1. Logistiikka ja tuotantotalous Katariina Kemppainen, Aalto BIZ Antti Kuusenmäki, Finnair Cargo

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5. 5 Finnair Cargo Cargo Carrier of Choice for the Nordic Silk Road Aalto-yliopisto Kauppakorkeakoulu // 7th Sep 2015 Antti Kuusenmäki VP, Head of Cargo

6. Finnair Cargo Facts Subsidiary for the Finnair Group Finnair Cargo is the largest air cargo carrier in the Nordics & Baltics Turnover 230 MEUR (2014) Transports approximately 145Mkg of air freight and mail annually B2B: customers are forwarders 110 employees – Sales network in about 50 countries worldwide; mainly GSA’s – ’Warehouse’ operations outsourced to Transval Oy Cargo Revenue generates 17% of Finnair turnover on intercontinental routes

7. – Being ranked as one of TOP 5 preferred cargo carriers between Europe and Northeastern Asia – Deliver high quality air freight transportation on major trade lanes between Asia, Europe and North America – Cargo Excellence: Reliability, Service and Frequency Finnair Cargo Vision Cargo carrier of choice for the Northern Silk Road

8. Finnair Cargo Strategy Maximize Cargo revenue contribution to belly traffic High quality carrier: reliability, service & frequency via Helsinki hub – Investing into the most modern, highly automatized terminal in Europe Focus on specialized Cargo products – The first airline in the world awarded with a IATA CEIV (Pharma) quality certificate Carrier between Europe and Asia – Expand home market from Nordics to selected European markets – Growth from Asia, supported by growing fleet – Maintain #1 position in Nordics & Baltics

9. Cargo is a significant revenue generator in Finnair's long haul traffic Belly Cargo generates 17% of Finnair’s revenue on intercontinental routes, 22% on Chinese routes and 11% of Airline business turnover Relative importance will grow as the A350 brings up to 50% more belly cargo capacity by 2020 Cargo supports Finnair Group’s goal to double Asian traffic by 2020

10. 10 SIN China's top 3 hubs CAGR +5.7% BKK HAN HKG Finnair operates in key freight trade lanes & growth markets in Asia, including West & Central China and Vietnam Cargo traffic between Asia and Europe is forecast to grow 5-6% annually Shipment flows: Europe – Middle East/Asia (RTK’s/yr) Freight through major international airports (RTK’s/yr) 2010 2020E Mega trends and macro dynamics support our growth strategy *Source: IATA

11. Urban clusters in China and their hub cities Nanning Changchun- Harbin Liao central- south Jingjinji Huhehaote Taiyuan Shandong Byland Central Guanzhong Coast West Hangzhou Shanghai Nanjing Hefei Yangzi mid-lower Nanchang Shenzhen Guangzhou (includes Foshan) Kunming Changzhutan Chongqing Chengdu *Source: IATA Source: Dominic Barton, 2013. Fast growing middle class population and consumerism in China drive cargo growth: – High-end consumer goods from Europe/US – Healthcare & Pharmaceuticals – Infrastructure investments New administration committed to development of Western & Central regions – Lower production costs will drive re-location and growth of manufacturing in the Central and Western regions Directionally balanced freight growth China forecasted to become the second largest freight market by 2017*

12. The hub location BRUSSELS IS A TOP EUROPEAN LOGISTIC HUB LOCATED IN THE ECONOMICAL, CULTURAL AND POLITICAL HEART OF EUROPE

13. Introduction: October 2015 Competitive advantage: 16-20% more cargo capacity Improved uplift reliability: more efficient by payload/range Fuel consumption -24% vs A340: cost efficiency & carbon footprint Superior product & more capacity to passengers 19 firm orders: 1,9 billion euro investment * * At Airbus list prices Next Generation Cargo Finnair the first in Europe to introduce the most modern aircraft, A350 XWB

14. Next Generation Cargo Special Products In order to diversify & enhance the Finnair Cargo Product portfolio a set of new special products were launched during H1 2015 – Pharma – Seafood – Vulnerable – Dangerous Goods – Live Animals – Perishables – Valuables On top of the new products Finnair Cargo has also a separate product for Mail & Priority Cargo

15. Specialized in Seafood COOL TO CARE With decades of experience Finnair Cargo offers a reliable and fast solution for the transportation of fresh seafood featuring Nordic cool chain, daily frequencies and top priority handling. The freshest Nordic salmon in Asia: total transportation time just 34 hours. In 2013 Finnair Cargo carried 13.000 tn of seafood: enough to prepare 260 million portions of meal.

16. Specialized in Pharma COOL TO CARE In accordance with the latest industry developments and with the cool Nordic wind under its wings, Finnair Cargo transports temperature-sensitive products quickly and safely between Europe, Asia and America via the Northern route. Innovative solutions and numerous proactive measures beyond IATA PCR Chapter 17 to secure the transportation of some of the most valuable substances on earth. Among the two airlines in the world to receive the IATA pharma certificate *. *Finnair Cargo is taking part in IATA’s Center of Excellence for Independent Validators in Pharmaceutical Handling programme (CEIV Pharma) –certification programme as one of the two pilot airlines; the certification process in progress.

19. Next Generation Cargo Cool Nordic Cargo - hub 1.Three dedicated areas for general cargo, pharmaceuticals and perishable shipments – Dedicated areas for Pharmaceuticals (3000 sqm.) Average temperature in the area +20 Celsius Special rooms for shipment to be stored between +2 to +8 Celsius Special rooms for shipment to be stored as frozen – Dedicated areas for Perishable Cargo (3500 sqm.) Packing area temperature +6 to +8 Celsius Storing area temperature +2 Celsius 1.Three dedicated areas for general cargo, pharmaceuticals and perishable shipments – Dedicated areas for Pharmaceuticals (3000 sqm.) Average temperature in the area +20 Celsius Special rooms for shipment to be stored between +2 to +8 Celsius Special rooms for shipment to be stored as frozen – Dedicated areas for Perishable Cargo (3500 sqm.) Packing area temperature +6 to +8 Celsius Storing area temperature +2 Celsius 2.Warehouse automation where possible (Material Handling System) – Automated ULD storage system – Automated AS/RS (rack system) 3.IT-system to optimize operational processes – E.g. Workstation planning, Forklift guidance 4.Sustainable construction Terminal 31 000 sqm. + office block 6000sqm Capacity to handle 450tt annually Option to expand with additional 10 000sqm and 100tt in the future Physically close to the operations (1- 1,5 kms from aircraft stands)

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