financials Financial report 2011 1 Contents Finnair in 2011 - PowerPoint PPT Presentation

financials Financial report 2011

1 Contents Finnair in 2011 ..................................................................................2 19. Receivables, long-term ............................................................45 President and CEO’s review .............................................................4 20. Deferred tax assets and liabilities ...........................................46 Finnair key fjgures ............................................................................6 21. Inventories ...............................................................................48 Finnair fmeet ....................................................................................... 7 22. Trade receivables and other receivables .................................48 Board of Directors’ Report ...............................................................8 23. Other fjnancial assets, short-term ...........................................49 Shares and shareholders ..................................................................17 24. Cash and cash equivalents .......................................................49 Financial indicators 2009–2011 ......................................................20 25. Equity-related information ......................................................50 Calculation of key indicators ............................................................21 26. Share-based payments ............................................................52 IFRS Financial Statements, 1 January–31 December 2011 .......22 27. Pension liabilities .....................................................................53 Consolidated income statement .......................................................22 28. Provisions .................................................................................55 Consolidated statement of comprehensive Income .........................22 29. Interest-bearing liabilities .......................................................56 Consolidated balance sheet ..............................................................23 30. Trade payables and other liabilities ........................................58 Consolidated cash fmow statement ...................................................24 31. Management of fjnancial risks .................................................59 Consolidated statement of changes in equity ..................................26 32. Classifjcation of fjnancial assets and liabilities .......................61 Notes to the fjnancial statements .....................................................27 33. Operating subsidiaries .............................................................64 1. Basic information about the company .....................................27 34. Other lease agreements ...........................................................65 2. Accounting principles...............................................................27 35. Guarantees, contingent liabilities and derivatives ..................66 3. Segment information ...............................................................35 36. Related party transactions ......................................................68 4. Acquired businesses ................................................................36 37. Change of accounting principle ...............................................68 5. Asset items sold and non-current assets held for sale ............36 38. Disputes and litigation .............................................................68 6. Production for own use ............................................................36 39. Events after the closing date ...................................................68 7. Other operating income ...........................................................36 40. Parent company’s fjnancial fjgures ..........................................69 8. Materials and services .............................................................36 Board of Directors’ Proposal on the Dividend ..................................72 9. Employee benefjt expense .......................................................37 Auditor’s Report ................................................................................73 10. Depreciation and impairment. .................................................38 Corporate Governance Statement 2011 .......................................74 11. Other operating expenses ........................................................38 Risk management ...........................................................................77 12. Financial income ......................................................................39 Remuneration Statement ..............................................................80 13. Financial expenses ...................................................................39 Stock exchange releases 2011 .......................................................82 14. Income taxes ............................................................................40 Information for the shareholders .................................................83 15. Earnings per share ...................................................................40 Board of Directors 2011 .................................................................84 16. Intangible assets ......................................................................41 Executive Board 2011 ....................................................................86 17. Tangible assets ........................................................................42 Contact information .......................................................................88 18. Investments accounted for using the equity method ..............44

Correction to the ownership of the freight airline NGA (Nordic Global Airlines) mentioned on pages 3, 9, 12 and 44 in the Financial Report 2011: Nordic Global Airlines Ltd is a Finnish freight airline established in 2011. It is owned by American companies Ne fg Capital Management LLC (20% shareholding) and Daken Capital Partners LLC (29% shareholding), both of which are investment companies of American Nefg family, and Finnair (40% shareholding) and Ilmarinen Mutual Pension Insurance Company (11% shareholding). The company operates cargo fmights with two leased MD 11 aircraft owned by Nefg Capital Management. Finnair apologizes the mistake.

2 Financial Report 2011 Finnair in 2011 Finnair is one of the most innovative, safest and longest-operating airlines in the world. The airline specialises in fmights be- tween Asia and Europe, and its vision is to be the number one airline in the Nordic countries and the most desired option in Asian traffjc. Finnair also strives to be among the three largest operators in transit traffjc between Asia and Europe involv- ing transfers during the trip. The growing Asian markets, fast fmight connections and competitiveness form the foundation of Finnair’s growth strategy. In 2011, Finnair took signifjcant steps in the implementation of its strategy and the development of its operations. Asian strategy. Finnair ofgers the fastest connec- Japan’s natural disaster and the Arab spring. Chongqing. Finnair announced that it would begin tions between Asia and Europe, with more than 200 The destructive earthquake and tsunami in Japan operating fmights to Chongqing in May of 2012 as route pairs. A new route to Singapore began oper- as well as unrest in the Middle East and North the fjrst European airline. Chongqing is the larg- ating in May. Finnair’s other destinations in Asia are Africa weakened Finnair’s result in 2011. est and fastest-growing city in China, making it a Tokyo, Osaka, Nagoya, Hong Kong, Beijing, Shang- signifjcant destination for the implementation of hai, Seoul, Bangkok and Delhi. Finnair’s Asian strategy. NYT KOTIMAA A V I A N D I N A K S & € U . A L U a l k O - P E N 69 M KAIKKI YHDELLÄ HINNALLA L U U 140 m € M E N O - P A V E R O T T O K E N T T Ä L E N K S U M T I U S M A T O I L V E L U T L V I T Y S P A L Ä H T Ö S E R A A M A T K A T A V A 2 3 K G Structural reform. In August, Finnair published a Best in Northern Europe. The World Airline New afgordable prices. In November, Finnair structural reform and savings programme whose Awards recognised Finnair as the best Northern changed the pricing of its domestic and Scandina- goal is to cut annual expenses permanently by EUR European airline in 2011. Readers of the American vian fmights. The goal of these new prices is to make 140 million by 2014 in order to improve the com- travel magazine Travel + Leisure voted Finnair the fmying a more attractive alternative for all customer petitiveness of the company. second best airline in Europe. groups.