Finnair (FIA1S) Investor update summary

Fleet renewal program and strategy

• Announced firm orders for 18 Embraer E195-E2s, with 16 options and 12 purchase rights, plus plans to acquire up to 12 used Airbus A320/321ceos to replace aging A319s and A320s.

• E195-E2s will be operated by Norra, replacing leased and older aircraft, with deliveries starting Q3 2027 and continuing through 2029.

• The renewal supports strategic goals for 2026-2029, including network growth, profitability, and enhanced customer experience.

• E2s feature improved range, fuel efficiency, quieter cabins, Wi-Fi, USB charging, and a 2+2 seating configuration.

• Seabury Aviation Partners acted as strategic and commercial advisor for the transaction.

Financial and funding strategy

• Investment aligns with financial targets: 4% CAGR market growth, 6-8% comparable EBIT margin, and €2-2.5 billion CapEx through 2029.

• Current leverage at 1.8x, within target range, and BB+ credit rating with stable outlook; net debt to EBITDA on target with no significant near-term refinancing needs.

• Operating cash flow remains strong, exceeding €400 million even in challenging years, and cash position bolstered by €300M bond issuance in Q4 2025.

• Over 50% of committed CapEx for the renewal expected to be used by end of 2029, trending toward the lower end of guidance.

• Funding mix between owned and leased aircraft will be decided closer to delivery, balancing flexibility and financial conditions.

Operational and network implications

• Renewal enables agility to add frequencies, open new destinations, and optimize aircraft size per route.

• E2s' range allows coverage of destinations as far as the Iberian Peninsula from Helsinki.

• Regional network expansion is key to feeding long-haul operations and maintaining competitiveness.

• Interim sourcing of E1s and ATRs planned to bridge capacity until new deliveries arrive.

• No union negotiations required for Norra fleet expansion due to recent CLA changes.