Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2...

26
Conference call 20 October 2011 Fortum Corporation Interim Report January-September 2011

Transcript of Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2...

Page 1: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

1

Conference call20 October 2011

Fortum Corporation Interim ReportJanuary-September 2011

2

Disclaimer

This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

3

Highlights in Q3bull Result on last yearrsquos level

bull Increased hydro and nuclear volumes

bull Russian investment programme progressed as planned

bull Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

4

Q3 Market conditions

bull Nordic water reservoirs increased and were above average levels at the end of the quarter

bull CO2 allowance prices decreased at the end of the quarter

bull Nordic spot prices clearly lower than last year

bull Russia power price (spot) at last yearrsquos level

5

Nordic water reservoirs levels higher than long-term average

Source Nord Pool Spot

2000 2003 2009 20112010 reference level

Q1 Q2 Q3 Q4

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

6

Achieved power price for OAO Fortum

288 305 292 290 300

0

6

12

18

24

30

36

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power (market price) Urals hub

935817

950 954 939

0

200

400

600

800

1 000

1 200

Q32010 Q42010 Q12011 Q22011 Q32011

RUBMWh

Powers Nordic power price

469 488 479 474443

0

10

20

30

40

50

60

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power in NordPool power exchange

459

621

523

360

662

0

12

24

36

48

60

72

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Prices decreased in the Nordic region and Russia

Includes capacity income

-22

-6

+0

+4

7

Results at last yearrsquos levels

Q3bull Comparable operating profit EUR 297 (302) million bull Earnings per share EUR 023 (027)bull Net cash from operating activities 277 (273) million

January- Septemberbull Comparable operating profit EUR 1294 (1292) million bull Earnings per share EUR 152 (120)bull Net cash from operating activities 1141 (1216) million

8

Q3 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

2101297

302 -7-2

PowerQ32010 Heat Russia Distribution ElectricitySales

Other Q32011

9

January-September Stable comparable profit development

Comparable operating profit EUR million

29171292 1294-112 48 30 -10

PowerI-III2010 Heat Russia Distribution ElectricitySales

Other I-III2011

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 2: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

2

Disclaimer

This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

3

Highlights in Q3bull Result on last yearrsquos level

bull Increased hydro and nuclear volumes

bull Russian investment programme progressed as planned

bull Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

4

Q3 Market conditions

bull Nordic water reservoirs increased and were above average levels at the end of the quarter

bull CO2 allowance prices decreased at the end of the quarter

bull Nordic spot prices clearly lower than last year

bull Russia power price (spot) at last yearrsquos level

5

Nordic water reservoirs levels higher than long-term average

Source Nord Pool Spot

2000 2003 2009 20112010 reference level

Q1 Q2 Q3 Q4

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

6

Achieved power price for OAO Fortum

288 305 292 290 300

0

6

12

18

24

30

36

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power (market price) Urals hub

935817

950 954 939

0

200

400

600

800

1 000

1 200

Q32010 Q42010 Q12011 Q22011 Q32011

RUBMWh

Powers Nordic power price

469 488 479 474443

0

10

20

30

40

50

60

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power in NordPool power exchange

459

621

523

360

662

0

12

24

36

48

60

72

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Prices decreased in the Nordic region and Russia

Includes capacity income

-22

-6

+0

+4

7

Results at last yearrsquos levels

Q3bull Comparable operating profit EUR 297 (302) million bull Earnings per share EUR 023 (027)bull Net cash from operating activities 277 (273) million

January- Septemberbull Comparable operating profit EUR 1294 (1292) million bull Earnings per share EUR 152 (120)bull Net cash from operating activities 1141 (1216) million

8

Q3 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

2101297

302 -7-2

PowerQ32010 Heat Russia Distribution ElectricitySales

Other Q32011

9

January-September Stable comparable profit development

Comparable operating profit EUR million

29171292 1294-112 48 30 -10

PowerI-III2010 Heat Russia Distribution ElectricitySales

Other I-III2011

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 3: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

3

Highlights in Q3bull Result on last yearrsquos level

bull Increased hydro and nuclear volumes

bull Russian investment programme progressed as planned

bull Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

4

Q3 Market conditions

bull Nordic water reservoirs increased and were above average levels at the end of the quarter

bull CO2 allowance prices decreased at the end of the quarter

bull Nordic spot prices clearly lower than last year

bull Russia power price (spot) at last yearrsquos level

5

Nordic water reservoirs levels higher than long-term average

Source Nord Pool Spot

2000 2003 2009 20112010 reference level

Q1 Q2 Q3 Q4

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

6

Achieved power price for OAO Fortum

288 305 292 290 300

0

6

12

18

24

30

36

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power (market price) Urals hub

935817

950 954 939

0

200

400

600

800

1 000

1 200

Q32010 Q42010 Q12011 Q22011 Q32011

RUBMWh

Powers Nordic power price

469 488 479 474443

0

10

20

30

40

50

60

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power in NordPool power exchange

459

621

523

360

662

0

12

24

36

48

60

72

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Prices decreased in the Nordic region and Russia

Includes capacity income

-22

-6

+0

+4

7

Results at last yearrsquos levels

Q3bull Comparable operating profit EUR 297 (302) million bull Earnings per share EUR 023 (027)bull Net cash from operating activities 277 (273) million

January- Septemberbull Comparable operating profit EUR 1294 (1292) million bull Earnings per share EUR 152 (120)bull Net cash from operating activities 1141 (1216) million

8

Q3 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

2101297

302 -7-2

PowerQ32010 Heat Russia Distribution ElectricitySales

Other Q32011

9

January-September Stable comparable profit development

Comparable operating profit EUR million

29171292 1294-112 48 30 -10

PowerI-III2010 Heat Russia Distribution ElectricitySales

Other I-III2011

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 4: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

4

Q3 Market conditions

bull Nordic water reservoirs increased and were above average levels at the end of the quarter

bull CO2 allowance prices decreased at the end of the quarter

bull Nordic spot prices clearly lower than last year

bull Russia power price (spot) at last yearrsquos level

5

Nordic water reservoirs levels higher than long-term average

Source Nord Pool Spot

2000 2003 2009 20112010 reference level

Q1 Q2 Q3 Q4

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

6

Achieved power price for OAO Fortum

288 305 292 290 300

0

6

12

18

24

30

36

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power (market price) Urals hub

935817

950 954 939

0

200

400

600

800

1 000

1 200

Q32010 Q42010 Q12011 Q22011 Q32011

RUBMWh

Powers Nordic power price

469 488 479 474443

0

10

20

30

40

50

60

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power in NordPool power exchange

459

621

523

360

662

0

12

24

36

48

60

72

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Prices decreased in the Nordic region and Russia

Includes capacity income

-22

-6

+0

+4

7

Results at last yearrsquos levels

Q3bull Comparable operating profit EUR 297 (302) million bull Earnings per share EUR 023 (027)bull Net cash from operating activities 277 (273) million

January- Septemberbull Comparable operating profit EUR 1294 (1292) million bull Earnings per share EUR 152 (120)bull Net cash from operating activities 1141 (1216) million

8

Q3 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

2101297

302 -7-2

PowerQ32010 Heat Russia Distribution ElectricitySales

Other Q32011

9

January-September Stable comparable profit development

Comparable operating profit EUR million

29171292 1294-112 48 30 -10

PowerI-III2010 Heat Russia Distribution ElectricitySales

Other I-III2011

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 5: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

5

Nordic water reservoirs levels higher than long-term average

Source Nord Pool Spot

2000 2003 2009 20112010 reference level

Q1 Q2 Q3 Q4

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

6

Achieved power price for OAO Fortum

288 305 292 290 300

0

6

12

18

24

30

36

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power (market price) Urals hub

935817

950 954 939

0

200

400

600

800

1 000

1 200

Q32010 Q42010 Q12011 Q22011 Q32011

RUBMWh

Powers Nordic power price

469 488 479 474443

0

10

20

30

40

50

60

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power in NordPool power exchange

459

621

523

360

662

0

12

24

36

48

60

72

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Prices decreased in the Nordic region and Russia

Includes capacity income

-22

-6

+0

+4

7

Results at last yearrsquos levels

Q3bull Comparable operating profit EUR 297 (302) million bull Earnings per share EUR 023 (027)bull Net cash from operating activities 277 (273) million

January- Septemberbull Comparable operating profit EUR 1294 (1292) million bull Earnings per share EUR 152 (120)bull Net cash from operating activities 1141 (1216) million

8

Q3 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

2101297

302 -7-2

PowerQ32010 Heat Russia Distribution ElectricitySales

Other Q32011

9

January-September Stable comparable profit development

Comparable operating profit EUR million

29171292 1294-112 48 30 -10

PowerI-III2010 Heat Russia Distribution ElectricitySales

Other I-III2011

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 6: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

6

Achieved power price for OAO Fortum

288 305 292 290 300

0

6

12

18

24

30

36

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power (market price) Urals hub

935817

950 954 939

0

200

400

600

800

1 000

1 200

Q32010 Q42010 Q12011 Q22011 Q32011

RUBMWh

Powers Nordic power price

469 488 479 474443

0

10

20

30

40

50

60

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Spot price for power in NordPool power exchange

459

621

523

360

662

0

12

24

36

48

60

72

Q32010 Q42010 Q12011 Q22011 Q32011

eurMWh

Prices decreased in the Nordic region and Russia

Includes capacity income

-22

-6

+0

+4

7

Results at last yearrsquos levels

Q3bull Comparable operating profit EUR 297 (302) million bull Earnings per share EUR 023 (027)bull Net cash from operating activities 277 (273) million

January- Septemberbull Comparable operating profit EUR 1294 (1292) million bull Earnings per share EUR 152 (120)bull Net cash from operating activities 1141 (1216) million

8

Q3 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

2101297

302 -7-2

PowerQ32010 Heat Russia Distribution ElectricitySales

Other Q32011

9

January-September Stable comparable profit development

Comparable operating profit EUR million

29171292 1294-112 48 30 -10

PowerI-III2010 Heat Russia Distribution ElectricitySales

Other I-III2011

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 7: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

7

Results at last yearrsquos levels

Q3bull Comparable operating profit EUR 297 (302) million bull Earnings per share EUR 023 (027)bull Net cash from operating activities 277 (273) million

January- Septemberbull Comparable operating profit EUR 1294 (1292) million bull Earnings per share EUR 152 (120)bull Net cash from operating activities 1141 (1216) million

8

Q3 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

2101297

302 -7-2

PowerQ32010 Heat Russia Distribution ElectricitySales

Other Q32011

9

January-September Stable comparable profit development

Comparable operating profit EUR million

29171292 1294-112 48 30 -10

PowerI-III2010 Heat Russia Distribution ElectricitySales

Other I-III2011

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 8: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

8

Q3 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

2101297

302 -7-2

PowerQ32010 Heat Russia Distribution ElectricitySales

Other Q32011

9

January-September Stable comparable profit development

Comparable operating profit EUR million

29171292 1294-112 48 30 -10

PowerI-III2010 Heat Russia Distribution ElectricitySales

Other I-III2011

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 9: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

9

January-September Stable comparable profit development

Comparable operating profit EUR million

29171292 1294-112 48 30 -10

PowerI-III2010 Heat Russia Distribution ElectricitySales

Other I-III2011

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 10: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

10

Financials

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 11: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

11

Comparable and reported operating profit

MEURIII2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010

Power 268 267 273 256 850 962 1 033 1 003Heat -14 -12 -10 -15 182 153 280 179Russia -16 -16 -16 14 39 -9 39 37Distribution 62 61 60 62 246 216 437 228Electricity Sales 4 11 6 12 25 8 9 6Other -7 -9 1 -17 -48 -38 25 -66Total 297 302 314 312 1 294 1 292 1 823 1 387

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 12: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

12

Power

MEUR III2011 III2010 I-III2011I-III2010 LTM

Sales 560 584 1 827 1 950 2 579

Comparable operating profit 268 267 850 962 1 186

Net Assets 5 956 5 818

Comparable RONA 195

Gross Investments 31 32 100 87 135

Q3 Power

bull Comparable operating profit on last yearrsquos levelndash Higher hydro and nuclear volumesndash Lower achieved price

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 13: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

13

Heat

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 212 220 1 259 1 172 1 857

Comparable operating profit -14 -12 182 153 304

Net Assets 3 934 4 021

Comparable RONA 81

Gross Investments 63 67 193 188 310

Q3 Heat

bull Comparable operating profit at last yearrsquos levelndash Higher costs in Polandndash Lower electricity price and sales volumes

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 14: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

14

Russiabull Comparable operating profit on last yearrsquos level

ndash Positive effect from commissioning new capacityndash Energy spot market prices at last yearrsquos level ndash Higher fuel costs

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 156 137 646 550 900

Comparable operating profit -16 -16 39 -9 56

Net Assets 3 009 2 522

Comparable RONA 32

Gross Investments 219 84 486 342 743

Q3 Russia

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 15: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

15

Distribution

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 203 196 729 676 1 016

Comparable operating profit 62 61 246 216 337

Net Assets 3 463 3 560

Comparable RONA 99

Gross Investments 73 51 169 127 255

Q3 Distribution

bull Stable comparable operating profitndash Somewhat lower volumes efficiency

improvementsndash Smart metering rollout to network customers in

Finland proceeded

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 16: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

16

Markets

MEUR III2011 III2010 I-III2011 I-III2010 LTM

Sales 139 305 695 1 269 1 224

Comparable operating profit 4 11 25 8 28

Net Assets 43 55

Comparable RONA 305

Gross Investments 0 0 4 0 4

Q3 Electricity Sales

bull Comparable operating profit decreased ndash Lower margins

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 17: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

17

MEUR III2011 III2010 I-III2011 I-III2010 2010 LTM

Sales 1 144 1 152 4 494 4 394 6 296 6 396Expenses -847 -850 -3 200 -3 102 -4 463 -4 561

Comparable operating profit 297 302 1 294 1 292 1 833 1 835

Items affecting comparability 17 10 529 95 -125 309

Operating profit 314 312 1 823 1 387 1 708 2 144Share of profit of associates and jvs -2 10 72 41 62 93Financial expenses net -72 -37 -199 -98 -155 -256

Profit before taxes 240 285 1 696 1 330 1 615 1 981Income tax expense -46 -45 -278 -236 -261 -303

Net profit for the period 194 240 1 418 1 094 1 354 1 678Non-controlling interests -4 -7 70 25 54 99

EPS basic (EUR) 023 027 152 120 146 178EPS diluted (EUR) 023 027 152 120 146 178

Q3 Income statement

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 18: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

18

Q3 Cash flow statement

MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM

Operating profit before depreciations 461 452 2 274 1 803 2 271 2 742

Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378

Financial items and fx gainslosses 0 -126 -290 -449 -641 -482

Taxes -104 -93 -362 -248 -355 -469

Funds from operations (FFO) 326 208 1 022 1 008 1 399 1 413

Change in working capital -49 65 119 208 38 -51

Total net cash from operating activities 277 273 1 141 1 216 1 437 1 362

Paid capital expenditures -361 -216 -864 -702 -1 134 -1 296

Acquisition of shares -24 -7 -44 -8 -28 -64

Other investing activities 19 11 560 83 60 537

Cash flow before financing activities -89 61 793 589 335 539

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 19: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

19

MEUR LTM 2010 2009EBITDA 2 742 2 271 2 292Comparable EBITDA 2 433 2 396 2 398Interest-bearing net debt 6 929 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 135 116 121Return on shareholders equity () 185 157 160

) as of 30 September 2011

Key ratios

Q3 lsquo11

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 20: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

20

Debt Maturity Profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 166

2012 656

2013 633

2014 1266

2015 1041

2016 877

2017 267

2018 187

2019 882

2020 73

2021+ 1566

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards) 43 35 Portion of floating fixed debt 46 54 49 51

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 21: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

21

Outlook

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 22: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

22

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Annual electricity demand growth estimated to be approximately 05ndash Electricity continues to gain share of total energy consumption

bull Russiandash Profits from Russia build up in pace with the capacity increasesndash A new unit in Tobolsk at the beginning of Octoberndash Fortum targets a positive economic value added after completing the ongoing

investment programme

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 23: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

23

Outlook

bull Annual capex (excluding potential acquisitions)ndash 2011 around EUR 15 billion - disclosed divestments in 2011 totalled

approximately EUR 05 billionndash 2012 around EUR 16 to 18 billion ndash 2013 and 2014 around EUR 11 to 14 billion annually

bull Hedgingndash 2011 approximately 65 hedge ratio at approximately EUR 47MWh(Q2 70 at EUR 45MWh)ndash 2012 approximately 55 hedge ratio at approximately EUR 47MWh(Q2 50 at EUR 46MWh)ndash 2013 approximately 25 hedge ratio at approximately EUR 46MWh(Q2 not disclosed)

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 24: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

24

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

135

185

28

Fortumrsquos financial targets LTM in Q32011

Good liquidity ndash committed credit lines total EUR 27 billion

Last twelve months Comparable net debtEBITDA

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 25: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

25

Fortumrsquos production structure creates a firm basis for the future

bull Strong financial position

bull Electricity will continue to gain a higher share of the total energy consumption

bull Good production portfolio going forwardndash Growth in Russia

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 26: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

26

QampAConference call20 October 2011

  • Slide Number 1
  • Disclaimer
  • Highlights in Q3
  • Q3 Market conditions
  • Nordic water reservoirs levels higher than long-term average
  • Prices decreased in the Nordic region and Russia
  • Results at last yearrsquos levels
  • Q3 Comparable profit at last yearrsquos level
  • January-September Stable comparable profit development
  • Financials
  • Comparable and reported operating profit
  • Power
  • Heat
  • Russia
  • Distribution
  • Markets
  • Q3 Income statement
  • Q3 Cash flow statement
  • Key ratios
  • Debt Maturity Profile
  • Outlook
  • Outlook
  • Outlook
  • Strong financial position
  • Fortumrsquos production structure creates a firm basis for the future
  • Slide Number 26

    • Conference call

      20 October 2011

      Fortum Corporation
      Interim Report

      January-September 2011

      Disclaimer

      This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

      Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

      Highlights in Q3

      • Result on last yearrsquos level
      • Increased hydro and nuclear volumes
      • Russian investment programme progressed as planned
      • Fortum was included as a sector leader in the Carbon Disclosure Leadership Index in September

        • Q3 Market conditions

          • Nordic water reservoirs increased and were above average levels at the end of the quarter
          • CO2 allowance prices decreased at the end of the quarter
          • Nordic spot prices clearly lower than last year
          • Russia power price (spot) at last yearrsquos level

            • Nordic water reservoirs levels higher than long-term average

                  Source Nord Pool Spot

                  reservoir content (TWh)

                  0

                  20

                  40

                  60

                  80

                  100

                  120

                  2000

                  2003

                  2009

                  2011

                  2010

                  reference level

                  Q1

                  Q2

                  Q3

                  Q4

                  Prices decreased in the Nordic region and Russia

                  Includes capacity income

                  -22

                  -6

                  +0

                  +4

                  Results at last yearrsquos levels

                  Q3

                  • Comparable operating profit EUR 297 (302) million
                  • Earnings per share EUR 023 (027)
                  • Net cash from operating activities 277 (273) million

                    • January- September

                      • Comparable operating profit EUR 1294 (1292) million
                      • Earnings per share EUR 152 (120)
                      • Net cash from operating activities 1141 (1216) million

                        • Q3 Comparable profit at last yearrsquos level

                          Comparable operating profit EUR million

                          2

                          1

                          0

                          1

                          297

                          302

                          -7

                          -2

                          Power

                          Q32010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          Q32011

                          January-September Stable comparable profit development

                          Comparable operating profit EUR million

                          29

                          17

                          1292

                          1294

                          -112

                          48

                          30

                          -10

                          Power

                          I-III2010

                          Heat

                          Russia

                          Distribution

                          Electricity

                          Sales

                          Other

                          I-III2011

                          Financials

                          Comparable and reported operating profit

                          • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 23 (-16) million or earnings per share EUR 002 (-001) in the third quarter and EUR 272 (5) million or earnings per share EUR 023 (000) for January-September 2011

                            • New English

                              New Finnish

                              English

                              Finnish

                              Swedish

                              Power

                              • Comparable operating profit on last yearrsquos level
                              • Higher hydro and nuclear volumes
                              • Lower achieved price

                                • Q3 Power

                                  Sheet1

                                  Sheet2

                                  Sheet3

                                  Heat

                                  • Comparable operating profit at last yearrsquos level
                                  • Higher costs in Poland
                                  • Lower electricity price and sales volumes

                                    • Q3 Heat

                                      Sheet1

                                      Sheet2

                                      Sheet3

                                      Russia

                                      • Comparable operating profit on last yearrsquos level
                                      • Positive effect from commissioning new capacity
                                      • Energy spot market prices at last yearrsquos level
                                      • Higher fuel costs

                                        • Q3 Russia

                                          Sheet1

                                          Sheet2

                                          Sheet3

                                          Distribution

                                          • Stable comparable operating profit
                                          • Somewhat lower volumes efficiency improvements
                                          • Smart metering rollout to network customers in Finland proceeded

                                            • Q3 Distribution

                                              Sheet1

                                              Sheet2

                                              Sheet3

                                              Markets

                                              • Comparable operating profit decreased
                                              • Lower margins

                                                • Q3 Electricity Sales

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Q3 Income statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Q3 Cash flow statement

                                                  Sheet1

                                                  ampA
                                                  Page ampP

                                                  Key ratios

                                                  Q3 lsquo11

                                                  Sheet1

                                                  Sheet2

                                                  Sheet3

                                                  Debt Maturity Profile

                                                  per 30 Sept 2011 per 31 Dec 2010

                                                  Average Interest Rate (incl swaps and forwards)43 35

                                                  Portion of floating fixed debt 46 54 49 51

                                                  Outlook

                                                  Outlook

                                                  • Key drivers and risks
                                                  • Wholesale price of electricity
                                                  • Demand
                                                  • Fuels
                                                  • CO2 emissions prices
                                                  • Water reservoirs
                                                  • Nuclear availability
                                                  • Nordic markets
                                                  • Annual electricity demand growth estimated to be approximately 05
                                                  • Electricity continues to gain share of total energy consumption
                                                  • Russia
                                                  • Profits from Russia build up in pace with the capacity increases
                                                  • A new unit in Tobolsk at the beginning of October
                                                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                                                    • Outlook

                                                      • Annual capex (excluding potential acquisitions)
                                                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                                                      • 2012 around EUR 16 to 18 billion
                                                      • 2013 and 2014 around EUR 11 to 14 billion annually
                                                      • Hedging
                                                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                                                        • (Q2 70 at EUR 45MWh)

                                                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                                            • (Q2 50 at EUR 46MWh)

                                                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                                                • (Q2 not disclosed)

                                                                  Strong financial position

                                                                      Return on capital employed

                                                                      12

                                                                      Return on shareholders equity

                                                                      14

                                                                      Net debtEBITDA

                                                                      around 30

                                                                      135

                                                                      185

                                                                      28

                                                                      Fortumrsquos financial targets

                                                                      LTM in Q32011

                                                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                                                      Last twelve months

                                                                      Comparable net debtEBITDA

                                                                      Fortumrsquos production structure creates a firm basis for the future

                                                                      • Strong financial position
                                                                      • Electricity will continue to gain a higher share of the total energy consumption
                                                                      • Good production portfolio going forward
                                                                      • Growth in Russia

                                                                        • QampA

                                                                          Conference call

                                                                          20 October 2011

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales1393056951 2691 224

                                                                          Comparable operating profit41125828

                                                                          Net Assets4355

                                                                          Comparable RONA 305

                                                                          Gross Investments00404

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales156137646550900

                                                                          Comparable operating profit-16-1639-956

                                                                          Net Assets3 0092 522

                                                                          Comparable RONA 32

                                                                          Gross Investments21984486342743

                                                                          0

                                                                          250

                                                                          500

                                                                          750

                                                                          1000

                                                                          1250

                                                                          1500

                                                                          1750

                                                                          20112012201320142015201620172018201920202021+

                                                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2031967296761 016

                                                                          Comparable operating profit6261246216337

                                                                          Net Assets3 4633 560

                                                                          Comparable RONA 99

                                                                          Gross Investments7351169127255

                                                                          MEUR

                                                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                                                          Power2682672732568509621 0331 003

                                                                          Heat-14-12-10-15182153280179

                                                                          Russia-16-16-161439-93937

                                                                          Distribution62616062246216437228

                                                                          Electricity Sales41161225896

                                                                          Other-7-91-17-48-3825-66

                                                                          Total2973023143121 2941 2921 8231 387

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          Comparable operating profit

                                                                          Reported operating profit

                                                                          MEURLTM20102009

                                                                          EBITDA2 7422 2712 292

                                                                          Comparable EBITDA2 4332 3962 398

                                                                          Interest-bearing net debt6 9296 8265 969

                                                                          Net debtEBITDA253026

                                                                          Comparable Net debtEBITDA282825

                                                                          Return on capital employed ()135116121

                                                                          Return on shareholders equity ()185157160

                                                                          ) as of 30 September 2011

                                                                          Spot price for power in NordPool power exchange

                                                                          459

                                                                          621

                                                                          523

                                                                          360

                                                                          662

                                                                          0

                                                                          12

                                                                          24

                                                                          36

                                                                          48

                                                                          60

                                                                          72

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                                                          Sales1 144

                                                                          1 1524 4944 3946 296

                                                                          6 396

                                                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                                                          Comparable operating profit2973021 2941 2921 8331 835

                                                                          Items affecting comparability171052995-125309

                                                                          Operating profit3143121 8231 3871 7082 144

                                                                          Share of profit of associates and jvs-21072416293

                                                                          Financial expenses net-72-37-199-98-155-256

                                                                          Profit before taxes2402851 6961 3301 6151 981

                                                                          Income tax expense-46-45-278-236-261-303

                                                                          Net profit for the period1942401 4181 0941 3541 678

                                                                          Non-controlling interests-4-770255499

                                                                          EPS basic (EUR)023027152120146178

                                                                          EPS diluted (EUR)023027152120146178

                                                                          Spot price for power (market price) Urals hub

                                                                          935

                                                                          817

                                                                          950

                                                                          954

                                                                          939

                                                                          0

                                                                          200

                                                                          400

                                                                          600

                                                                          800

                                                                          1 000

                                                                          1 200

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          RUBMWh

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales2122201 2591 1721 857

                                                                          Comparable operating profit-14-12182153304

                                                                          Net Assets3 9344 021

                                                                          Comparable RONA 81

                                                                          Gross Investments6367193188310

                                                                          MEURIII2011III2010I-III2011I-III2010LTM

                                                                          Sales5605841 8271 9502 579

                                                                          Comparable operating profit2682678509621 186

                                                                          Net Assets5 9565 818

                                                                          Comparable RONA 195

                                                                          Gross Investments313210087135

                                                                          Powers Nordic power price

                                                                          469

                                                                          488

                                                                          479

                                                                          474

                                                                          443

                                                                          0

                                                                          10

                                                                          20

                                                                          30

                                                                          40

                                                                          50

                                                                          60

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                                                          Non-cash flow items and divesting activities

                                                                          -31-25-600-98124-378

                                                                          Financial items and fx gainslosses

                                                                          0-126-290-449-641-482

                                                                          Taxes

                                                                          -104-93-362-248-355-469

                                                                          Funds from operations (FFO)

                                                                          3262081 0221 0081 3991 413

                                                                          Change in working capital

                                                                          -496511920838-51

                                                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                                                          Acquisition of shares-24-7-44-8-28-64

                                                                          Other investing activities19115608360537

                                                                          Cash flow before financing activities-8961793589335539

                                                                          Achieved power price for OAO Fortum

                                                                          288

                                                                          305

                                                                          292

                                                                          290

                                                                          300

                                                                          0

                                                                          6

                                                                          12

                                                                          18

                                                                          24

                                                                          30

                                                                          36

                                                                          Q32010Q42010Q12011Q22011Q32011

                                                                          eurMWh

                                                  MEUR
                                                  2011 166
                                                  2012 656
                                                  2013 633
                                                  2014 1266
                                                  2015 1041
                                                  2016 877
                                                  2017 267
                                                  2018 187
                                                  2019 882
                                                  2020 73
                                                  2021+ 1566
                                                  MEUR LTM 2010 2009 2008 2006 2005
                                                  EBITDA 2742 2271 2292 2478 1884
                                                  Comparable EBITDA 2433 2396 2398 1151 1271
                                                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                                                  Net debtEBITDA 25 30 26 25 8161
                                                  Comparable Net debtEBITDA 28 28 25 16839 15130
                                                  23 18
                                                  Return on capital employed () 135 116 121 150 134 135
                                                  Return on shareholders equity () 185 157 160 187 144 135
                                                  ) as of 30 September 2011
                                                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                                                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                                                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                                                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                                                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                                                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                                                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                                                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                                                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                                                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                                                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                                                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                                                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                                                  Sales 7732 1144 1152 4494 4394 6296 6396
                                                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                                                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                                                  Items affecting comparability 17 10 529 95 -125 309
                                                  Operating profit 314 312 1823 1387 1708 2144
                                                  Share of profit of associates and jvs -2 10 72 41 62 93
                                                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                                                  Profit before taxes 0 240 285 1696 1330 1615 1981
                                                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                                                  Net profit for the period -26 194 240 1418 1094 1354 1678
                                                  Non-controlling interests -4 -7 70 25 54 99
                                                  EPS basic (EUR) 039 023 027 152 120 146 178
                                                  EPS diluted (EUR) 023 027 152 120 146 178
                                                  069
                                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                                  Sales 139 305 695 1269 1224
                                                  Comparable operating profit 4 11 25 8 28
                                                  Net Assets 43 55
                                                  Comparable RONA 305
                                                  Gross Investments 0 0 4 0 4
                                              MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                              Sales 203 196 729 676 1016
                                              Comparable operating profit 62 61 246 216 337
                                              Net Assets 3463 3560
                                              Comparable RONA 99
                                              Gross Investments 73 51 169 127 255
                                          MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                          Sales 156 137 646 550 900
                                          Comparable operating profit -16 -16 39 -9 56
                                          Net Assets 3009 2522
                                          Comparable RONA 32
                                          Gross Investments 219 84 486 342 743
                                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                      Sales 212 220 1259 1172 1857
                                      Comparable operating profit -14 -12 182 153 304
                                      Net Assets 3934 4021
                                      Comparable RONA 81
                                      Gross Investments 63 67 193 188 310
                                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                                  Sales 560 584 1827 1950 2579
                                  Comparable operating profit 268 267 850 962 1186
                                  Net Assets 5956 5818
                                  Comparable RONA 195
                                  Gross Investments 31 32 100 87 135
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
                              Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
                              Kraftproduktion 271 280 340 307 695 747 755 739
                              Vaumlrme 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Markets 10 23 6 20 -3 -6 4 -1
                              Ryssland -9 -9 -14 -15 7 23 -8 -9
                              Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
                              Summa 339 351 400 375 990 1075 1002 974
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
                              Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Muut -19 -31 -12 -30 -29 -49 -24 -44
                              Yhteensauml 339 351 400 375 990 1075 1002 974
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
                              Comparable Reported Comparable Reported Comparable Reported Comparable Reported
                              Power 271 280 340 307 695 747 755 739
                              Heat 33 35 26 39 165 194 140 154
                              Distribution 53 53 54 54 155 166 135 135
                              Electricity Sales 10 23 6 20 -3 -6 4 -1
                              Russia -9 -9 -14 -15 7 23 -8 -9
                              Other -19 -31 -12 -30 -29 -49 -24 -44
                              Total 339 351 400 375 990 1075 1002 974
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
                              Liikevoitto 2007 Liikevoitto 2006
                              Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
                              Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0 0 0
                              Muu 0 0 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0 0 0 0
                              Liikevoitto I2008 Liikevoitto I2007
                              Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
                              Saumlhkoumlntuotanto 0 0 0 0 0 0
                              Laumlmpouml 0 0 0 0 0 0
                              Saumlhkoumlnsiirto 0 0 0 0 0 0
                              Markets 0 0 0 0 0 0
                              Venaumljauml 0 0 0 0
                              Muu 0 0 0 0 0 0
                              Yhteensauml 0 0 0 0 0 0
                              Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
                              II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Distribution -16 -16 -16 14 39 -9 39 37
                              Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
                              Russia 4 11 6 12 25 8 9 6
                              Muut -7 -9 1 -17 -48 -38 25 -66
                              Yhteensauml 297 302 314 312 1294 1292 1823 1387
                              I-III2009
                              SEK Muut Yhteensauml
                              Saumlhkoumlntuotanto -67 -3 -70
                              Laumlmpouml -10 -2 -12
                              Saumlhkoumlnsiirto -13 -1 -14
                              Markets -1 -1 -2
                              Venaumljauml 0 6 6
                              Muu 0 1 1
                              Yhteensauml -91 0 -91
                              MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
                              III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
                              Power 268 267 273 256 850 962 1033 1003
                              Heat -14 -12 -10 -15 182 153 280 179
                              Russia -16 -16 -16 14 39 -9 39 37
                              Distribution 62 61 60 62 246 216 437 228
                              Electricity Sales 4 11 6 12 25 8 9 6
                              Other -7 -9 1 -17 -48 -38 25 -66
                              Total 297 302 314 312 1294 1292 1823 1387
                              Currency translation effects on comparable operating profit
                              I2009 I-III2009
                              SEK Other Total SEK Other Total
                              Power Generation -55 -3 -58 Power Generation -67 -3 -70
                              Heat -12 -3 -15 Heat -10 -2 -12
                              Distribution -11 -1 -12 Distribution -13 -1 -14
                              Markets -1 0 -1 Markets -1 -1 -2
                              Russia 0 1 1 Russia 0 6 6
                              Other 1 0 1 Other 0 1 1
                              Total -78 -6 -84 Total -91 0 -91
Page 27: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

New English

New Finnish

English

Finnish

Swedish

Power

  • Comparable operating profit on last yearrsquos level
  • Higher hydro and nuclear volumes
  • Lower achieved price

    • Q3 Power

      Sheet1

      Sheet2

      Sheet3

      Heat

      • Comparable operating profit at last yearrsquos level
      • Higher costs in Poland
      • Lower electricity price and sales volumes

        • Q3 Heat

          Sheet1

          Sheet2

          Sheet3

          Russia

          • Comparable operating profit on last yearrsquos level
          • Positive effect from commissioning new capacity
          • Energy spot market prices at last yearrsquos level
          • Higher fuel costs

            • Q3 Russia

              Sheet1

              Sheet2

              Sheet3

              Distribution

              • Stable comparable operating profit
              • Somewhat lower volumes efficiency improvements
              • Smart metering rollout to network customers in Finland proceeded

                • Q3 Distribution

                  Sheet1

                  Sheet2

                  Sheet3

                  Markets

                  • Comparable operating profit decreased
                  • Lower margins

                    • Q3 Electricity Sales

                      Sheet1

                      Sheet2

                      Sheet3

                      Q3 Income statement

                      Sheet1

                      ampA
                      Page ampP

                      Q3 Cash flow statement

                      Sheet1

                      ampA
                      Page ampP

                      Key ratios

                      Q3 lsquo11

                      Sheet1

                      Sheet2

                      Sheet3

                      Debt Maturity Profile

                      per 30 Sept 2011 per 31 Dec 2010

                      Average Interest Rate (incl swaps and forwards)43 35

                      Portion of floating fixed debt 46 54 49 51

                      Outlook

                      Outlook

                      • Key drivers and risks
                      • Wholesale price of electricity
                      • Demand
                      • Fuels
                      • CO2 emissions prices
                      • Water reservoirs
                      • Nuclear availability
                      • Nordic markets
                      • Annual electricity demand growth estimated to be approximately 05
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Profits from Russia build up in pace with the capacity increases
                      • A new unit in Tobolsk at the beginning of October
                      • Fortum targets a positive economic value added after completing the ongoing investment programme

                        • Outlook

                          • Annual capex (excluding potential acquisitions)
                          • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                          • 2012 around EUR 16 to 18 billion
                          • 2013 and 2014 around EUR 11 to 14 billion annually
                          • Hedging
                          • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                            • (Q2 70 at EUR 45MWh)

                              • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                • (Q2 50 at EUR 46MWh)

                                  • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                    • (Q2 not disclosed)

                                      Strong financial position

                                          Return on capital employed

                                          12

                                          Return on shareholders equity

                                          14

                                          Net debtEBITDA

                                          around 30

                                          135

                                          185

                                          28

                                          Fortumrsquos financial targets

                                          LTM in Q32011

                                          Good liquidity ndash committed credit lines total EUR 27 billion

                                          Last twelve months

                                          Comparable net debtEBITDA

                                          Fortumrsquos production structure creates a firm basis for the future

                                          • Strong financial position
                                          • Electricity will continue to gain a higher share of the total energy consumption
                                          • Good production portfolio going forward
                                          • Growth in Russia

                                            • QampA

                                              Conference call

                                              20 October 2011

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales1393056951 2691 224

                                              Comparable operating profit41125828

                                              Net Assets4355

                                              Comparable RONA 305

                                              Gross Investments00404

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales156137646550900

                                              Comparable operating profit-16-1639-956

                                              Net Assets3 0092 522

                                              Comparable RONA 32

                                              Gross Investments21984486342743

                                              0

                                              250

                                              500

                                              750

                                              1000

                                              1250

                                              1500

                                              1750

                                              20112012201320142015201620172018201920202021+

                                              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2031967296761 016

                                              Comparable operating profit6261246216337

                                              Net Assets3 4633 560

                                              Comparable RONA 99

                                              Gross Investments7351169127255

                                              MEUR

                                              III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                              Power2682672732568509621 0331 003

                                              Heat-14-12-10-15182153280179

                                              Russia-16-16-161439-93937

                                              Distribution62616062246216437228

                                              Electricity Sales41161225896

                                              Other-7-91-17-48-3825-66

                                              Total2973023143121 2941 2921 8231 387

                                              Comparable operating profit

                                              Reported operating profit

                                              Comparable operating profit

                                              Reported operating profit

                                              MEURLTM20102009

                                              EBITDA2 7422 2712 292

                                              Comparable EBITDA2 4332 3962 398

                                              Interest-bearing net debt6 9296 8265 969

                                              Net debtEBITDA253026

                                              Comparable Net debtEBITDA282825

                                              Return on capital employed ()135116121

                                              Return on shareholders equity ()185157160

                                              ) as of 30 September 2011

                                              Spot price for power in NordPool power exchange

                                              459

                                              621

                                              523

                                              360

                                              662

                                              0

                                              12

                                              24

                                              36

                                              48

                                              60

                                              72

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-III2011I-III20102010LTM

                                              Sales1 144

                                              1 1524 4944 3946 296

                                              6 396

                                              Expenses-847-850-3 200-3 102-4 463-4 561

                                              Comparable operating profit2973021 2941 2921 8331 835

                                              Items affecting comparability171052995-125309

                                              Operating profit3143121 8231 3871 7082 144

                                              Share of profit of associates and jvs-21072416293

                                              Financial expenses net-72-37-199-98-155-256

                                              Profit before taxes2402851 6961 3301 6151 981

                                              Income tax expense-46-45-278-236-261-303

                                              Net profit for the period1942401 4181 0941 3541 678

                                              Non-controlling interests-4-770255499

                                              EPS basic (EUR)023027152120146178

                                              EPS diluted (EUR)023027152120146178

                                              Spot price for power (market price) Urals hub

                                              935

                                              817

                                              950

                                              954

                                              939

                                              0

                                              200

                                              400

                                              600

                                              800

                                              1 000

                                              1 200

                                              Q32010Q42010Q12011Q22011Q32011

                                              RUBMWh

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2122201 2591 1721 857

                                              Comparable operating profit-14-12182153304

                                              Net Assets3 9344 021

                                              Comparable RONA 81

                                              Gross Investments6367193188310

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales5605841 8271 9502 579

                                              Comparable operating profit2682678509621 186

                                              Net Assets5 9565 818

                                              Comparable RONA 195

                                              Gross Investments313210087135

                                              Powers Nordic power price

                                              469

                                              488

                                              479

                                              474

                                              443

                                              0

                                              10

                                              20

                                              30

                                              40

                                              50

                                              60

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-II2011I-III20102010LTM

                                              Operating profit before depreciations4614522 2741 8032 2712 742

                                              Non-cash flow items and divesting activities

                                              -31-25-600-98124-378

                                              Financial items and fx gainslosses

                                              0-126-290-449-641-482

                                              Taxes

                                              -104-93-362-248-355-469

                                              Funds from operations (FFO)

                                              3262081 0221 0081 3991 413

                                              Change in working capital

                                              -496511920838-51

                                              Total net cash from operating activities2772731 1411 2161 4371 362

                                              Paid capital expenditures-361-216-864-702-1 134-1 296

                                              Acquisition of shares-24-7-44-8-28-64

                                              Other investing activities19115608360537

                                              Cash flow before financing activities-8961793589335539

                                              Achieved power price for OAO Fortum

                                              288

                                              305

                                              292

                                              290

                                              300

                                              0

                                              6

                                              12

                                              18

                                              24

                                              30

                                              36

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                      MEUR
                      2011 166
                      2012 656
                      2013 633
                      2014 1266
                      2015 1041
                      2016 877
                      2017 267
                      2018 187
                      2019 882
                      2020 73
                      2021+ 1566
                      MEUR LTM 2010 2009 2008 2006 2005
                      EBITDA 2742 2271 2292 2478 1884
                      Comparable EBITDA 2433 2396 2398 1151 1271
                      Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                      Net debtEBITDA 25 30 26 25 8161
                      Comparable Net debtEBITDA 28 28 25 16839 15130
                      23 18
                      Return on capital employed () 135 116 121 150 134 135
                      Return on shareholders equity () 185 157 160 187 144 135
                      ) as of 30 September 2011
                      MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                      Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                      Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                      Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                      Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                      Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                      Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                      Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                      Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                      Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                      Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                      Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                      MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                      Sales 7732 1144 1152 4494 4394 6296 6396
                      Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                      Comparable operating profit 623 297 302 1294 1292 1833 1835
                      Items affecting comparability 17 10 529 95 -125 309
                      Operating profit 314 312 1823 1387 1708 2144
                      Share of profit of associates and jvs -2 10 72 41 62 93
                      Financial expenses net -209 -72 -37 -199 -98 -155 -256
                      Profit before taxes 0 240 285 1696 1330 1615 1981
                      Income tax expense -83 -46 -45 -278 -236 -261 -303
                      Net profit for the period -26 194 240 1418 1094 1354 1678
                      Non-controlling interests -4 -7 70 25 54 99
                      EPS basic (EUR) 039 023 027 152 120 146 178
                      EPS diluted (EUR) 023 027 152 120 146 178
                      069
                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                      Sales 139 305 695 1269 1224
                      Comparable operating profit 4 11 25 8 28
                      Net Assets 43 55
                      Comparable RONA 305
                      Gross Investments 0 0 4 0 4
                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                  Sales 203 196 729 676 1016
                  Comparable operating profit 62 61 246 216 337
                  Net Assets 3463 3560
                  Comparable RONA 99
                  Gross Investments 73 51 169 127 255
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 156 137 646 550 900
              Comparable operating profit -16 -16 39 -9 56
              Net Assets 3009 2522
              Comparable RONA 32
              Gross Investments 219 84 486 342 743
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 212 220 1259 1172 1857
          Comparable operating profit -14 -12 182 153 304
          Net Assets 3934 4021
          Comparable RONA 81
          Gross Investments 63 67 193 188 310
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 560 584 1827 1950 2579
      Comparable operating profit 268 267 850 962 1186
      Net Assets 5956 5818
      Comparable RONA 195
      Gross Investments 31 32 100 87 135
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
Kraftproduktion 271 280 340 307 695 747 755 739
Vaumlrme 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Markets 10 23 6 20 -3 -6 4 -1
Ryssland -9 -9 -14 -15 7 23 -8 -9
Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
Summa 339 351 400 375 990 1075 1002 974
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
Power 271 280 340 307 695 747 755 739
Heat 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
Russia -9 -9 -14 -15 7 23 -8 -9
Muut -19 -31 -12 -30 -29 -49 -24 -44
Yhteensauml 339 351 400 375 990 1075 1002 974
I-III2009
SEK Muut Yhteensauml
Saumlhkoumlntuotanto -67 -3 -70
Laumlmpouml -10 -2 -12
Saumlhkoumlnsiirto -13 -1 -14
Markets -1 -1 -2
Venaumljauml 0 6 6
Muu 0 1 1
Yhteensauml -91 0 -91
Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
Comparable Reported Comparable Reported Comparable Reported Comparable Reported
Power 271 280 340 307 695 747 755 739
Heat 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Electricity Sales 10 23 6 20 -3 -6 4 -1
Russia -9 -9 -14 -15 7 23 -8 -9
Other -19 -31 -12 -30 -29 -49 -24 -44
Total 339 351 400 375 990 1075 1002 974
Currency translation effects on comparable operating profit
I2009 I-III2009
SEK Other Total SEK Other Total
Power Generation -55 -3 -58 Power Generation -67 -3 -70
Heat -12 -3 -15 Heat -10 -2 -12
Distribution -11 -1 -12 Distribution -13 -1 -14
Markets -1 0 -1 Markets -1 -1 -2
Russia 0 1 1 Russia 0 6 6
Other 1 0 1 Other 0 1 1
Total -78 -6 -84 Total -91 0 -91
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
Power 268 267 273 256 850 962 1033 1003
Heat -14 -12 -10 -15 182 153 280 179
Distribution -16 -16 -16 14 39 -9 39 37
Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
Russia 4 11 6 12 25 8 9 6
Muut -7 -9 1 -17 -48 -38 25 -66
Yhteensauml 297 302 314 312 1294 1292 1823 1387
I-III2009
SEK Muut Yhteensauml
Saumlhkoumlntuotanto -67 -3 -70
Laumlmpouml -10 -2 -12
Saumlhkoumlnsiirto -13 -1 -14
Markets -1 -1 -2
Venaumljauml 0 6 6
Muu 0 1 1
Yhteensauml -91 0 -91
MEUR Comparable operating profit Reported operating profit Comparable operating profit Reported operating profit
III2011 III2010 III2011 III2010 I-III2011 I-III2010 I-III2011 I-III2010
Power 268 267 273 256 850 962 1033 1003
Heat -14 -12 -10 -15 182 153 280 179
Russia -16 -16 -16 14 39 -9 39 37
Distribution 62 61 60 62 246 216 437 228
Electricity Sales 4 11 6 12 25 8 9 6
Other -7 -9 1 -17 -48 -38 25 -66
Total 297 302 314 312 1294 1292 1823 1387
Currency translation effects on comparable operating profit
I2009 I-III2009
SEK Other Total SEK Other Total
Power Generation -55 -3 -58 Power Generation -67 -3 -70
Heat -12 -3 -15 Heat -10 -2 -12
Distribution -11 -1 -12 Distribution -13 -1 -14
Markets -1 0 -1 Markets -1 -1 -2
Russia 0 1 1 Russia 0 6 6
Other 1 0 1 Other 0 1 1
Total -78 -6 -84 Total -91 0 -91
Page 28: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

New Finnish

English

Finnish

Swedish

Power

  • Comparable operating profit on last yearrsquos level
  • Higher hydro and nuclear volumes
  • Lower achieved price

    • Q3 Power

      Sheet1

      Sheet2

      Sheet3

      Heat

      • Comparable operating profit at last yearrsquos level
      • Higher costs in Poland
      • Lower electricity price and sales volumes

        • Q3 Heat

          Sheet1

          Sheet2

          Sheet3

          Russia

          • Comparable operating profit on last yearrsquos level
          • Positive effect from commissioning new capacity
          • Energy spot market prices at last yearrsquos level
          • Higher fuel costs

            • Q3 Russia

              Sheet1

              Sheet2

              Sheet3

              Distribution

              • Stable comparable operating profit
              • Somewhat lower volumes efficiency improvements
              • Smart metering rollout to network customers in Finland proceeded

                • Q3 Distribution

                  Sheet1

                  Sheet2

                  Sheet3

                  Markets

                  • Comparable operating profit decreased
                  • Lower margins

                    • Q3 Electricity Sales

                      Sheet1

                      Sheet2

                      Sheet3

                      Q3 Income statement

                      Sheet1

                      ampA
                      Page ampP

                      Q3 Cash flow statement

                      Sheet1

                      ampA
                      Page ampP

                      Key ratios

                      Q3 lsquo11

                      Sheet1

                      Sheet2

                      Sheet3

                      Debt Maturity Profile

                      per 30 Sept 2011 per 31 Dec 2010

                      Average Interest Rate (incl swaps and forwards)43 35

                      Portion of floating fixed debt 46 54 49 51

                      Outlook

                      Outlook

                      • Key drivers and risks
                      • Wholesale price of electricity
                      • Demand
                      • Fuels
                      • CO2 emissions prices
                      • Water reservoirs
                      • Nuclear availability
                      • Nordic markets
                      • Annual electricity demand growth estimated to be approximately 05
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Profits from Russia build up in pace with the capacity increases
                      • A new unit in Tobolsk at the beginning of October
                      • Fortum targets a positive economic value added after completing the ongoing investment programme

                        • Outlook

                          • Annual capex (excluding potential acquisitions)
                          • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                          • 2012 around EUR 16 to 18 billion
                          • 2013 and 2014 around EUR 11 to 14 billion annually
                          • Hedging
                          • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                            • (Q2 70 at EUR 45MWh)

                              • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                • (Q2 50 at EUR 46MWh)

                                  • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                    • (Q2 not disclosed)

                                      Strong financial position

                                          Return on capital employed

                                          12

                                          Return on shareholders equity

                                          14

                                          Net debtEBITDA

                                          around 30

                                          135

                                          185

                                          28

                                          Fortumrsquos financial targets

                                          LTM in Q32011

                                          Good liquidity ndash committed credit lines total EUR 27 billion

                                          Last twelve months

                                          Comparable net debtEBITDA

                                          Fortumrsquos production structure creates a firm basis for the future

                                          • Strong financial position
                                          • Electricity will continue to gain a higher share of the total energy consumption
                                          • Good production portfolio going forward
                                          • Growth in Russia

                                            • QampA

                                              Conference call

                                              20 October 2011

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales1393056951 2691 224

                                              Comparable operating profit41125828

                                              Net Assets4355

                                              Comparable RONA 305

                                              Gross Investments00404

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales156137646550900

                                              Comparable operating profit-16-1639-956

                                              Net Assets3 0092 522

                                              Comparable RONA 32

                                              Gross Investments21984486342743

                                              0

                                              250

                                              500

                                              750

                                              1000

                                              1250

                                              1500

                                              1750

                                              20112012201320142015201620172018201920202021+

                                              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2031967296761 016

                                              Comparable operating profit6261246216337

                                              Net Assets3 4633 560

                                              Comparable RONA 99

                                              Gross Investments7351169127255

                                              MEUR

                                              III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                              Power2682672732568509621 0331 003

                                              Heat-14-12-10-15182153280179

                                              Russia-16-16-161439-93937

                                              Distribution62616062246216437228

                                              Electricity Sales41161225896

                                              Other-7-91-17-48-3825-66

                                              Total2973023143121 2941 2921 8231 387

                                              Comparable operating profit

                                              Reported operating profit

                                              Comparable operating profit

                                              Reported operating profit

                                              MEURLTM20102009

                                              EBITDA2 7422 2712 292

                                              Comparable EBITDA2 4332 3962 398

                                              Interest-bearing net debt6 9296 8265 969

                                              Net debtEBITDA253026

                                              Comparable Net debtEBITDA282825

                                              Return on capital employed ()135116121

                                              Return on shareholders equity ()185157160

                                              ) as of 30 September 2011

                                              Spot price for power in NordPool power exchange

                                              459

                                              621

                                              523

                                              360

                                              662

                                              0

                                              12

                                              24

                                              36

                                              48

                                              60

                                              72

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-III2011I-III20102010LTM

                                              Sales1 144

                                              1 1524 4944 3946 296

                                              6 396

                                              Expenses-847-850-3 200-3 102-4 463-4 561

                                              Comparable operating profit2973021 2941 2921 8331 835

                                              Items affecting comparability171052995-125309

                                              Operating profit3143121 8231 3871 7082 144

                                              Share of profit of associates and jvs-21072416293

                                              Financial expenses net-72-37-199-98-155-256

                                              Profit before taxes2402851 6961 3301 6151 981

                                              Income tax expense-46-45-278-236-261-303

                                              Net profit for the period1942401 4181 0941 3541 678

                                              Non-controlling interests-4-770255499

                                              EPS basic (EUR)023027152120146178

                                              EPS diluted (EUR)023027152120146178

                                              Spot price for power (market price) Urals hub

                                              935

                                              817

                                              950

                                              954

                                              939

                                              0

                                              200

                                              400

                                              600

                                              800

                                              1 000

                                              1 200

                                              Q32010Q42010Q12011Q22011Q32011

                                              RUBMWh

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2122201 2591 1721 857

                                              Comparable operating profit-14-12182153304

                                              Net Assets3 9344 021

                                              Comparable RONA 81

                                              Gross Investments6367193188310

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales5605841 8271 9502 579

                                              Comparable operating profit2682678509621 186

                                              Net Assets5 9565 818

                                              Comparable RONA 195

                                              Gross Investments313210087135

                                              Powers Nordic power price

                                              469

                                              488

                                              479

                                              474

                                              443

                                              0

                                              10

                                              20

                                              30

                                              40

                                              50

                                              60

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-II2011I-III20102010LTM

                                              Operating profit before depreciations4614522 2741 8032 2712 742

                                              Non-cash flow items and divesting activities

                                              -31-25-600-98124-378

                                              Financial items and fx gainslosses

                                              0-126-290-449-641-482

                                              Taxes

                                              -104-93-362-248-355-469

                                              Funds from operations (FFO)

                                              3262081 0221 0081 3991 413

                                              Change in working capital

                                              -496511920838-51

                                              Total net cash from operating activities2772731 1411 2161 4371 362

                                              Paid capital expenditures-361-216-864-702-1 134-1 296

                                              Acquisition of shares-24-7-44-8-28-64

                                              Other investing activities19115608360537

                                              Cash flow before financing activities-8961793589335539

                                              Achieved power price for OAO Fortum

                                              288

                                              305

                                              292

                                              290

                                              300

                                              0

                                              6

                                              12

                                              18

                                              24

                                              30

                                              36

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                      MEUR
                      2011 166
                      2012 656
                      2013 633
                      2014 1266
                      2015 1041
                      2016 877
                      2017 267
                      2018 187
                      2019 882
                      2020 73
                      2021+ 1566
                      MEUR LTM 2010 2009 2008 2006 2005
                      EBITDA 2742 2271 2292 2478 1884
                      Comparable EBITDA 2433 2396 2398 1151 1271
                      Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                      Net debtEBITDA 25 30 26 25 8161
                      Comparable Net debtEBITDA 28 28 25 16839 15130
                      23 18
                      Return on capital employed () 135 116 121 150 134 135
                      Return on shareholders equity () 185 157 160 187 144 135
                      ) as of 30 September 2011
                      MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                      Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                      Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                      Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                      Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                      Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                      Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                      Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                      Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                      Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                      Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                      Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                      MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                      Sales 7732 1144 1152 4494 4394 6296 6396
                      Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                      Comparable operating profit 623 297 302 1294 1292 1833 1835
                      Items affecting comparability 17 10 529 95 -125 309
                      Operating profit 314 312 1823 1387 1708 2144
                      Share of profit of associates and jvs -2 10 72 41 62 93
                      Financial expenses net -209 -72 -37 -199 -98 -155 -256
                      Profit before taxes 0 240 285 1696 1330 1615 1981
                      Income tax expense -83 -46 -45 -278 -236 -261 -303
                      Net profit for the period -26 194 240 1418 1094 1354 1678
                      Non-controlling interests -4 -7 70 25 54 99
                      EPS basic (EUR) 039 023 027 152 120 146 178
                      EPS diluted (EUR) 023 027 152 120 146 178
                      069
                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                      Sales 139 305 695 1269 1224
                      Comparable operating profit 4 11 25 8 28
                      Net Assets 43 55
                      Comparable RONA 305
                      Gross Investments 0 0 4 0 4
                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                  Sales 203 196 729 676 1016
                  Comparable operating profit 62 61 246 216 337
                  Net Assets 3463 3560
                  Comparable RONA 99
                  Gross Investments 73 51 169 127 255
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 156 137 646 550 900
              Comparable operating profit -16 -16 39 -9 56
              Net Assets 3009 2522
              Comparable RONA 32
              Gross Investments 219 84 486 342 743
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 212 220 1259 1172 1857
          Comparable operating profit -14 -12 182 153 304
          Net Assets 3934 4021
          Comparable RONA 81
          Gross Investments 63 67 193 188 310
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 560 584 1827 1950 2579
      Comparable operating profit 268 267 850 962 1186
      Net Assets 5956 5818
      Comparable RONA 195
      Gross Investments 31 32 100 87 135
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
Kraftproduktion 271 280 340 307 695 747 755 739
Vaumlrme 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Markets 10 23 6 20 -3 -6 4 -1
Ryssland -9 -9 -14 -15 7 23 -8 -9
Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
Summa 339 351 400 375 990 1075 1002 974
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
Power 271 280 340 307 695 747 755 739
Heat 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
Russia -9 -9 -14 -15 7 23 -8 -9
Muut -19 -31 -12 -30 -29 -49 -24 -44
Yhteensauml 339 351 400 375 990 1075 1002 974
I-III2009
SEK Muut Yhteensauml
Saumlhkoumlntuotanto -67 -3 -70
Laumlmpouml -10 -2 -12
Saumlhkoumlnsiirto -13 -1 -14
Markets -1 -1 -2
Venaumljauml 0 6 6
Muu 0 1 1
Yhteensauml -91 0 -91
Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
Comparable Reported Comparable Reported Comparable Reported Comparable Reported
Power 271 280 340 307 695 747 755 739
Heat 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Electricity Sales 10 23 6 20 -3 -6 4 -1
Russia -9 -9 -14 -15 7 23 -8 -9
Other -19 -31 -12 -30 -29 -49 -24 -44
Total 339 351 400 375 990 1075 1002 974
Currency translation effects on comparable operating profit
I2009 I-III2009
SEK Other Total SEK Other Total
Power Generation -55 -3 -58 Power Generation -67 -3 -70
Heat -12 -3 -15 Heat -10 -2 -12
Distribution -11 -1 -12 Distribution -13 -1 -14
Markets -1 0 -1 Markets -1 -1 -2
Russia 0 1 1 Russia 0 6 6
Other 1 0 1 Other 0 1 1
Total -78 -6 -84 Total -91 0 -91
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Vertkelpliikevoitto Raportoitu liikevoitto Vertkelpliikevoitto Raportoitu liikevoitto
II2010 II2009 II2010 II2009 I-II2010 I-II2009 I-II2010 I-II2009
Power 268 267 273 256 850 962 1033 1003
Heat -14 -12 -10 -15 182 153 280 179
Distribution -16 -16 -16 14 39 -9 39 37
Saumlhkoumlnmyynti 62 61 60 62 246 216 437 228
Russia 4 11 6 12 25 8 9 6
Muut -7 -9 1 -17 -48 -38 25 -66
Yhteensauml 297 302 314 312 1294 1292 1823 1387
I-III2009
SEK Muut Yhteensauml
Saumlhkoumlntuotanto -67 -3 -70
Laumlmpouml -10 -2 -12
Saumlhkoumlnsiirto -13 -1 -14
Markets -1 -1 -2
Venaumljauml 0 6 6
Muu 0 1 1
Yhteensauml -91 0 -91
Page 29: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

English

Finnish

Swedish

Power

  • Comparable operating profit on last yearrsquos level
  • Higher hydro and nuclear volumes
  • Lower achieved price

    • Q3 Power

      Sheet1

      Sheet2

      Sheet3

      Heat

      • Comparable operating profit at last yearrsquos level
      • Higher costs in Poland
      • Lower electricity price and sales volumes

        • Q3 Heat

          Sheet1

          Sheet2

          Sheet3

          Russia

          • Comparable operating profit on last yearrsquos level
          • Positive effect from commissioning new capacity
          • Energy spot market prices at last yearrsquos level
          • Higher fuel costs

            • Q3 Russia

              Sheet1

              Sheet2

              Sheet3

              Distribution

              • Stable comparable operating profit
              • Somewhat lower volumes efficiency improvements
              • Smart metering rollout to network customers in Finland proceeded

                • Q3 Distribution

                  Sheet1

                  Sheet2

                  Sheet3

                  Markets

                  • Comparable operating profit decreased
                  • Lower margins

                    • Q3 Electricity Sales

                      Sheet1

                      Sheet2

                      Sheet3

                      Q3 Income statement

                      Sheet1

                      ampA
                      Page ampP

                      Q3 Cash flow statement

                      Sheet1

                      ampA
                      Page ampP

                      Key ratios

                      Q3 lsquo11

                      Sheet1

                      Sheet2

                      Sheet3

                      Debt Maturity Profile

                      per 30 Sept 2011 per 31 Dec 2010

                      Average Interest Rate (incl swaps and forwards)43 35

                      Portion of floating fixed debt 46 54 49 51

                      Outlook

                      Outlook

                      • Key drivers and risks
                      • Wholesale price of electricity
                      • Demand
                      • Fuels
                      • CO2 emissions prices
                      • Water reservoirs
                      • Nuclear availability
                      • Nordic markets
                      • Annual electricity demand growth estimated to be approximately 05
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Profits from Russia build up in pace with the capacity increases
                      • A new unit in Tobolsk at the beginning of October
                      • Fortum targets a positive economic value added after completing the ongoing investment programme

                        • Outlook

                          • Annual capex (excluding potential acquisitions)
                          • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                          • 2012 around EUR 16 to 18 billion
                          • 2013 and 2014 around EUR 11 to 14 billion annually
                          • Hedging
                          • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                            • (Q2 70 at EUR 45MWh)

                              • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                • (Q2 50 at EUR 46MWh)

                                  • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                    • (Q2 not disclosed)

                                      Strong financial position

                                          Return on capital employed

                                          12

                                          Return on shareholders equity

                                          14

                                          Net debtEBITDA

                                          around 30

                                          135

                                          185

                                          28

                                          Fortumrsquos financial targets

                                          LTM in Q32011

                                          Good liquidity ndash committed credit lines total EUR 27 billion

                                          Last twelve months

                                          Comparable net debtEBITDA

                                          Fortumrsquos production structure creates a firm basis for the future

                                          • Strong financial position
                                          • Electricity will continue to gain a higher share of the total energy consumption
                                          • Good production portfolio going forward
                                          • Growth in Russia

                                            • QampA

                                              Conference call

                                              20 October 2011

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales1393056951 2691 224

                                              Comparable operating profit41125828

                                              Net Assets4355

                                              Comparable RONA 305

                                              Gross Investments00404

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales156137646550900

                                              Comparable operating profit-16-1639-956

                                              Net Assets3 0092 522

                                              Comparable RONA 32

                                              Gross Investments21984486342743

                                              0

                                              250

                                              500

                                              750

                                              1000

                                              1250

                                              1500

                                              1750

                                              20112012201320142015201620172018201920202021+

                                              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2031967296761 016

                                              Comparable operating profit6261246216337

                                              Net Assets3 4633 560

                                              Comparable RONA 99

                                              Gross Investments7351169127255

                                              MEUR

                                              III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                              Power2682672732568509621 0331 003

                                              Heat-14-12-10-15182153280179

                                              Russia-16-16-161439-93937

                                              Distribution62616062246216437228

                                              Electricity Sales41161225896

                                              Other-7-91-17-48-3825-66

                                              Total2973023143121 2941 2921 8231 387

                                              Comparable operating profit

                                              Reported operating profit

                                              Comparable operating profit

                                              Reported operating profit

                                              MEURLTM20102009

                                              EBITDA2 7422 2712 292

                                              Comparable EBITDA2 4332 3962 398

                                              Interest-bearing net debt6 9296 8265 969

                                              Net debtEBITDA253026

                                              Comparable Net debtEBITDA282825

                                              Return on capital employed ()135116121

                                              Return on shareholders equity ()185157160

                                              ) as of 30 September 2011

                                              Spot price for power in NordPool power exchange

                                              459

                                              621

                                              523

                                              360

                                              662

                                              0

                                              12

                                              24

                                              36

                                              48

                                              60

                                              72

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-III2011I-III20102010LTM

                                              Sales1 144

                                              1 1524 4944 3946 296

                                              6 396

                                              Expenses-847-850-3 200-3 102-4 463-4 561

                                              Comparable operating profit2973021 2941 2921 8331 835

                                              Items affecting comparability171052995-125309

                                              Operating profit3143121 8231 3871 7082 144

                                              Share of profit of associates and jvs-21072416293

                                              Financial expenses net-72-37-199-98-155-256

                                              Profit before taxes2402851 6961 3301 6151 981

                                              Income tax expense-46-45-278-236-261-303

                                              Net profit for the period1942401 4181 0941 3541 678

                                              Non-controlling interests-4-770255499

                                              EPS basic (EUR)023027152120146178

                                              EPS diluted (EUR)023027152120146178

                                              Spot price for power (market price) Urals hub

                                              935

                                              817

                                              950

                                              954

                                              939

                                              0

                                              200

                                              400

                                              600

                                              800

                                              1 000

                                              1 200

                                              Q32010Q42010Q12011Q22011Q32011

                                              RUBMWh

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2122201 2591 1721 857

                                              Comparable operating profit-14-12182153304

                                              Net Assets3 9344 021

                                              Comparable RONA 81

                                              Gross Investments6367193188310

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales5605841 8271 9502 579

                                              Comparable operating profit2682678509621 186

                                              Net Assets5 9565 818

                                              Comparable RONA 195

                                              Gross Investments313210087135

                                              Powers Nordic power price

                                              469

                                              488

                                              479

                                              474

                                              443

                                              0

                                              10

                                              20

                                              30

                                              40

                                              50

                                              60

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-II2011I-III20102010LTM

                                              Operating profit before depreciations4614522 2741 8032 2712 742

                                              Non-cash flow items and divesting activities

                                              -31-25-600-98124-378

                                              Financial items and fx gainslosses

                                              0-126-290-449-641-482

                                              Taxes

                                              -104-93-362-248-355-469

                                              Funds from operations (FFO)

                                              3262081 0221 0081 3991 413

                                              Change in working capital

                                              -496511920838-51

                                              Total net cash from operating activities2772731 1411 2161 4371 362

                                              Paid capital expenditures-361-216-864-702-1 134-1 296

                                              Acquisition of shares-24-7-44-8-28-64

                                              Other investing activities19115608360537

                                              Cash flow before financing activities-8961793589335539

                                              Achieved power price for OAO Fortum

                                              288

                                              305

                                              292

                                              290

                                              300

                                              0

                                              6

                                              12

                                              18

                                              24

                                              30

                                              36

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                      MEUR
                      2011 166
                      2012 656
                      2013 633
                      2014 1266
                      2015 1041
                      2016 877
                      2017 267
                      2018 187
                      2019 882
                      2020 73
                      2021+ 1566
                      MEUR LTM 2010 2009 2008 2006 2005
                      EBITDA 2742 2271 2292 2478 1884
                      Comparable EBITDA 2433 2396 2398 1151 1271
                      Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                      Net debtEBITDA 25 30 26 25 8161
                      Comparable Net debtEBITDA 28 28 25 16839 15130
                      23 18
                      Return on capital employed () 135 116 121 150 134 135
                      Return on shareholders equity () 185 157 160 187 144 135
                      ) as of 30 September 2011
                      MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                      Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                      Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                      Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                      Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                      Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                      Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                      Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                      Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                      Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                      Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                      Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                      MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                      Sales 7732 1144 1152 4494 4394 6296 6396
                      Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                      Comparable operating profit 623 297 302 1294 1292 1833 1835
                      Items affecting comparability 17 10 529 95 -125 309
                      Operating profit 314 312 1823 1387 1708 2144
                      Share of profit of associates and jvs -2 10 72 41 62 93
                      Financial expenses net -209 -72 -37 -199 -98 -155 -256
                      Profit before taxes 0 240 285 1696 1330 1615 1981
                      Income tax expense -83 -46 -45 -278 -236 -261 -303
                      Net profit for the period -26 194 240 1418 1094 1354 1678
                      Non-controlling interests -4 -7 70 25 54 99
                      EPS basic (EUR) 039 023 027 152 120 146 178
                      EPS diluted (EUR) 023 027 152 120 146 178
                      069
                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                      Sales 139 305 695 1269 1224
                      Comparable operating profit 4 11 25 8 28
                      Net Assets 43 55
                      Comparable RONA 305
                      Gross Investments 0 0 4 0 4
                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                  Sales 203 196 729 676 1016
                  Comparable operating profit 62 61 246 216 337
                  Net Assets 3463 3560
                  Comparable RONA 99
                  Gross Investments 73 51 169 127 255
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 156 137 646 550 900
              Comparable operating profit -16 -16 39 -9 56
              Net Assets 3009 2522
              Comparable RONA 32
              Gross Investments 219 84 486 342 743
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 212 220 1259 1172 1857
          Comparable operating profit -14 -12 182 153 304
          Net Assets 3934 4021
          Comparable RONA 81
          Gross Investments 63 67 193 188 310
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 560 584 1827 1950 2579
      Comparable operating profit 268 267 850 962 1186
      Net Assets 5956 5818
      Comparable RONA 195
      Gross Investments 31 32 100 87 135
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
Kraftproduktion 271 280 340 307 695 747 755 739
Vaumlrme 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Markets 10 23 6 20 -3 -6 4 -1
Ryssland -9 -9 -14 -15 7 23 -8 -9
Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
Summa 339 351 400 375 990 1075 1002 974
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
Power 271 280 340 307 695 747 755 739
Heat 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
Russia -9 -9 -14 -15 7 23 -8 -9
Muut -19 -31 -12 -30 -29 -49 -24 -44
Yhteensauml 339 351 400 375 990 1075 1002 974
I-III2009
SEK Muut Yhteensauml
Saumlhkoumlntuotanto -67 -3 -70
Laumlmpouml -10 -2 -12
Saumlhkoumlnsiirto -13 -1 -14
Markets -1 -1 -2
Venaumljauml 0 6 6
Muu 0 1 1
Yhteensauml -91 0 -91
Operating profit II2010 Operating profit II2009 Operating profit I-II2010 Operating profit I-2009
Comparable Reported Comparable Reported Comparable Reported Comparable Reported
Power 271 280 340 307 695 747 755 739
Heat 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Electricity Sales 10 23 6 20 -3 -6 4 -1
Russia -9 -9 -14 -15 7 23 -8 -9
Other -19 -31 -12 -30 -29 -49 -24 -44
Total 339 351 400 375 990 1075 1002 974
Currency translation effects on comparable operating profit
I2009 I-III2009
SEK Other Total SEK Other Total
Power Generation -55 -3 -58 Power Generation -67 -3 -70
Heat -12 -3 -15 Heat -10 -2 -12
Distribution -11 -1 -12 Distribution -13 -1 -14
Markets -1 0 -1 Markets -1 -1 -2
Russia 0 1 1 Russia 0 6 6
Other 1 0 1 Other 0 1 1
Total -78 -6 -84 Total -91 0 -91
Page 30: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Finnish

Swedish

Power

  • Comparable operating profit on last yearrsquos level
  • Higher hydro and nuclear volumes
  • Lower achieved price

    • Q3 Power

      Sheet1

      Sheet2

      Sheet3

      Heat

      • Comparable operating profit at last yearrsquos level
      • Higher costs in Poland
      • Lower electricity price and sales volumes

        • Q3 Heat

          Sheet1

          Sheet2

          Sheet3

          Russia

          • Comparable operating profit on last yearrsquos level
          • Positive effect from commissioning new capacity
          • Energy spot market prices at last yearrsquos level
          • Higher fuel costs

            • Q3 Russia

              Sheet1

              Sheet2

              Sheet3

              Distribution

              • Stable comparable operating profit
              • Somewhat lower volumes efficiency improvements
              • Smart metering rollout to network customers in Finland proceeded

                • Q3 Distribution

                  Sheet1

                  Sheet2

                  Sheet3

                  Markets

                  • Comparable operating profit decreased
                  • Lower margins

                    • Q3 Electricity Sales

                      Sheet1

                      Sheet2

                      Sheet3

                      Q3 Income statement

                      Sheet1

                      ampA
                      Page ampP

                      Q3 Cash flow statement

                      Sheet1

                      ampA
                      Page ampP

                      Key ratios

                      Q3 lsquo11

                      Sheet1

                      Sheet2

                      Sheet3

                      Debt Maturity Profile

                      per 30 Sept 2011 per 31 Dec 2010

                      Average Interest Rate (incl swaps and forwards)43 35

                      Portion of floating fixed debt 46 54 49 51

                      Outlook

                      Outlook

                      • Key drivers and risks
                      • Wholesale price of electricity
                      • Demand
                      • Fuels
                      • CO2 emissions prices
                      • Water reservoirs
                      • Nuclear availability
                      • Nordic markets
                      • Annual electricity demand growth estimated to be approximately 05
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Profits from Russia build up in pace with the capacity increases
                      • A new unit in Tobolsk at the beginning of October
                      • Fortum targets a positive economic value added after completing the ongoing investment programme

                        • Outlook

                          • Annual capex (excluding potential acquisitions)
                          • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                          • 2012 around EUR 16 to 18 billion
                          • 2013 and 2014 around EUR 11 to 14 billion annually
                          • Hedging
                          • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                            • (Q2 70 at EUR 45MWh)

                              • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                • (Q2 50 at EUR 46MWh)

                                  • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                    • (Q2 not disclosed)

                                      Strong financial position

                                          Return on capital employed

                                          12

                                          Return on shareholders equity

                                          14

                                          Net debtEBITDA

                                          around 30

                                          135

                                          185

                                          28

                                          Fortumrsquos financial targets

                                          LTM in Q32011

                                          Good liquidity ndash committed credit lines total EUR 27 billion

                                          Last twelve months

                                          Comparable net debtEBITDA

                                          Fortumrsquos production structure creates a firm basis for the future

                                          • Strong financial position
                                          • Electricity will continue to gain a higher share of the total energy consumption
                                          • Good production portfolio going forward
                                          • Growth in Russia

                                            • QampA

                                              Conference call

                                              20 October 2011

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales1393056951 2691 224

                                              Comparable operating profit41125828

                                              Net Assets4355

                                              Comparable RONA 305

                                              Gross Investments00404

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales156137646550900

                                              Comparable operating profit-16-1639-956

                                              Net Assets3 0092 522

                                              Comparable RONA 32

                                              Gross Investments21984486342743

                                              0

                                              250

                                              500

                                              750

                                              1000

                                              1250

                                              1500

                                              1750

                                              20112012201320142015201620172018201920202021+

                                              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2031967296761 016

                                              Comparable operating profit6261246216337

                                              Net Assets3 4633 560

                                              Comparable RONA 99

                                              Gross Investments7351169127255

                                              MEUR

                                              III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                              Power2682672732568509621 0331 003

                                              Heat-14-12-10-15182153280179

                                              Russia-16-16-161439-93937

                                              Distribution62616062246216437228

                                              Electricity Sales41161225896

                                              Other-7-91-17-48-3825-66

                                              Total2973023143121 2941 2921 8231 387

                                              Comparable operating profit

                                              Reported operating profit

                                              Comparable operating profit

                                              Reported operating profit

                                              MEURLTM20102009

                                              EBITDA2 7422 2712 292

                                              Comparable EBITDA2 4332 3962 398

                                              Interest-bearing net debt6 9296 8265 969

                                              Net debtEBITDA253026

                                              Comparable Net debtEBITDA282825

                                              Return on capital employed ()135116121

                                              Return on shareholders equity ()185157160

                                              ) as of 30 September 2011

                                              Spot price for power in NordPool power exchange

                                              459

                                              621

                                              523

                                              360

                                              662

                                              0

                                              12

                                              24

                                              36

                                              48

                                              60

                                              72

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-III2011I-III20102010LTM

                                              Sales1 144

                                              1 1524 4944 3946 296

                                              6 396

                                              Expenses-847-850-3 200-3 102-4 463-4 561

                                              Comparable operating profit2973021 2941 2921 8331 835

                                              Items affecting comparability171052995-125309

                                              Operating profit3143121 8231 3871 7082 144

                                              Share of profit of associates and jvs-21072416293

                                              Financial expenses net-72-37-199-98-155-256

                                              Profit before taxes2402851 6961 3301 6151 981

                                              Income tax expense-46-45-278-236-261-303

                                              Net profit for the period1942401 4181 0941 3541 678

                                              Non-controlling interests-4-770255499

                                              EPS basic (EUR)023027152120146178

                                              EPS diluted (EUR)023027152120146178

                                              Spot price for power (market price) Urals hub

                                              935

                                              817

                                              950

                                              954

                                              939

                                              0

                                              200

                                              400

                                              600

                                              800

                                              1 000

                                              1 200

                                              Q32010Q42010Q12011Q22011Q32011

                                              RUBMWh

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2122201 2591 1721 857

                                              Comparable operating profit-14-12182153304

                                              Net Assets3 9344 021

                                              Comparable RONA 81

                                              Gross Investments6367193188310

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales5605841 8271 9502 579

                                              Comparable operating profit2682678509621 186

                                              Net Assets5 9565 818

                                              Comparable RONA 195

                                              Gross Investments313210087135

                                              Powers Nordic power price

                                              469

                                              488

                                              479

                                              474

                                              443

                                              0

                                              10

                                              20

                                              30

                                              40

                                              50

                                              60

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-II2011I-III20102010LTM

                                              Operating profit before depreciations4614522 2741 8032 2712 742

                                              Non-cash flow items and divesting activities

                                              -31-25-600-98124-378

                                              Financial items and fx gainslosses

                                              0-126-290-449-641-482

                                              Taxes

                                              -104-93-362-248-355-469

                                              Funds from operations (FFO)

                                              3262081 0221 0081 3991 413

                                              Change in working capital

                                              -496511920838-51

                                              Total net cash from operating activities2772731 1411 2161 4371 362

                                              Paid capital expenditures-361-216-864-702-1 134-1 296

                                              Acquisition of shares-24-7-44-8-28-64

                                              Other investing activities19115608360537

                                              Cash flow before financing activities-8961793589335539

                                              Achieved power price for OAO Fortum

                                              288

                                              305

                                              292

                                              290

                                              300

                                              0

                                              6

                                              12

                                              18

                                              24

                                              30

                                              36

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                      MEUR
                      2011 166
                      2012 656
                      2013 633
                      2014 1266
                      2015 1041
                      2016 877
                      2017 267
                      2018 187
                      2019 882
                      2020 73
                      2021+ 1566
                      MEUR LTM 2010 2009 2008 2006 2005
                      EBITDA 2742 2271 2292 2478 1884
                      Comparable EBITDA 2433 2396 2398 1151 1271
                      Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                      Net debtEBITDA 25 30 26 25 8161
                      Comparable Net debtEBITDA 28 28 25 16839 15130
                      23 18
                      Return on capital employed () 135 116 121 150 134 135
                      Return on shareholders equity () 185 157 160 187 144 135
                      ) as of 30 September 2011
                      MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                      Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                      Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                      Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                      Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                      Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                      Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                      Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                      Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                      Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                      Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                      Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                      MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                      Sales 7732 1144 1152 4494 4394 6296 6396
                      Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                      Comparable operating profit 623 297 302 1294 1292 1833 1835
                      Items affecting comparability 17 10 529 95 -125 309
                      Operating profit 314 312 1823 1387 1708 2144
                      Share of profit of associates and jvs -2 10 72 41 62 93
                      Financial expenses net -209 -72 -37 -199 -98 -155 -256
                      Profit before taxes 0 240 285 1696 1330 1615 1981
                      Income tax expense -83 -46 -45 -278 -236 -261 -303
                      Net profit for the period -26 194 240 1418 1094 1354 1678
                      Non-controlling interests -4 -7 70 25 54 99
                      EPS basic (EUR) 039 023 027 152 120 146 178
                      EPS diluted (EUR) 023 027 152 120 146 178
                      069
                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                      Sales 139 305 695 1269 1224
                      Comparable operating profit 4 11 25 8 28
                      Net Assets 43 55
                      Comparable RONA 305
                      Gross Investments 0 0 4 0 4
                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                  Sales 203 196 729 676 1016
                  Comparable operating profit 62 61 246 216 337
                  Net Assets 3463 3560
                  Comparable RONA 99
                  Gross Investments 73 51 169 127 255
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 156 137 646 550 900
              Comparable operating profit -16 -16 39 -9 56
              Net Assets 3009 2522
              Comparable RONA 32
              Gross Investments 219 84 486 342 743
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 212 220 1259 1172 1857
          Comparable operating profit -14 -12 182 153 304
          Net Assets 3934 4021
          Comparable RONA 81
          Gross Investments 63 67 193 188 310
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 560 584 1827 1950 2579
      Comparable operating profit 268 267 850 962 1186
      Net Assets 5956 5818
      Comparable RONA 195
      Gross Investments 31 32 100 87 135
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
Kraftproduktion 271 280 340 307 695 747 755 739
Vaumlrme 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Markets 10 23 6 20 -3 -6 4 -1
Ryssland -9 -9 -14 -15 7 23 -8 -9
Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
Summa 339 351 400 375 990 1075 1002 974
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Liikevoitto II2010 Liikevoitto II2009 Liikevoitto I-II2010 Liikevoitto I-II2009
Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu Vertkelp Raportoitu
Power 271 280 340 307 695 747 755 739
Heat 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Saumlhkoumlnmyynti 10 23 6 20 -3 -6 4 -1
Russia -9 -9 -14 -15 7 23 -8 -9
Muut -19 -31 -12 -30 -29 -49 -24 -44
Yhteensauml 339 351 400 375 990 1075 1002 974
I-III2009
SEK Muut Yhteensauml
Saumlhkoumlntuotanto -67 -3 -70
Laumlmpouml -10 -2 -12
Saumlhkoumlnsiirto -13 -1 -14
Markets -1 -1 -2
Venaumljauml 0 6 6
Muu 0 1 1
Yhteensauml -91 0 -91
Page 31: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Swedish

Power

  • Comparable operating profit on last yearrsquos level
  • Higher hydro and nuclear volumes
  • Lower achieved price

    • Q3 Power

      Sheet1

      Sheet2

      Sheet3

      Heat

      • Comparable operating profit at last yearrsquos level
      • Higher costs in Poland
      • Lower electricity price and sales volumes

        • Q3 Heat

          Sheet1

          Sheet2

          Sheet3

          Russia

          • Comparable operating profit on last yearrsquos level
          • Positive effect from commissioning new capacity
          • Energy spot market prices at last yearrsquos level
          • Higher fuel costs

            • Q3 Russia

              Sheet1

              Sheet2

              Sheet3

              Distribution

              • Stable comparable operating profit
              • Somewhat lower volumes efficiency improvements
              • Smart metering rollout to network customers in Finland proceeded

                • Q3 Distribution

                  Sheet1

                  Sheet2

                  Sheet3

                  Markets

                  • Comparable operating profit decreased
                  • Lower margins

                    • Q3 Electricity Sales

                      Sheet1

                      Sheet2

                      Sheet3

                      Q3 Income statement

                      Sheet1

                      ampA
                      Page ampP

                      Q3 Cash flow statement

                      Sheet1

                      ampA
                      Page ampP

                      Key ratios

                      Q3 lsquo11

                      Sheet1

                      Sheet2

                      Sheet3

                      Debt Maturity Profile

                      per 30 Sept 2011 per 31 Dec 2010

                      Average Interest Rate (incl swaps and forwards)43 35

                      Portion of floating fixed debt 46 54 49 51

                      Outlook

                      Outlook

                      • Key drivers and risks
                      • Wholesale price of electricity
                      • Demand
                      • Fuels
                      • CO2 emissions prices
                      • Water reservoirs
                      • Nuclear availability
                      • Nordic markets
                      • Annual electricity demand growth estimated to be approximately 05
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Profits from Russia build up in pace with the capacity increases
                      • A new unit in Tobolsk at the beginning of October
                      • Fortum targets a positive economic value added after completing the ongoing investment programme

                        • Outlook

                          • Annual capex (excluding potential acquisitions)
                          • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                          • 2012 around EUR 16 to 18 billion
                          • 2013 and 2014 around EUR 11 to 14 billion annually
                          • Hedging
                          • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                            • (Q2 70 at EUR 45MWh)

                              • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                                • (Q2 50 at EUR 46MWh)

                                  • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                    • (Q2 not disclosed)

                                      Strong financial position

                                          Return on capital employed

                                          12

                                          Return on shareholders equity

                                          14

                                          Net debtEBITDA

                                          around 30

                                          135

                                          185

                                          28

                                          Fortumrsquos financial targets

                                          LTM in Q32011

                                          Good liquidity ndash committed credit lines total EUR 27 billion

                                          Last twelve months

                                          Comparable net debtEBITDA

                                          Fortumrsquos production structure creates a firm basis for the future

                                          • Strong financial position
                                          • Electricity will continue to gain a higher share of the total energy consumption
                                          • Good production portfolio going forward
                                          • Growth in Russia

                                            • QampA

                                              Conference call

                                              20 October 2011

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales1393056951 2691 224

                                              Comparable operating profit41125828

                                              Net Assets4355

                                              Comparable RONA 305

                                              Gross Investments00404

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales156137646550900

                                              Comparable operating profit-16-1639-956

                                              Net Assets3 0092 522

                                              Comparable RONA 32

                                              Gross Investments21984486342743

                                              0

                                              250

                                              500

                                              750

                                              1000

                                              1250

                                              1500

                                              1750

                                              20112012201320142015201620172018201920202021+

                                              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2031967296761 016

                                              Comparable operating profit6261246216337

                                              Net Assets3 4633 560

                                              Comparable RONA 99

                                              Gross Investments7351169127255

                                              MEUR

                                              III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                              Power2682672732568509621 0331 003

                                              Heat-14-12-10-15182153280179

                                              Russia-16-16-161439-93937

                                              Distribution62616062246216437228

                                              Electricity Sales41161225896

                                              Other-7-91-17-48-3825-66

                                              Total2973023143121 2941 2921 8231 387

                                              Comparable operating profit

                                              Reported operating profit

                                              Comparable operating profit

                                              Reported operating profit

                                              MEURLTM20102009

                                              EBITDA2 7422 2712 292

                                              Comparable EBITDA2 4332 3962 398

                                              Interest-bearing net debt6 9296 8265 969

                                              Net debtEBITDA253026

                                              Comparable Net debtEBITDA282825

                                              Return on capital employed ()135116121

                                              Return on shareholders equity ()185157160

                                              ) as of 30 September 2011

                                              Spot price for power in NordPool power exchange

                                              459

                                              621

                                              523

                                              360

                                              662

                                              0

                                              12

                                              24

                                              36

                                              48

                                              60

                                              72

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-III2011I-III20102010LTM

                                              Sales1 144

                                              1 1524 4944 3946 296

                                              6 396

                                              Expenses-847-850-3 200-3 102-4 463-4 561

                                              Comparable operating profit2973021 2941 2921 8331 835

                                              Items affecting comparability171052995-125309

                                              Operating profit3143121 8231 3871 7082 144

                                              Share of profit of associates and jvs-21072416293

                                              Financial expenses net-72-37-199-98-155-256

                                              Profit before taxes2402851 6961 3301 6151 981

                                              Income tax expense-46-45-278-236-261-303

                                              Net profit for the period1942401 4181 0941 3541 678

                                              Non-controlling interests-4-770255499

                                              EPS basic (EUR)023027152120146178

                                              EPS diluted (EUR)023027152120146178

                                              Spot price for power (market price) Urals hub

                                              935

                                              817

                                              950

                                              954

                                              939

                                              0

                                              200

                                              400

                                              600

                                              800

                                              1 000

                                              1 200

                                              Q32010Q42010Q12011Q22011Q32011

                                              RUBMWh

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales2122201 2591 1721 857

                                              Comparable operating profit-14-12182153304

                                              Net Assets3 9344 021

                                              Comparable RONA 81

                                              Gross Investments6367193188310

                                              MEURIII2011III2010I-III2011I-III2010LTM

                                              Sales5605841 8271 9502 579

                                              Comparable operating profit2682678509621 186

                                              Net Assets5 9565 818

                                              Comparable RONA 195

                                              Gross Investments313210087135

                                              Powers Nordic power price

                                              469

                                              488

                                              479

                                              474

                                              443

                                              0

                                              10

                                              20

                                              30

                                              40

                                              50

                                              60

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                                              MEURIII2011III2010I-II2011I-III20102010LTM

                                              Operating profit before depreciations4614522 2741 8032 2712 742

                                              Non-cash flow items and divesting activities

                                              -31-25-600-98124-378

                                              Financial items and fx gainslosses

                                              0-126-290-449-641-482

                                              Taxes

                                              -104-93-362-248-355-469

                                              Funds from operations (FFO)

                                              3262081 0221 0081 3991 413

                                              Change in working capital

                                              -496511920838-51

                                              Total net cash from operating activities2772731 1411 2161 4371 362

                                              Paid capital expenditures-361-216-864-702-1 134-1 296

                                              Acquisition of shares-24-7-44-8-28-64

                                              Other investing activities19115608360537

                                              Cash flow before financing activities-8961793589335539

                                              Achieved power price for OAO Fortum

                                              288

                                              305

                                              292

                                              290

                                              300

                                              0

                                              6

                                              12

                                              18

                                              24

                                              30

                                              36

                                              Q32010Q42010Q12011Q22011Q32011

                                              eurMWh

                      MEUR
                      2011 166
                      2012 656
                      2013 633
                      2014 1266
                      2015 1041
                      2016 877
                      2017 267
                      2018 187
                      2019 882
                      2020 73
                      2021+ 1566
                      MEUR LTM 2010 2009 2008 2006 2005
                      EBITDA 2742 2271 2292 2478 1884
                      Comparable EBITDA 2433 2396 2398 1151 1271
                      Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                      Net debtEBITDA 25 30 26 25 8161
                      Comparable Net debtEBITDA 28 28 25 16839 15130
                      23 18
                      Return on capital employed () 135 116 121 150 134 135
                      Return on shareholders equity () 185 157 160 187 144 135
                      ) as of 30 September 2011
                      MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                      Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                      Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                      Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                      Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                      Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                      Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                      Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                      Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                      Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                      Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                      Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                      MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                      Sales 7732 1144 1152 4494 4394 6296 6396
                      Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                      Comparable operating profit 623 297 302 1294 1292 1833 1835
                      Items affecting comparability 17 10 529 95 -125 309
                      Operating profit 314 312 1823 1387 1708 2144
                      Share of profit of associates and jvs -2 10 72 41 62 93
                      Financial expenses net -209 -72 -37 -199 -98 -155 -256
                      Profit before taxes 0 240 285 1696 1330 1615 1981
                      Income tax expense -83 -46 -45 -278 -236 -261 -303
                      Net profit for the period -26 194 240 1418 1094 1354 1678
                      Non-controlling interests -4 -7 70 25 54 99
                      EPS basic (EUR) 039 023 027 152 120 146 178
                      EPS diluted (EUR) 023 027 152 120 146 178
                      069
                      MEUR III2011 III2010 I-III2011 I-III2010 LTM
                      Sales 139 305 695 1269 1224
                      Comparable operating profit 4 11 25 8 28
                      Net Assets 43 55
                      Comparable RONA 305
                      Gross Investments 0 0 4 0 4
                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                  Sales 203 196 729 676 1016
                  Comparable operating profit 62 61 246 216 337
                  Net Assets 3463 3560
                  Comparable RONA 99
                  Gross Investments 73 51 169 127 255
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 156 137 646 550 900
              Comparable operating profit -16 -16 39 -9 56
              Net Assets 3009 2522
              Comparable RONA 32
              Gross Investments 219 84 486 342 743
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 212 220 1259 1172 1857
          Comparable operating profit -14 -12 182 153 304
          Net Assets 3934 4021
          Comparable RONA 81
          Gross Investments 63 67 193 188 310
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 560 584 1827 1950 2579
      Comparable operating profit 268 267 850 962 1186
      Net Assets 5956 5818
      Comparable RONA 195
      Gross Investments 31 32 100 87 135
Liikevoitto 2007 Liikevoitto 2006
Vertkelp Raportoitu Ero Vertkelpoinen Raportoitu Ero comp op
Saumlhkoumlntuotanto 0 0 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0 0 0
Markets 0 0 0 0 0 0 0 0
Muu 0 0 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0 0 0 0
Liikevoitto I2008 Liikevoitto I2007
Vertkelpoinen Raportoitu Ero Vertkelpoinen Raportoitu Ero
Saumlhkoumlntuotanto 0 0 0 0 0 0
Laumlmpouml 0 0 0 0 0 0
Saumlhkoumlnsiirto 0 0 0 0 0 0
Markets 0 0 0 0 0 0
Venaumljauml 0 0 0 0
Muu 0 0 0 0 0 0
Yhteensauml 0 0 0 0 0 0
Roumlrelseresultat II2009 Roumlrelseresultat II2008 Liikevoitto 2008 Liikevoitto 2007
Jaumlmfoumlrbart Rapporterat Jaumlmfoumlrbart Rapporterat Vertkelp Raportoitu Vertkelp Raportoitu
Kraftproduktion 271 280 340 307 695 747 755 739
Vaumlrme 33 35 26 39 165 194 140 154
Distribution 53 53 54 54 155 166 135 135
Markets 10 23 6 20 -3 -6 4 -1
Ryssland -9 -9 -14 -15 7 23 -8 -9
Oumlvrigt -19 -31 -12 -30 -29 -49 -24 -44
Summa 339 351 400 375 990 1075 1002 974
Page 32: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet1

Sheet2

Sheet3

Heat

  • Comparable operating profit at last yearrsquos level
  • Higher costs in Poland
  • Lower electricity price and sales volumes

    • Q3 Heat

      Sheet1

      Sheet2

      Sheet3

      Russia

      • Comparable operating profit on last yearrsquos level
      • Positive effect from commissioning new capacity
      • Energy spot market prices at last yearrsquos level
      • Higher fuel costs

        • Q3 Russia

          Sheet1

          Sheet2

          Sheet3

          Distribution

          • Stable comparable operating profit
          • Somewhat lower volumes efficiency improvements
          • Smart metering rollout to network customers in Finland proceeded

            • Q3 Distribution

              Sheet1

              Sheet2

              Sheet3

              Markets

              • Comparable operating profit decreased
              • Lower margins

                • Q3 Electricity Sales

                  Sheet1

                  Sheet2

                  Sheet3

                  Q3 Income statement

                  Sheet1

                  ampA
                  Page ampP

                  Q3 Cash flow statement

                  Sheet1

                  ampA
                  Page ampP

                  Key ratios

                  Q3 lsquo11

                  Sheet1

                  Sheet2

                  Sheet3

                  Debt Maturity Profile

                  per 30 Sept 2011 per 31 Dec 2010

                  Average Interest Rate (incl swaps and forwards)43 35

                  Portion of floating fixed debt 46 54 49 51

                  Outlook

                  Outlook

                  • Key drivers and risks
                  • Wholesale price of electricity
                  • Demand
                  • Fuels
                  • CO2 emissions prices
                  • Water reservoirs
                  • Nuclear availability
                  • Nordic markets
                  • Annual electricity demand growth estimated to be approximately 05
                  • Electricity continues to gain share of total energy consumption
                  • Russia
                  • Profits from Russia build up in pace with the capacity increases
                  • A new unit in Tobolsk at the beginning of October
                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                    • Outlook

                      • Annual capex (excluding potential acquisitions)
                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                      • 2012 around EUR 16 to 18 billion
                      • 2013 and 2014 around EUR 11 to 14 billion annually
                      • Hedging
                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                        • (Q2 70 at EUR 45MWh)

                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                            • (Q2 50 at EUR 46MWh)

                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                • (Q2 not disclosed)

                                  Strong financial position

                                      Return on capital employed

                                      12

                                      Return on shareholders equity

                                      14

                                      Net debtEBITDA

                                      around 30

                                      135

                                      185

                                      28

                                      Fortumrsquos financial targets

                                      LTM in Q32011

                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                      Last twelve months

                                      Comparable net debtEBITDA

                                      Fortumrsquos production structure creates a firm basis for the future

                                      • Strong financial position
                                      • Electricity will continue to gain a higher share of the total energy consumption
                                      • Good production portfolio going forward
                                      • Growth in Russia

                                        • QampA

                                          Conference call

                                          20 October 2011

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales1393056951 2691 224

                                          Comparable operating profit41125828

                                          Net Assets4355

                                          Comparable RONA 305

                                          Gross Investments00404

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales156137646550900

                                          Comparable operating profit-16-1639-956

                                          Net Assets3 0092 522

                                          Comparable RONA 32

                                          Gross Investments21984486342743

                                          0

                                          250

                                          500

                                          750

                                          1000

                                          1250

                                          1500

                                          1750

                                          20112012201320142015201620172018201920202021+

                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales2031967296761 016

                                          Comparable operating profit6261246216337

                                          Net Assets3 4633 560

                                          Comparable RONA 99

                                          Gross Investments7351169127255

                                          MEUR

                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                          Power2682672732568509621 0331 003

                                          Heat-14-12-10-15182153280179

                                          Russia-16-16-161439-93937

                                          Distribution62616062246216437228

                                          Electricity Sales41161225896

                                          Other-7-91-17-48-3825-66

                                          Total2973023143121 2941 2921 8231 387

                                          Comparable operating profit

                                          Reported operating profit

                                          Comparable operating profit

                                          Reported operating profit

                                          MEURLTM20102009

                                          EBITDA2 7422 2712 292

                                          Comparable EBITDA2 4332 3962 398

                                          Interest-bearing net debt6 9296 8265 969

                                          Net debtEBITDA253026

                                          Comparable Net debtEBITDA282825

                                          Return on capital employed ()135116121

                                          Return on shareholders equity ()185157160

                                          ) as of 30 September 2011

                                          Spot price for power in NordPool power exchange

                                          459

                                          621

                                          523

                                          360

                                          662

                                          0

                                          12

                                          24

                                          36

                                          48

                                          60

                                          72

                                          Q32010Q42010Q12011Q22011Q32011

                                          eurMWh

                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                          Sales1 144

                                          1 1524 4944 3946 296

                                          6 396

                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                          Comparable operating profit2973021 2941 2921 8331 835

                                          Items affecting comparability171052995-125309

                                          Operating profit3143121 8231 3871 7082 144

                                          Share of profit of associates and jvs-21072416293

                                          Financial expenses net-72-37-199-98-155-256

                                          Profit before taxes2402851 6961 3301 6151 981

                                          Income tax expense-46-45-278-236-261-303

                                          Net profit for the period1942401 4181 0941 3541 678

                                          Non-controlling interests-4-770255499

                                          EPS basic (EUR)023027152120146178

                                          EPS diluted (EUR)023027152120146178

                                          Spot price for power (market price) Urals hub

                                          935

                                          817

                                          950

                                          954

                                          939

                                          0

                                          200

                                          400

                                          600

                                          800

                                          1 000

                                          1 200

                                          Q32010Q42010Q12011Q22011Q32011

                                          RUBMWh

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales2122201 2591 1721 857

                                          Comparable operating profit-14-12182153304

                                          Net Assets3 9344 021

                                          Comparable RONA 81

                                          Gross Investments6367193188310

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales5605841 8271 9502 579

                                          Comparable operating profit2682678509621 186

                                          Net Assets5 9565 818

                                          Comparable RONA 195

                                          Gross Investments313210087135

                                          Powers Nordic power price

                                          469

                                          488

                                          479

                                          474

                                          443

                                          0

                                          10

                                          20

                                          30

                                          40

                                          50

                                          60

                                          Q32010Q42010Q12011Q22011Q32011

                                          eurMWh

                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                          Non-cash flow items and divesting activities

                                          -31-25-600-98124-378

                                          Financial items and fx gainslosses

                                          0-126-290-449-641-482

                                          Taxes

                                          -104-93-362-248-355-469

                                          Funds from operations (FFO)

                                          3262081 0221 0081 3991 413

                                          Change in working capital

                                          -496511920838-51

                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                          Acquisition of shares-24-7-44-8-28-64

                                          Other investing activities19115608360537

                                          Cash flow before financing activities-8961793589335539

                                          Achieved power price for OAO Fortum

                                          288

                                          305

                                          292

                                          290

                                          300

                                          0

                                          6

                                          12

                                          18

                                          24

                                          30

                                          36

                                          Q32010Q42010Q12011Q22011Q32011

                                          eurMWh

                  MEUR
                  2011 166
                  2012 656
                  2013 633
                  2014 1266
                  2015 1041
                  2016 877
                  2017 267
                  2018 187
                  2019 882
                  2020 73
                  2021+ 1566
                  MEUR LTM 2010 2009 2008 2006 2005
                  EBITDA 2742 2271 2292 2478 1884
                  Comparable EBITDA 2433 2396 2398 1151 1271
                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                  Net debtEBITDA 25 30 26 25 8161
                  Comparable Net debtEBITDA 28 28 25 16839 15130
                  23 18
                  Return on capital employed () 135 116 121 150 134 135
                  Return on shareholders equity () 185 157 160 187 144 135
                  ) as of 30 September 2011
                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                  Sales 7732 1144 1152 4494 4394 6296 6396
                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                  Items affecting comparability 17 10 529 95 -125 309
                  Operating profit 314 312 1823 1387 1708 2144
                  Share of profit of associates and jvs -2 10 72 41 62 93
                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                  Profit before taxes 0 240 285 1696 1330 1615 1981
                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                  Net profit for the period -26 194 240 1418 1094 1354 1678
                  Non-controlling interests -4 -7 70 25 54 99
                  EPS basic (EUR) 039 023 027 152 120 146 178
                  EPS diluted (EUR) 023 027 152 120 146 178
                  069
                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                  Sales 139 305 695 1269 1224
                  Comparable operating profit 4 11 25 8 28
                  Net Assets 43 55
                  Comparable RONA 305
                  Gross Investments 0 0 4 0 4
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 203 196 729 676 1016
              Comparable operating profit 62 61 246 216 337
              Net Assets 3463 3560
              Comparable RONA 99
              Gross Investments 73 51 169 127 255
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 156 137 646 550 900
          Comparable operating profit -16 -16 39 -9 56
          Net Assets 3009 2522
          Comparable RONA 32
          Gross Investments 219 84 486 342 743
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 212 220 1259 1172 1857
      Comparable operating profit -14 -12 182 153 304
      Net Assets 3934 4021
      Comparable RONA 81
      Gross Investments 63 67 193 188 310
MEUR III2011 III2010 I-III2011 I-III2010 LTM
Sales 560 584 1827 1950 2579
Comparable operating profit 268 267 850 962 1186
Net Assets 5956 5818
Comparable RONA 195
Gross Investments 31 32 100 87 135
Page 33: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet2

Sheet3

Heat

  • Comparable operating profit at last yearrsquos level
  • Higher costs in Poland
  • Lower electricity price and sales volumes

    • Q3 Heat

      Sheet1

      Sheet2

      Sheet3

      Russia

      • Comparable operating profit on last yearrsquos level
      • Positive effect from commissioning new capacity
      • Energy spot market prices at last yearrsquos level
      • Higher fuel costs

        • Q3 Russia

          Sheet1

          Sheet2

          Sheet3

          Distribution

          • Stable comparable operating profit
          • Somewhat lower volumes efficiency improvements
          • Smart metering rollout to network customers in Finland proceeded

            • Q3 Distribution

              Sheet1

              Sheet2

              Sheet3

              Markets

              • Comparable operating profit decreased
              • Lower margins

                • Q3 Electricity Sales

                  Sheet1

                  Sheet2

                  Sheet3

                  Q3 Income statement

                  Sheet1

                  ampA
                  Page ampP

                  Q3 Cash flow statement

                  Sheet1

                  ampA
                  Page ampP

                  Key ratios

                  Q3 lsquo11

                  Sheet1

                  Sheet2

                  Sheet3

                  Debt Maturity Profile

                  per 30 Sept 2011 per 31 Dec 2010

                  Average Interest Rate (incl swaps and forwards)43 35

                  Portion of floating fixed debt 46 54 49 51

                  Outlook

                  Outlook

                  • Key drivers and risks
                  • Wholesale price of electricity
                  • Demand
                  • Fuels
                  • CO2 emissions prices
                  • Water reservoirs
                  • Nuclear availability
                  • Nordic markets
                  • Annual electricity demand growth estimated to be approximately 05
                  • Electricity continues to gain share of total energy consumption
                  • Russia
                  • Profits from Russia build up in pace with the capacity increases
                  • A new unit in Tobolsk at the beginning of October
                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                    • Outlook

                      • Annual capex (excluding potential acquisitions)
                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                      • 2012 around EUR 16 to 18 billion
                      • 2013 and 2014 around EUR 11 to 14 billion annually
                      • Hedging
                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                        • (Q2 70 at EUR 45MWh)

                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                            • (Q2 50 at EUR 46MWh)

                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                • (Q2 not disclosed)

                                  Strong financial position

                                      Return on capital employed

                                      12

                                      Return on shareholders equity

                                      14

                                      Net debtEBITDA

                                      around 30

                                      135

                                      185

                                      28

                                      Fortumrsquos financial targets

                                      LTM in Q32011

                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                      Last twelve months

                                      Comparable net debtEBITDA

                                      Fortumrsquos production structure creates a firm basis for the future

                                      • Strong financial position
                                      • Electricity will continue to gain a higher share of the total energy consumption
                                      • Good production portfolio going forward
                                      • Growth in Russia

                                        • QampA

                                          Conference call

                                          20 October 2011

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales1393056951 2691 224

                                          Comparable operating profit41125828

                                          Net Assets4355

                                          Comparable RONA 305

                                          Gross Investments00404

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales156137646550900

                                          Comparable operating profit-16-1639-956

                                          Net Assets3 0092 522

                                          Comparable RONA 32

                                          Gross Investments21984486342743

                                          0

                                          250

                                          500

                                          750

                                          1000

                                          1250

                                          1500

                                          1750

                                          20112012201320142015201620172018201920202021+

                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales2031967296761 016

                                          Comparable operating profit6261246216337

                                          Net Assets3 4633 560

                                          Comparable RONA 99

                                          Gross Investments7351169127255

                                          MEUR

                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                          Power2682672732568509621 0331 003

                                          Heat-14-12-10-15182153280179

                                          Russia-16-16-161439-93937

                                          Distribution62616062246216437228

                                          Electricity Sales41161225896

                                          Other-7-91-17-48-3825-66

                                          Total2973023143121 2941 2921 8231 387

                                          Comparable operating profit

                                          Reported operating profit

                                          Comparable operating profit

                                          Reported operating profit

                                          MEURLTM20102009

                                          EBITDA2 7422 2712 292

                                          Comparable EBITDA2 4332 3962 398

                                          Interest-bearing net debt6 9296 8265 969

                                          Net debtEBITDA253026

                                          Comparable Net debtEBITDA282825

                                          Return on capital employed ()135116121

                                          Return on shareholders equity ()185157160

                                          ) as of 30 September 2011

                                          Spot price for power in NordPool power exchange

                                          459

                                          621

                                          523

                                          360

                                          662

                                          0

                                          12

                                          24

                                          36

                                          48

                                          60

                                          72

                                          Q32010Q42010Q12011Q22011Q32011

                                          eurMWh

                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                          Sales1 144

                                          1 1524 4944 3946 296

                                          6 396

                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                          Comparable operating profit2973021 2941 2921 8331 835

                                          Items affecting comparability171052995-125309

                                          Operating profit3143121 8231 3871 7082 144

                                          Share of profit of associates and jvs-21072416293

                                          Financial expenses net-72-37-199-98-155-256

                                          Profit before taxes2402851 6961 3301 6151 981

                                          Income tax expense-46-45-278-236-261-303

                                          Net profit for the period1942401 4181 0941 3541 678

                                          Non-controlling interests-4-770255499

                                          EPS basic (EUR)023027152120146178

                                          EPS diluted (EUR)023027152120146178

                                          Spot price for power (market price) Urals hub

                                          935

                                          817

                                          950

                                          954

                                          939

                                          0

                                          200

                                          400

                                          600

                                          800

                                          1 000

                                          1 200

                                          Q32010Q42010Q12011Q22011Q32011

                                          RUBMWh

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales2122201 2591 1721 857

                                          Comparable operating profit-14-12182153304

                                          Net Assets3 9344 021

                                          Comparable RONA 81

                                          Gross Investments6367193188310

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales5605841 8271 9502 579

                                          Comparable operating profit2682678509621 186

                                          Net Assets5 9565 818

                                          Comparable RONA 195

                                          Gross Investments313210087135

                                          Powers Nordic power price

                                          469

                                          488

                                          479

                                          474

                                          443

                                          0

                                          10

                                          20

                                          30

                                          40

                                          50

                                          60

                                          Q32010Q42010Q12011Q22011Q32011

                                          eurMWh

                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                          Non-cash flow items and divesting activities

                                          -31-25-600-98124-378

                                          Financial items and fx gainslosses

                                          0-126-290-449-641-482

                                          Taxes

                                          -104-93-362-248-355-469

                                          Funds from operations (FFO)

                                          3262081 0221 0081 3991 413

                                          Change in working capital

                                          -496511920838-51

                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                          Acquisition of shares-24-7-44-8-28-64

                                          Other investing activities19115608360537

                                          Cash flow before financing activities-8961793589335539

                                          Achieved power price for OAO Fortum

                                          288

                                          305

                                          292

                                          290

                                          300

                                          0

                                          6

                                          12

                                          18

                                          24

                                          30

                                          36

                                          Q32010Q42010Q12011Q22011Q32011

                                          eurMWh

                  MEUR
                  2011 166
                  2012 656
                  2013 633
                  2014 1266
                  2015 1041
                  2016 877
                  2017 267
                  2018 187
                  2019 882
                  2020 73
                  2021+ 1566
                  MEUR LTM 2010 2009 2008 2006 2005
                  EBITDA 2742 2271 2292 2478 1884
                  Comparable EBITDA 2433 2396 2398 1151 1271
                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                  Net debtEBITDA 25 30 26 25 8161
                  Comparable Net debtEBITDA 28 28 25 16839 15130
                  23 18
                  Return on capital employed () 135 116 121 150 134 135
                  Return on shareholders equity () 185 157 160 187 144 135
                  ) as of 30 September 2011
                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                  Sales 7732 1144 1152 4494 4394 6296 6396
                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                  Items affecting comparability 17 10 529 95 -125 309
                  Operating profit 314 312 1823 1387 1708 2144
                  Share of profit of associates and jvs -2 10 72 41 62 93
                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                  Profit before taxes 0 240 285 1696 1330 1615 1981
                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                  Net profit for the period -26 194 240 1418 1094 1354 1678
                  Non-controlling interests -4 -7 70 25 54 99
                  EPS basic (EUR) 039 023 027 152 120 146 178
                  EPS diluted (EUR) 023 027 152 120 146 178
                  069
                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                  Sales 139 305 695 1269 1224
                  Comparable operating profit 4 11 25 8 28
                  Net Assets 43 55
                  Comparable RONA 305
                  Gross Investments 0 0 4 0 4
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 203 196 729 676 1016
              Comparable operating profit 62 61 246 216 337
              Net Assets 3463 3560
              Comparable RONA 99
              Gross Investments 73 51 169 127 255
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 156 137 646 550 900
          Comparable operating profit -16 -16 39 -9 56
          Net Assets 3009 2522
          Comparable RONA 32
          Gross Investments 219 84 486 342 743
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 212 220 1259 1172 1857
      Comparable operating profit -14 -12 182 153 304
      Net Assets 3934 4021
      Comparable RONA 81
      Gross Investments 63 67 193 188 310
Page 34: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet3

Heat

  • Comparable operating profit at last yearrsquos level
  • Higher costs in Poland
  • Lower electricity price and sales volumes

    • Q3 Heat

      Sheet1

      Sheet2

      Sheet3

      Russia

      • Comparable operating profit on last yearrsquos level
      • Positive effect from commissioning new capacity
      • Energy spot market prices at last yearrsquos level
      • Higher fuel costs

        • Q3 Russia

          Sheet1

          Sheet2

          Sheet3

          Distribution

          • Stable comparable operating profit
          • Somewhat lower volumes efficiency improvements
          • Smart metering rollout to network customers in Finland proceeded

            • Q3 Distribution

              Sheet1

              Sheet2

              Sheet3

              Markets

              • Comparable operating profit decreased
              • Lower margins

                • Q3 Electricity Sales

                  Sheet1

                  Sheet2

                  Sheet3

                  Q3 Income statement

                  Sheet1

                  ampA
                  Page ampP

                  Q3 Cash flow statement

                  Sheet1

                  ampA
                  Page ampP

                  Key ratios

                  Q3 lsquo11

                  Sheet1

                  Sheet2

                  Sheet3

                  Debt Maturity Profile

                  per 30 Sept 2011 per 31 Dec 2010

                  Average Interest Rate (incl swaps and forwards)43 35

                  Portion of floating fixed debt 46 54 49 51

                  Outlook

                  Outlook

                  • Key drivers and risks
                  • Wholesale price of electricity
                  • Demand
                  • Fuels
                  • CO2 emissions prices
                  • Water reservoirs
                  • Nuclear availability
                  • Nordic markets
                  • Annual electricity demand growth estimated to be approximately 05
                  • Electricity continues to gain share of total energy consumption
                  • Russia
                  • Profits from Russia build up in pace with the capacity increases
                  • A new unit in Tobolsk at the beginning of October
                  • Fortum targets a positive economic value added after completing the ongoing investment programme

                    • Outlook

                      • Annual capex (excluding potential acquisitions)
                      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                      • 2012 around EUR 16 to 18 billion
                      • 2013 and 2014 around EUR 11 to 14 billion annually
                      • Hedging
                      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                        • (Q2 70 at EUR 45MWh)

                          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                            • (Q2 50 at EUR 46MWh)

                              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                                • (Q2 not disclosed)

                                  Strong financial position

                                      Return on capital employed

                                      12

                                      Return on shareholders equity

                                      14

                                      Net debtEBITDA

                                      around 30

                                      135

                                      185

                                      28

                                      Fortumrsquos financial targets

                                      LTM in Q32011

                                      Good liquidity ndash committed credit lines total EUR 27 billion

                                      Last twelve months

                                      Comparable net debtEBITDA

                                      Fortumrsquos production structure creates a firm basis for the future

                                      • Strong financial position
                                      • Electricity will continue to gain a higher share of the total energy consumption
                                      • Good production portfolio going forward
                                      • Growth in Russia

                                        • QampA

                                          Conference call

                                          20 October 2011

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales1393056951 2691 224

                                          Comparable operating profit41125828

                                          Net Assets4355

                                          Comparable RONA 305

                                          Gross Investments00404

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales156137646550900

                                          Comparable operating profit-16-1639-956

                                          Net Assets3 0092 522

                                          Comparable RONA 32

                                          Gross Investments21984486342743

                                          0

                                          250

                                          500

                                          750

                                          1000

                                          1250

                                          1500

                                          1750

                                          20112012201320142015201620172018201920202021+

                                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales2031967296761 016

                                          Comparable operating profit6261246216337

                                          Net Assets3 4633 560

                                          Comparable RONA 99

                                          Gross Investments7351169127255

                                          MEUR

                                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                          Power2682672732568509621 0331 003

                                          Heat-14-12-10-15182153280179

                                          Russia-16-16-161439-93937

                                          Distribution62616062246216437228

                                          Electricity Sales41161225896

                                          Other-7-91-17-48-3825-66

                                          Total2973023143121 2941 2921 8231 387

                                          Comparable operating profit

                                          Reported operating profit

                                          Comparable operating profit

                                          Reported operating profit

                                          MEURLTM20102009

                                          EBITDA2 7422 2712 292

                                          Comparable EBITDA2 4332 3962 398

                                          Interest-bearing net debt6 9296 8265 969

                                          Net debtEBITDA253026

                                          Comparable Net debtEBITDA282825

                                          Return on capital employed ()135116121

                                          Return on shareholders equity ()185157160

                                          ) as of 30 September 2011

                                          Spot price for power in NordPool power exchange

                                          459

                                          621

                                          523

                                          360

                                          662

                                          0

                                          12

                                          24

                                          36

                                          48

                                          60

                                          72

                                          Q32010Q42010Q12011Q22011Q32011

                                          eurMWh

                                          MEURIII2011III2010I-III2011I-III20102010LTM

                                          Sales1 144

                                          1 1524 4944 3946 296

                                          6 396

                                          Expenses-847-850-3 200-3 102-4 463-4 561

                                          Comparable operating profit2973021 2941 2921 8331 835

                                          Items affecting comparability171052995-125309

                                          Operating profit3143121 8231 3871 7082 144

                                          Share of profit of associates and jvs-21072416293

                                          Financial expenses net-72-37-199-98-155-256

                                          Profit before taxes2402851 6961 3301 6151 981

                                          Income tax expense-46-45-278-236-261-303

                                          Net profit for the period1942401 4181 0941 3541 678

                                          Non-controlling interests-4-770255499

                                          EPS basic (EUR)023027152120146178

                                          EPS diluted (EUR)023027152120146178

                                          Spot price for power (market price) Urals hub

                                          935

                                          817

                                          950

                                          954

                                          939

                                          0

                                          200

                                          400

                                          600

                                          800

                                          1 000

                                          1 200

                                          Q32010Q42010Q12011Q22011Q32011

                                          RUBMWh

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales2122201 2591 1721 857

                                          Comparable operating profit-14-12182153304

                                          Net Assets3 9344 021

                                          Comparable RONA 81

                                          Gross Investments6367193188310

                                          MEURIII2011III2010I-III2011I-III2010LTM

                                          Sales5605841 8271 9502 579

                                          Comparable operating profit2682678509621 186

                                          Net Assets5 9565 818

                                          Comparable RONA 195

                                          Gross Investments313210087135

                                          Powers Nordic power price

                                          469

                                          488

                                          479

                                          474

                                          443

                                          0

                                          10

                                          20

                                          30

                                          40

                                          50

                                          60

                                          Q32010Q42010Q12011Q22011Q32011

                                          eurMWh

                                          MEURIII2011III2010I-II2011I-III20102010LTM

                                          Operating profit before depreciations4614522 2741 8032 2712 742

                                          Non-cash flow items and divesting activities

                                          -31-25-600-98124-378

                                          Financial items and fx gainslosses

                                          0-126-290-449-641-482

                                          Taxes

                                          -104-93-362-248-355-469

                                          Funds from operations (FFO)

                                          3262081 0221 0081 3991 413

                                          Change in working capital

                                          -496511920838-51

                                          Total net cash from operating activities2772731 1411 2161 4371 362

                                          Paid capital expenditures-361-216-864-702-1 134-1 296

                                          Acquisition of shares-24-7-44-8-28-64

                                          Other investing activities19115608360537

                                          Cash flow before financing activities-8961793589335539

                                          Achieved power price for OAO Fortum

                                          288

                                          305

                                          292

                                          290

                                          300

                                          0

                                          6

                                          12

                                          18

                                          24

                                          30

                                          36

                                          Q32010Q42010Q12011Q22011Q32011

                                          eurMWh

                  MEUR
                  2011 166
                  2012 656
                  2013 633
                  2014 1266
                  2015 1041
                  2016 877
                  2017 267
                  2018 187
                  2019 882
                  2020 73
                  2021+ 1566
                  MEUR LTM 2010 2009 2008 2006 2005
                  EBITDA 2742 2271 2292 2478 1884
                  Comparable EBITDA 2433 2396 2398 1151 1271
                  Interest-bearing net debt 6929 6826 5969 6179 4345 3158
                  Net debtEBITDA 25 30 26 25 8161
                  Comparable Net debtEBITDA 28 28 25 16839 15130
                  23 18
                  Return on capital employed () 135 116 121 150 134 135
                  Return on shareholders equity () 185 157 160 187 144 135
                  ) as of 30 September 2011
                  MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
                  Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
                  Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
                  Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
                  Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
                  Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
                  Change in working capital -49 65 119 208 38 -51 -102 161 5 0
                  Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
                  Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
                  Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
                  Other investing activities 19 11 560 83 60 537 -21 258 -34 0
                  Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
                  MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
                  Sales 7732 1144 1152 4494 4394 6296 6396
                  Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
                  Comparable operating profit 623 297 302 1294 1292 1833 1835
                  Items affecting comparability 17 10 529 95 -125 309
                  Operating profit 314 312 1823 1387 1708 2144
                  Share of profit of associates and jvs -2 10 72 41 62 93
                  Financial expenses net -209 -72 -37 -199 -98 -155 -256
                  Profit before taxes 0 240 285 1696 1330 1615 1981
                  Income tax expense -83 -46 -45 -278 -236 -261 -303
                  Net profit for the period -26 194 240 1418 1094 1354 1678
                  Non-controlling interests -4 -7 70 25 54 99
                  EPS basic (EUR) 039 023 027 152 120 146 178
                  EPS diluted (EUR) 023 027 152 120 146 178
                  069
                  MEUR III2011 III2010 I-III2011 I-III2010 LTM
                  Sales 139 305 695 1269 1224
                  Comparable operating profit 4 11 25 8 28
                  Net Assets 43 55
                  Comparable RONA 305
                  Gross Investments 0 0 4 0 4
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 203 196 729 676 1016
              Comparable operating profit 62 61 246 216 337
              Net Assets 3463 3560
              Comparable RONA 99
              Gross Investments 73 51 169 127 255
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 156 137 646 550 900
          Comparable operating profit -16 -16 39 -9 56
          Net Assets 3009 2522
          Comparable RONA 32
          Gross Investments 219 84 486 342 743
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 212 220 1259 1172 1857
      Comparable operating profit -14 -12 182 153 304
      Net Assets 3934 4021
      Comparable RONA 81
      Gross Investments 63 67 193 188 310
Page 35: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet1

Sheet2

Sheet3

Russia

  • Comparable operating profit on last yearrsquos level
  • Positive effect from commissioning new capacity
  • Energy spot market prices at last yearrsquos level
  • Higher fuel costs

    • Q3 Russia

      Sheet1

      Sheet2

      Sheet3

      Distribution

      • Stable comparable operating profit
      • Somewhat lower volumes efficiency improvements
      • Smart metering rollout to network customers in Finland proceeded

        • Q3 Distribution

          Sheet1

          Sheet2

          Sheet3

          Markets

          • Comparable operating profit decreased
          • Lower margins

            • Q3 Electricity Sales

              Sheet1

              Sheet2

              Sheet3

              Q3 Income statement

              Sheet1

              ampA
              Page ampP

              Q3 Cash flow statement

              Sheet1

              ampA
              Page ampP

              Key ratios

              Q3 lsquo11

              Sheet1

              Sheet2

              Sheet3

              Debt Maturity Profile

              per 30 Sept 2011 per 31 Dec 2010

              Average Interest Rate (incl swaps and forwards)43 35

              Portion of floating fixed debt 46 54 49 51

              Outlook

              Outlook

              • Key drivers and risks
              • Wholesale price of electricity
              • Demand
              • Fuels
              • CO2 emissions prices
              • Water reservoirs
              • Nuclear availability
              • Nordic markets
              • Annual electricity demand growth estimated to be approximately 05
              • Electricity continues to gain share of total energy consumption
              • Russia
              • Profits from Russia build up in pace with the capacity increases
              • A new unit in Tobolsk at the beginning of October
              • Fortum targets a positive economic value added after completing the ongoing investment programme

                • Outlook

                  • Annual capex (excluding potential acquisitions)
                  • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                  • 2012 around EUR 16 to 18 billion
                  • 2013 and 2014 around EUR 11 to 14 billion annually
                  • Hedging
                  • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                    • (Q2 70 at EUR 45MWh)

                      • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                        • (Q2 50 at EUR 46MWh)

                          • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                            • (Q2 not disclosed)

                              Strong financial position

                                  Return on capital employed

                                  12

                                  Return on shareholders equity

                                  14

                                  Net debtEBITDA

                                  around 30

                                  135

                                  185

                                  28

                                  Fortumrsquos financial targets

                                  LTM in Q32011

                                  Good liquidity ndash committed credit lines total EUR 27 billion

                                  Last twelve months

                                  Comparable net debtEBITDA

                                  Fortumrsquos production structure creates a firm basis for the future

                                  • Strong financial position
                                  • Electricity will continue to gain a higher share of the total energy consumption
                                  • Good production portfolio going forward
                                  • Growth in Russia

                                    • QampA

                                      Conference call

                                      20 October 2011

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales1393056951 2691 224

                                      Comparable operating profit41125828

                                      Net Assets4355

                                      Comparable RONA 305

                                      Gross Investments00404

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales156137646550900

                                      Comparable operating profit-16-1639-956

                                      Net Assets3 0092 522

                                      Comparable RONA 32

                                      Gross Investments21984486342743

                                      0

                                      250

                                      500

                                      750

                                      1000

                                      1250

                                      1500

                                      1750

                                      20112012201320142015201620172018201920202021+

                                      BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales2031967296761 016

                                      Comparable operating profit6261246216337

                                      Net Assets3 4633 560

                                      Comparable RONA 99

                                      Gross Investments7351169127255

                                      MEUR

                                      III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                      Power2682672732568509621 0331 003

                                      Heat-14-12-10-15182153280179

                                      Russia-16-16-161439-93937

                                      Distribution62616062246216437228

                                      Electricity Sales41161225896

                                      Other-7-91-17-48-3825-66

                                      Total2973023143121 2941 2921 8231 387

                                      Comparable operating profit

                                      Reported operating profit

                                      Comparable operating profit

                                      Reported operating profit

                                      MEURLTM20102009

                                      EBITDA2 7422 2712 292

                                      Comparable EBITDA2 4332 3962 398

                                      Interest-bearing net debt6 9296 8265 969

                                      Net debtEBITDA253026

                                      Comparable Net debtEBITDA282825

                                      Return on capital employed ()135116121

                                      Return on shareholders equity ()185157160

                                      ) as of 30 September 2011

                                      Spot price for power in NordPool power exchange

                                      459

                                      621

                                      523

                                      360

                                      662

                                      0

                                      12

                                      24

                                      36

                                      48

                                      60

                                      72

                                      Q32010Q42010Q12011Q22011Q32011

                                      eurMWh

                                      MEURIII2011III2010I-III2011I-III20102010LTM

                                      Sales1 144

                                      1 1524 4944 3946 296

                                      6 396

                                      Expenses-847-850-3 200-3 102-4 463-4 561

                                      Comparable operating profit2973021 2941 2921 8331 835

                                      Items affecting comparability171052995-125309

                                      Operating profit3143121 8231 3871 7082 144

                                      Share of profit of associates and jvs-21072416293

                                      Financial expenses net-72-37-199-98-155-256

                                      Profit before taxes2402851 6961 3301 6151 981

                                      Income tax expense-46-45-278-236-261-303

                                      Net profit for the period1942401 4181 0941 3541 678

                                      Non-controlling interests-4-770255499

                                      EPS basic (EUR)023027152120146178

                                      EPS diluted (EUR)023027152120146178

                                      Spot price for power (market price) Urals hub

                                      935

                                      817

                                      950

                                      954

                                      939

                                      0

                                      200

                                      400

                                      600

                                      800

                                      1 000

                                      1 200

                                      Q32010Q42010Q12011Q22011Q32011

                                      RUBMWh

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales2122201 2591 1721 857

                                      Comparable operating profit-14-12182153304

                                      Net Assets3 9344 021

                                      Comparable RONA 81

                                      Gross Investments6367193188310

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales5605841 8271 9502 579

                                      Comparable operating profit2682678509621 186

                                      Net Assets5 9565 818

                                      Comparable RONA 195

                                      Gross Investments313210087135

                                      Powers Nordic power price

                                      469

                                      488

                                      479

                                      474

                                      443

                                      0

                                      10

                                      20

                                      30

                                      40

                                      50

                                      60

                                      Q32010Q42010Q12011Q22011Q32011

                                      eurMWh

                                      MEURIII2011III2010I-II2011I-III20102010LTM

                                      Operating profit before depreciations4614522 2741 8032 2712 742

                                      Non-cash flow items and divesting activities

                                      -31-25-600-98124-378

                                      Financial items and fx gainslosses

                                      0-126-290-449-641-482

                                      Taxes

                                      -104-93-362-248-355-469

                                      Funds from operations (FFO)

                                      3262081 0221 0081 3991 413

                                      Change in working capital

                                      -496511920838-51

                                      Total net cash from operating activities2772731 1411 2161 4371 362

                                      Paid capital expenditures-361-216-864-702-1 134-1 296

                                      Acquisition of shares-24-7-44-8-28-64

                                      Other investing activities19115608360537

                                      Cash flow before financing activities-8961793589335539

                                      Achieved power price for OAO Fortum

                                      288

                                      305

                                      292

                                      290

                                      300

                                      0

                                      6

                                      12

                                      18

                                      24

                                      30

                                      36

                                      Q32010Q42010Q12011Q22011Q32011

                                      eurMWh

              MEUR
              2011 166
              2012 656
              2013 633
              2014 1266
              2015 1041
              2016 877
              2017 267
              2018 187
              2019 882
              2020 73
              2021+ 1566
              MEUR LTM 2010 2009 2008 2006 2005
              EBITDA 2742 2271 2292 2478 1884
              Comparable EBITDA 2433 2396 2398 1151 1271
              Interest-bearing net debt 6929 6826 5969 6179 4345 3158
              Net debtEBITDA 25 30 26 25 8161
              Comparable Net debtEBITDA 28 28 25 16839 15130
              23 18
              Return on capital employed () 135 116 121 150 134 135
              Return on shareholders equity () 185 157 160 187 144 135
              ) as of 30 September 2011
              MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
              Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
              Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
              Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
              Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
              Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
              Change in working capital -49 65 119 208 38 -51 -102 161 5 0
              Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
              Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
              Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
              Other investing activities 19 11 560 83 60 537 -21 258 -34 0
              Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
              MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
              Sales 7732 1144 1152 4494 4394 6296 6396
              Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
              Comparable operating profit 623 297 302 1294 1292 1833 1835
              Items affecting comparability 17 10 529 95 -125 309
              Operating profit 314 312 1823 1387 1708 2144
              Share of profit of associates and jvs -2 10 72 41 62 93
              Financial expenses net -209 -72 -37 -199 -98 -155 -256
              Profit before taxes 0 240 285 1696 1330 1615 1981
              Income tax expense -83 -46 -45 -278 -236 -261 -303
              Net profit for the period -26 194 240 1418 1094 1354 1678
              Non-controlling interests -4 -7 70 25 54 99
              EPS basic (EUR) 039 023 027 152 120 146 178
              EPS diluted (EUR) 023 027 152 120 146 178
              069
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 139 305 695 1269 1224
              Comparable operating profit 4 11 25 8 28
              Net Assets 43 55
              Comparable RONA 305
              Gross Investments 0 0 4 0 4
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 203 196 729 676 1016
          Comparable operating profit 62 61 246 216 337
          Net Assets 3463 3560
          Comparable RONA 99
          Gross Investments 73 51 169 127 255
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 156 137 646 550 900
      Comparable operating profit -16 -16 39 -9 56
      Net Assets 3009 2522
      Comparable RONA 32
      Gross Investments 219 84 486 342 743
MEUR III2011 III2010 I-III2011 I-III2010 LTM
Sales 212 220 1259 1172 1857
Comparable operating profit -14 -12 182 153 304
Net Assets 3934 4021
Comparable RONA 81
Gross Investments 63 67 193 188 310
Page 36: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet2

Sheet3

Russia

  • Comparable operating profit on last yearrsquos level
  • Positive effect from commissioning new capacity
  • Energy spot market prices at last yearrsquos level
  • Higher fuel costs

    • Q3 Russia

      Sheet1

      Sheet2

      Sheet3

      Distribution

      • Stable comparable operating profit
      • Somewhat lower volumes efficiency improvements
      • Smart metering rollout to network customers in Finland proceeded

        • Q3 Distribution

          Sheet1

          Sheet2

          Sheet3

          Markets

          • Comparable operating profit decreased
          • Lower margins

            • Q3 Electricity Sales

              Sheet1

              Sheet2

              Sheet3

              Q3 Income statement

              Sheet1

              ampA
              Page ampP

              Q3 Cash flow statement

              Sheet1

              ampA
              Page ampP

              Key ratios

              Q3 lsquo11

              Sheet1

              Sheet2

              Sheet3

              Debt Maturity Profile

              per 30 Sept 2011 per 31 Dec 2010

              Average Interest Rate (incl swaps and forwards)43 35

              Portion of floating fixed debt 46 54 49 51

              Outlook

              Outlook

              • Key drivers and risks
              • Wholesale price of electricity
              • Demand
              • Fuels
              • CO2 emissions prices
              • Water reservoirs
              • Nuclear availability
              • Nordic markets
              • Annual electricity demand growth estimated to be approximately 05
              • Electricity continues to gain share of total energy consumption
              • Russia
              • Profits from Russia build up in pace with the capacity increases
              • A new unit in Tobolsk at the beginning of October
              • Fortum targets a positive economic value added after completing the ongoing investment programme

                • Outlook

                  • Annual capex (excluding potential acquisitions)
                  • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                  • 2012 around EUR 16 to 18 billion
                  • 2013 and 2014 around EUR 11 to 14 billion annually
                  • Hedging
                  • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                    • (Q2 70 at EUR 45MWh)

                      • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                        • (Q2 50 at EUR 46MWh)

                          • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                            • (Q2 not disclosed)

                              Strong financial position

                                  Return on capital employed

                                  12

                                  Return on shareholders equity

                                  14

                                  Net debtEBITDA

                                  around 30

                                  135

                                  185

                                  28

                                  Fortumrsquos financial targets

                                  LTM in Q32011

                                  Good liquidity ndash committed credit lines total EUR 27 billion

                                  Last twelve months

                                  Comparable net debtEBITDA

                                  Fortumrsquos production structure creates a firm basis for the future

                                  • Strong financial position
                                  • Electricity will continue to gain a higher share of the total energy consumption
                                  • Good production portfolio going forward
                                  • Growth in Russia

                                    • QampA

                                      Conference call

                                      20 October 2011

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales1393056951 2691 224

                                      Comparable operating profit41125828

                                      Net Assets4355

                                      Comparable RONA 305

                                      Gross Investments00404

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales156137646550900

                                      Comparable operating profit-16-1639-956

                                      Net Assets3 0092 522

                                      Comparable RONA 32

                                      Gross Investments21984486342743

                                      0

                                      250

                                      500

                                      750

                                      1000

                                      1250

                                      1500

                                      1750

                                      20112012201320142015201620172018201920202021+

                                      BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales2031967296761 016

                                      Comparable operating profit6261246216337

                                      Net Assets3 4633 560

                                      Comparable RONA 99

                                      Gross Investments7351169127255

                                      MEUR

                                      III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                      Power2682672732568509621 0331 003

                                      Heat-14-12-10-15182153280179

                                      Russia-16-16-161439-93937

                                      Distribution62616062246216437228

                                      Electricity Sales41161225896

                                      Other-7-91-17-48-3825-66

                                      Total2973023143121 2941 2921 8231 387

                                      Comparable operating profit

                                      Reported operating profit

                                      Comparable operating profit

                                      Reported operating profit

                                      MEURLTM20102009

                                      EBITDA2 7422 2712 292

                                      Comparable EBITDA2 4332 3962 398

                                      Interest-bearing net debt6 9296 8265 969

                                      Net debtEBITDA253026

                                      Comparable Net debtEBITDA282825

                                      Return on capital employed ()135116121

                                      Return on shareholders equity ()185157160

                                      ) as of 30 September 2011

                                      Spot price for power in NordPool power exchange

                                      459

                                      621

                                      523

                                      360

                                      662

                                      0

                                      12

                                      24

                                      36

                                      48

                                      60

                                      72

                                      Q32010Q42010Q12011Q22011Q32011

                                      eurMWh

                                      MEURIII2011III2010I-III2011I-III20102010LTM

                                      Sales1 144

                                      1 1524 4944 3946 296

                                      6 396

                                      Expenses-847-850-3 200-3 102-4 463-4 561

                                      Comparable operating profit2973021 2941 2921 8331 835

                                      Items affecting comparability171052995-125309

                                      Operating profit3143121 8231 3871 7082 144

                                      Share of profit of associates and jvs-21072416293

                                      Financial expenses net-72-37-199-98-155-256

                                      Profit before taxes2402851 6961 3301 6151 981

                                      Income tax expense-46-45-278-236-261-303

                                      Net profit for the period1942401 4181 0941 3541 678

                                      Non-controlling interests-4-770255499

                                      EPS basic (EUR)023027152120146178

                                      EPS diluted (EUR)023027152120146178

                                      Spot price for power (market price) Urals hub

                                      935

                                      817

                                      950

                                      954

                                      939

                                      0

                                      200

                                      400

                                      600

                                      800

                                      1 000

                                      1 200

                                      Q32010Q42010Q12011Q22011Q32011

                                      RUBMWh

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales2122201 2591 1721 857

                                      Comparable operating profit-14-12182153304

                                      Net Assets3 9344 021

                                      Comparable RONA 81

                                      Gross Investments6367193188310

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales5605841 8271 9502 579

                                      Comparable operating profit2682678509621 186

                                      Net Assets5 9565 818

                                      Comparable RONA 195

                                      Gross Investments313210087135

                                      Powers Nordic power price

                                      469

                                      488

                                      479

                                      474

                                      443

                                      0

                                      10

                                      20

                                      30

                                      40

                                      50

                                      60

                                      Q32010Q42010Q12011Q22011Q32011

                                      eurMWh

                                      MEURIII2011III2010I-II2011I-III20102010LTM

                                      Operating profit before depreciations4614522 2741 8032 2712 742

                                      Non-cash flow items and divesting activities

                                      -31-25-600-98124-378

                                      Financial items and fx gainslosses

                                      0-126-290-449-641-482

                                      Taxes

                                      -104-93-362-248-355-469

                                      Funds from operations (FFO)

                                      3262081 0221 0081 3991 413

                                      Change in working capital

                                      -496511920838-51

                                      Total net cash from operating activities2772731 1411 2161 4371 362

                                      Paid capital expenditures-361-216-864-702-1 134-1 296

                                      Acquisition of shares-24-7-44-8-28-64

                                      Other investing activities19115608360537

                                      Cash flow before financing activities-8961793589335539

                                      Achieved power price for OAO Fortum

                                      288

                                      305

                                      292

                                      290

                                      300

                                      0

                                      6

                                      12

                                      18

                                      24

                                      30

                                      36

                                      Q32010Q42010Q12011Q22011Q32011

                                      eurMWh

              MEUR
              2011 166
              2012 656
              2013 633
              2014 1266
              2015 1041
              2016 877
              2017 267
              2018 187
              2019 882
              2020 73
              2021+ 1566
              MEUR LTM 2010 2009 2008 2006 2005
              EBITDA 2742 2271 2292 2478 1884
              Comparable EBITDA 2433 2396 2398 1151 1271
              Interest-bearing net debt 6929 6826 5969 6179 4345 3158
              Net debtEBITDA 25 30 26 25 8161
              Comparable Net debtEBITDA 28 28 25 16839 15130
              23 18
              Return on capital employed () 135 116 121 150 134 135
              Return on shareholders equity () 185 157 160 187 144 135
              ) as of 30 September 2011
              MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
              Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
              Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
              Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
              Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
              Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
              Change in working capital -49 65 119 208 38 -51 -102 161 5 0
              Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
              Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
              Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
              Other investing activities 19 11 560 83 60 537 -21 258 -34 0
              Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
              MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
              Sales 7732 1144 1152 4494 4394 6296 6396
              Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
              Comparable operating profit 623 297 302 1294 1292 1833 1835
              Items affecting comparability 17 10 529 95 -125 309
              Operating profit 314 312 1823 1387 1708 2144
              Share of profit of associates and jvs -2 10 72 41 62 93
              Financial expenses net -209 -72 -37 -199 -98 -155 -256
              Profit before taxes 0 240 285 1696 1330 1615 1981
              Income tax expense -83 -46 -45 -278 -236 -261 -303
              Net profit for the period -26 194 240 1418 1094 1354 1678
              Non-controlling interests -4 -7 70 25 54 99
              EPS basic (EUR) 039 023 027 152 120 146 178
              EPS diluted (EUR) 023 027 152 120 146 178
              069
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 139 305 695 1269 1224
              Comparable operating profit 4 11 25 8 28
              Net Assets 43 55
              Comparable RONA 305
              Gross Investments 0 0 4 0 4
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 203 196 729 676 1016
          Comparable operating profit 62 61 246 216 337
          Net Assets 3463 3560
          Comparable RONA 99
          Gross Investments 73 51 169 127 255
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 156 137 646 550 900
      Comparable operating profit -16 -16 39 -9 56
      Net Assets 3009 2522
      Comparable RONA 32
      Gross Investments 219 84 486 342 743
Page 37: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet3

Russia

  • Comparable operating profit on last yearrsquos level
  • Positive effect from commissioning new capacity
  • Energy spot market prices at last yearrsquos level
  • Higher fuel costs

    • Q3 Russia

      Sheet1

      Sheet2

      Sheet3

      Distribution

      • Stable comparable operating profit
      • Somewhat lower volumes efficiency improvements
      • Smart metering rollout to network customers in Finland proceeded

        • Q3 Distribution

          Sheet1

          Sheet2

          Sheet3

          Markets

          • Comparable operating profit decreased
          • Lower margins

            • Q3 Electricity Sales

              Sheet1

              Sheet2

              Sheet3

              Q3 Income statement

              Sheet1

              ampA
              Page ampP

              Q3 Cash flow statement

              Sheet1

              ampA
              Page ampP

              Key ratios

              Q3 lsquo11

              Sheet1

              Sheet2

              Sheet3

              Debt Maturity Profile

              per 30 Sept 2011 per 31 Dec 2010

              Average Interest Rate (incl swaps and forwards)43 35

              Portion of floating fixed debt 46 54 49 51

              Outlook

              Outlook

              • Key drivers and risks
              • Wholesale price of electricity
              • Demand
              • Fuels
              • CO2 emissions prices
              • Water reservoirs
              • Nuclear availability
              • Nordic markets
              • Annual electricity demand growth estimated to be approximately 05
              • Electricity continues to gain share of total energy consumption
              • Russia
              • Profits from Russia build up in pace with the capacity increases
              • A new unit in Tobolsk at the beginning of October
              • Fortum targets a positive economic value added after completing the ongoing investment programme

                • Outlook

                  • Annual capex (excluding potential acquisitions)
                  • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
                  • 2012 around EUR 16 to 18 billion
                  • 2013 and 2014 around EUR 11 to 14 billion annually
                  • Hedging
                  • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                    • (Q2 70 at EUR 45MWh)

                      • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                        • (Q2 50 at EUR 46MWh)

                          • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                            • (Q2 not disclosed)

                              Strong financial position

                                  Return on capital employed

                                  12

                                  Return on shareholders equity

                                  14

                                  Net debtEBITDA

                                  around 30

                                  135

                                  185

                                  28

                                  Fortumrsquos financial targets

                                  LTM in Q32011

                                  Good liquidity ndash committed credit lines total EUR 27 billion

                                  Last twelve months

                                  Comparable net debtEBITDA

                                  Fortumrsquos production structure creates a firm basis for the future

                                  • Strong financial position
                                  • Electricity will continue to gain a higher share of the total energy consumption
                                  • Good production portfolio going forward
                                  • Growth in Russia

                                    • QampA

                                      Conference call

                                      20 October 2011

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales1393056951 2691 224

                                      Comparable operating profit41125828

                                      Net Assets4355

                                      Comparable RONA 305

                                      Gross Investments00404

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales156137646550900

                                      Comparable operating profit-16-1639-956

                                      Net Assets3 0092 522

                                      Comparable RONA 32

                                      Gross Investments21984486342743

                                      0

                                      250

                                      500

                                      750

                                      1000

                                      1250

                                      1500

                                      1750

                                      20112012201320142015201620172018201920202021+

                                      BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales2031967296761 016

                                      Comparable operating profit6261246216337

                                      Net Assets3 4633 560

                                      Comparable RONA 99

                                      Gross Investments7351169127255

                                      MEUR

                                      III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                      Power2682672732568509621 0331 003

                                      Heat-14-12-10-15182153280179

                                      Russia-16-16-161439-93937

                                      Distribution62616062246216437228

                                      Electricity Sales41161225896

                                      Other-7-91-17-48-3825-66

                                      Total2973023143121 2941 2921 8231 387

                                      Comparable operating profit

                                      Reported operating profit

                                      Comparable operating profit

                                      Reported operating profit

                                      MEURLTM20102009

                                      EBITDA2 7422 2712 292

                                      Comparable EBITDA2 4332 3962 398

                                      Interest-bearing net debt6 9296 8265 969

                                      Net debtEBITDA253026

                                      Comparable Net debtEBITDA282825

                                      Return on capital employed ()135116121

                                      Return on shareholders equity ()185157160

                                      ) as of 30 September 2011

                                      Spot price for power in NordPool power exchange

                                      459

                                      621

                                      523

                                      360

                                      662

                                      0

                                      12

                                      24

                                      36

                                      48

                                      60

                                      72

                                      Q32010Q42010Q12011Q22011Q32011

                                      eurMWh

                                      MEURIII2011III2010I-III2011I-III20102010LTM

                                      Sales1 144

                                      1 1524 4944 3946 296

                                      6 396

                                      Expenses-847-850-3 200-3 102-4 463-4 561

                                      Comparable operating profit2973021 2941 2921 8331 835

                                      Items affecting comparability171052995-125309

                                      Operating profit3143121 8231 3871 7082 144

                                      Share of profit of associates and jvs-21072416293

                                      Financial expenses net-72-37-199-98-155-256

                                      Profit before taxes2402851 6961 3301 6151 981

                                      Income tax expense-46-45-278-236-261-303

                                      Net profit for the period1942401 4181 0941 3541 678

                                      Non-controlling interests-4-770255499

                                      EPS basic (EUR)023027152120146178

                                      EPS diluted (EUR)023027152120146178

                                      Spot price for power (market price) Urals hub

                                      935

                                      817

                                      950

                                      954

                                      939

                                      0

                                      200

                                      400

                                      600

                                      800

                                      1 000

                                      1 200

                                      Q32010Q42010Q12011Q22011Q32011

                                      RUBMWh

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales2122201 2591 1721 857

                                      Comparable operating profit-14-12182153304

                                      Net Assets3 9344 021

                                      Comparable RONA 81

                                      Gross Investments6367193188310

                                      MEURIII2011III2010I-III2011I-III2010LTM

                                      Sales5605841 8271 9502 579

                                      Comparable operating profit2682678509621 186

                                      Net Assets5 9565 818

                                      Comparable RONA 195

                                      Gross Investments313210087135

                                      Powers Nordic power price

                                      469

                                      488

                                      479

                                      474

                                      443

                                      0

                                      10

                                      20

                                      30

                                      40

                                      50

                                      60

                                      Q32010Q42010Q12011Q22011Q32011

                                      eurMWh

                                      MEURIII2011III2010I-II2011I-III20102010LTM

                                      Operating profit before depreciations4614522 2741 8032 2712 742

                                      Non-cash flow items and divesting activities

                                      -31-25-600-98124-378

                                      Financial items and fx gainslosses

                                      0-126-290-449-641-482

                                      Taxes

                                      -104-93-362-248-355-469

                                      Funds from operations (FFO)

                                      3262081 0221 0081 3991 413

                                      Change in working capital

                                      -496511920838-51

                                      Total net cash from operating activities2772731 1411 2161 4371 362

                                      Paid capital expenditures-361-216-864-702-1 134-1 296

                                      Acquisition of shares-24-7-44-8-28-64

                                      Other investing activities19115608360537

                                      Cash flow before financing activities-8961793589335539

                                      Achieved power price for OAO Fortum

                                      288

                                      305

                                      292

                                      290

                                      300

                                      0

                                      6

                                      12

                                      18

                                      24

                                      30

                                      36

                                      Q32010Q42010Q12011Q22011Q32011

                                      eurMWh

              MEUR
              2011 166
              2012 656
              2013 633
              2014 1266
              2015 1041
              2016 877
              2017 267
              2018 187
              2019 882
              2020 73
              2021+ 1566
              MEUR LTM 2010 2009 2008 2006 2005
              EBITDA 2742 2271 2292 2478 1884
              Comparable EBITDA 2433 2396 2398 1151 1271
              Interest-bearing net debt 6929 6826 5969 6179 4345 3158
              Net debtEBITDA 25 30 26 25 8161
              Comparable Net debtEBITDA 28 28 25 16839 15130
              23 18
              Return on capital employed () 135 116 121 150 134 135
              Return on shareholders equity () 185 157 160 187 144 135
              ) as of 30 September 2011
              MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
              Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
              Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
              Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
              Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
              Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
              Change in working capital -49 65 119 208 38 -51 -102 161 5 0
              Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
              Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
              Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
              Other investing activities 19 11 560 83 60 537 -21 258 -34 0
              Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
              MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
              Sales 7732 1144 1152 4494 4394 6296 6396
              Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
              Comparable operating profit 623 297 302 1294 1292 1833 1835
              Items affecting comparability 17 10 529 95 -125 309
              Operating profit 314 312 1823 1387 1708 2144
              Share of profit of associates and jvs -2 10 72 41 62 93
              Financial expenses net -209 -72 -37 -199 -98 -155 -256
              Profit before taxes 0 240 285 1696 1330 1615 1981
              Income tax expense -83 -46 -45 -278 -236 -261 -303
              Net profit for the period -26 194 240 1418 1094 1354 1678
              Non-controlling interests -4 -7 70 25 54 99
              EPS basic (EUR) 039 023 027 152 120 146 178
              EPS diluted (EUR) 023 027 152 120 146 178
              069
              MEUR III2011 III2010 I-III2011 I-III2010 LTM
              Sales 139 305 695 1269 1224
              Comparable operating profit 4 11 25 8 28
              Net Assets 43 55
              Comparable RONA 305
              Gross Investments 0 0 4 0 4
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 203 196 729 676 1016
          Comparable operating profit 62 61 246 216 337
          Net Assets 3463 3560
          Comparable RONA 99
          Gross Investments 73 51 169 127 255
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 156 137 646 550 900
      Comparable operating profit -16 -16 39 -9 56
      Net Assets 3009 2522
      Comparable RONA 32
      Gross Investments 219 84 486 342 743
Page 38: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet1

Sheet2

Sheet3

Distribution

  • Stable comparable operating profit
  • Somewhat lower volumes efficiency improvements
  • Smart metering rollout to network customers in Finland proceeded

    • Q3 Distribution

      Sheet1

      Sheet2

      Sheet3

      Markets

      • Comparable operating profit decreased
      • Lower margins

        • Q3 Electricity Sales

          Sheet1

          Sheet2

          Sheet3

          Q3 Income statement

          Sheet1

          ampA
          Page ampP

          Q3 Cash flow statement

          Sheet1

          ampA
          Page ampP

          Key ratios

          Q3 lsquo11

          Sheet1

          Sheet2

          Sheet3

          Debt Maturity Profile

          per 30 Sept 2011 per 31 Dec 2010

          Average Interest Rate (incl swaps and forwards)43 35

          Portion of floating fixed debt 46 54 49 51

          Outlook

          Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Demand
          • Fuels
          • CO2 emissions prices
          • Water reservoirs
          • Nuclear availability
          • Nordic markets
          • Annual electricity demand growth estimated to be approximately 05
          • Electricity continues to gain share of total energy consumption
          • Russia
          • Profits from Russia build up in pace with the capacity increases
          • A new unit in Tobolsk at the beginning of October
          • Fortum targets a positive economic value added after completing the ongoing investment programme

            • Outlook

              • Annual capex (excluding potential acquisitions)
              • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
              • 2012 around EUR 16 to 18 billion
              • 2013 and 2014 around EUR 11 to 14 billion annually
              • Hedging
              • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                • (Q2 70 at EUR 45MWh)

                  • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                    • (Q2 50 at EUR 46MWh)

                      • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                        • (Q2 not disclosed)

                          Strong financial position

                              Return on capital employed

                              12

                              Return on shareholders equity

                              14

                              Net debtEBITDA

                              around 30

                              135

                              185

                              28

                              Fortumrsquos financial targets

                              LTM in Q32011

                              Good liquidity ndash committed credit lines total EUR 27 billion

                              Last twelve months

                              Comparable net debtEBITDA

                              Fortumrsquos production structure creates a firm basis for the future

                              • Strong financial position
                              • Electricity will continue to gain a higher share of the total energy consumption
                              • Good production portfolio going forward
                              • Growth in Russia

                                • QampA

                                  Conference call

                                  20 October 2011

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales1393056951 2691 224

                                  Comparable operating profit41125828

                                  Net Assets4355

                                  Comparable RONA 305

                                  Gross Investments00404

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales156137646550900

                                  Comparable operating profit-16-1639-956

                                  Net Assets3 0092 522

                                  Comparable RONA 32

                                  Gross Investments21984486342743

                                  0

                                  250

                                  500

                                  750

                                  1000

                                  1250

                                  1500

                                  1750

                                  20112012201320142015201620172018201920202021+

                                  BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales2031967296761 016

                                  Comparable operating profit6261246216337

                                  Net Assets3 4633 560

                                  Comparable RONA 99

                                  Gross Investments7351169127255

                                  MEUR

                                  III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                  Power2682672732568509621 0331 003

                                  Heat-14-12-10-15182153280179

                                  Russia-16-16-161439-93937

                                  Distribution62616062246216437228

                                  Electricity Sales41161225896

                                  Other-7-91-17-48-3825-66

                                  Total2973023143121 2941 2921 8231 387

                                  Comparable operating profit

                                  Reported operating profit

                                  Comparable operating profit

                                  Reported operating profit

                                  MEURLTM20102009

                                  EBITDA2 7422 2712 292

                                  Comparable EBITDA2 4332 3962 398

                                  Interest-bearing net debt6 9296 8265 969

                                  Net debtEBITDA253026

                                  Comparable Net debtEBITDA282825

                                  Return on capital employed ()135116121

                                  Return on shareholders equity ()185157160

                                  ) as of 30 September 2011

                                  Spot price for power in NordPool power exchange

                                  459

                                  621

                                  523

                                  360

                                  662

                                  0

                                  12

                                  24

                                  36

                                  48

                                  60

                                  72

                                  Q32010Q42010Q12011Q22011Q32011

                                  eurMWh

                                  MEURIII2011III2010I-III2011I-III20102010LTM

                                  Sales1 144

                                  1 1524 4944 3946 296

                                  6 396

                                  Expenses-847-850-3 200-3 102-4 463-4 561

                                  Comparable operating profit2973021 2941 2921 8331 835

                                  Items affecting comparability171052995-125309

                                  Operating profit3143121 8231 3871 7082 144

                                  Share of profit of associates and jvs-21072416293

                                  Financial expenses net-72-37-199-98-155-256

                                  Profit before taxes2402851 6961 3301 6151 981

                                  Income tax expense-46-45-278-236-261-303

                                  Net profit for the period1942401 4181 0941 3541 678

                                  Non-controlling interests-4-770255499

                                  EPS basic (EUR)023027152120146178

                                  EPS diluted (EUR)023027152120146178

                                  Spot price for power (market price) Urals hub

                                  935

                                  817

                                  950

                                  954

                                  939

                                  0

                                  200

                                  400

                                  600

                                  800

                                  1 000

                                  1 200

                                  Q32010Q42010Q12011Q22011Q32011

                                  RUBMWh

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales2122201 2591 1721 857

                                  Comparable operating profit-14-12182153304

                                  Net Assets3 9344 021

                                  Comparable RONA 81

                                  Gross Investments6367193188310

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales5605841 8271 9502 579

                                  Comparable operating profit2682678509621 186

                                  Net Assets5 9565 818

                                  Comparable RONA 195

                                  Gross Investments313210087135

                                  Powers Nordic power price

                                  469

                                  488

                                  479

                                  474

                                  443

                                  0

                                  10

                                  20

                                  30

                                  40

                                  50

                                  60

                                  Q32010Q42010Q12011Q22011Q32011

                                  eurMWh

                                  MEURIII2011III2010I-II2011I-III20102010LTM

                                  Operating profit before depreciations4614522 2741 8032 2712 742

                                  Non-cash flow items and divesting activities

                                  -31-25-600-98124-378

                                  Financial items and fx gainslosses

                                  0-126-290-449-641-482

                                  Taxes

                                  -104-93-362-248-355-469

                                  Funds from operations (FFO)

                                  3262081 0221 0081 3991 413

                                  Change in working capital

                                  -496511920838-51

                                  Total net cash from operating activities2772731 1411 2161 4371 362

                                  Paid capital expenditures-361-216-864-702-1 134-1 296

                                  Acquisition of shares-24-7-44-8-28-64

                                  Other investing activities19115608360537

                                  Cash flow before financing activities-8961793589335539

                                  Achieved power price for OAO Fortum

                                  288

                                  305

                                  292

                                  290

                                  300

                                  0

                                  6

                                  12

                                  18

                                  24

                                  30

                                  36

                                  Q32010Q42010Q12011Q22011Q32011

                                  eurMWh

          MEUR
          2011 166
          2012 656
          2013 633
          2014 1266
          2015 1041
          2016 877
          2017 267
          2018 187
          2019 882
          2020 73
          2021+ 1566
          MEUR LTM 2010 2009 2008 2006 2005
          EBITDA 2742 2271 2292 2478 1884
          Comparable EBITDA 2433 2396 2398 1151 1271
          Interest-bearing net debt 6929 6826 5969 6179 4345 3158
          Net debtEBITDA 25 30 26 25 8161
          Comparable Net debtEBITDA 28 28 25 16839 15130
          23 18
          Return on capital employed () 135 116 121 150 134 135
          Return on shareholders equity () 185 157 160 187 144 135
          ) as of 30 September 2011
          MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
          Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
          Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
          Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
          Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
          Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
          Change in working capital -49 65 119 208 38 -51 -102 161 5 0
          Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
          Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
          Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
          Other investing activities 19 11 560 83 60 537 -21 258 -34 0
          Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
          MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
          Sales 7732 1144 1152 4494 4394 6296 6396
          Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
          Comparable operating profit 623 297 302 1294 1292 1833 1835
          Items affecting comparability 17 10 529 95 -125 309
          Operating profit 314 312 1823 1387 1708 2144
          Share of profit of associates and jvs -2 10 72 41 62 93
          Financial expenses net -209 -72 -37 -199 -98 -155 -256
          Profit before taxes 0 240 285 1696 1330 1615 1981
          Income tax expense -83 -46 -45 -278 -236 -261 -303
          Net profit for the period -26 194 240 1418 1094 1354 1678
          Non-controlling interests -4 -7 70 25 54 99
          EPS basic (EUR) 039 023 027 152 120 146 178
          EPS diluted (EUR) 023 027 152 120 146 178
          069
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 139 305 695 1269 1224
          Comparable operating profit 4 11 25 8 28
          Net Assets 43 55
          Comparable RONA 305
          Gross Investments 0 0 4 0 4
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 203 196 729 676 1016
      Comparable operating profit 62 61 246 216 337
      Net Assets 3463 3560
      Comparable RONA 99
      Gross Investments 73 51 169 127 255
MEUR III2011 III2010 I-III2011 I-III2010 LTM
Sales 156 137 646 550 900
Comparable operating profit -16 -16 39 -9 56
Net Assets 3009 2522
Comparable RONA 32
Gross Investments 219 84 486 342 743
Page 39: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet2

Sheet3

Distribution

  • Stable comparable operating profit
  • Somewhat lower volumes efficiency improvements
  • Smart metering rollout to network customers in Finland proceeded

    • Q3 Distribution

      Sheet1

      Sheet2

      Sheet3

      Markets

      • Comparable operating profit decreased
      • Lower margins

        • Q3 Electricity Sales

          Sheet1

          Sheet2

          Sheet3

          Q3 Income statement

          Sheet1

          ampA
          Page ampP

          Q3 Cash flow statement

          Sheet1

          ampA
          Page ampP

          Key ratios

          Q3 lsquo11

          Sheet1

          Sheet2

          Sheet3

          Debt Maturity Profile

          per 30 Sept 2011 per 31 Dec 2010

          Average Interest Rate (incl swaps and forwards)43 35

          Portion of floating fixed debt 46 54 49 51

          Outlook

          Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Demand
          • Fuels
          • CO2 emissions prices
          • Water reservoirs
          • Nuclear availability
          • Nordic markets
          • Annual electricity demand growth estimated to be approximately 05
          • Electricity continues to gain share of total energy consumption
          • Russia
          • Profits from Russia build up in pace with the capacity increases
          • A new unit in Tobolsk at the beginning of October
          • Fortum targets a positive economic value added after completing the ongoing investment programme

            • Outlook

              • Annual capex (excluding potential acquisitions)
              • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
              • 2012 around EUR 16 to 18 billion
              • 2013 and 2014 around EUR 11 to 14 billion annually
              • Hedging
              • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                • (Q2 70 at EUR 45MWh)

                  • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                    • (Q2 50 at EUR 46MWh)

                      • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                        • (Q2 not disclosed)

                          Strong financial position

                              Return on capital employed

                              12

                              Return on shareholders equity

                              14

                              Net debtEBITDA

                              around 30

                              135

                              185

                              28

                              Fortumrsquos financial targets

                              LTM in Q32011

                              Good liquidity ndash committed credit lines total EUR 27 billion

                              Last twelve months

                              Comparable net debtEBITDA

                              Fortumrsquos production structure creates a firm basis for the future

                              • Strong financial position
                              • Electricity will continue to gain a higher share of the total energy consumption
                              • Good production portfolio going forward
                              • Growth in Russia

                                • QampA

                                  Conference call

                                  20 October 2011

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales1393056951 2691 224

                                  Comparable operating profit41125828

                                  Net Assets4355

                                  Comparable RONA 305

                                  Gross Investments00404

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales156137646550900

                                  Comparable operating profit-16-1639-956

                                  Net Assets3 0092 522

                                  Comparable RONA 32

                                  Gross Investments21984486342743

                                  0

                                  250

                                  500

                                  750

                                  1000

                                  1250

                                  1500

                                  1750

                                  20112012201320142015201620172018201920202021+

                                  BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales2031967296761 016

                                  Comparable operating profit6261246216337

                                  Net Assets3 4633 560

                                  Comparable RONA 99

                                  Gross Investments7351169127255

                                  MEUR

                                  III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                  Power2682672732568509621 0331 003

                                  Heat-14-12-10-15182153280179

                                  Russia-16-16-161439-93937

                                  Distribution62616062246216437228

                                  Electricity Sales41161225896

                                  Other-7-91-17-48-3825-66

                                  Total2973023143121 2941 2921 8231 387

                                  Comparable operating profit

                                  Reported operating profit

                                  Comparable operating profit

                                  Reported operating profit

                                  MEURLTM20102009

                                  EBITDA2 7422 2712 292

                                  Comparable EBITDA2 4332 3962 398

                                  Interest-bearing net debt6 9296 8265 969

                                  Net debtEBITDA253026

                                  Comparable Net debtEBITDA282825

                                  Return on capital employed ()135116121

                                  Return on shareholders equity ()185157160

                                  ) as of 30 September 2011

                                  Spot price for power in NordPool power exchange

                                  459

                                  621

                                  523

                                  360

                                  662

                                  0

                                  12

                                  24

                                  36

                                  48

                                  60

                                  72

                                  Q32010Q42010Q12011Q22011Q32011

                                  eurMWh

                                  MEURIII2011III2010I-III2011I-III20102010LTM

                                  Sales1 144

                                  1 1524 4944 3946 296

                                  6 396

                                  Expenses-847-850-3 200-3 102-4 463-4 561

                                  Comparable operating profit2973021 2941 2921 8331 835

                                  Items affecting comparability171052995-125309

                                  Operating profit3143121 8231 3871 7082 144

                                  Share of profit of associates and jvs-21072416293

                                  Financial expenses net-72-37-199-98-155-256

                                  Profit before taxes2402851 6961 3301 6151 981

                                  Income tax expense-46-45-278-236-261-303

                                  Net profit for the period1942401 4181 0941 3541 678

                                  Non-controlling interests-4-770255499

                                  EPS basic (EUR)023027152120146178

                                  EPS diluted (EUR)023027152120146178

                                  Spot price for power (market price) Urals hub

                                  935

                                  817

                                  950

                                  954

                                  939

                                  0

                                  200

                                  400

                                  600

                                  800

                                  1 000

                                  1 200

                                  Q32010Q42010Q12011Q22011Q32011

                                  RUBMWh

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales2122201 2591 1721 857

                                  Comparable operating profit-14-12182153304

                                  Net Assets3 9344 021

                                  Comparable RONA 81

                                  Gross Investments6367193188310

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales5605841 8271 9502 579

                                  Comparable operating profit2682678509621 186

                                  Net Assets5 9565 818

                                  Comparable RONA 195

                                  Gross Investments313210087135

                                  Powers Nordic power price

                                  469

                                  488

                                  479

                                  474

                                  443

                                  0

                                  10

                                  20

                                  30

                                  40

                                  50

                                  60

                                  Q32010Q42010Q12011Q22011Q32011

                                  eurMWh

                                  MEURIII2011III2010I-II2011I-III20102010LTM

                                  Operating profit before depreciations4614522 2741 8032 2712 742

                                  Non-cash flow items and divesting activities

                                  -31-25-600-98124-378

                                  Financial items and fx gainslosses

                                  0-126-290-449-641-482

                                  Taxes

                                  -104-93-362-248-355-469

                                  Funds from operations (FFO)

                                  3262081 0221 0081 3991 413

                                  Change in working capital

                                  -496511920838-51

                                  Total net cash from operating activities2772731 1411 2161 4371 362

                                  Paid capital expenditures-361-216-864-702-1 134-1 296

                                  Acquisition of shares-24-7-44-8-28-64

                                  Other investing activities19115608360537

                                  Cash flow before financing activities-8961793589335539

                                  Achieved power price for OAO Fortum

                                  288

                                  305

                                  292

                                  290

                                  300

                                  0

                                  6

                                  12

                                  18

                                  24

                                  30

                                  36

                                  Q32010Q42010Q12011Q22011Q32011

                                  eurMWh

          MEUR
          2011 166
          2012 656
          2013 633
          2014 1266
          2015 1041
          2016 877
          2017 267
          2018 187
          2019 882
          2020 73
          2021+ 1566
          MEUR LTM 2010 2009 2008 2006 2005
          EBITDA 2742 2271 2292 2478 1884
          Comparable EBITDA 2433 2396 2398 1151 1271
          Interest-bearing net debt 6929 6826 5969 6179 4345 3158
          Net debtEBITDA 25 30 26 25 8161
          Comparable Net debtEBITDA 28 28 25 16839 15130
          23 18
          Return on capital employed () 135 116 121 150 134 135
          Return on shareholders equity () 185 157 160 187 144 135
          ) as of 30 September 2011
          MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
          Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
          Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
          Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
          Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
          Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
          Change in working capital -49 65 119 208 38 -51 -102 161 5 0
          Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
          Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
          Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
          Other investing activities 19 11 560 83 60 537 -21 258 -34 0
          Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
          MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
          Sales 7732 1144 1152 4494 4394 6296 6396
          Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
          Comparable operating profit 623 297 302 1294 1292 1833 1835
          Items affecting comparability 17 10 529 95 -125 309
          Operating profit 314 312 1823 1387 1708 2144
          Share of profit of associates and jvs -2 10 72 41 62 93
          Financial expenses net -209 -72 -37 -199 -98 -155 -256
          Profit before taxes 0 240 285 1696 1330 1615 1981
          Income tax expense -83 -46 -45 -278 -236 -261 -303
          Net profit for the period -26 194 240 1418 1094 1354 1678
          Non-controlling interests -4 -7 70 25 54 99
          EPS basic (EUR) 039 023 027 152 120 146 178
          EPS diluted (EUR) 023 027 152 120 146 178
          069
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 139 305 695 1269 1224
          Comparable operating profit 4 11 25 8 28
          Net Assets 43 55
          Comparable RONA 305
          Gross Investments 0 0 4 0 4
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 203 196 729 676 1016
      Comparable operating profit 62 61 246 216 337
      Net Assets 3463 3560
      Comparable RONA 99
      Gross Investments 73 51 169 127 255
Page 40: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet3

Distribution

  • Stable comparable operating profit
  • Somewhat lower volumes efficiency improvements
  • Smart metering rollout to network customers in Finland proceeded

    • Q3 Distribution

      Sheet1

      Sheet2

      Sheet3

      Markets

      • Comparable operating profit decreased
      • Lower margins

        • Q3 Electricity Sales

          Sheet1

          Sheet2

          Sheet3

          Q3 Income statement

          Sheet1

          ampA
          Page ampP

          Q3 Cash flow statement

          Sheet1

          ampA
          Page ampP

          Key ratios

          Q3 lsquo11

          Sheet1

          Sheet2

          Sheet3

          Debt Maturity Profile

          per 30 Sept 2011 per 31 Dec 2010

          Average Interest Rate (incl swaps and forwards)43 35

          Portion of floating fixed debt 46 54 49 51

          Outlook

          Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Demand
          • Fuels
          • CO2 emissions prices
          • Water reservoirs
          • Nuclear availability
          • Nordic markets
          • Annual electricity demand growth estimated to be approximately 05
          • Electricity continues to gain share of total energy consumption
          • Russia
          • Profits from Russia build up in pace with the capacity increases
          • A new unit in Tobolsk at the beginning of October
          • Fortum targets a positive economic value added after completing the ongoing investment programme

            • Outlook

              • Annual capex (excluding potential acquisitions)
              • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
              • 2012 around EUR 16 to 18 billion
              • 2013 and 2014 around EUR 11 to 14 billion annually
              • Hedging
              • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

                • (Q2 70 at EUR 45MWh)

                  • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                    • (Q2 50 at EUR 46MWh)

                      • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                        • (Q2 not disclosed)

                          Strong financial position

                              Return on capital employed

                              12

                              Return on shareholders equity

                              14

                              Net debtEBITDA

                              around 30

                              135

                              185

                              28

                              Fortumrsquos financial targets

                              LTM in Q32011

                              Good liquidity ndash committed credit lines total EUR 27 billion

                              Last twelve months

                              Comparable net debtEBITDA

                              Fortumrsquos production structure creates a firm basis for the future

                              • Strong financial position
                              • Electricity will continue to gain a higher share of the total energy consumption
                              • Good production portfolio going forward
                              • Growth in Russia

                                • QampA

                                  Conference call

                                  20 October 2011

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales1393056951 2691 224

                                  Comparable operating profit41125828

                                  Net Assets4355

                                  Comparable RONA 305

                                  Gross Investments00404

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales156137646550900

                                  Comparable operating profit-16-1639-956

                                  Net Assets3 0092 522

                                  Comparable RONA 32

                                  Gross Investments21984486342743

                                  0

                                  250

                                  500

                                  750

                                  1000

                                  1250

                                  1500

                                  1750

                                  20112012201320142015201620172018201920202021+

                                  BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales2031967296761 016

                                  Comparable operating profit6261246216337

                                  Net Assets3 4633 560

                                  Comparable RONA 99

                                  Gross Investments7351169127255

                                  MEUR

                                  III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                                  Power2682672732568509621 0331 003

                                  Heat-14-12-10-15182153280179

                                  Russia-16-16-161439-93937

                                  Distribution62616062246216437228

                                  Electricity Sales41161225896

                                  Other-7-91-17-48-3825-66

                                  Total2973023143121 2941 2921 8231 387

                                  Comparable operating profit

                                  Reported operating profit

                                  Comparable operating profit

                                  Reported operating profit

                                  MEURLTM20102009

                                  EBITDA2 7422 2712 292

                                  Comparable EBITDA2 4332 3962 398

                                  Interest-bearing net debt6 9296 8265 969

                                  Net debtEBITDA253026

                                  Comparable Net debtEBITDA282825

                                  Return on capital employed ()135116121

                                  Return on shareholders equity ()185157160

                                  ) as of 30 September 2011

                                  Spot price for power in NordPool power exchange

                                  459

                                  621

                                  523

                                  360

                                  662

                                  0

                                  12

                                  24

                                  36

                                  48

                                  60

                                  72

                                  Q32010Q42010Q12011Q22011Q32011

                                  eurMWh

                                  MEURIII2011III2010I-III2011I-III20102010LTM

                                  Sales1 144

                                  1 1524 4944 3946 296

                                  6 396

                                  Expenses-847-850-3 200-3 102-4 463-4 561

                                  Comparable operating profit2973021 2941 2921 8331 835

                                  Items affecting comparability171052995-125309

                                  Operating profit3143121 8231 3871 7082 144

                                  Share of profit of associates and jvs-21072416293

                                  Financial expenses net-72-37-199-98-155-256

                                  Profit before taxes2402851 6961 3301 6151 981

                                  Income tax expense-46-45-278-236-261-303

                                  Net profit for the period1942401 4181 0941 3541 678

                                  Non-controlling interests-4-770255499

                                  EPS basic (EUR)023027152120146178

                                  EPS diluted (EUR)023027152120146178

                                  Spot price for power (market price) Urals hub

                                  935

                                  817

                                  950

                                  954

                                  939

                                  0

                                  200

                                  400

                                  600

                                  800

                                  1 000

                                  1 200

                                  Q32010Q42010Q12011Q22011Q32011

                                  RUBMWh

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales2122201 2591 1721 857

                                  Comparable operating profit-14-12182153304

                                  Net Assets3 9344 021

                                  Comparable RONA 81

                                  Gross Investments6367193188310

                                  MEURIII2011III2010I-III2011I-III2010LTM

                                  Sales5605841 8271 9502 579

                                  Comparable operating profit2682678509621 186

                                  Net Assets5 9565 818

                                  Comparable RONA 195

                                  Gross Investments313210087135

                                  Powers Nordic power price

                                  469

                                  488

                                  479

                                  474

                                  443

                                  0

                                  10

                                  20

                                  30

                                  40

                                  50

                                  60

                                  Q32010Q42010Q12011Q22011Q32011

                                  eurMWh

                                  MEURIII2011III2010I-II2011I-III20102010LTM

                                  Operating profit before depreciations4614522 2741 8032 2712 742

                                  Non-cash flow items and divesting activities

                                  -31-25-600-98124-378

                                  Financial items and fx gainslosses

                                  0-126-290-449-641-482

                                  Taxes

                                  -104-93-362-248-355-469

                                  Funds from operations (FFO)

                                  3262081 0221 0081 3991 413

                                  Change in working capital

                                  -496511920838-51

                                  Total net cash from operating activities2772731 1411 2161 4371 362

                                  Paid capital expenditures-361-216-864-702-1 134-1 296

                                  Acquisition of shares-24-7-44-8-28-64

                                  Other investing activities19115608360537

                                  Cash flow before financing activities-8961793589335539

                                  Achieved power price for OAO Fortum

                                  288

                                  305

                                  292

                                  290

                                  300

                                  0

                                  6

                                  12

                                  18

                                  24

                                  30

                                  36

                                  Q32010Q42010Q12011Q22011Q32011

                                  eurMWh

          MEUR
          2011 166
          2012 656
          2013 633
          2014 1266
          2015 1041
          2016 877
          2017 267
          2018 187
          2019 882
          2020 73
          2021+ 1566
          MEUR LTM 2010 2009 2008 2006 2005
          EBITDA 2742 2271 2292 2478 1884
          Comparable EBITDA 2433 2396 2398 1151 1271
          Interest-bearing net debt 6929 6826 5969 6179 4345 3158
          Net debtEBITDA 25 30 26 25 8161
          Comparable Net debtEBITDA 28 28 25 16839 15130
          23 18
          Return on capital employed () 135 116 121 150 134 135
          Return on shareholders equity () 185 157 160 187 144 135
          ) as of 30 September 2011
          MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
          Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
          Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
          Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
          Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
          Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
          Change in working capital -49 65 119 208 38 -51 -102 161 5 0
          Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
          Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
          Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
          Other investing activities 19 11 560 83 60 537 -21 258 -34 0
          Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
          MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
          Sales 7732 1144 1152 4494 4394 6296 6396
          Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
          Comparable operating profit 623 297 302 1294 1292 1833 1835
          Items affecting comparability 17 10 529 95 -125 309
          Operating profit 314 312 1823 1387 1708 2144
          Share of profit of associates and jvs -2 10 72 41 62 93
          Financial expenses net -209 -72 -37 -199 -98 -155 -256
          Profit before taxes 0 240 285 1696 1330 1615 1981
          Income tax expense -83 -46 -45 -278 -236 -261 -303
          Net profit for the period -26 194 240 1418 1094 1354 1678
          Non-controlling interests -4 -7 70 25 54 99
          EPS basic (EUR) 039 023 027 152 120 146 178
          EPS diluted (EUR) 023 027 152 120 146 178
          069
          MEUR III2011 III2010 I-III2011 I-III2010 LTM
          Sales 139 305 695 1269 1224
          Comparable operating profit 4 11 25 8 28
          Net Assets 43 55
          Comparable RONA 305
          Gross Investments 0 0 4 0 4
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 203 196 729 676 1016
      Comparable operating profit 62 61 246 216 337
      Net Assets 3463 3560
      Comparable RONA 99
      Gross Investments 73 51 169 127 255
Page 41: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet1

Sheet2

Sheet3

Markets

  • Comparable operating profit decreased
  • Lower margins

    • Q3 Electricity Sales

      Sheet1

      Sheet2

      Sheet3

      Q3 Income statement

      Sheet1

      ampA
      Page ampP

      Q3 Cash flow statement

      Sheet1

      ampA
      Page ampP

      Key ratios

      Q3 lsquo11

      Sheet1

      Sheet2

      Sheet3

      Debt Maturity Profile

      per 30 Sept 2011 per 31 Dec 2010

      Average Interest Rate (incl swaps and forwards)43 35

      Portion of floating fixed debt 46 54 49 51

      Outlook

      Outlook

      • Key drivers and risks
      • Wholesale price of electricity
      • Demand
      • Fuels
      • CO2 emissions prices
      • Water reservoirs
      • Nuclear availability
      • Nordic markets
      • Annual electricity demand growth estimated to be approximately 05
      • Electricity continues to gain share of total energy consumption
      • Russia
      • Profits from Russia build up in pace with the capacity increases
      • A new unit in Tobolsk at the beginning of October
      • Fortum targets a positive economic value added after completing the ongoing investment programme

        • Outlook

          • Annual capex (excluding potential acquisitions)
          • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
          • 2012 around EUR 16 to 18 billion
          • 2013 and 2014 around EUR 11 to 14 billion annually
          • Hedging
          • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

            • (Q2 70 at EUR 45MWh)

              • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                • (Q2 50 at EUR 46MWh)

                  • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                    • (Q2 not disclosed)

                      Strong financial position

                          Return on capital employed

                          12

                          Return on shareholders equity

                          14

                          Net debtEBITDA

                          around 30

                          135

                          185

                          28

                          Fortumrsquos financial targets

                          LTM in Q32011

                          Good liquidity ndash committed credit lines total EUR 27 billion

                          Last twelve months

                          Comparable net debtEBITDA

                          Fortumrsquos production structure creates a firm basis for the future

                          • Strong financial position
                          • Electricity will continue to gain a higher share of the total energy consumption
                          • Good production portfolio going forward
                          • Growth in Russia

                            • QampA

                              Conference call

                              20 October 2011

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales1393056951 2691 224

                              Comparable operating profit41125828

                              Net Assets4355

                              Comparable RONA 305

                              Gross Investments00404

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales156137646550900

                              Comparable operating profit-16-1639-956

                              Net Assets3 0092 522

                              Comparable RONA 32

                              Gross Investments21984486342743

                              0

                              250

                              500

                              750

                              1000

                              1250

                              1500

                              1750

                              20112012201320142015201620172018201920202021+

                              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales2031967296761 016

                              Comparable operating profit6261246216337

                              Net Assets3 4633 560

                              Comparable RONA 99

                              Gross Investments7351169127255

                              MEUR

                              III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                              Power2682672732568509621 0331 003

                              Heat-14-12-10-15182153280179

                              Russia-16-16-161439-93937

                              Distribution62616062246216437228

                              Electricity Sales41161225896

                              Other-7-91-17-48-3825-66

                              Total2973023143121 2941 2921 8231 387

                              Comparable operating profit

                              Reported operating profit

                              Comparable operating profit

                              Reported operating profit

                              MEURLTM20102009

                              EBITDA2 7422 2712 292

                              Comparable EBITDA2 4332 3962 398

                              Interest-bearing net debt6 9296 8265 969

                              Net debtEBITDA253026

                              Comparable Net debtEBITDA282825

                              Return on capital employed ()135116121

                              Return on shareholders equity ()185157160

                              ) as of 30 September 2011

                              Spot price for power in NordPool power exchange

                              459

                              621

                              523

                              360

                              662

                              0

                              12

                              24

                              36

                              48

                              60

                              72

                              Q32010Q42010Q12011Q22011Q32011

                              eurMWh

                              MEURIII2011III2010I-III2011I-III20102010LTM

                              Sales1 144

                              1 1524 4944 3946 296

                              6 396

                              Expenses-847-850-3 200-3 102-4 463-4 561

                              Comparable operating profit2973021 2941 2921 8331 835

                              Items affecting comparability171052995-125309

                              Operating profit3143121 8231 3871 7082 144

                              Share of profit of associates and jvs-21072416293

                              Financial expenses net-72-37-199-98-155-256

                              Profit before taxes2402851 6961 3301 6151 981

                              Income tax expense-46-45-278-236-261-303

                              Net profit for the period1942401 4181 0941 3541 678

                              Non-controlling interests-4-770255499

                              EPS basic (EUR)023027152120146178

                              EPS diluted (EUR)023027152120146178

                              Spot price for power (market price) Urals hub

                              935

                              817

                              950

                              954

                              939

                              0

                              200

                              400

                              600

                              800

                              1 000

                              1 200

                              Q32010Q42010Q12011Q22011Q32011

                              RUBMWh

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales2122201 2591 1721 857

                              Comparable operating profit-14-12182153304

                              Net Assets3 9344 021

                              Comparable RONA 81

                              Gross Investments6367193188310

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales5605841 8271 9502 579

                              Comparable operating profit2682678509621 186

                              Net Assets5 9565 818

                              Comparable RONA 195

                              Gross Investments313210087135

                              Powers Nordic power price

                              469

                              488

                              479

                              474

                              443

                              0

                              10

                              20

                              30

                              40

                              50

                              60

                              Q32010Q42010Q12011Q22011Q32011

                              eurMWh

                              MEURIII2011III2010I-II2011I-III20102010LTM

                              Operating profit before depreciations4614522 2741 8032 2712 742

                              Non-cash flow items and divesting activities

                              -31-25-600-98124-378

                              Financial items and fx gainslosses

                              0-126-290-449-641-482

                              Taxes

                              -104-93-362-248-355-469

                              Funds from operations (FFO)

                              3262081 0221 0081 3991 413

                              Change in working capital

                              -496511920838-51

                              Total net cash from operating activities2772731 1411 2161 4371 362

                              Paid capital expenditures-361-216-864-702-1 134-1 296

                              Acquisition of shares-24-7-44-8-28-64

                              Other investing activities19115608360537

                              Cash flow before financing activities-8961793589335539

                              Achieved power price for OAO Fortum

                              288

                              305

                              292

                              290

                              300

                              0

                              6

                              12

                              18

                              24

                              30

                              36

                              Q32010Q42010Q12011Q22011Q32011

                              eurMWh

      MEUR
      2011 166
      2012 656
      2013 633
      2014 1266
      2015 1041
      2016 877
      2017 267
      2018 187
      2019 882
      2020 73
      2021+ 1566
      MEUR LTM 2010 2009 2008 2006 2005
      EBITDA 2742 2271 2292 2478 1884
      Comparable EBITDA 2433 2396 2398 1151 1271
      Interest-bearing net debt 6929 6826 5969 6179 4345 3158
      Net debtEBITDA 25 30 26 25 8161
      Comparable Net debtEBITDA 28 28 25 16839 15130
      23 18
      Return on capital employed () 135 116 121 150 134 135
      Return on shareholders equity () 185 157 160 187 144 135
      ) as of 30 September 2011
      MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
      Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
      Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
      Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
      Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
      Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
      Change in working capital -49 65 119 208 38 -51 -102 161 5 0
      Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
      Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
      Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
      Other investing activities 19 11 560 83 60 537 -21 258 -34 0
      Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
      MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
      Sales 7732 1144 1152 4494 4394 6296 6396
      Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
      Comparable operating profit 623 297 302 1294 1292 1833 1835
      Items affecting comparability 17 10 529 95 -125 309
      Operating profit 314 312 1823 1387 1708 2144
      Share of profit of associates and jvs -2 10 72 41 62 93
      Financial expenses net -209 -72 -37 -199 -98 -155 -256
      Profit before taxes 0 240 285 1696 1330 1615 1981
      Income tax expense -83 -46 -45 -278 -236 -261 -303
      Net profit for the period -26 194 240 1418 1094 1354 1678
      Non-controlling interests -4 -7 70 25 54 99
      EPS basic (EUR) 039 023 027 152 120 146 178
      EPS diluted (EUR) 023 027 152 120 146 178
      069
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 139 305 695 1269 1224
      Comparable operating profit 4 11 25 8 28
      Net Assets 43 55
      Comparable RONA 305
      Gross Investments 0 0 4 0 4
MEUR III2011 III2010 I-III2011 I-III2010 LTM
Sales 203 196 729 676 1016
Comparable operating profit 62 61 246 216 337
Net Assets 3463 3560
Comparable RONA 99
Gross Investments 73 51 169 127 255
Page 42: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet2

Sheet3

Markets

  • Comparable operating profit decreased
  • Lower margins

    • Q3 Electricity Sales

      Sheet1

      Sheet2

      Sheet3

      Q3 Income statement

      Sheet1

      ampA
      Page ampP

      Q3 Cash flow statement

      Sheet1

      ampA
      Page ampP

      Key ratios

      Q3 lsquo11

      Sheet1

      Sheet2

      Sheet3

      Debt Maturity Profile

      per 30 Sept 2011 per 31 Dec 2010

      Average Interest Rate (incl swaps and forwards)43 35

      Portion of floating fixed debt 46 54 49 51

      Outlook

      Outlook

      • Key drivers and risks
      • Wholesale price of electricity
      • Demand
      • Fuels
      • CO2 emissions prices
      • Water reservoirs
      • Nuclear availability
      • Nordic markets
      • Annual electricity demand growth estimated to be approximately 05
      • Electricity continues to gain share of total energy consumption
      • Russia
      • Profits from Russia build up in pace with the capacity increases
      • A new unit in Tobolsk at the beginning of October
      • Fortum targets a positive economic value added after completing the ongoing investment programme

        • Outlook

          • Annual capex (excluding potential acquisitions)
          • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
          • 2012 around EUR 16 to 18 billion
          • 2013 and 2014 around EUR 11 to 14 billion annually
          • Hedging
          • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

            • (Q2 70 at EUR 45MWh)

              • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                • (Q2 50 at EUR 46MWh)

                  • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                    • (Q2 not disclosed)

                      Strong financial position

                          Return on capital employed

                          12

                          Return on shareholders equity

                          14

                          Net debtEBITDA

                          around 30

                          135

                          185

                          28

                          Fortumrsquos financial targets

                          LTM in Q32011

                          Good liquidity ndash committed credit lines total EUR 27 billion

                          Last twelve months

                          Comparable net debtEBITDA

                          Fortumrsquos production structure creates a firm basis for the future

                          • Strong financial position
                          • Electricity will continue to gain a higher share of the total energy consumption
                          • Good production portfolio going forward
                          • Growth in Russia

                            • QampA

                              Conference call

                              20 October 2011

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales1393056951 2691 224

                              Comparable operating profit41125828

                              Net Assets4355

                              Comparable RONA 305

                              Gross Investments00404

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales156137646550900

                              Comparable operating profit-16-1639-956

                              Net Assets3 0092 522

                              Comparable RONA 32

                              Gross Investments21984486342743

                              0

                              250

                              500

                              750

                              1000

                              1250

                              1500

                              1750

                              20112012201320142015201620172018201920202021+

                              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales2031967296761 016

                              Comparable operating profit6261246216337

                              Net Assets3 4633 560

                              Comparable RONA 99

                              Gross Investments7351169127255

                              MEUR

                              III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                              Power2682672732568509621 0331 003

                              Heat-14-12-10-15182153280179

                              Russia-16-16-161439-93937

                              Distribution62616062246216437228

                              Electricity Sales41161225896

                              Other-7-91-17-48-3825-66

                              Total2973023143121 2941 2921 8231 387

                              Comparable operating profit

                              Reported operating profit

                              Comparable operating profit

                              Reported operating profit

                              MEURLTM20102009

                              EBITDA2 7422 2712 292

                              Comparable EBITDA2 4332 3962 398

                              Interest-bearing net debt6 9296 8265 969

                              Net debtEBITDA253026

                              Comparable Net debtEBITDA282825

                              Return on capital employed ()135116121

                              Return on shareholders equity ()185157160

                              ) as of 30 September 2011

                              Spot price for power in NordPool power exchange

                              459

                              621

                              523

                              360

                              662

                              0

                              12

                              24

                              36

                              48

                              60

                              72

                              Q32010Q42010Q12011Q22011Q32011

                              eurMWh

                              MEURIII2011III2010I-III2011I-III20102010LTM

                              Sales1 144

                              1 1524 4944 3946 296

                              6 396

                              Expenses-847-850-3 200-3 102-4 463-4 561

                              Comparable operating profit2973021 2941 2921 8331 835

                              Items affecting comparability171052995-125309

                              Operating profit3143121 8231 3871 7082 144

                              Share of profit of associates and jvs-21072416293

                              Financial expenses net-72-37-199-98-155-256

                              Profit before taxes2402851 6961 3301 6151 981

                              Income tax expense-46-45-278-236-261-303

                              Net profit for the period1942401 4181 0941 3541 678

                              Non-controlling interests-4-770255499

                              EPS basic (EUR)023027152120146178

                              EPS diluted (EUR)023027152120146178

                              Spot price for power (market price) Urals hub

                              935

                              817

                              950

                              954

                              939

                              0

                              200

                              400

                              600

                              800

                              1 000

                              1 200

                              Q32010Q42010Q12011Q22011Q32011

                              RUBMWh

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales2122201 2591 1721 857

                              Comparable operating profit-14-12182153304

                              Net Assets3 9344 021

                              Comparable RONA 81

                              Gross Investments6367193188310

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales5605841 8271 9502 579

                              Comparable operating profit2682678509621 186

                              Net Assets5 9565 818

                              Comparable RONA 195

                              Gross Investments313210087135

                              Powers Nordic power price

                              469

                              488

                              479

                              474

                              443

                              0

                              10

                              20

                              30

                              40

                              50

                              60

                              Q32010Q42010Q12011Q22011Q32011

                              eurMWh

                              MEURIII2011III2010I-II2011I-III20102010LTM

                              Operating profit before depreciations4614522 2741 8032 2712 742

                              Non-cash flow items and divesting activities

                              -31-25-600-98124-378

                              Financial items and fx gainslosses

                              0-126-290-449-641-482

                              Taxes

                              -104-93-362-248-355-469

                              Funds from operations (FFO)

                              3262081 0221 0081 3991 413

                              Change in working capital

                              -496511920838-51

                              Total net cash from operating activities2772731 1411 2161 4371 362

                              Paid capital expenditures-361-216-864-702-1 134-1 296

                              Acquisition of shares-24-7-44-8-28-64

                              Other investing activities19115608360537

                              Cash flow before financing activities-8961793589335539

                              Achieved power price for OAO Fortum

                              288

                              305

                              292

                              290

                              300

                              0

                              6

                              12

                              18

                              24

                              30

                              36

                              Q32010Q42010Q12011Q22011Q32011

                              eurMWh

      MEUR
      2011 166
      2012 656
      2013 633
      2014 1266
      2015 1041
      2016 877
      2017 267
      2018 187
      2019 882
      2020 73
      2021+ 1566
      MEUR LTM 2010 2009 2008 2006 2005
      EBITDA 2742 2271 2292 2478 1884
      Comparable EBITDA 2433 2396 2398 1151 1271
      Interest-bearing net debt 6929 6826 5969 6179 4345 3158
      Net debtEBITDA 25 30 26 25 8161
      Comparable Net debtEBITDA 28 28 25 16839 15130
      23 18
      Return on capital employed () 135 116 121 150 134 135
      Return on shareholders equity () 185 157 160 187 144 135
      ) as of 30 September 2011
      MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
      Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
      Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
      Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
      Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
      Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
      Change in working capital -49 65 119 208 38 -51 -102 161 5 0
      Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
      Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
      Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
      Other investing activities 19 11 560 83 60 537 -21 258 -34 0
      Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
      MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
      Sales 7732 1144 1152 4494 4394 6296 6396
      Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
      Comparable operating profit 623 297 302 1294 1292 1833 1835
      Items affecting comparability 17 10 529 95 -125 309
      Operating profit 314 312 1823 1387 1708 2144
      Share of profit of associates and jvs -2 10 72 41 62 93
      Financial expenses net -209 -72 -37 -199 -98 -155 -256
      Profit before taxes 0 240 285 1696 1330 1615 1981
      Income tax expense -83 -46 -45 -278 -236 -261 -303
      Net profit for the period -26 194 240 1418 1094 1354 1678
      Non-controlling interests -4 -7 70 25 54 99
      EPS basic (EUR) 039 023 027 152 120 146 178
      EPS diluted (EUR) 023 027 152 120 146 178
      069
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 139 305 695 1269 1224
      Comparable operating profit 4 11 25 8 28
      Net Assets 43 55
      Comparable RONA 305
      Gross Investments 0 0 4 0 4
Page 43: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet3

Markets

  • Comparable operating profit decreased
  • Lower margins

    • Q3 Electricity Sales

      Sheet1

      Sheet2

      Sheet3

      Q3 Income statement

      Sheet1

      ampA
      Page ampP

      Q3 Cash flow statement

      Sheet1

      ampA
      Page ampP

      Key ratios

      Q3 lsquo11

      Sheet1

      Sheet2

      Sheet3

      Debt Maturity Profile

      per 30 Sept 2011 per 31 Dec 2010

      Average Interest Rate (incl swaps and forwards)43 35

      Portion of floating fixed debt 46 54 49 51

      Outlook

      Outlook

      • Key drivers and risks
      • Wholesale price of electricity
      • Demand
      • Fuels
      • CO2 emissions prices
      • Water reservoirs
      • Nuclear availability
      • Nordic markets
      • Annual electricity demand growth estimated to be approximately 05
      • Electricity continues to gain share of total energy consumption
      • Russia
      • Profits from Russia build up in pace with the capacity increases
      • A new unit in Tobolsk at the beginning of October
      • Fortum targets a positive economic value added after completing the ongoing investment programme

        • Outlook

          • Annual capex (excluding potential acquisitions)
          • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
          • 2012 around EUR 16 to 18 billion
          • 2013 and 2014 around EUR 11 to 14 billion annually
          • Hedging
          • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

            • (Q2 70 at EUR 45MWh)

              • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

                • (Q2 50 at EUR 46MWh)

                  • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                    • (Q2 not disclosed)

                      Strong financial position

                          Return on capital employed

                          12

                          Return on shareholders equity

                          14

                          Net debtEBITDA

                          around 30

                          135

                          185

                          28

                          Fortumrsquos financial targets

                          LTM in Q32011

                          Good liquidity ndash committed credit lines total EUR 27 billion

                          Last twelve months

                          Comparable net debtEBITDA

                          Fortumrsquos production structure creates a firm basis for the future

                          • Strong financial position
                          • Electricity will continue to gain a higher share of the total energy consumption
                          • Good production portfolio going forward
                          • Growth in Russia

                            • QampA

                              Conference call

                              20 October 2011

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales1393056951 2691 224

                              Comparable operating profit41125828

                              Net Assets4355

                              Comparable RONA 305

                              Gross Investments00404

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales156137646550900

                              Comparable operating profit-16-1639-956

                              Net Assets3 0092 522

                              Comparable RONA 32

                              Gross Investments21984486342743

                              0

                              250

                              500

                              750

                              1000

                              1250

                              1500

                              1750

                              20112012201320142015201620172018201920202021+

                              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales2031967296761 016

                              Comparable operating profit6261246216337

                              Net Assets3 4633 560

                              Comparable RONA 99

                              Gross Investments7351169127255

                              MEUR

                              III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                              Power2682672732568509621 0331 003

                              Heat-14-12-10-15182153280179

                              Russia-16-16-161439-93937

                              Distribution62616062246216437228

                              Electricity Sales41161225896

                              Other-7-91-17-48-3825-66

                              Total2973023143121 2941 2921 8231 387

                              Comparable operating profit

                              Reported operating profit

                              Comparable operating profit

                              Reported operating profit

                              MEURLTM20102009

                              EBITDA2 7422 2712 292

                              Comparable EBITDA2 4332 3962 398

                              Interest-bearing net debt6 9296 8265 969

                              Net debtEBITDA253026

                              Comparable Net debtEBITDA282825

                              Return on capital employed ()135116121

                              Return on shareholders equity ()185157160

                              ) as of 30 September 2011

                              Spot price for power in NordPool power exchange

                              459

                              621

                              523

                              360

                              662

                              0

                              12

                              24

                              36

                              48

                              60

                              72

                              Q32010Q42010Q12011Q22011Q32011

                              eurMWh

                              MEURIII2011III2010I-III2011I-III20102010LTM

                              Sales1 144

                              1 1524 4944 3946 296

                              6 396

                              Expenses-847-850-3 200-3 102-4 463-4 561

                              Comparable operating profit2973021 2941 2921 8331 835

                              Items affecting comparability171052995-125309

                              Operating profit3143121 8231 3871 7082 144

                              Share of profit of associates and jvs-21072416293

                              Financial expenses net-72-37-199-98-155-256

                              Profit before taxes2402851 6961 3301 6151 981

                              Income tax expense-46-45-278-236-261-303

                              Net profit for the period1942401 4181 0941 3541 678

                              Non-controlling interests-4-770255499

                              EPS basic (EUR)023027152120146178

                              EPS diluted (EUR)023027152120146178

                              Spot price for power (market price) Urals hub

                              935

                              817

                              950

                              954

                              939

                              0

                              200

                              400

                              600

                              800

                              1 000

                              1 200

                              Q32010Q42010Q12011Q22011Q32011

                              RUBMWh

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales2122201 2591 1721 857

                              Comparable operating profit-14-12182153304

                              Net Assets3 9344 021

                              Comparable RONA 81

                              Gross Investments6367193188310

                              MEURIII2011III2010I-III2011I-III2010LTM

                              Sales5605841 8271 9502 579

                              Comparable operating profit2682678509621 186

                              Net Assets5 9565 818

                              Comparable RONA 195

                              Gross Investments313210087135

                              Powers Nordic power price

                              469

                              488

                              479

                              474

                              443

                              0

                              10

                              20

                              30

                              40

                              50

                              60

                              Q32010Q42010Q12011Q22011Q32011

                              eurMWh

                              MEURIII2011III2010I-II2011I-III20102010LTM

                              Operating profit before depreciations4614522 2741 8032 2712 742

                              Non-cash flow items and divesting activities

                              -31-25-600-98124-378

                              Financial items and fx gainslosses

                              0-126-290-449-641-482

                              Taxes

                              -104-93-362-248-355-469

                              Funds from operations (FFO)

                              3262081 0221 0081 3991 413

                              Change in working capital

                              -496511920838-51

                              Total net cash from operating activities2772731 1411 2161 4371 362

                              Paid capital expenditures-361-216-864-702-1 134-1 296

                              Acquisition of shares-24-7-44-8-28-64

                              Other investing activities19115608360537

                              Cash flow before financing activities-8961793589335539

                              Achieved power price for OAO Fortum

                              288

                              305

                              292

                              290

                              300

                              0

                              6

                              12

                              18

                              24

                              30

                              36

                              Q32010Q42010Q12011Q22011Q32011

                              eurMWh

      MEUR
      2011 166
      2012 656
      2013 633
      2014 1266
      2015 1041
      2016 877
      2017 267
      2018 187
      2019 882
      2020 73
      2021+ 1566
      MEUR LTM 2010 2009 2008 2006 2005
      EBITDA 2742 2271 2292 2478 1884
      Comparable EBITDA 2433 2396 2398 1151 1271
      Interest-bearing net debt 6929 6826 5969 6179 4345 3158
      Net debtEBITDA 25 30 26 25 8161
      Comparable Net debtEBITDA 28 28 25 16839 15130
      23 18
      Return on capital employed () 135 116 121 150 134 135
      Return on shareholders equity () 185 157 160 187 144 135
      ) as of 30 September 2011
      MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
      Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
      Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
      Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
      Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
      Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
      Change in working capital -49 65 119 208 38 -51 -102 161 5 0
      Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
      Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
      Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
      Other investing activities 19 11 560 83 60 537 -21 258 -34 0
      Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
      MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
      Sales 7732 1144 1152 4494 4394 6296 6396
      Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
      Comparable operating profit 623 297 302 1294 1292 1833 1835
      Items affecting comparability 17 10 529 95 -125 309
      Operating profit 314 312 1823 1387 1708 2144
      Share of profit of associates and jvs -2 10 72 41 62 93
      Financial expenses net -209 -72 -37 -199 -98 -155 -256
      Profit before taxes 0 240 285 1696 1330 1615 1981
      Income tax expense -83 -46 -45 -278 -236 -261 -303
      Net profit for the period -26 194 240 1418 1094 1354 1678
      Non-controlling interests -4 -7 70 25 54 99
      EPS basic (EUR) 039 023 027 152 120 146 178
      EPS diluted (EUR) 023 027 152 120 146 178
      069
      MEUR III2011 III2010 I-III2011 I-III2010 LTM
      Sales 139 305 695 1269 1224
      Comparable operating profit 4 11 25 8 28
      Net Assets 43 55
      Comparable RONA 305
      Gross Investments 0 0 4 0 4
Page 44: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet1

Sheet2

Sheet3

Q3 Income statement

Sheet1

ampA
Page ampP

Q3 Cash flow statement

Sheet1

ampA
Page ampP

Key ratios

Q3 lsquo11

Sheet1

Sheet2

Sheet3

Debt Maturity Profile

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards)43 35

Portion of floating fixed debt 46 54 49 51

Outlook

Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Annual electricity demand growth estimated to be approximately 05
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Profits from Russia build up in pace with the capacity increases
  • A new unit in Tobolsk at the beginning of October
  • Fortum targets a positive economic value added after completing the ongoing investment programme

    • Outlook

      • Annual capex (excluding potential acquisitions)
      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
      • 2012 around EUR 16 to 18 billion
      • 2013 and 2014 around EUR 11 to 14 billion annually
      • Hedging
      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

        • (Q2 70 at EUR 45MWh)

          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

            • (Q2 50 at EUR 46MWh)

              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                • (Q2 not disclosed)

                  Strong financial position

                      Return on capital employed

                      12

                      Return on shareholders equity

                      14

                      Net debtEBITDA

                      around 30

                      135

                      185

                      28

                      Fortumrsquos financial targets

                      LTM in Q32011

                      Good liquidity ndash committed credit lines total EUR 27 billion

                      Last twelve months

                      Comparable net debtEBITDA

                      Fortumrsquos production structure creates a firm basis for the future

                      • Strong financial position
                      • Electricity will continue to gain a higher share of the total energy consumption
                      • Good production portfolio going forward
                      • Growth in Russia

                        • QampA

                          Conference call

                          20 October 2011

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales1393056951 2691 224

                          Comparable operating profit41125828

                          Net Assets4355

                          Comparable RONA 305

                          Gross Investments00404

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales156137646550900

                          Comparable operating profit-16-1639-956

                          Net Assets3 0092 522

                          Comparable RONA 32

                          Gross Investments21984486342743

                          0

                          250

                          500

                          750

                          1000

                          1250

                          1500

                          1750

                          20112012201320142015201620172018201920202021+

                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2031967296761 016

                          Comparable operating profit6261246216337

                          Net Assets3 4633 560

                          Comparable RONA 99

                          Gross Investments7351169127255

                          MEUR

                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                          Power2682672732568509621 0331 003

                          Heat-14-12-10-15182153280179

                          Russia-16-16-161439-93937

                          Distribution62616062246216437228

                          Electricity Sales41161225896

                          Other-7-91-17-48-3825-66

                          Total2973023143121 2941 2921 8231 387

                          Comparable operating profit

                          Reported operating profit

                          Comparable operating profit

                          Reported operating profit

                          MEURLTM20102009

                          EBITDA2 7422 2712 292

                          Comparable EBITDA2 4332 3962 398

                          Interest-bearing net debt6 9296 8265 969

                          Net debtEBITDA253026

                          Comparable Net debtEBITDA282825

                          Return on capital employed ()135116121

                          Return on shareholders equity ()185157160

                          ) as of 30 September 2011

                          Spot price for power in NordPool power exchange

                          459

                          621

                          523

                          360

                          662

                          0

                          12

                          24

                          36

                          48

                          60

                          72

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-III2011I-III20102010LTM

                          Sales1 144

                          1 1524 4944 3946 296

                          6 396

                          Expenses-847-850-3 200-3 102-4 463-4 561

                          Comparable operating profit2973021 2941 2921 8331 835

                          Items affecting comparability171052995-125309

                          Operating profit3143121 8231 3871 7082 144

                          Share of profit of associates and jvs-21072416293

                          Financial expenses net-72-37-199-98-155-256

                          Profit before taxes2402851 6961 3301 6151 981

                          Income tax expense-46-45-278-236-261-303

                          Net profit for the period1942401 4181 0941 3541 678

                          Non-controlling interests-4-770255499

                          EPS basic (EUR)023027152120146178

                          EPS diluted (EUR)023027152120146178

                          Spot price for power (market price) Urals hub

                          935

                          817

                          950

                          954

                          939

                          0

                          200

                          400

                          600

                          800

                          1 000

                          1 200

                          Q32010Q42010Q12011Q22011Q32011

                          RUBMWh

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2122201 2591 1721 857

                          Comparable operating profit-14-12182153304

                          Net Assets3 9344 021

                          Comparable RONA 81

                          Gross Investments6367193188310

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales5605841 8271 9502 579

                          Comparable operating profit2682678509621 186

                          Net Assets5 9565 818

                          Comparable RONA 195

                          Gross Investments313210087135

                          Powers Nordic power price

                          469

                          488

                          479

                          474

                          443

                          0

                          10

                          20

                          30

                          40

                          50

                          60

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-II2011I-III20102010LTM

                          Operating profit before depreciations4614522 2741 8032 2712 742

                          Non-cash flow items and divesting activities

                          -31-25-600-98124-378

                          Financial items and fx gainslosses

                          0-126-290-449-641-482

                          Taxes

                          -104-93-362-248-355-469

                          Funds from operations (FFO)

                          3262081 0221 0081 3991 413

                          Change in working capital

                          -496511920838-51

                          Total net cash from operating activities2772731 1411 2161 4371 362

                          Paid capital expenditures-361-216-864-702-1 134-1 296

                          Acquisition of shares-24-7-44-8-28-64

                          Other investing activities19115608360537

                          Cash flow before financing activities-8961793589335539

                          Achieved power price for OAO Fortum

                          288

                          305

                          292

                          290

                          300

                          0

                          6

                          12

                          18

                          24

                          30

                          36

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

MEUR
2011 166
2012 656
2013 633
2014 1266
2015 1041
2016 877
2017 267
2018 187
2019 882
2020 73
2021+ 1566
MEUR LTM 2010 2009 2008 2006 2005
EBITDA 2742 2271 2292 2478 1884
Comparable EBITDA 2433 2396 2398 1151 1271
Interest-bearing net debt 6929 6826 5969 6179 4345 3158
Net debtEBITDA 25 30 26 25 8161
Comparable Net debtEBITDA 28 28 25 16839 15130
23 18
Return on capital employed () 135 116 121 150 134 135
Return on shareholders equity () 185 157 160 187 144 135
) as of 30 September 2011
MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
Change in working capital -49 65 119 208 38 -51 -102 161 5 0
Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
Other investing activities 19 11 560 83 60 537 -21 258 -34 0
Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
Sales 7732 1144 1152 4494 4394 6296 6396
Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
Comparable operating profit 623 297 302 1294 1292 1833 1835
Items affecting comparability 17 10 529 95 -125 309
Operating profit 314 312 1823 1387 1708 2144
Share of profit of associates and jvs -2 10 72 41 62 93
Financial expenses net -209 -72 -37 -199 -98 -155 -256
Profit before taxes 0 240 285 1696 1330 1615 1981
Income tax expense -83 -46 -45 -278 -236 -261 -303
Net profit for the period -26 194 240 1418 1094 1354 1678
Non-controlling interests -4 -7 70 25 54 99
EPS basic (EUR) 039 023 027 152 120 146 178
EPS diluted (EUR) 023 027 152 120 146 178
069
MEUR III2011 III2010 I-III2011 I-III2010 LTM
Sales 139 305 695 1269 1224
Comparable operating profit 4 11 25 8 28
Net Assets 43 55
Comparable RONA 305
Gross Investments 0 0 4 0 4
Page 45: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet2

Sheet3

Q3 Income statement

Sheet1

ampA
Page ampP

Q3 Cash flow statement

Sheet1

ampA
Page ampP

Key ratios

Q3 lsquo11

Sheet1

Sheet2

Sheet3

Debt Maturity Profile

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards)43 35

Portion of floating fixed debt 46 54 49 51

Outlook

Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Annual electricity demand growth estimated to be approximately 05
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Profits from Russia build up in pace with the capacity increases
  • A new unit in Tobolsk at the beginning of October
  • Fortum targets a positive economic value added after completing the ongoing investment programme

    • Outlook

      • Annual capex (excluding potential acquisitions)
      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
      • 2012 around EUR 16 to 18 billion
      • 2013 and 2014 around EUR 11 to 14 billion annually
      • Hedging
      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

        • (Q2 70 at EUR 45MWh)

          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

            • (Q2 50 at EUR 46MWh)

              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                • (Q2 not disclosed)

                  Strong financial position

                      Return on capital employed

                      12

                      Return on shareholders equity

                      14

                      Net debtEBITDA

                      around 30

                      135

                      185

                      28

                      Fortumrsquos financial targets

                      LTM in Q32011

                      Good liquidity ndash committed credit lines total EUR 27 billion

                      Last twelve months

                      Comparable net debtEBITDA

                      Fortumrsquos production structure creates a firm basis for the future

                      • Strong financial position
                      • Electricity will continue to gain a higher share of the total energy consumption
                      • Good production portfolio going forward
                      • Growth in Russia

                        • QampA

                          Conference call

                          20 October 2011

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales1393056951 2691 224

                          Comparable operating profit41125828

                          Net Assets4355

                          Comparable RONA 305

                          Gross Investments00404

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales156137646550900

                          Comparable operating profit-16-1639-956

                          Net Assets3 0092 522

                          Comparable RONA 32

                          Gross Investments21984486342743

                          0

                          250

                          500

                          750

                          1000

                          1250

                          1500

                          1750

                          20112012201320142015201620172018201920202021+

                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2031967296761 016

                          Comparable operating profit6261246216337

                          Net Assets3 4633 560

                          Comparable RONA 99

                          Gross Investments7351169127255

                          MEUR

                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                          Power2682672732568509621 0331 003

                          Heat-14-12-10-15182153280179

                          Russia-16-16-161439-93937

                          Distribution62616062246216437228

                          Electricity Sales41161225896

                          Other-7-91-17-48-3825-66

                          Total2973023143121 2941 2921 8231 387

                          Comparable operating profit

                          Reported operating profit

                          Comparable operating profit

                          Reported operating profit

                          MEURLTM20102009

                          EBITDA2 7422 2712 292

                          Comparable EBITDA2 4332 3962 398

                          Interest-bearing net debt6 9296 8265 969

                          Net debtEBITDA253026

                          Comparable Net debtEBITDA282825

                          Return on capital employed ()135116121

                          Return on shareholders equity ()185157160

                          ) as of 30 September 2011

                          Spot price for power in NordPool power exchange

                          459

                          621

                          523

                          360

                          662

                          0

                          12

                          24

                          36

                          48

                          60

                          72

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-III2011I-III20102010LTM

                          Sales1 144

                          1 1524 4944 3946 296

                          6 396

                          Expenses-847-850-3 200-3 102-4 463-4 561

                          Comparable operating profit2973021 2941 2921 8331 835

                          Items affecting comparability171052995-125309

                          Operating profit3143121 8231 3871 7082 144

                          Share of profit of associates and jvs-21072416293

                          Financial expenses net-72-37-199-98-155-256

                          Profit before taxes2402851 6961 3301 6151 981

                          Income tax expense-46-45-278-236-261-303

                          Net profit for the period1942401 4181 0941 3541 678

                          Non-controlling interests-4-770255499

                          EPS basic (EUR)023027152120146178

                          EPS diluted (EUR)023027152120146178

                          Spot price for power (market price) Urals hub

                          935

                          817

                          950

                          954

                          939

                          0

                          200

                          400

                          600

                          800

                          1 000

                          1 200

                          Q32010Q42010Q12011Q22011Q32011

                          RUBMWh

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2122201 2591 1721 857

                          Comparable operating profit-14-12182153304

                          Net Assets3 9344 021

                          Comparable RONA 81

                          Gross Investments6367193188310

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales5605841 8271 9502 579

                          Comparable operating profit2682678509621 186

                          Net Assets5 9565 818

                          Comparable RONA 195

                          Gross Investments313210087135

                          Powers Nordic power price

                          469

                          488

                          479

                          474

                          443

                          0

                          10

                          20

                          30

                          40

                          50

                          60

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-II2011I-III20102010LTM

                          Operating profit before depreciations4614522 2741 8032 2712 742

                          Non-cash flow items and divesting activities

                          -31-25-600-98124-378

                          Financial items and fx gainslosses

                          0-126-290-449-641-482

                          Taxes

                          -104-93-362-248-355-469

                          Funds from operations (FFO)

                          3262081 0221 0081 3991 413

                          Change in working capital

                          -496511920838-51

                          Total net cash from operating activities2772731 1411 2161 4371 362

                          Paid capital expenditures-361-216-864-702-1 134-1 296

                          Acquisition of shares-24-7-44-8-28-64

                          Other investing activities19115608360537

                          Cash flow before financing activities-8961793589335539

                          Achieved power price for OAO Fortum

                          288

                          305

                          292

                          290

                          300

                          0

                          6

                          12

                          18

                          24

                          30

                          36

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

MEUR
2011 166
2012 656
2013 633
2014 1266
2015 1041
2016 877
2017 267
2018 187
2019 882
2020 73
2021+ 1566
MEUR LTM 2010 2009 2008 2006 2005
EBITDA 2742 2271 2292 2478 1884
Comparable EBITDA 2433 2396 2398 1151 1271
Interest-bearing net debt 6929 6826 5969 6179 4345 3158
Net debtEBITDA 25 30 26 25 8161
Comparable Net debtEBITDA 28 28 25 16839 15130
23 18
Return on capital employed () 135 116 121 150 134 135
Return on shareholders equity () 185 157 160 187 144 135
) as of 30 September 2011
MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
Change in working capital -49 65 119 208 38 -51 -102 161 5 0
Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
Other investing activities 19 11 560 83 60 537 -21 258 -34 0
Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
Sales 7732 1144 1152 4494 4394 6296 6396
Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
Comparable operating profit 623 297 302 1294 1292 1833 1835
Items affecting comparability 17 10 529 95 -125 309
Operating profit 314 312 1823 1387 1708 2144
Share of profit of associates and jvs -2 10 72 41 62 93
Financial expenses net -209 -72 -37 -199 -98 -155 -256
Profit before taxes 0 240 285 1696 1330 1615 1981
Income tax expense -83 -46 -45 -278 -236 -261 -303
Net profit for the period -26 194 240 1418 1094 1354 1678
Non-controlling interests -4 -7 70 25 54 99
EPS basic (EUR) 039 023 027 152 120 146 178
EPS diluted (EUR) 023 027 152 120 146 178
069
Page 46: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet3

Q3 Income statement

Sheet1

ampA
Page ampP

Q3 Cash flow statement

Sheet1

ampA
Page ampP

Key ratios

Q3 lsquo11

Sheet1

Sheet2

Sheet3

Debt Maturity Profile

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards)43 35

Portion of floating fixed debt 46 54 49 51

Outlook

Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Annual electricity demand growth estimated to be approximately 05
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Profits from Russia build up in pace with the capacity increases
  • A new unit in Tobolsk at the beginning of October
  • Fortum targets a positive economic value added after completing the ongoing investment programme

    • Outlook

      • Annual capex (excluding potential acquisitions)
      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
      • 2012 around EUR 16 to 18 billion
      • 2013 and 2014 around EUR 11 to 14 billion annually
      • Hedging
      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

        • (Q2 70 at EUR 45MWh)

          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

            • (Q2 50 at EUR 46MWh)

              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                • (Q2 not disclosed)

                  Strong financial position

                      Return on capital employed

                      12

                      Return on shareholders equity

                      14

                      Net debtEBITDA

                      around 30

                      135

                      185

                      28

                      Fortumrsquos financial targets

                      LTM in Q32011

                      Good liquidity ndash committed credit lines total EUR 27 billion

                      Last twelve months

                      Comparable net debtEBITDA

                      Fortumrsquos production structure creates a firm basis for the future

                      • Strong financial position
                      • Electricity will continue to gain a higher share of the total energy consumption
                      • Good production portfolio going forward
                      • Growth in Russia

                        • QampA

                          Conference call

                          20 October 2011

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales1393056951 2691 224

                          Comparable operating profit41125828

                          Net Assets4355

                          Comparable RONA 305

                          Gross Investments00404

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales156137646550900

                          Comparable operating profit-16-1639-956

                          Net Assets3 0092 522

                          Comparable RONA 32

                          Gross Investments21984486342743

                          0

                          250

                          500

                          750

                          1000

                          1250

                          1500

                          1750

                          20112012201320142015201620172018201920202021+

                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2031967296761 016

                          Comparable operating profit6261246216337

                          Net Assets3 4633 560

                          Comparable RONA 99

                          Gross Investments7351169127255

                          MEUR

                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                          Power2682672732568509621 0331 003

                          Heat-14-12-10-15182153280179

                          Russia-16-16-161439-93937

                          Distribution62616062246216437228

                          Electricity Sales41161225896

                          Other-7-91-17-48-3825-66

                          Total2973023143121 2941 2921 8231 387

                          Comparable operating profit

                          Reported operating profit

                          Comparable operating profit

                          Reported operating profit

                          MEURLTM20102009

                          EBITDA2 7422 2712 292

                          Comparable EBITDA2 4332 3962 398

                          Interest-bearing net debt6 9296 8265 969

                          Net debtEBITDA253026

                          Comparable Net debtEBITDA282825

                          Return on capital employed ()135116121

                          Return on shareholders equity ()185157160

                          ) as of 30 September 2011

                          Spot price for power in NordPool power exchange

                          459

                          621

                          523

                          360

                          662

                          0

                          12

                          24

                          36

                          48

                          60

                          72

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-III2011I-III20102010LTM

                          Sales1 144

                          1 1524 4944 3946 296

                          6 396

                          Expenses-847-850-3 200-3 102-4 463-4 561

                          Comparable operating profit2973021 2941 2921 8331 835

                          Items affecting comparability171052995-125309

                          Operating profit3143121 8231 3871 7082 144

                          Share of profit of associates and jvs-21072416293

                          Financial expenses net-72-37-199-98-155-256

                          Profit before taxes2402851 6961 3301 6151 981

                          Income tax expense-46-45-278-236-261-303

                          Net profit for the period1942401 4181 0941 3541 678

                          Non-controlling interests-4-770255499

                          EPS basic (EUR)023027152120146178

                          EPS diluted (EUR)023027152120146178

                          Spot price for power (market price) Urals hub

                          935

                          817

                          950

                          954

                          939

                          0

                          200

                          400

                          600

                          800

                          1 000

                          1 200

                          Q32010Q42010Q12011Q22011Q32011

                          RUBMWh

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2122201 2591 1721 857

                          Comparable operating profit-14-12182153304

                          Net Assets3 9344 021

                          Comparable RONA 81

                          Gross Investments6367193188310

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales5605841 8271 9502 579

                          Comparable operating profit2682678509621 186

                          Net Assets5 9565 818

                          Comparable RONA 195

                          Gross Investments313210087135

                          Powers Nordic power price

                          469

                          488

                          479

                          474

                          443

                          0

                          10

                          20

                          30

                          40

                          50

                          60

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-II2011I-III20102010LTM

                          Operating profit before depreciations4614522 2741 8032 2712 742

                          Non-cash flow items and divesting activities

                          -31-25-600-98124-378

                          Financial items and fx gainslosses

                          0-126-290-449-641-482

                          Taxes

                          -104-93-362-248-355-469

                          Funds from operations (FFO)

                          3262081 0221 0081 3991 413

                          Change in working capital

                          -496511920838-51

                          Total net cash from operating activities2772731 1411 2161 4371 362

                          Paid capital expenditures-361-216-864-702-1 134-1 296

                          Acquisition of shares-24-7-44-8-28-64

                          Other investing activities19115608360537

                          Cash flow before financing activities-8961793589335539

                          Achieved power price for OAO Fortum

                          288

                          305

                          292

                          290

                          300

                          0

                          6

                          12

                          18

                          24

                          30

                          36

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

MEUR
2011 166
2012 656
2013 633
2014 1266
2015 1041
2016 877
2017 267
2018 187
2019 882
2020 73
2021+ 1566
MEUR LTM 2010 2009 2008 2006 2005
EBITDA 2742 2271 2292 2478 1884
Comparable EBITDA 2433 2396 2398 1151 1271
Interest-bearing net debt 6929 6826 5969 6179 4345 3158
Net debtEBITDA 25 30 26 25 8161
Comparable Net debtEBITDA 28 28 25 16839 15130
23 18
Return on capital employed () 135 116 121 150 134 135
Return on shareholders equity () 185 157 160 187 144 135
) as of 30 September 2011
MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
Change in working capital -49 65 119 208 38 -51 -102 161 5 0
Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
Other investing activities 19 11 560 83 60 537 -21 258 -34 0
Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
Sales 7732 1144 1152 4494 4394 6296 6396
Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
Comparable operating profit 623 297 302 1294 1292 1833 1835
Items affecting comparability 17 10 529 95 -125 309
Operating profit 314 312 1823 1387 1708 2144
Share of profit of associates and jvs -2 10 72 41 62 93
Financial expenses net -209 -72 -37 -199 -98 -155 -256
Profit before taxes 0 240 285 1696 1330 1615 1981
Income tax expense -83 -46 -45 -278 -236 -261 -303
Net profit for the period -26 194 240 1418 1094 1354 1678
Non-controlling interests -4 -7 70 25 54 99
EPS basic (EUR) 039 023 027 152 120 146 178
EPS diluted (EUR) 023 027 152 120 146 178
069
Page 47: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet1

ampA
Page ampP

Q3 Cash flow statement

Sheet1

ampA
Page ampP

Key ratios

Q3 lsquo11

Sheet1

Sheet2

Sheet3

Debt Maturity Profile

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards)43 35

Portion of floating fixed debt 46 54 49 51

Outlook

Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Annual electricity demand growth estimated to be approximately 05
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Profits from Russia build up in pace with the capacity increases
  • A new unit in Tobolsk at the beginning of October
  • Fortum targets a positive economic value added after completing the ongoing investment programme

    • Outlook

      • Annual capex (excluding potential acquisitions)
      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
      • 2012 around EUR 16 to 18 billion
      • 2013 and 2014 around EUR 11 to 14 billion annually
      • Hedging
      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

        • (Q2 70 at EUR 45MWh)

          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

            • (Q2 50 at EUR 46MWh)

              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                • (Q2 not disclosed)

                  Strong financial position

                      Return on capital employed

                      12

                      Return on shareholders equity

                      14

                      Net debtEBITDA

                      around 30

                      135

                      185

                      28

                      Fortumrsquos financial targets

                      LTM in Q32011

                      Good liquidity ndash committed credit lines total EUR 27 billion

                      Last twelve months

                      Comparable net debtEBITDA

                      Fortumrsquos production structure creates a firm basis for the future

                      • Strong financial position
                      • Electricity will continue to gain a higher share of the total energy consumption
                      • Good production portfolio going forward
                      • Growth in Russia

                        • QampA

                          Conference call

                          20 October 2011

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales1393056951 2691 224

                          Comparable operating profit41125828

                          Net Assets4355

                          Comparable RONA 305

                          Gross Investments00404

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales156137646550900

                          Comparable operating profit-16-1639-956

                          Net Assets3 0092 522

                          Comparable RONA 32

                          Gross Investments21984486342743

                          0

                          250

                          500

                          750

                          1000

                          1250

                          1500

                          1750

                          20112012201320142015201620172018201920202021+

                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2031967296761 016

                          Comparable operating profit6261246216337

                          Net Assets3 4633 560

                          Comparable RONA 99

                          Gross Investments7351169127255

                          MEUR

                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                          Power2682672732568509621 0331 003

                          Heat-14-12-10-15182153280179

                          Russia-16-16-161439-93937

                          Distribution62616062246216437228

                          Electricity Sales41161225896

                          Other-7-91-17-48-3825-66

                          Total2973023143121 2941 2921 8231 387

                          Comparable operating profit

                          Reported operating profit

                          Comparable operating profit

                          Reported operating profit

                          MEURLTM20102009

                          EBITDA2 7422 2712 292

                          Comparable EBITDA2 4332 3962 398

                          Interest-bearing net debt6 9296 8265 969

                          Net debtEBITDA253026

                          Comparable Net debtEBITDA282825

                          Return on capital employed ()135116121

                          Return on shareholders equity ()185157160

                          ) as of 30 September 2011

                          Spot price for power in NordPool power exchange

                          459

                          621

                          523

                          360

                          662

                          0

                          12

                          24

                          36

                          48

                          60

                          72

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-III2011I-III20102010LTM

                          Sales1 144

                          1 1524 4944 3946 296

                          6 396

                          Expenses-847-850-3 200-3 102-4 463-4 561

                          Comparable operating profit2973021 2941 2921 8331 835

                          Items affecting comparability171052995-125309

                          Operating profit3143121 8231 3871 7082 144

                          Share of profit of associates and jvs-21072416293

                          Financial expenses net-72-37-199-98-155-256

                          Profit before taxes2402851 6961 3301 6151 981

                          Income tax expense-46-45-278-236-261-303

                          Net profit for the period1942401 4181 0941 3541 678

                          Non-controlling interests-4-770255499

                          EPS basic (EUR)023027152120146178

                          EPS diluted (EUR)023027152120146178

                          Spot price for power (market price) Urals hub

                          935

                          817

                          950

                          954

                          939

                          0

                          200

                          400

                          600

                          800

                          1 000

                          1 200

                          Q32010Q42010Q12011Q22011Q32011

                          RUBMWh

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2122201 2591 1721 857

                          Comparable operating profit-14-12182153304

                          Net Assets3 9344 021

                          Comparable RONA 81

                          Gross Investments6367193188310

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales5605841 8271 9502 579

                          Comparable operating profit2682678509621 186

                          Net Assets5 9565 818

                          Comparable RONA 195

                          Gross Investments313210087135

                          Powers Nordic power price

                          469

                          488

                          479

                          474

                          443

                          0

                          10

                          20

                          30

                          40

                          50

                          60

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-II2011I-III20102010LTM

                          Operating profit before depreciations4614522 2741 8032 2712 742

                          Non-cash flow items and divesting activities

                          -31-25-600-98124-378

                          Financial items and fx gainslosses

                          0-126-290-449-641-482

                          Taxes

                          -104-93-362-248-355-469

                          Funds from operations (FFO)

                          3262081 0221 0081 3991 413

                          Change in working capital

                          -496511920838-51

                          Total net cash from operating activities2772731 1411 2161 4371 362

                          Paid capital expenditures-361-216-864-702-1 134-1 296

                          Acquisition of shares-24-7-44-8-28-64

                          Other investing activities19115608360537

                          Cash flow before financing activities-8961793589335539

                          Achieved power price for OAO Fortum

                          288

                          305

                          292

                          290

                          300

                          0

                          6

                          12

                          18

                          24

                          30

                          36

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

MEUR
2011 166
2012 656
2013 633
2014 1266
2015 1041
2016 877
2017 267
2018 187
2019 882
2020 73
2021+ 1566
MEUR LTM 2010 2009 2008 2006 2005
EBITDA 2742 2271 2292 2478 1884
Comparable EBITDA 2433 2396 2398 1151 1271
Interest-bearing net debt 6929 6826 5969 6179 4345 3158
Net debtEBITDA 25 30 26 25 8161
Comparable Net debtEBITDA 28 28 25 16839 15130
23 18
Return on capital employed () 135 116 121 150 134 135
Return on shareholders equity () 185 157 160 187 144 135
) as of 30 September 2011
MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
Change in working capital -49 65 119 208 38 -51 -102 161 5 0
Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
Other investing activities 19 11 560 83 60 537 -21 258 -34 0
Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
MEUR Q1-Q300 III2011 III2010 I-III2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM 2004
Sales 7732 1144 1152 4494 4394 6296 6396
Expenses -7109 -847 -850 -3200 -3102 -4463 -4561
Comparable operating profit 623 297 302 1294 1292 1833 1835
Items affecting comparability 17 10 529 95 -125 309
Operating profit 314 312 1823 1387 1708 2144
Share of profit of associates and jvs -2 10 72 41 62 93
Financial expenses net -209 -72 -37 -199 -98 -155 -256
Profit before taxes 0 240 285 1696 1330 1615 1981
Income tax expense -83 -46 -45 -278 -236 -261 -303
Net profit for the period -26 194 240 1418 1094 1354 1678
Non-controlling interests -4 -7 70 25 54 99
EPS basic (EUR) 039 023 027 152 120 146 178
EPS diluted (EUR) 023 027 152 120 146 178
069
Page 48: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet1

ampA
Page ampP

Key ratios

Q3 lsquo11

Sheet1

Sheet2

Sheet3

Debt Maturity Profile

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards)43 35

Portion of floating fixed debt 46 54 49 51

Outlook

Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Annual electricity demand growth estimated to be approximately 05
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Profits from Russia build up in pace with the capacity increases
  • A new unit in Tobolsk at the beginning of October
  • Fortum targets a positive economic value added after completing the ongoing investment programme

    • Outlook

      • Annual capex (excluding potential acquisitions)
      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
      • 2012 around EUR 16 to 18 billion
      • 2013 and 2014 around EUR 11 to 14 billion annually
      • Hedging
      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

        • (Q2 70 at EUR 45MWh)

          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

            • (Q2 50 at EUR 46MWh)

              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                • (Q2 not disclosed)

                  Strong financial position

                      Return on capital employed

                      12

                      Return on shareholders equity

                      14

                      Net debtEBITDA

                      around 30

                      135

                      185

                      28

                      Fortumrsquos financial targets

                      LTM in Q32011

                      Good liquidity ndash committed credit lines total EUR 27 billion

                      Last twelve months

                      Comparable net debtEBITDA

                      Fortumrsquos production structure creates a firm basis for the future

                      • Strong financial position
                      • Electricity will continue to gain a higher share of the total energy consumption
                      • Good production portfolio going forward
                      • Growth in Russia

                        • QampA

                          Conference call

                          20 October 2011

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales1393056951 2691 224

                          Comparable operating profit41125828

                          Net Assets4355

                          Comparable RONA 305

                          Gross Investments00404

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales156137646550900

                          Comparable operating profit-16-1639-956

                          Net Assets3 0092 522

                          Comparable RONA 32

                          Gross Investments21984486342743

                          0

                          250

                          500

                          750

                          1000

                          1250

                          1500

                          1750

                          20112012201320142015201620172018201920202021+

                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2031967296761 016

                          Comparable operating profit6261246216337

                          Net Assets3 4633 560

                          Comparable RONA 99

                          Gross Investments7351169127255

                          MEUR

                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                          Power2682672732568509621 0331 003

                          Heat-14-12-10-15182153280179

                          Russia-16-16-161439-93937

                          Distribution62616062246216437228

                          Electricity Sales41161225896

                          Other-7-91-17-48-3825-66

                          Total2973023143121 2941 2921 8231 387

                          Comparable operating profit

                          Reported operating profit

                          Comparable operating profit

                          Reported operating profit

                          MEURLTM20102009

                          EBITDA2 7422 2712 292

                          Comparable EBITDA2 4332 3962 398

                          Interest-bearing net debt6 9296 8265 969

                          Net debtEBITDA253026

                          Comparable Net debtEBITDA282825

                          Return on capital employed ()135116121

                          Return on shareholders equity ()185157160

                          ) as of 30 September 2011

                          Spot price for power in NordPool power exchange

                          459

                          621

                          523

                          360

                          662

                          0

                          12

                          24

                          36

                          48

                          60

                          72

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-III2011I-III20102010LTM

                          Sales1 144

                          1 1524 4944 3946 296

                          6 396

                          Expenses-847-850-3 200-3 102-4 463-4 561

                          Comparable operating profit2973021 2941 2921 8331 835

                          Items affecting comparability171052995-125309

                          Operating profit3143121 8231 3871 7082 144

                          Share of profit of associates and jvs-21072416293

                          Financial expenses net-72-37-199-98-155-256

                          Profit before taxes2402851 6961 3301 6151 981

                          Income tax expense-46-45-278-236-261-303

                          Net profit for the period1942401 4181 0941 3541 678

                          Non-controlling interests-4-770255499

                          EPS basic (EUR)023027152120146178

                          EPS diluted (EUR)023027152120146178

                          Spot price for power (market price) Urals hub

                          935

                          817

                          950

                          954

                          939

                          0

                          200

                          400

                          600

                          800

                          1 000

                          1 200

                          Q32010Q42010Q12011Q22011Q32011

                          RUBMWh

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2122201 2591 1721 857

                          Comparable operating profit-14-12182153304

                          Net Assets3 9344 021

                          Comparable RONA 81

                          Gross Investments6367193188310

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales5605841 8271 9502 579

                          Comparable operating profit2682678509621 186

                          Net Assets5 9565 818

                          Comparable RONA 195

                          Gross Investments313210087135

                          Powers Nordic power price

                          469

                          488

                          479

                          474

                          443

                          0

                          10

                          20

                          30

                          40

                          50

                          60

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-II2011I-III20102010LTM

                          Operating profit before depreciations4614522 2741 8032 2712 742

                          Non-cash flow items and divesting activities

                          -31-25-600-98124-378

                          Financial items and fx gainslosses

                          0-126-290-449-641-482

                          Taxes

                          -104-93-362-248-355-469

                          Funds from operations (FFO)

                          3262081 0221 0081 3991 413

                          Change in working capital

                          -496511920838-51

                          Total net cash from operating activities2772731 1411 2161 4371 362

                          Paid capital expenditures-361-216-864-702-1 134-1 296

                          Acquisition of shares-24-7-44-8-28-64

                          Other investing activities19115608360537

                          Cash flow before financing activities-8961793589335539

                          Achieved power price for OAO Fortum

                          288

                          305

                          292

                          290

                          300

                          0

                          6

                          12

                          18

                          24

                          30

                          36

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

MEUR
2011 166
2012 656
2013 633
2014 1266
2015 1041
2016 877
2017 267
2018 187
2019 882
2020 73
2021+ 1566
MEUR LTM 2010 2009 2008 2006 2005
EBITDA 2742 2271 2292 2478 1884
Comparable EBITDA 2433 2396 2398 1151 1271
Interest-bearing net debt 6929 6826 5969 6179 4345 3158
Net debtEBITDA 25 30 26 25 8161
Comparable Net debtEBITDA 28 28 25 16839 15130
23 18
Return on capital employed () 135 116 121 150 134 135
Return on shareholders equity () 185 157 160 187 144 135
) as of 30 September 2011
MEUR III2011 III2010 I-II2011 I-III2010 2010 LTM 2007 I-III2007 LTM LTM
Operating profit before depreciations 461 452 2274 1803 2271 2742 2478 1663 2370 0
Non-cash flow items and divesting activities -31 -25 -600 -98 124 -378 -275 -268 -56 0
Financial items and fx gainslosses 0 -126 -290 -449 -641 -482 233
Taxes -104 -93 -362 -248 -355 -469 -332 -231 -534 0
Funds from operations (FFO) 326 208 1022 1008 1399 1413 2104 1164 1780 0
Change in working capital -49 65 119 208 38 -51 -102 161 5 0
Total net cash from operating activities 277 273 1141 1216 1437 1362 2002 1325 1785 0
Paid capital expenditures -361 -216 -864 -702 -1134 -1296 -1018 -341 -931 0
Acquisition of shares -24 -7 -44 -8 -28 -64 -1243 -257 -1243 0
Other investing activities 19 11 560 83 60 537 -21 258 -34 0
Cash flow before financing activities -89 61 793 589 335 539 -280 985 -423 0
Page 49: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet1

Sheet2

Sheet3

Debt Maturity Profile

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards)43 35

Portion of floating fixed debt 46 54 49 51

Outlook

Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Annual electricity demand growth estimated to be approximately 05
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Profits from Russia build up in pace with the capacity increases
  • A new unit in Tobolsk at the beginning of October
  • Fortum targets a positive economic value added after completing the ongoing investment programme

    • Outlook

      • Annual capex (excluding potential acquisitions)
      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
      • 2012 around EUR 16 to 18 billion
      • 2013 and 2014 around EUR 11 to 14 billion annually
      • Hedging
      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

        • (Q2 70 at EUR 45MWh)

          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

            • (Q2 50 at EUR 46MWh)

              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                • (Q2 not disclosed)

                  Strong financial position

                      Return on capital employed

                      12

                      Return on shareholders equity

                      14

                      Net debtEBITDA

                      around 30

                      135

                      185

                      28

                      Fortumrsquos financial targets

                      LTM in Q32011

                      Good liquidity ndash committed credit lines total EUR 27 billion

                      Last twelve months

                      Comparable net debtEBITDA

                      Fortumrsquos production structure creates a firm basis for the future

                      • Strong financial position
                      • Electricity will continue to gain a higher share of the total energy consumption
                      • Good production portfolio going forward
                      • Growth in Russia

                        • QampA

                          Conference call

                          20 October 2011

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales1393056951 2691 224

                          Comparable operating profit41125828

                          Net Assets4355

                          Comparable RONA 305

                          Gross Investments00404

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales156137646550900

                          Comparable operating profit-16-1639-956

                          Net Assets3 0092 522

                          Comparable RONA 32

                          Gross Investments21984486342743

                          0

                          250

                          500

                          750

                          1000

                          1250

                          1500

                          1750

                          20112012201320142015201620172018201920202021+

                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2031967296761 016

                          Comparable operating profit6261246216337

                          Net Assets3 4633 560

                          Comparable RONA 99

                          Gross Investments7351169127255

                          MEUR

                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                          Power2682672732568509621 0331 003

                          Heat-14-12-10-15182153280179

                          Russia-16-16-161439-93937

                          Distribution62616062246216437228

                          Electricity Sales41161225896

                          Other-7-91-17-48-3825-66

                          Total2973023143121 2941 2921 8231 387

                          Comparable operating profit

                          Reported operating profit

                          Comparable operating profit

                          Reported operating profit

                          MEURLTM20102009

                          EBITDA2 7422 2712 292

                          Comparable EBITDA2 4332 3962 398

                          Interest-bearing net debt6 9296 8265 969

                          Net debtEBITDA253026

                          Comparable Net debtEBITDA282825

                          Return on capital employed ()135116121

                          Return on shareholders equity ()185157160

                          ) as of 30 September 2011

                          Spot price for power in NordPool power exchange

                          459

                          621

                          523

                          360

                          662

                          0

                          12

                          24

                          36

                          48

                          60

                          72

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-III2011I-III20102010LTM

                          Sales1 144

                          1 1524 4944 3946 296

                          6 396

                          Expenses-847-850-3 200-3 102-4 463-4 561

                          Comparable operating profit2973021 2941 2921 8331 835

                          Items affecting comparability171052995-125309

                          Operating profit3143121 8231 3871 7082 144

                          Share of profit of associates and jvs-21072416293

                          Financial expenses net-72-37-199-98-155-256

                          Profit before taxes2402851 6961 3301 6151 981

                          Income tax expense-46-45-278-236-261-303

                          Net profit for the period1942401 4181 0941 3541 678

                          Non-controlling interests-4-770255499

                          EPS basic (EUR)023027152120146178

                          EPS diluted (EUR)023027152120146178

                          Spot price for power (market price) Urals hub

                          935

                          817

                          950

                          954

                          939

                          0

                          200

                          400

                          600

                          800

                          1 000

                          1 200

                          Q32010Q42010Q12011Q22011Q32011

                          RUBMWh

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2122201 2591 1721 857

                          Comparable operating profit-14-12182153304

                          Net Assets3 9344 021

                          Comparable RONA 81

                          Gross Investments6367193188310

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales5605841 8271 9502 579

                          Comparable operating profit2682678509621 186

                          Net Assets5 9565 818

                          Comparable RONA 195

                          Gross Investments313210087135

                          Powers Nordic power price

                          469

                          488

                          479

                          474

                          443

                          0

                          10

                          20

                          30

                          40

                          50

                          60

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-II2011I-III20102010LTM

                          Operating profit before depreciations4614522 2741 8032 2712 742

                          Non-cash flow items and divesting activities

                          -31-25-600-98124-378

                          Financial items and fx gainslosses

                          0-126-290-449-641-482

                          Taxes

                          -104-93-362-248-355-469

                          Funds from operations (FFO)

                          3262081 0221 0081 3991 413

                          Change in working capital

                          -496511920838-51

                          Total net cash from operating activities2772731 1411 2161 4371 362

                          Paid capital expenditures-361-216-864-702-1 134-1 296

                          Acquisition of shares-24-7-44-8-28-64

                          Other investing activities19115608360537

                          Cash flow before financing activities-8961793589335539

                          Achieved power price for OAO Fortum

                          288

                          305

                          292

                          290

                          300

                          0

                          6

                          12

                          18

                          24

                          30

                          36

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

MEUR
2011 166
2012 656
2013 633
2014 1266
2015 1041
2016 877
2017 267
2018 187
2019 882
2020 73
2021+ 1566
MEUR LTM 2010 2009 2008 2006 2005
EBITDA 2742 2271 2292 2478 1884
Comparable EBITDA 2433 2396 2398 1151 1271
Interest-bearing net debt 6929 6826 5969 6179 4345 3158
Net debtEBITDA 25 30 26 25 8161
Comparable Net debtEBITDA 28 28 25 16839 15130
23 18
Return on capital employed () 135 116 121 150 134 135
Return on shareholders equity () 185 157 160 187 144 135
) as of 30 September 2011
Page 50: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet2

Sheet3

Debt Maturity Profile

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards)43 35

Portion of floating fixed debt 46 54 49 51

Outlook

Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Annual electricity demand growth estimated to be approximately 05
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Profits from Russia build up in pace with the capacity increases
  • A new unit in Tobolsk at the beginning of October
  • Fortum targets a positive economic value added after completing the ongoing investment programme

    • Outlook

      • Annual capex (excluding potential acquisitions)
      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
      • 2012 around EUR 16 to 18 billion
      • 2013 and 2014 around EUR 11 to 14 billion annually
      • Hedging
      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

        • (Q2 70 at EUR 45MWh)

          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

            • (Q2 50 at EUR 46MWh)

              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                • (Q2 not disclosed)

                  Strong financial position

                      Return on capital employed

                      12

                      Return on shareholders equity

                      14

                      Net debtEBITDA

                      around 30

                      135

                      185

                      28

                      Fortumrsquos financial targets

                      LTM in Q32011

                      Good liquidity ndash committed credit lines total EUR 27 billion

                      Last twelve months

                      Comparable net debtEBITDA

                      Fortumrsquos production structure creates a firm basis for the future

                      • Strong financial position
                      • Electricity will continue to gain a higher share of the total energy consumption
                      • Good production portfolio going forward
                      • Growth in Russia

                        • QampA

                          Conference call

                          20 October 2011

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales1393056951 2691 224

                          Comparable operating profit41125828

                          Net Assets4355

                          Comparable RONA 305

                          Gross Investments00404

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales156137646550900

                          Comparable operating profit-16-1639-956

                          Net Assets3 0092 522

                          Comparable RONA 32

                          Gross Investments21984486342743

                          0

                          250

                          500

                          750

                          1000

                          1250

                          1500

                          1750

                          20112012201320142015201620172018201920202021+

                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2031967296761 016

                          Comparable operating profit6261246216337

                          Net Assets3 4633 560

                          Comparable RONA 99

                          Gross Investments7351169127255

                          MEUR

                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                          Power2682672732568509621 0331 003

                          Heat-14-12-10-15182153280179

                          Russia-16-16-161439-93937

                          Distribution62616062246216437228

                          Electricity Sales41161225896

                          Other-7-91-17-48-3825-66

                          Total2973023143121 2941 2921 8231 387

                          Comparable operating profit

                          Reported operating profit

                          Comparable operating profit

                          Reported operating profit

                          MEURLTM20102009

                          EBITDA2 7422 2712 292

                          Comparable EBITDA2 4332 3962 398

                          Interest-bearing net debt6 9296 8265 969

                          Net debtEBITDA253026

                          Comparable Net debtEBITDA282825

                          Return on capital employed ()135116121

                          Return on shareholders equity ()185157160

                          ) as of 30 September 2011

                          Spot price for power in NordPool power exchange

                          459

                          621

                          523

                          360

                          662

                          0

                          12

                          24

                          36

                          48

                          60

                          72

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-III2011I-III20102010LTM

                          Sales1 144

                          1 1524 4944 3946 296

                          6 396

                          Expenses-847-850-3 200-3 102-4 463-4 561

                          Comparable operating profit2973021 2941 2921 8331 835

                          Items affecting comparability171052995-125309

                          Operating profit3143121 8231 3871 7082 144

                          Share of profit of associates and jvs-21072416293

                          Financial expenses net-72-37-199-98-155-256

                          Profit before taxes2402851 6961 3301 6151 981

                          Income tax expense-46-45-278-236-261-303

                          Net profit for the period1942401 4181 0941 3541 678

                          Non-controlling interests-4-770255499

                          EPS basic (EUR)023027152120146178

                          EPS diluted (EUR)023027152120146178

                          Spot price for power (market price) Urals hub

                          935

                          817

                          950

                          954

                          939

                          0

                          200

                          400

                          600

                          800

                          1 000

                          1 200

                          Q32010Q42010Q12011Q22011Q32011

                          RUBMWh

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2122201 2591 1721 857

                          Comparable operating profit-14-12182153304

                          Net Assets3 9344 021

                          Comparable RONA 81

                          Gross Investments6367193188310

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales5605841 8271 9502 579

                          Comparable operating profit2682678509621 186

                          Net Assets5 9565 818

                          Comparable RONA 195

                          Gross Investments313210087135

                          Powers Nordic power price

                          469

                          488

                          479

                          474

                          443

                          0

                          10

                          20

                          30

                          40

                          50

                          60

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-II2011I-III20102010LTM

                          Operating profit before depreciations4614522 2741 8032 2712 742

                          Non-cash flow items and divesting activities

                          -31-25-600-98124-378

                          Financial items and fx gainslosses

                          0-126-290-449-641-482

                          Taxes

                          -104-93-362-248-355-469

                          Funds from operations (FFO)

                          3262081 0221 0081 3991 413

                          Change in working capital

                          -496511920838-51

                          Total net cash from operating activities2772731 1411 2161 4371 362

                          Paid capital expenditures-361-216-864-702-1 134-1 296

                          Acquisition of shares-24-7-44-8-28-64

                          Other investing activities19115608360537

                          Cash flow before financing activities-8961793589335539

                          Achieved power price for OAO Fortum

                          288

                          305

                          292

                          290

                          300

                          0

                          6

                          12

                          18

                          24

                          30

                          36

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

MEUR
2011 166
2012 656
2013 633
2014 1266
2015 1041
2016 877
2017 267
2018 187
2019 882
2020 73
2021+ 1566
Page 51: Fortum Corporation Interim Report January-September 2011...Interim Report. January-September 2011. 2 Disclaimer ... (IAS 39) of derivatives had a positive impact on the reported operating

Sheet3

Debt Maturity Profile

per 30 Sept 2011 per 31 Dec 2010

Average Interest Rate (incl swaps and forwards)43 35

Portion of floating fixed debt 46 54 49 51

Outlook

Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Annual electricity demand growth estimated to be approximately 05
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Profits from Russia build up in pace with the capacity increases
  • A new unit in Tobolsk at the beginning of October
  • Fortum targets a positive economic value added after completing the ongoing investment programme

    • Outlook

      • Annual capex (excluding potential acquisitions)
      • 2011 around EUR 15 billion - disclosed divestments in 2011 totalled approximately EUR 05 billion
      • 2012 around EUR 16 to 18 billion
      • 2013 and 2014 around EUR 11 to 14 billion annually
      • Hedging
      • 2011 approximately 65 hedge ratio at approximately EUR 47MWh

        • (Q2 70 at EUR 45MWh)

          • 2012 approximately 55 hedge ratio at approximately EUR 47MWh

            • (Q2 50 at EUR 46MWh)

              • 2013 approximately 25 hedge ratio at approximately EUR 46MWh

                • (Q2 not disclosed)

                  Strong financial position

                      Return on capital employed

                      12

                      Return on shareholders equity

                      14

                      Net debtEBITDA

                      around 30

                      135

                      185

                      28

                      Fortumrsquos financial targets

                      LTM in Q32011

                      Good liquidity ndash committed credit lines total EUR 27 billion

                      Last twelve months

                      Comparable net debtEBITDA

                      Fortumrsquos production structure creates a firm basis for the future

                      • Strong financial position
                      • Electricity will continue to gain a higher share of the total energy consumption
                      • Good production portfolio going forward
                      • Growth in Russia

                        • QampA

                          Conference call

                          20 October 2011

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales1393056951 2691 224

                          Comparable operating profit41125828

                          Net Assets4355

                          Comparable RONA 305

                          Gross Investments00404

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales156137646550900

                          Comparable operating profit-16-1639-956

                          Net Assets3 0092 522

                          Comparable RONA 32

                          Gross Investments21984486342743

                          0

                          250

                          500

                          750

                          1000

                          1250

                          1500

                          1750

                          20112012201320142015201620172018201920202021+

                          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2031967296761 016

                          Comparable operating profit6261246216337

                          Net Assets3 4633 560

                          Comparable RONA 99

                          Gross Investments7351169127255

                          MEUR

                          III2011III2010III2011III2010I-III2011I-III2010I-III2011I-III2010

                          Power2682672732568509621 0331 003

                          Heat-14-12-10-15182153280179

                          Russia-16-16-161439-93937

                          Distribution62616062246216437228

                          Electricity Sales41161225896

                          Other-7-91-17-48-3825-66

                          Total2973023143121 2941 2921 8231 387

                          Comparable operating profit

                          Reported operating profit

                          Comparable operating profit

                          Reported operating profit

                          MEURLTM20102009

                          EBITDA2 7422 2712 292

                          Comparable EBITDA2 4332 3962 398

                          Interest-bearing net debt6 9296 8265 969

                          Net debtEBITDA253026

                          Comparable Net debtEBITDA282825

                          Return on capital employed ()135116121

                          Return on shareholders equity ()185157160

                          ) as of 30 September 2011

                          Spot price for power in NordPool power exchange

                          459

                          621

                          523

                          360

                          662

                          0

                          12

                          24

                          36

                          48

                          60

                          72

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-III2011I-III20102010LTM

                          Sales1 144

                          1 1524 4944 3946 296

                          6 396

                          Expenses-847-850-3 200-3 102-4 463-4 561

                          Comparable operating profit2973021 2941 2921 8331 835

                          Items affecting comparability171052995-125309

                          Operating profit3143121 8231 3871 7082 144

                          Share of profit of associates and jvs-21072416293

                          Financial expenses net-72-37-199-98-155-256

                          Profit before taxes2402851 6961 3301 6151 981

                          Income tax expense-46-45-278-236-261-303

                          Net profit for the period1942401 4181 0941 3541 678

                          Non-controlling interests-4-770255499

                          EPS basic (EUR)023027152120146178

                          EPS diluted (EUR)023027152120146178

                          Spot price for power (market price) Urals hub

                          935

                          817

                          950

                          954

                          939

                          0

                          200

                          400

                          600

                          800

                          1 000

                          1 200

                          Q32010Q42010Q12011Q22011Q32011

                          RUBMWh

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales2122201 2591 1721 857

                          Comparable operating profit-14-12182153304

                          Net Assets3 9344 021

                          Comparable RONA 81

                          Gross Investments6367193188310

                          MEURIII2011III2010I-III2011I-III2010LTM

                          Sales5605841 8271 9502 579

                          Comparable operating profit2682678509621 186

                          Net Assets5 9565 818

                          Comparable RONA 195

                          Gross Investments313210087135

                          Powers Nordic power price

                          469

                          488

                          479

                          474

                          443

                          0

                          10

                          20

                          30

                          40

                          50

                          60

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

                          MEURIII2011III2010I-II2011I-III20102010LTM

                          Operating profit before depreciations4614522 2741 8032 2712 742

                          Non-cash flow items and divesting activities

                          -31-25-600-98124-378

                          Financial items and fx gainslosses

                          0-126-290-449-641-482

                          Taxes

                          -104-93-362-248-355-469

                          Funds from operations (FFO)

                          3262081 0221 0081 3991 413

                          Change in working capital

                          -496511920838-51

                          Total net cash from operating activities2772731 1411 2161 4371 362

                          Paid capital expenditures-361-216-864-702-1 134-1 296

                          Acquisition of shares-24-7-44-8-28-64

                          Other investing activities19115608360537

                          Cash flow before financing activities-8961793589335539

                          Achieved power price for OAO Fortum

                          288

                          305

                          292

                          290

                          300

                          0

                          6

                          12

                          18

                          24

                          30

                          36

                          Q32010Q42010Q12011Q22011Q32011

                          eurMWh

MEUR
2011 166
2012 656
2013 633
2014 1266
2015 1041
2016 877
2017 267
2018 187
2019 882
2020 73
2021+ 1566

Valmet’s Interim Review, January March 2017 | 1 fileValmet’s Interim Review, January–March 2017 | 2 Valmet’s Interim Review January 1 – March 31, 2017 Orders received increased

Valmet’s Interim Review, January March 2017 | 1 fileValmet’s Interim Review, January–March 2017 | 2 Valmet’s Interim Review January 1 – March 31, 2017 Orders received increased

Fortum Corporation · 2020-03-30 · 3 (55) Fortum Corporation Interim Report January−March 2017 27 April 2017 at 9:00 EEST Improved results in a demanding market – Russian EBIT

Fortum Corporation · 2020-03-30 · 3 (55) Fortum Corporation Interim Report January−March 2017 27 April 2017 at 9:00 EEST Improved results in a demanding market – Russian EBIT

Fortum in Lithuania

Fortum in Lithuania

Interim Report January-June 2020 · Half-year Financial Report January-June 2020 Fortum Corporation 19 August 2020

Interim Report January-June 2020 · Half-year Financial Report January-June 2020 Fortum Corporation 19 August 2020

FORTUM – For a cleaner world · 2020-06-03 · Fortum in brief. 4 – 5. Energy market transition. 6 – 9. Fortum’s strategic route. 10 – 17. Q1 2020 Interim Report. 18 –

FORTUM – For a cleaner world · 2020-06-03 · Fortum in brief. 4 – 5. Energy market transition. 6 – 9. Fortum’s strategic route. 10 – 17. Q1 2020 Interim Report. 18 –

Interim Report January-March 2018 - Fortum · • As a result of strong LNG inflows, European gas storages ended Q1 with high stocks and European gas became very competitive against

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Interim Report January-September 2019...Interim Report January-September 2019 Fortum Corporation 24 October 2019 • Nordic spot power price down, -31% Y/Y – Achieved power price

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Fortum Corporation Interim Report January-March 2012annualreporting.fortum.com/files/fortum_ar2011/... · Achieved power price for OAO Fortum 29,2 29,0 30,0 28,9 29,3 0 6 12 18 24

Fortum Corporation Interim Report January-March 2012annualreporting.fortum.com/files/fortum_ar2011/... · Achieved power price for OAO Fortum 29,2 29,0 30,0 28,9 29,3 0 6 12 18 24

Interim Report January-March 2021 - Fortum

Interim Report January-March 2021 - Fortum

FORTUM - Forerunner in clean energyapps.fortum.fi/investors/Fortum investor... · Interim report Q3 2016 pages 36 –53 IR contacts pages 54. ... Capital returns: 2015 EUR 1.10 per

FORTUM - Forerunner in clean energyapps.fortum.fi/investors/Fortum investor... · Interim report Q3 2016 pages 36 –53 IR contacts pages 54. ... Capital returns: 2015 EUR 1.10 per

Contents · 2020-03-30 · Annual Report 2000 Fortum Keilaniemi, Espoo, POB 1, FIN-00048 FORTUM, Finland ... The Annual Report and the Interim Reports are available in Finnish, Swedish

Contents · 2020-03-30 · Annual Report 2000 Fortum Keilaniemi, Espoo, POB 1, FIN-00048 FORTUM, Finland ... The Annual Report and the Interim Reports are available in Finnish, Swedish

Fortum Corporation Interim Report January-March 2010 · Norway and Sweden was considerably below normal. Year 2010 started with the Nordic water reservoirs 7 terawatt-hours (TWh)

Fortum Corporation Interim Report January-March 2010 · Norway and Sweden was considerably below normal. Year 2010 started with the Nordic water reservoirs 7 terawatt-hours (TWh)

Interim Report January-June 2016 - Fortum · Q2/2016: Operationally a good quarter, but weak power prices continue to burden profits 4 Key figures (MEUR), continuing operations II/2016

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Fortum Charge & Drive Munich - CHAdeMO€¦ · Fortum Corporation and Charge & Drive Fortum Corporation • Leading power company in Nordics with Generation, Distribution and Sales

Fortum Charge & Drive Munich - CHAdeMO€¦ · Fortum Corporation and Charge & Drive Fortum Corporation • Leading power company in Nordics with Generation, Distribution and Sales

Interim Report January–March 2020...VASAKRONAN INTERIM REPORT JANUARY–MARCH 2020 Interim Report January–March 2020 Rental revenue increased to SEK 1,764 million (1,724). For

Interim Report January–March 2020...VASAKRONAN INTERIM REPORT JANUARY–MARCH 2020 Interim Report January–March 2020 Rental revenue increased to SEK 1,764 million (1,724). For

Fortum: charge & drive

Fortum: charge & drive

Half-Year Financial Report January-June 2017apps.fortum.fi/investors/Fortum_Q2_2017_presentation.pdfHalf-Year Financial Report January-June 2017 Fortum Corporation 20 July 2017 Disclaimer

Half-Year Financial Report January-June 2017apps.fortum.fi/investors/Fortum_Q2_2017_presentation.pdfHalf-Year Financial Report January-June 2017 Fortum Corporation 20 July 2017 Disclaimer

Fortum Corporationapps.fortum.fi/gallery/fortum_interim_report_q1_2015.pdf · Fortum Corporation . Interim Report . ... Folksam (17.5%) ... electricity distribution business was originally

Fortum Corporationapps.fortum.fi/gallery/fortum_interim_report_q1_2015.pdf · Fortum Corporation . Interim Report . ... Folksam (17.5%) ... electricity distribution business was originally

Fortum Corporation

Fortum Corporation

Interim report January – September 2015 · Interim report January – September 2015 Interim period January – September 2015 • Net asset value per share was SEK 60.21, compared

Interim report January – September 2015 · Interim report January – September 2015 Interim period January – September 2015 • Net asset value per share was SEK 60.21, compared