Finnair Board of Directors decided on a new period on an employee share plan

Finnair Plc         Stock Exchange Release          11 February 2015 at 09.50 am. EET

The Board of Directors of Finnair Plc has decided to launch a new 12 month savings period under the Employee Share Plan. The purpose of the plan is to encourage the employees to become shareholders in the company, to provide long-term rewards through potential share price appreciation and thereby strengthen the employees’ interest in the development of Finnair’s shareholder value.

Participation in the share savings plan is voluntary. The decided 12 month savings period will commence on 1 July 2015. Potential future savings periods are subject to separate Board decisions.

The eligible Finnair employees are offered the opportunity to invest part of his or her base salary in Finnair shares through the plan. Finnair awards each participant one Matching Share for each two purchased shares after a holding period of approximately two years. The awarded shares are taxable income for the recipient.

To increase the attractiveness of the plan, each employee participating in the plan for the first time in this savings period will additionally be awarded 20 bonus shares in October 2015, provided that employee participates at least in the first three months of the plan. The plan will be offered to approximately 4,500 Finnair employees in Finland. The maximum monthly savings are eight per cent and the minimum are two per cent of each participant's gross base salary during one month.  The maximum annual savings amount is EUR 8,000 per participant. The total amount of all savings in 2015—2016 may not exceed EUR 7.5 million, which equals to approximately 2.3 million shares, using the 10 February 2015 closing share price of EUR 3.28.

Shares will be purchased with the accumulated savings at the market price quarterly, after the publication dates of the Finnair's interim results. Any dividends paid on purchased shares during the commencing savings period will be reinvested into additional shares on the following purchase date. These shares will have equal rights to Matching Shares.

Finnair has used Alexander Corporate Finance Oy as advisor in the designing of the plan. Evli Alexander Management Oy serves as Plan administrator.

Helsinki 11 February 2015

FINNAIR PLC 

The Board of Directors

Further information:
Finnair communications, tel. +358 9 818 4020, comms(a)finnair.com

Distribution:
Nasdaq Helsinki
Principal media