#1Finnvera Investor Presentation Finland's Export Credit and SME Financing Agency December 2020 FINNVERA#2Disclaimer IMPORTANT: YOU ARE ADVISED TO READ THE FOLLOWING CAREFULLY BEFORE READING, ACCESSING OR MAKING ANY OTHER USE OF THE MATERIALS THAT FOLLOW. These materials have been prepared by and are the sole responsibility of Finnvera (the "Issuer") and have not been verified, approved or endorsed by any lead manager, bookrunner or underwriter retained by the Issuer. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. These materials are provided for information purposes only and do not constitute, or form part of, any offer to sell, purchase or otherwise acquire or dispose of, or any solicitation in respect of, any debt or other securities of the Issuer ("securities"). These materials are not intended to provide the basis for any credit or any other third party evaluation of the Issuer or such securities. Any offer, sale or invitation in respect of securities will be done pursuant to separate and distinct prospectus, offering circular or other equivalent document (a "prospectus") and any decision to purchase or subscribe for any securities should be made solely on the basis of such prospectus and not these materials. These materials may contain projections and forward looking statements. Any such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Issuer's actual performance or achievements to be materially different from any future performance or achievements expressed or implied by such forward-looking statements. Any forward-looking statements will be based upon assumptions of future events which may not prove to be accurate. Any such forward-looking statements in these materials will speak only as at the date of these materials and the Issuer assumes no obligation to update or provide any additional information in relation to such forward-looking statements. These materials must not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose without the prior written consent of the Issuer. These materials are not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. In particular, these materials are for distribution in the United Kingdom only to persons who meet the following criteria: 1. (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Order or 2. persons to whom these materials may otherwise be directed without contravention of section 21 of the Financial Services and Markets Act 2000 (all such persons being referred to as "relevant persons"). These materials must not be acted or relied on by persons who are not relevant persons. In member states of the European Economic Area, these materials are only directed at persons who are "qualified investors" within the meaning of Article 2(1)(e) of Directive 2003/71/EC. These materials are only being provided to persons outside the United States in connection with offshore transactions in reliance on Regulation S under the US Securities Act of 1933 (the "US Securities Act"). By reading these materials the recipient warrants and acknowledges that it falls within the category of persons referred to above. 2 FINNVERA#3Contents Finnvera in Brief Business Review Funding Appendices 3 FINNVERA#4Finnvera in Brief FINNVERA#55 Finnvera's Role Finnvera promotes the exports and the SME sector by financing various stages of business with loans and guarantees Task is to supplement the financial services provided by the private sector Finnvera is: - The official Export Credit Agency (ECA) of Finland The State-backed financier of Finland's SME sector Finnvera's clients are Finnish micro-, small and medium sized enterprises operating on the Finnish market or seeking growth through internationalisation. Our clients also include large Finnish corporations engaged in the export trade, their foreign customers, and domestic and foreign banks providing financing for exports. FINNVERA#6Finnvera Group in Brief Specialised financing company owned 100% by the Republic of Finland Debt obligations explicitly guaranteed by the Republic of Finland Rating of debt obligations Aa1 by Moody's and AA+ by Fitch (the same as Finland's) KEY FIGURES, JUNE 2020 LENDING & GUARANTEE COMMITMENTS BALANCE SHEET EMTN DEBT 6 00 SMES €2,8 billion Large Corporates €24,2 billion €13,0 €9,7 billion billion FINNVERA#7Jobs created with the help of SME and midcap financing 8,009 Finnvera's role in society Transfers of ownership financed MEUR 155 912 companies Export credit guarantees and special guarantees offered MEUR 5,246 SME and midcap financing offered MEUR 990 of which 45% for companies seeking growth and internationalisation Guarantees that came into effect MEUR 4,380 Exports covered by export credit guarantees MEUR 3,833 Start-ups launched with the help of financing 2,427 pcs Financing per new job EUR 124,000 MICRO ENTERPRISES 88% Number of clients 24,500 OTHER SMES AND MIDCAPS 11% LARGE ENTERPRISES 1% FINNVERA#8MENT OPPORT on any way meets the physical or mis NFORMATION ter employment, submit ca Bangkok? No age 162 application or been employe available to start wond references/work Business Review#9SME and Midcap Financing Finnvera's mandate is to support the Finnish SME sector with focus on start-ups and growth companies Credit and guarantee losses in SME and midcap financing annually amount to about 2-4% of total exposure The State compensates 50%* of Finnvera's losses from domestic operations so that Finnvera can take greater risks than those taken by commercial financial institutions 2 1 Exposure EUR billion ■Guarantees ■Loans and receivables *The State compensation temporarily increased to 80% due to the pandemic. 2015 2016 2017 2018 2019 6/2020 FINNVERA#10Large Corporates For large corporates Finnvera provides export financing to ensure Finnish enterprises' competitiveness on the international export market Finnvera's export credit guarantees provide Finnish exporters and financiers with cover for credit risks Export credits provide long term financing to foreign buyers of Finnish capital goods In 2019, Finnvera's export credit guarantees amounted to 4% of Finland's total exports Realised losses in export credit guarantee and special guarantee operations have been minor 30 Exposure EUR billion 30 25 20 Outstanding guarantees Offers for guarantees Outstanding export credits Credits and commitments 25 20 15 10 10 2014 2015 2016 2017 2018 2019 6/2020 FINNVERA#11Total exposure, export credit guarantees and special guarantees 31 Dec 2019 EUR 25.3 BILLION, INCLUDING COMMITMENTS AND BINDING OFFERS. Cruise shipping EUR 13.8 bn (54%) Telecommunications EUR 4.1 bn (16%) EUR 12.6 bn (50%) North America Finnvera had exposure in over 90 countries on 31 Dec 2019 FINNVERA'S LARGEST INDIVIDUAL FINANCING PROJECT IN CRUISE SHIPPING WAS IN THE UNITED STATES. Pulp and paper EUR 2.9 bn (11%) Others* EUR 2.5 bn (10%) Other industries EUR 1.1 bn (4%) Energy EUR 0.7 bn (3%) Mining and metals EUR 0.3 bn (1%) *Including other risks such as sovereign risks related to states and bank risks. EUR 6.0 bn (24%) EU countries EXPOSURE BY COUNTRY CLASSIFICATION 31 DEC 2019, EUR BILLION 77% 1% 7% 1% 5% 5% 5% 0% C EUR 1.8 bn (7%) Other Europe EUR 1.4 bn (6%) Asia 0 Advanced economy • 1 Very low risks 2 Low risks • 3 Relatively low risks 4 Intermediate risks • 5 Relatively high risks • 6 High risks ⚫7 Very high risks EUR 0.8 bn (3%) Middle East and North Africa ET MORE THAN 70% OF FINNVERA'S PULP-AND PAPER-RELATED EXPOSURE IS IN LATIN AMERICA. THE BIGGEST COUNTRIES OF EXPOSURE ARE BRAZIL, CHILE AND URUGUAY. 19 EUR 2.6 bn (10%) South and Central America EUR 0.1 bn (1%) Sub-Saharan Africa THE BIGGEST COUNTRY EXPOSURES ON 31.12.2019, EUR BILLION 12 10 8 6 4 2 0 Fintand Germany United States Russia Brazi Chile Spain Indonesia • Commitments, EUR billion ⚫Offers, EUR billion Turkey Saudi-Arabia FINNVERA#12Funding FINNVERA#132 500 Funding Annual EMTN funding volume (EUR million) 2 000 1 500 1.000 500 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 EUR USD Other Funding obtained by issuing debt under the EUR 15 billion EMTN program The debt is unconditionally and irrevocably guaranteed by the Republic of Finland Finnvera plans to be active in both EUR and USD depending on market conditions Funding plan for 2021 is between EUR 1 billion and 1.5 billion FINNVERA#141 200 1 000 800 600 400 200 0 Funding Maturity of EMTN debt (EUR million) 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Objective to maintain well defined secondary market curves in both EUR and USD Investor demand and ALM policies also taken into account in selection of currency and maturity LCR Level 1, CRR/BIS risk weight 0%, Solvency II 0% EUR debt eligible for the Eurosystem's Public Sector Purchase Programme (PSPP) EUR USD Other FINNVERA#15Funding EMTN debt by currency Outstanding amount EUR 9.7 billion Other USD 4% 21% Outstanding benchmark issues Issue date Ccy Amount (Million) Maturity date Dealers Sep 8, 2020 EUR 1 000 Sep 15, 2027 Citi, DZ, Nordea, TD Oct 16, 2019 USD 1 000 Oct 23, 2024 Citi, GS, HSBC, TD Apr 2, 2019 EUR 1 000 Oct 31, 2018 EUR 500 Apr 9, 2029 Aug 7, 2028 CACIB, Danske, DB, Nordea, TD Citi, DB, HSBC Jun 20, 2018 USD 1 000 Jun 27, 2023 Citi, GS, HSBC, TD Mar 7, 2018 EUR 1 000 Jul 14, 2033 CACIB, Danske, DB, Nordea Sep 27, 2017 USD 1.000 Oct 5, 2020 EUR 75% May 10, 2017 EUR 1 000 May 17, 2032 CACIB, Citi, HSBC, Nordea Citi, DB, GS, CACIB Apr 6, 2016 EUR 1 000 Sep 15, 2015 EUR 1 000 Apr 13, 2026 Sep 22, 2022 CACIB, Citi, Danske, HSBC Debt swapped into floating rate EUR or USD to match the currency and interest rate basis of assets May 28, 2015 USD 500 Jun 4, 2025 CACIB, Danske, DB, Nordea Citi, DB, HSBC Nov 13, 2014 EUR 750 Nov 19, 2021 CACIB, Citi, DB FINNVERA#16Distribution of selected EMTN issues 9/2020: 7y EUR 1bn 9/2027 Order book 2.7bn; Re-offer MS flat Distribution by geography Nordics Benelux 4/2019: 10y EUR 1bn 4/2029 Order book 2.8bn; Re-offer MS-4 Distribution by geography 6% 7% Ger / Aus Other / Switz 10% 27% Europe 20% RoE ROW 8% Germany 22% 10/2019:5y USD 1bn 10/2024 Order book 2.0bn; Re-offer MS+17 Distribution by geography Asia 16% Americas 21% 6/2018: 5y USD 1bn 6/2023 Order book 1.6bn; Re-offer MS+15 Distribution by geography Asia 20% UK 11% France Asia / 23% UK 12% MEA 17% BeNeLux 17% Distribution by investor type Other 1% AM/Ins/PF 22% CB/OI 34% France 21% Americas 27% EMEA 53% EMEA 63% Distribution by investor type Distribution by investor type Distribution by investor type Ins/PF Banks CB/OI 43% 18% Ins/PF 13% AM 21% Bank 48% AM 9% Bank 60% CB/OI 31% AM 3% 9% Bank CB/OI 52% 36% FINNVERA#17Appendices B T I B L B#18Finland - An Export Oriented Economy A Nordic country rated AA+ (stable outlook) by Standard & Poor's and AA+ (stable outlook) by Fitch Ratings Almost 40 percent of Finland's economy is based on foreign trade Exports by Regions 2019 - Finland Main Economic Indicators 2018 2019 2020F 2021F 2022F 7% 8% ■Euro zone GDP at market prices, change in volume, % 1.5 1.1 -3.3 2.5 2.0 39% 13% Other EU countries ■Rest of Europe ■ Asia Employment rate, % 71.7 72.5 71.5 71.5 72.3 Unemployment rate, % 7.4 6.7 7.8 8.0 7.6 ■North America 13% ■Other countries General government net -0.9 -1.0 -6.1 -5.2 -3.3 21% lending, % of GDP General government gross 59.6 59.3 69.0 71.4 72.5 debt, % of GDP Source: Finnish Customs Source: Ministry of Finance: Economic Survey, published in December 2020 FINNVERA#19Finnvera - Key Figures 1H/2020 2019 2018 2017 2016 2015 Finnvera Group Net interest income and net fee and commission income, EUR million 91 182 177 174 194 197 Profit for the period, EUR million -423 94 98 107 70 111 Total assets, EUR million 12,961 12,665 11,039 10,337 9,498 8,418 Tier 1 capital ratio, domestic operations, % 23.7 29.4 27.2 25.3 22.4 18.1 Tier 1 capital ratio, export credit guarantees, % Expense-income ratio, % Shareholders' equity, EUR million 4.5 6.9 6.8 29.1 25.4 29.3 27.2 27.0 28.3 1,051 1,463 1,358 1,314 1,207 1,121 797 1,221 1,126 1,062 955 871 360 364 372 383 398 404 - of which non-restricted equity, EUR million Average number of employees SMEs and midcaps Loans, guarantees and export credit guarantees offered, EUR billion Outstanding exposure, EUR billion 1.1 1.0 0.9 1.0 1.0 1.1 2.8 2.3 2.3 2.5 2.6 2.7 - Loans and receivables, EUR billion 0.7 0.8 0.9 1.1 1.2 1.3 - Guarantees, EUR billion 2.1 1.5 1.4 1.5 1.4 1.5 Large Corporates Export credit guarantees and special guarantees offered, EUR billion Outstanding exposure, EUR billion 1.6 5.2 3.0 7.5 4.2 6.6 24.2 25.2 23.3 22.2 18.1 17.0 - of which funded/committed by Finnish Export Credit Ltd, EUR billion 14.1 14.2 13.5 12.5 8.5 8.8 Finnvera plc, clients 26,100 24,500 25,700 27,300 27,700 28,400 FINNVERA#20Non-performing exposure Non-performing exposure % of total exposure 3% 2% 1% 0% 2016 2017 2018 ■Large corporates ■SMEs and midcaps 2019 In the beginning of 2018 the compensation for credit and guarantee losses from the State was decreased and harmonised to 50 per cent in SME and midcap financing. In SME and midcap financing non- performing exposure has in recent years been under 3 per cent of total exposure when the compensation for credit and guarantee losses is taken into account. In Large Corporates' operations non- performing exposure has been under 1 per cent of total exposure in recent years. FINNVERA#21Equity and other reserves EUR 1.5 billion Accumulated buffers against credit losses consist of retained earnings (EUR 0.8 billion) and the State Guarantee Fund (EUR 0.7 billion) - The fund is administered by the Government and is not part of Finnvera Finnvera's obligations stemming from guarantees issued are restricted to the amount carried in reserves (retained earnings) The State assumes responsibility for guarantee losses exceeding the reserves on Finnvera's balance sheet and the State Guarantee Fund June 30, 2020 Large Corporates Reserve for export financing operations EUR 829 million State Guarantee Fund EUR 688 million SMEs and midcaps Reserve for domestic operations EUR 282 million Retained earnings and other non-restricted equity EUR -314 million FINNVERA#22Finnish State's Commitment Debt obligations are explicitly guaranteed by the Republic of Finland Finnvera's guarantee scheme operates under the full faith and credit of the Republic of Finland No dividend payments by law The parent company is not liable to pay income tax The State compensates Finnvera for part of the credit and guarantee losses incurred in SME and midcap financing EUR 3 billion statutory back-up credit authorisation from the State FINNVERA#23Thank you! Finnvera and its subsidiary Finnish Export Credit are the official ECAS of Finland. We offer export financing solutions and export credit guarantees backed by the full faith and credit of the Finland in a flexible yet responsible manner. For more information please see www.finnc ORA of