7.01 6.53 6.67 6.49 6.21 6.21 Continually decreasing unit cost

2014 2015 2016 2017 2018* LTM**

ASK Fuel CASK ex Fuel

* IFRS16 Adjusted ** Last 12 months (2018 Q4 – 2019 Q3) Source: Finnair 2018 Annual report, Finnair restatements 2018, Finnair Interim report for 1 January–30 September 2019

36 Finnair Capital Markets Day 2019 MODERN PREMIUM AIRLINE Piia Karhu, SVP Customer Experience Ole Orvér, CCO Capital Markets Day 2019 Taking the company to a new level

MODERN PREMIUM AIRLINE We offer more choice and ease to customers

CHOICE EASE 38 VALUE NPS PERSONALISED

39 Finnair Capital Markets Day 2019 Introduction of Premium Economy to capture demand from both new and existing customers

Business class Premium Economy Economy class • Extreme comfort, full-flat • Elevated economy • Economy that allows seats and experience with more customers to choose top-class service onboard space and how to travel upgraded dining

40 Finnair Capital Markets Day 2019 New fare brands to offer more choice and drive upsell

Economy Premium Economy Business

C B C A B C B A A

41 Finnair Capital Markets Day 2019 Comprehensive product portfolio allowing customers to choose how they want to travel

Aurinkomatkat Seats & Extra baggage Travel retail holiday upgrades packages

Food, Wi-Fi & Destination beverages & Finnair Holidays entertainment extras lounge

42 Finnair Capital Markets Day 2019 Optimised pricing to maximise conversion and value

Origin – destination revenue management set-up

Advanced analytics OPTIMISED PRICING Dynamic pricing

Ancillary optimiser

43 Finnair Capital Markets Day 2019 Better sales to more customers

• Better product information display

• Improved sales management and personalisation Total renewal of sales and distribution capabilities • Distribution costs optimisation

• Ability to distribute via new marketplaces

44 Finnair Capital Markets Day 2019 Finnair marketplaces have been renewed and enable better selling

New mobile app New Finnair.com

68 NPS* +20%** +35%*** in mobile app increase in average increase in order value conversion rate

*June 2019 ** Comparison is done month on month in new Finnair.com in open markets. *** Average increase in selected PoC markets

45 Finnair Capital Markets Day 2019 Value comes from more customers, stabilised unit revenue and optimal distribution spend

RASK development Illustrative

ASK growth

2015 2016 2017 2018 2019 .. ..

MORE PRODUCTS BETTER PRICING BETTER SALES BIGGER NETWORK

46 Finnair Capital Markets Day 2019 CREATING VALUE FOR SHAREHOLDERS Mika Stirkkinen, CFO Capital Markets Day 2019 Finnair’s strong capital structure supports growth

Cash / Sales Gearing Net Debt / EBITDA

40% 300% 4.00

257% 3.47 35% 34% 255% 3.50 250% 30% 30% 3.00 2.57 200% 25% 2.50

20% 18% 150% 2.00 1.44 15% 1.50 100% 74% 10% 1.00 50% 5% 0.50

0% 0% 0.00 Finnair European low-cost European full-service European low-cost European full-service Finnair European low-cost European full-service Finnair airlines airlines airlines airlines airlines airlines

Source: Company filings. Data are averages as of last available company Source: Company filings. Data are averages as of last available company Source: Company filings. Data are averages as of last available company filings. filings. filings. Note: Cash / Sales = Cash and cash equivalents / LTM Revenue Note: Gearing = Net Debt / Equity before minority interest. Net Debt = Total Note: EBITDA = LTM EBITDA. For SAS, EBITDAR used instead of European LCCs include Ryanair, easyJet and Norwegian; European full- interest-bearing debt – Cash and cash equivalents. For SAS, capitalized (7 EBITDA for comparability and adjusted for hybrid offering. Norwegian service carriers include Air France-KLM, IAG, Lufthansa, SAS and Turkish x lease payments) operating leases are added to total debt to ensure figures adjusted for convertible bond and equity offering. Airlines. Norwegian figures adjusted for convertible bond and equity comparability; adjusted for hybrid offering. Norwegian figures adjusted for offering. convertible bond and equity offering. Total interest-bearing debt does not include unfunded pension obligations due to data availability.

48 Finnair Capital Markets Day 2019 Investments support sustainability and efficiency

Future planned investments until The investments drive 2025 are estimated to be better cash flow and 3.5–4.0 Bn€ dividend payout in the 850 M€ are current commitments future

2/3 of the investments are The investments will replacement and result in less CO2 emissions and support 1/3 growth fuel efficiency

49 Finnair Capital Markets Day 2019 Strong cash flow enables investments, dividend policy remains intact

Cash flow has been strong Dividend policy remains stable mEUR EUR 600 1.4 513 1.23 504 500 1.2 1.08 383 1 400 282 0.8 300 220 0.57 0.6 0.55 200 171 0.4 0.30 0.27

100 0.2 0.10 0 0 2015 2016 2017 2018 2018* LTM** 2015 2016 2017 2018

* IFRS16 adjusted Net operating cash flow Earnings per share Dividend ** Last 12 months (2018 Q4 – 2019 Q3)

Strong operating cash flow can be utilised when making Finnair pays on average at least 1/3 of the EPS as dividend future investments and majority will be financed with cash. during an economic cycle. Earnings trend and outlook, financial situation and capital needs are, however, taken into consideration. Source: Finnair 2018 Annual report, Finnair restatements 2018, Finnair Interim report for 1 January - 30 September 2019 50 Finnair Capital Markets Day 2019 Target more efficient, cycle-proof balance sheet

Cash to sales Gearing

40% 200%

30% 150%

20% 100%

10% 50%

0% 0% Q3 2019 Minimum Q3 2019 Maximum Cash to sales ratio Gearing ratio

Finnair is currently well above the minimum ratio Gearing ratio is on a healthy level

Source: Finnair Interim report for 1 January - 30 September 2019 51 Finnair Capital Markets Day 2019 Target more efficient, cycle-proof balance sheet

Hybrid capital Share of owned aircraft mEUR 200 100%

150

100 50%

0 0% Q3 2019 Future Q3 2019 Future Hybrid capital Share of owned aircraft

The goal is to lower the hybrid capital in the future Strong cash position allows to increase the share of owned aircraft ratio

Source: Finnair Interim report for 1 January - 30 September 2019 52 Finnair Capital Markets Day 2019 Long-term strategic targets

Strategic metric Target

Comparable EBIT margin Comparable EBIT: > 7.5%* Profitability ROCE ROCE: > 10%*

Net promoter scope (NPS) NPS: increasing (currently 38) Customer satisfaction On-time performance (OTP) OTP: 85% (up from 78% in 2018)

Employee satisfaction Employee NPS eNPS: Increasing (currently 19)

Sustainability To be decided during Q1 2020

* Over the cycle (at constant fuel and f/x), 12–18 month build-up period 53 Finnair Capital Markets Day 2019 Focused strategy, integrated business and one culture driving profitability

• Passenger traffic • Ancillaries • Cargo • Travel Services

Network & Operational Modern Sustainability One culture & fleet excellence premium ways of airline working

54 Finnair Capital Markets Day 2019 Shareholder value with profitability and efficient balance sheet

Balanced ASK growth Comparable EBIT > 7.5%* of 3–5% CAGR ROCE > 10%* Shareholder Modern Premium Airline = Stable value RASK Operational Excellence = Decreasing CASK

Balance sheet efficiency

* Over the cycle (at constant fuel and f/x), 12–18 month build-up period 55 Finnair Capital Markets Day 2019 CLOSING REMARKS Topi Manner, CEO Capital Markets Day 2019 Value creation for shareholders – sustainable, profitable growth

• From accelerated to sustainable profitable growth, focusing on connecting Europe with Asian megacities

• Continuous efficiency focus to capture economies of scale

• Driving growth in retailing revenue, stabilising unit revenue

• A frontrunner in sustainability to future-proof the business

• Continued focus on customer and people experience

• Fleet investments to boost efficiency and reduce carbon footprint

• Strong cash flow generation used to finance investments while keeping the dividend policy intact

57 Finnair Capital Markets Day 2019 Culture & ways of working

Values Leadership principles Ways of working

Organise for success

Commitment to care Work together Agile Simplicity Clear targets Lean Courage Accountability

Transparency & follow up

58 Finnair Capital Markets Day 2019 Compensation model aligned with strategic targets

Our compensation model Strategy Targets

Base salary

• Common strategic targets Short-term incentives • Unit performance

• Strategy financial targets (profitability, Long-term incentives unit revenue, unit cost)

Employee fund

Open to all employees – FlyShare promoting ownership of Finnair shares

59 Finnair Capital Markets Day 2019 Our refined strategy and ambitious new targets

Continued growth In line with market growth • Comparable EBIT > 7.5%*

• eNPS positive development Improved market position in Asia

* Over the cycle (at constant fuel and f/x), 12–18 month build-up period

60 Finnair Capital Markets Day 2019