Market environment and strategy

Mika Vehviläinen CEO

1 Capital Market Day, 3 Dec 2012 Finnair’s vision

Double our revenue between and by 2020

Become the most desired option in travel between Europe and Asia

Become number one and grow in the Nordic countries

2 Finnair Capital Market Day, 3 Dec 2012 Finnair offers the fastest connections between

over 50 1112 Asian European mega-cities destinations Osaka Hong Kong Seoul Bangkok Singapore

Hanoi from June 2013

3 Finnair Capital Market Day, 3 Dec 2012 Gateway to Europe for our Asian customers

Malaga Barcelona

London Rome Manchester

Budapest

Gothenburg

Oslo Vilnius

HELSINKI

St. Petersburg

4 Moscow Finnair Capital Market Day, 3 Dec 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%. Winter schedule. • 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.

Finnair Capital Market Day, 3 Dec 2012 5 Air traffic remains a growth market

20-year world annual traffic growth 4.7%

Source: Global market forecast September 2012. 6 Finnair Capital Market Day, 3 Dec 2012 Global ASK traffic now growing at a slower pace after a strong recovery in 2010

Source: Airbus Global market forecast September 2012. 7 Finnair Capital Market Day, 3 Dec 2012 Growth is highest in expanding regions...

Yearly RPK growth China 2012 -2031 India Middle East Asia Africa 6 billion people

REGIONS CIS EXPANDING Latin America 2012 Eastern Europe

Western Europe 1 Japan billion people 2012

Billions of people increasingly want to travel by air

Source: Airbus Global market forecast September 2012. 8 Finnair Capital Market Day, 3 Dec 2012 ...following strong economic growth in these areas – China is forecasted to continue as the fastest growing market in 2012-2013

Source: Airbus Global market forecast September 2012. 9 Finnair Capital Market Day, 3 Dec 2012 Main drivers for traffic growth in Asia

• More people, bigger cities, more wealth

• Emerging markets, more first time flyers and growing middle class

• Growing tourism and internationalisation will stimulate demand

• China average propensity to travel x4.6 in 2031 vs. 2011

Source: Airbus Global market forecast September 2012. 10 Finnair Capital Market Day, 3 Dec 2012 Change in the industry continues

• Alliance landscape is changing – Qatar to join alliance, Middle-Eastern active in partnering with legacy carriers

• Market exits in short haul traffic

• Legacy carriers continue to restructure their loss-making short haul operations

11 Finnair Capital Market Day, 3 Dec 2012 Finnair today

Passenger Revenue split in Q3 2012

7% • Focus on core Airline business 5% – Scheduled long and short haul traffic 5% – Leisure traffic – Cargo traffic 51% 32%

Asia Europe • Partnerships in both core Domestic North Atlatic business and in airline support Charter services

12 Finnair Capital Market Day, 3 Dec 2012 We are committed to adding value and increasing profitability

• Product development, for example: – Investments in Customer Service – Peace of Mind – Better meals through partnership – New ticket types – partnership etc.

• Improved operational efficiency • Cutting costs and changing cost structure • Increasing revenues

13 Finnair Capital Market Day, 3 Dec 2012