Fortum Power and heat company in the Nordic countries, Russia, Poland and the Baltics

Per J. Nylund Fortum Heat SBDFortum Power and heat company in the Nordic countries, Russia, Poland and the Baltics1More than 130,000 shareholdersPower and heat company in the Nordic countries, Russia, Poland and the BalticsListed at the Helsinki Stock Exchange since 1998Among the most traded shares on the NASDAQ OMX Helsinki stock exchangeMarket cap ~13 billion euros

231 August 2013Foreign investors 25.7%Finnish State 50.8%Other Finnish investors 9.9%Households 11.0%Financial and insurance institutions 2.6%2Our geographical presence today3TGC-1 (~25%)Power generation ~7 TWhHeat sales ~8 TWhOAO Fortum Power generation 19.2 TWhHeat sales 26.4 TWhRussiaPolandPower generation 0.8 TWhHeat sales 4.3 TWhBaltic countriesPower generation 0.4 TWhHeat sales 0.9 TWhNordic countriesPower generation 51.6 TWhHeat sales 14.5 TWhDistribution customers 1.6 millionElectricity customers 1.2 millionNr 3

Power generation

Electricity salesNr 2Nr 1Heat

Distribution

Nr 1Key figures 2012Sales EUR 6.2 bnOperating profit EUR 1.9 bnBalance sheet EUR 25 bn Personnel 10,400Great BritainPower generation 1.1 TWhHeat sales 1.8 TWh34Fortum mid-sized European power generation player; major producer in global heat* incl. Bashkirenergo, ** incl. RAO ES East, *** incl. TGC-5, TGC-6, TGC-7, TGC-9, **** incl. TGC-12, TGC-13, ***** incl. energy servicesSource: Company information, Fortum analyses, 2011 figures pro forma, heat production of Beijing DH not available.Largest global producers, 2011 TWhLargest producers in Europe and Russia, 2011TWhPower generationHeat productionElectricity customers in EU, 2011millionsCustomersGDF SUEZDEICEZEnelCentricaEDPIberdrolaSSEEnBWFortumEDFE.ONRWEGas NaturalFenosaPGETauronHafslundDong Energy020401030VattenfallKDHC, KoreaQuadraTatenergoMinskenergoDTEK, UkraineEuroSibEnergoMOEKTGC-2FortumDong EnergyTGC-14LukoilGazprom020406080100120140ELCEN, Rom.Sibgenco****)***)IESVattenfallPGNiGInter RAO UES*)Dalkia*****)RusHydro**)***)IESDEIEuroSibEnergoIberdrolaFortumEnBWVattenfallCEZRWEPGESSEStatkraftRosenergoatomGazpromNNEGC Energoat.EnelE.ON EDF0100200300400500600GDF SUEZDTEK, UkraineInter RAO UES*)RusHydro**)Divisions of Fortum5Electricity Solutions and Distribution Division is responsible for Fortum's electricity sales and distribution activities. It consists of two business areas: Distribution and Electricity Sales.

Russia Division consists of power and heat generation and sales in Russia. It includes OAO Fortum and Fortums slightly over 25% holding in TGC-1.Power Division consists of Fortums power generation, physical operation and trading as well as expert services for power producers.Heat Division consists of combined heat and power generation (CHP), district heating and cooling activities and business-to-business heating solutions.

5Fortums Mission and Strategy6StrategyFortums purpose is to create energy that improves life for present and future generations. We provide sustainable solutions for society and deliver excellent value to our shareholders.MissionBuild on the strong Nordic coreCreate solid earnings growth in RussiaBuild a platform for future growthStrong competence in CO2-free hydro and nuclear, efficient CHP production and energy marketsFortum's power and heat production by source7Nuclear power 32%Hydro power 34%Coal 5%Biomass 2%Total generation 73.1 TWh (Generation capacity 14,675 MW)Natural gas 27%Fortum's power generation in 2012Total production 43.3 TWh (Production capacity 22,431 MW)Fortum's heat production in 2012Oil 1%Waste 5%Heat pumps, electricity 8%Peat 1%Biomass 11%Natural gas 62%Coal 12%7Sustainability8

8Fortum's sustainability approach9Environmental responsibilityCompetence in hydro, nuclear and CHP productionReduction of environmental impactsDevelopment of new sustainable energy systems, forms and productsEconomic responsibilityLong-term added value and growthSustainability assessment of investments and acquisitions Sustainable management of supply chainSustainability at the core of the strategy:economic, social and environmental responsibilitySocial responsibilitySecurity of supply of electricity and heat to customersGood corporate citizenshipEmployee well-being and competence developmentOccupational and operational safety

9Fortum's carbon exposure among the lowest in Europe1088g CO2/kWh electricity, 2011201268% of Fortum's total power generation CO2-free93% of Fortums power generation in the EU CO2-free

Close to 100% of the ongoing investment programme in the EU CO2-freeAverage 338 g/kWh192Note:Fortums specific emission of the power generation in 2012 in the EU were 42 g/kWh and in total 171 g/kWh.Only European generation except Fortum total which includes Russia.Source: PWC & Enerpresse, Novembre 2012Changement climatique et lectricit, Fortum

R&D aspiration is to enable a sustainable CO2-free future for FortumWave power to commercial usePyrolysis oil one step towards aspiration to become a carbon free power and heat producer Advancing a rapid adoption of electric vehicles New solutions to district heatingDecentralised energy production and smart gridsIncreased nuclear safety and lifetime, nuclear CHPNURES product to remove radioactivity from liquids11

12Royal Seaport of Stockholm A prime example of sustainable urban developmentVisionRoyal Seaport an international benchmark of sustainable urban developmentMission and goalsBuild 10 000 new apartments, 30 000 work spaces and a wide harbour in 2009-25Fossil fuel free-zone in 2030 CO2-emissions less than 1.5 tonne/person by 2009-2025 (currently 4.5 tonne/person)Focus areasEfficient use of energyClimate-benign transport solutionsLife style -issues

1212Fortum a forerunner in sustainabilityCarbon Disclosure Nordic Leadership IndexFortum no. 1, scores 100/100SAM Sustainability YearbookSTOXX Global ESG Leaders indices oekomOMX GES Sustainability Finland IndexStorebrand SRI

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