Finnair Oyj — Capital/Financing Update 2021

Mar 17, 2021

The EU Commission has approved the hybrid loan by the State of Finland to Finnair

The EU Commission has approved the hybrid loan by the State of Finland to Finnair

Finnair Plc                  Stock Exchange Release                 17 March
2021 at 2.30 p.m. EET

Finnair and the State of Finland have today signed an agreement on a hybrid loan
of maximum 400 million euros to support Finnair. The decision was made by the
Plenary Session of the Government on February 18, 2021. The arrangement has the
approval of the EU Commission’s competition authority in line with the European
Union’s state aid rules. The COVID-19 pandemic has led to travel restrictions
which have caused severe losses to Finnair, which has been taken into account in
the interest rate of the hybrid loan.

Of the credit limit, approximately 350 million euros can be used by Finnair
based on the state aid decision made by the Commission on 12 March 2021. Finnair
is able to access the funds, if its cash or equity position would drop below the
limits to be defined in the facility’s terms and conditions.  The remaining
approximately 50-million-euro share will be brought to approval by the
Commission at a later stage.

Finnair’s equity was 896.6 million euros at the end of year 2020 and cash
reserves were 823.7 million euros.

“Through comprehensive and timely financing actions we have sought to secure a
clear path for Finnair out of the pandemic. We are grateful for this important
support by the State owner. The now approved hybrid loan is an important step in
ensuring financial stability of Finnair even in a situation where the traffic
recovery would start later than expected”, says Finnair CEO Topi Manner. “We
continue to work to enhance our cost structure and secure our competitiveness,
in order to be able to implement our strategy in the post pandemic, highly
competitive market.”

FINNAIR PLC
Further information:
Finnair communications, 358 9 818 4020, comms@finnair.com

Distribution:
NASDAQ OMX Helsinki
Principal media

Finnair is a modern premium network airline, specialising in passenger and cargo
traffic between Asia and Europe. Helsinki’s geographical location gives Finnair
a competitive advantage, since the fastest connections between many European
destinations and Asian megacities fly over Finland. Sustainability is at the
heart of everything we do –  Finnair intends to reduce its net emissions by 50%
by the end of 2025 from the 2019 baseline and achieve carbon neutrality latest
by the end of 2045. Finnair is a member of the oneworld alliance. Finnair Plc’s
shares are quoted on the Nasdaq Helsinki stock exchange.