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Investor Presentation

November 2012

1 Finnair Investor Presentation - Nov 2012 Content

• Company highlights

• Strategy implementation yielding results

• Positive trend in business performance strengthens market position

• Outlook

• Fleet and investments

• Dedicated and experienced management team

• Appendices

2 Company highlights

• European network connecting and , listed in the Nasdaq OMX Nordic • Finnair has an attractive, geographic niche between Northern Asia and Northern Europe with sustainable competitive advantage: – Finnair is the 3rd largest carrier in its Asian destinations, estimated market share of 5.9%.* – Market size of 20 million transfer passengers annually, globally one of the fastest growing traffic areas. – Traffic between Europe and forecasted to triple during the next 30 years. • Cost advantage in long haul traffic due to short distance to Asia: Higher aircraft and crew utilisation compared to peers – selected one of the best transfer in the world, minimum connection time of 35 min – The small size of domestic market limits the competition, Finnair benefits from it’s well established position and network coverage with over 60% market share • Stable financial position: 402.9 M€ in cash reserves (approximately 18% of annual turnover), net cash flow positive at 136,8 M€ ytd.

*Based on weekly frequencies. 3 Finnair Investor Presentation - Nov 2012 Strategy implementation yielding results

4 Finnair Investor Presentation - Nov 2012 Our vision

Double our revenue between Europe and Asia by 2020

Become the most desired option in travel between Europe and Asia

Become number one airline and grow in the Nordic countries

5 Finnair Investor Presentation - Nov 2012 Finnair offers the fastest connections between

over 50 11 Asian European mega-cities destinations • • • Osaka • • Chonqing • • Hongkong • Soul • • Singapore •

6 Finnair Investor Presentation - Nov 2012 Sustainable competitive advantage through geographical location

• Faster connections with more comfort in travelling – Helsinki- hub with minimum connection time of 35 minutes – One long and one short leg instead of two 6-7 hour legs • 24h rotation to Asian destinations and back • Operating cost advantages in many areas

It's faster via Helsinki - time saved vs. other European hubs

Via Via Via Via Average time saved via Helsinki Beijing – Europe* 22.1% 33.1% 19.1% 16.2% 22.6% Shanghai – Europe* 26.6% 13.3% 14.5% 11.6% 16.5% Tokyo – Europe* 34.4% 24.3% 32.3% 31.7% 30.7% Osaka – Europe* 29.4% 25.4% 27.1% 20.3% 25.6%

*Finnair operated European non-hub cities.

7 Finnair Investor Presentation - Nov 2012 Steady growth in Asian traffic

Finnair is growing faster than Number of passengers the market in terms of seat growing steadily capacity Million passengers 160% 1,6 140% 1,4 120% 1,2

100% 1,0 80% 0,8 60% 0,6 40% 0,4 20% 0% 0,2 0,0

2005 Q1 2005 Q3 2005 Q1 2006 Q3 2006 Q1 2007 Q3 2007 Q1 2008 Q3 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 2005 2006 2007 2008 2009 2010 2011 1-9 2012

AY seat growth Market seat growth

8 Finnair Investor Presentation - Nov 2012 Asian traffic revenues 51% of total passenger revenue – target to double Asian revenue by 2020* Finnair passenger revenues Asian traffic revenue annual by traffic area, %, growth 20% on average 2008 – Jan-Sep 2012

100%

90% 32% 33% 80% 40% 44% 45% 70%

60%

50%

40%

30%

20%

10%

0% 2005 2006 2007 2008 2009 2010 2011 1-9 2008 2009 2010 2011 1-9 2012 2012 Leisure Atlantic Domestic Europe Asia

*From 2010 . 9 Finnair Investor Presentation - Nov 2012 Finnair has strong presence in Asian key economies, weekly frequencies*

China

50 28 24 21 34 27 29 16 24

Finnair KLM Finnair Lufthansa Air France KLM IAG

Singapore Republic of Korea

12 13

7 77 77 6

Finnair Lufthansa Air France KLM Finnair Lufthansa Air France KLM

• *Finnair is the 3rd largest carrier in its destinations, estimated market share of 5.9%. • Market size of 20 million transfer passengers annually, globally one of the fastest growing traffic areas. • Traffic between Europe and China forecasted to triple during the next 30 years.

Finnair Investor Presentation - Nov 2012 10 Structural change advancing – from business segments to core business focus and supporting the efficient execution of business strategy and operations

Action taken and/or on-going:

1 Strategy & Business development  Network design and markets • Business strategy definition  Fleet structure and size • Allocation of resources  Product & customer experience  Brand

2 Group support functions  Financial & business services • Realization of synergies  Procurement • Shared Service  IT

3 Airline feeder traffic and support services  Regional & feeder traffic Outsourced to service partners for:  Catering • Cost efficiency  Engine & component • Flexibility maintenance • Core business growth support  Ground handling

11 Finnair Investor Presentation - Nov 2012 €140 million savings program well on track new target for 2012 cumulative savings €90 million (up €10 million from original target), leaving €50 million for 2013

Target €140 million Savings progress to target

3% 8% maintenance 26% 74% 25% 8% staff 43% 57%

9% other 102%

lease 105%

10% sales 109% 24% catering 148% 14%

ground handling 38% 62% maintenance staff other lease fuel 155% sales catering ground handling fuel 0% 100%

12 Finnair Investor Presentation - Nov 2012 Achievements so far

• Fleet optimisation in European traffic: €11.5 million savings – Discontinuation of four A320 series aircraft lease agreements and subleasing five E170 aircraft – Fleet leasing contracts renegotiated and renewed

• Improved route planning and aircraft utilisation – Low performing routes discontinued, average aircraft utilisation up by over an hour a day to 9 hours

• Partnerships for improved cost efficiency and flexibility

• Support functions streamlined

• Savings through centralized procurement – Cost savings so far €16 million

13 Finnair Investor Presentation - Nov 2012 New €60 million savings programme launched

• New cost savings programme published with the aim of achieving a permanent reduction in costs of a further €60 million by the end of 2014 – Despite the good advancement of the structural change and cost reduction programme launched in 2011, Finnair has not progressed as planned in all its savings categories – New savings are aim at reaching Finnair’s long-term target of 6% EBIT profit margin – In the face of high fuel prices, intensifying competition and significant fleet investments in the coming years, the company must achieve a marked improvement in profitability.

• The new programme complements the existing €140 million structural change and cost reduction programme launched in 2011

14 Finnair Investor Presentation - Nov 2012 Positive trend in business performance strengthens market position

15 Finnair Investor Presentation - Nov 2012 Strong Q3 performance

• All time high Q3 Turnover and Operational EBIT – Turnover €650.3 million (+7.1%), EBIT €48.9 million (+77.2%)

• Stable financial position – Net cash flow from operations €44,5 million in July-September – €402.9 million short-term cash and cash equivalents (approx. 18% of annual turnover)

• Notable improvements in traffic performance: – Load factor +3.9% -p – RASK +7.8% – Top performance in punctuality, over 90% of flights arrived on time

16 Finnair Investor Presentation - Nov 2012 Turnover growth continued while operational EBIT improved by 77.2%

Quarterly turnover, € million Quarterly Operational EBIT, € million

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 700 60 600 40 500 20 400

0 300

200 -20

100 -40

0 -60 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

Operational result (EBIT) = EBIT excluding non-recurring items, capital gains and changes in the fair value of derivatives and in the value of foreign currency denominated fleet maintenance reserves

17 Finnair Investor Presentation - Nov 2012 Unit revenue improvement ahead of peers*

• Unit revenue per available seat kilometre (RASK) up by 7.8% in Q3 as both passenger load factor (PLF, +3.9%-p) and yield per revenue passenger kilometre (RPK yield, +2.3%) improved y-o-y

Q3 RASK +7.8%

PLF RPK yield +3.9%-p +2.3%

* Other European legacy carriers.

18 Finnair Investor Presentation - Nov 2012 Strong traffic performance in Q3 2012

Asian share 52.3% of the total capacity

North America Europe Asia

ASK 1,3 % ASK -0,5 % ASK 4,3 % RPK 1,9 % RPK 9,2 % RPK 6,4 % PLF 0,5 %-p PLF 6,9 %-p PLF 1,6 %-p Traffic revenue* 8,1 % Traffic revenue* 12,2 % Traffic revenue* 11,4 %

Leisure traffic Domestic Total traffic ASK 23,6 % ASK -9,5 % ASK 3,4 % RPK 29,9 % RPK 2,6 % RPK 8,6 % PLF 4,5 %-p PLF 7,4 %-p PLF 3,9 %-p Traffic revenue* 24,2 % Traffic revenue* -9,4 % Traffic revenue* 11,0 %

Passenger revenue split 7 % 5 % 5 % Cargo Asia ATK -41,7 % Europe RTK -26,3 % 51 % Domestic 32 % OLF 17,0 %-p North Atlatic Traffic revenue -30,3 % Charter * passenger revenue

19 Finnair Investor Presentation - Nov 2012 Airline business: RASK & CASK development Q3 2012

• Unit revenue per available seat kilometre (RASK) up by 7.8% • Unit cost per available seat kilometre excluding fuel (CASK, excl. fuel) down by 1.1%

Change, y-o-y, %

-15% -11% -7% -3% 1% 5% 9% 13% 17% 21% 25%

RASK, unit revenue 7,8 %

CASK, unit cost 6,1 %

CASK, excl. Fuel -1,1 % 24,6 % Fuel cost

Personnel -1,4 %

Depreciation & leasing -9,6 %

Traffic charges 9,5 %

Maintenance 3,4 %

Ground handling -6,4 %

Catering -10,6 %

Other costs 1,5 %

20 Finnair Investor Presentation - Nov 2012 Operational EBIT build-up in Q3 2012

M€ 140,0

120,0 -2,4 -4,6 5,8 8,6 -6,1 100,0 -6,2 11,0 -11,4 12,7 80,0

-35,3 60,0 49,2

40,0

48,9 20,0 27,6

0,0

21 Finnair Investor Presentation - Nov 2012 Operational EBIT build-up Jan – Sep 2012

M€

250,0

11,0 -1,7 200,0 11,1 11,5 -18,1 -19,3 150,0 20,6 -21,1 22,7

100,0 -96,3

147,7 50,0

38,6 0,0 -29,3

-50,0

22 Finnair Investor Presentation - Nov 2012 Fuel costs continued to climb in Q3 2012

Operational costs Fuel cost +24.5 % y-o-y* M€ • The share of fuel costs 30% 2500 2.335.6

2000 613,4

1500 603,5 584,2 +3.3%

M€ 1000 586,1 1000 557,2 555.2 +24.5% 500 500 146,4 179,6 580,8 621,7 144,3 131,7 157,9 132,8 167,6 0 0 2011 2012 2011 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

* Hedging taken into account. 23 Finnair Investor Presentation - Nov 2012 Fuel and personnel biggest cost items in operational costs in Q3 2012, total of €603.5 million

2,8 % 2,7 % Change, y-o-y, % 3,1 % 4,6 % Total 3,3 % 5,4 % 29,8 % Fuel 24,5 %

Personnel -11,5 % 6,1 % Ground handling and catering 22,6 %

Traffic charges 11,0 % 8,9 % Other costs -6,3 %

Maintenance 14,2 %

16,2 % Depreciation 10,2 % 6,5 %

Other rental payments -23,8 % 10,3 % Sales and marketing -13,4 % Fuel Personnel -39,6 % Ground handling and catering Traffic charges Tour operations Other costs Maintenance Aircraft leasing -7,4 % Depreciation Other rental payments Sales and marketing Tour operations -40% -20% 0% 20% 40% Aircraft leasing

24 Finnair Investor Presentation - Nov 2012 Key figures

Jul-Sep Jul-Sep Jan-Sep Jan-Sep Change Jan-Dec Key Figures Change % 2012 2011 2012 2011 % 2011 Turnover and result Turnover EUR million 650,3 607,2 7,1 1836,5 1680,3 9,3 2 257,7 Operational result, EBIT EUR million 48,9 27,6 77,2 38,6 -29,3 > 200 % -60,9 Operational result, % turnover % 7,5 4,5 3,0 %-p 2,1 -1,8 3,9 %-p -2,7 Operating result, EBIT EUR million 71,1 10,6 > 200 % 32,8 -57,7 156,8 -87,8 EBITDAR EUR million 97,8 75,8 29,0 186,9 113,2 65,1 139,6 Result before taxes EUR million 67,3 3,1 > 200 % 15,6 -73,3 121,3 -111,5 Net result EUR million 50,8 1,9 > 200 % 10,6 -54,9 119,3 -87,5 Balance sheet and cash flow Equity ratio % 33,3 33,1 0,2 %-p 32,6 -16,0 %- Gearing % 25,9 41,9 43,3 p -11,3 %- Adjusted gearing % 90,1 101,4 108,4 p Capital expenditure, CAPEX EUR million 7,4 121 -93,9 17,7 182,8 -90,3 203,9 Return on capital employed, ROCE 12 % 1,0 -3,4 4,4 %-p -5,2 months rolling Return on equity, ROE , 12 months rolling % -1,1 -7,5 6,4 %-p -10,9 Net cash flow from operating activities EUR million 44,5 -1,2 > 200 % 136,8 59,2 131,1 50,8 Share Share price at end of quarter EUR 2,07 2,94 -29,6 2,07 2,94 -29,6 2,30 Earnings per share EUR 0,43 0,00 - 0,08 -0,48 116,7 -0,75

Operational result (EBIT) = EBIT excluding non-recurring items, capital gains and changes in the fair value of derivatives and in the value of foreign currency denominated fleet maintenance reserves

25 Finnair Investor Presentation - Nov 2012 Outlook for 2012

Guidance on 26 October 2012: • Finnair estimates that the operational result for the second half of the year, which is stronger than the first half of the year due to seasonal variations, will reflect improved profitability compared to the first half of the year, leading to a profitable operational result for the full year 2012.

• The outlook for the is still uncertain, and Finnair will adjust its passenger traffic capacity with its current structure according to demand. Finnair estimates that this capacity will increase on last year but less than 5 per cent. The growth will mainly come from Asian traffic, where Finnair increased capacity in May by opening a new flight route to , China.

• Finnair’s fuel costs are still estimated to be significantly higher in 2012 compared to the previous year due to increased capacity and high fuel prices.

• Cost reductions of approximately 90 million out of the structural change and cost reduction program’s total target of 140 million euros are expected to be achieved by the end of 2012. Finnair estimates that unit cost (CASK) excluding fuel will decrease year-on-year in the second half of the year.

26 Finnair Investor Presentation - Nov 2012 Fleet and investments

27 Finnair Investor Presentation - Nov 2012 Distinct production platforms

LONG HAUL Asia &

SHORT HAUL Feeder traffic, European major routes JV and/or tactical partnerships possible

Feeder traffic, European niche routes contract flying / *

REGIONAL TRAFFIC Domestic and some Nordic routes ATR contract flying / *

* Finnair owns 40% of Nordic. Finnair Investor Presentation - Nov 2012 28 Current fleet: Finnair operates 57 aircraft and, in addition, owns 15 aircraft operated by other parties

Fleet operated by Seats # Own Leased Average Change Ordered Add. Finnair on Sep 30, 2012 (operational (financial age from Dec options leasing) leasing) 31, 2011 European traffic A319 123–138 9 7 2 11.2 -4 Airbus A320 159–165 10 6 4 10.1 196 6 4 2 11.7 5 Embraer 170* 76 1 1 6.2 -4 Embraer 190 100 12 8 4 4.2 Long-haul traffic 297/271/263 8 4 1 3 2.9 270/269 7 5 2 9.7 na. 11 8 Leisure traffic B757 227 4 0 4 14.7 Total 57 35 19 3 8.4 -8 16 8

Fleet owned by Finnair Seats # Own Leased Average Change Ordered Add. but operated by other (operational (financial age from Dec options on Sep 30, 2012** leasing) leasing) 31, 2011 ATR 72 68–72 11 11 3.4 1 Embraer 170 76 4 4 6.3 +5 Total 15 15 4.2 -5 1 0

* E170 aircraft operated by Finnair but leased to Honeywell. ** All ATR aircraft and two E170 aircraft are leased to Flybe Nordic and two E170 aircraft are leased to companies outside the group.

Finnair Investor Presentation - Nov 2012 29 Fleet renewal is key for successful strategy implementation – reduced unit costs and improved fuel efficiency

1)First phase in 2008-2010 • In Long haul, MD11 fleet replaced with Airbus 330/340 1)Second phase in 2012 Harmonized Airbus fleet • Reducing 9 aircraft from European fleet brings asset and crew • Embraer traffic transferred to Flybe utilization benefits 1)Third phase in 2013-2014 • fleet to be replaced with Airbus A321 ER’s

1)Fourth phase: Airbus 350 XWB from H2 2015, More capacity and lower seat cost with next generation aircraft: • Up to 18% more capacity: from 270 seats to 310-320 seats • Estimated seat cost -30% compared to Airbus 340 • Improved revenue position with superior product • 11 orders and 8 options

30 Finnair Investor Presentation - Nov 2012 Strong financing position

% Strong balance sheet M€ Good cash position 120 700

600 100 500 80 400

60 300

40 200

100 20 0 0 -100

-20 -200 2008 2009 2010 2011 Q3/2012 2008 2009 2010 2011 YTD 2012

Net cash flow from operations Equity ratio Gearing Adjusted gearing Investment, gross Short term cash and cash equivalents in balance sheet

31 Finnair Investor Presentation - Nov 2012 Dedicated and experienced management team

32 Finnair Investor Presentation - Nov 2012 Executive Board – On average, over 13 years of experience from aviation industry

Mika Vehviläinen, b. 1961, M.Sc. (Econ.), Finnair Plc's President and CEO, in Finnair's service since 2010. Vehviläinen previously worked for Nokia, ultimately as Chief Operating Officer of Nokia Networks.

Erno Hildén, b. 1971, M.Sc. (Econ.), CFO, Member of the Executive Board, in Finnair's service since 1997. Hilden's previous posts include VP for Finnair Leisure Flights business unit and various business development posts in Finnair corporate management. Prior to his present position he was Finnair Plc's COO.

Ville Iho, b. 1969, M.Sc. (Technology), COO, Member of the Executive Board, in Finnair's service since 1998. Iho previously held various posts in Finnair Plc's Scheduled Traffic. Prior to his present position he was Finnair Plc's SVP Resources Management.

Gregory Kaldahl, b. 1957, B.Ss. (Education), SVP Resources Management, Member of the Executive Board, in Finnair's service since 2011. Kaldahl previously worked for several airlines. His latest position was VP, Resource Planning for .

Anssi Komulainen, b. 1964, BA, SVP Customer Service, Member of the Executive Board, in Finnair's service 1989-1999 and since 2001. Komulainen has worked in various management posts in the restaurant sector as well as in Finnair Catering's service, ultimately as its Managing Director and SVP Catering. His latest position was SVP, Human Resources.

33 Finnair Investor Presentation - Nov 2012 Executive Board – On average, over 13 years of experience from aviation industry

Mika Perho, b. 1959, BA, SVP Commercial Division, Member of the Executive Board, in Finnair's service since 1985. Perho has held management posts in Finnair sales and marketing.

Sami Sarelius, b. 1971, LLM, SVP and General Counsel, Member of the Executive Board, in Finnair's service since 1998.

Arja Suominen, b. 1958, MA, e-MBA, SVP Corporate Communications and Corporate Responsibility, Member of the Executive Board, in Finnair's service since 14 March 2011. Suominen previously worked for Nokia, mainly in mainly in communications positions, ultimately as Nokia's Senior Vice President, Communications.

Manne Tiensuu, b. 1970, M Psych, SVP Human Resources, Member of the Executive Board, in Finnair's service since 2010. Tiensuu previously worked for Glaston Oyj and Nokia Oyj.

Kaisa Vikkula, b. 1960, D. Sc. (Econ), SVP Travel Services, Member of the Executive Board, in Finnair's service since 2006. Vikkula previously worked in the finance and capital markets, as an investor relations and communications director for Partek Plc and

34 Finnair Investor Presentation - Nov 2012 Appendices

35 Finnair Investor Presentation - Nov 2012 Traffic structure in Q3 2012

Traffic capacity in Available Passenger revenue Seat Kilometers (ASK)

8% 7% 7% 5% 5% 3%

52% 51%

30% 32%

Asia Europe Asia Europe Domestic North Atlantic Domestic North Atlantic Leisure Leisure

36 Finnair Investor Presentation - Nov 2012 Finnair’s ownership

Government ownership 55.8%, other major shareholders incl. financial and insurance corporations

LARGEST SHAREHOLDERS 25 OCT 2012 # Shares of shares Ownership by type and votes 1 Finnish State 71,515,426 55.8% 0.7% 0.0% 2.9% 2 KEVA (Local Government Pensions Institution ) 5,881,815 4.6% 4.7% 3 Skagen funds 5,720,889 4.5% 4 Ilmarinen Mutual Pension Insurance Company 3,025,564 2.4% 12.2% 5 Tapiola General Mutual Insurance Company 2,276,444 1.8% 6 The State Pension Fund 2,100,000 1.6% 7 Veritas Pension Insurance 1,530,000 1.2% 9.8% 8 OP-Suomi Arvo (equity fund) 1,400,000 1.1% 9 Mutual Insurance Company Pension Fennia 1,300,000 1.0% 10 Alfred Berg (equity fund) 1,287,434 1.0% 11 Suomi Mutual Life Assurance Company 1,250,000 1.0% 69.9% 12 Varma Mutual Pension Insurance Company 600,000 0.5% 13 Finnair Personnel Fund 562,711 0.4% 14 Evli Suomi Select (equity fund) 532,169 0.4% 15 Mandatum Life Insurance Company Limited 505,683 0.4% Public bodies Total 15 largest 99,488,135 77.6% Households Other shareholders 28,647,980 22.4% Financial institutions Total number of shares and votes 128,136,115 100.0% Foreign ownership Private companies Non-profit institutions • Nominee registered shareholders hold 6.7% of company shares. Not converted to book-entry system

37 Finnair Investor Presentation - Nov 2012 Rolling hedging policy

Hedging positions, 30 September 2012 Hedge ratio H1 2013: 69%

• Finnair hedges positions 24 months ahead within the limits defined in the hedging policy

• Finnair is 74% hedged for the next six months

• The company protects itself against the risks of currency, interest rate and jet fuel positions by using different derivative instruments, such as forward contracts, swaps and options

38 Finnair Investor Presentation - Nov 2012