Birgitta Resvik, Vice President Corporate Relations, Fortum

Fortum – Power and heat company in the Nordic countries, Russia, Poland and the Baltics Svebio-Ambassador´s meeting 4th December 2013

Our geographical presence today

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TGC-1 (~25%)

Power generation ~7 TWh

Heat sales ~8 TWh

OAO Fortum

Power generation 19.2 TWh

Heat sales 26.4 TWh

Russia

Poland Power generation 0.8 TWh

Heat sales 4.3 TWh

Baltic countries Power generation 0.4 TWh

Heat sales 0.9 TWh

Nordic countries

Power generation 51.6 TWh

Heat sales 14.5 TWh

Distribution customers 1.6 million

Electricity customers 1.2 million

Nr 3 Power

generation

Electricity

sales

Nr 2

Nr 1 Heat

Distribution

Nr 1

Key figures 2012 Sales EUR 6.2 bn

Operating profit EUR 1.9 bn

Balance sheet EUR 25 bn

Personnel 10,400

Great Britain Power generation 1.1 TWh

Heat sales 1.8 TWh

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Fortum in Sweden

Distribution of electricity

Hydro Power plants

2 Nuclear plants – co-owned

1 Condensing plant – co-owned

• Fortum Heat divisions CHP-

plants not on the map

Hydro power

47%

Coal 4%

Other 1%

Nuclear power 43%

Biomass 2%

European generation 53.9 TWh

(Generation capacity 11,271 MW)

Fortum's European

power generation in 2012

Natural gas 3%

European production 18.5 TWh

(Production capacity 9,035 MW)

Fortum's European

heat production in 2012

Peat 2%

Oil 2%

Heat pumps, electricity

18%

Waste 10%

Natural gas

21%

Coal 20%

Biomass

27%

Fortum's European power generation based on hydro and nuclear power – wide flexibility in heat production

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Fortum's carbon exposure among the lowest in Europe

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um

EU

ED

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Sta

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ft

88

g CO2/kWh electricity, 2011

2012

68% of Fortum's total power generation CO2-free

93% of Fortum’s power generation in the EU CO2-free

Close to 100% of the ongoing investment programme

in the EU CO2-free

Average 338 g/kWh

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Note:

Fortum’s 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 2012

Changement climatique et Électricité, Fortum

Stockholm -The European Green Capital 2010

Fortum has since 1980 reduced the emissions in Stockholm:

-60 % CO2 -95 % SO2 -80 % NOx

District heating in Stockholm by Fortum Värme

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New bio–CHP in the center of Stockholm: one of world biggest, will give 750 GWh electricity and

1700 GWh heat - correspond to 190 000 flats

Fuel supply from local, regional and global sources

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Base supply on rail from terminals in a

wide nordic supply area. Logistic flexibility

to ensure security in supply and access to

a global market

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Royal Seaport of Stockholm – A prime example of sustainable urban development

Vision

• Royal Seaport – an international benchmark of

sustainable urban development

Mission and goals

• Build 10 000 new apartments, 30 000 work

spaces and a wide harbour in 2009-25

• Fossil fuel free-zone in 2030

• CO2-emissions less than 1.5 tonne/person by

2009-2025 (currently 4.5 tonne/person)

Focus areas

• Efficient use of energy

• Climate-benign transport solutions

• Life style -issues

Transition towards Solar Economy

Solar Economy Solar based production with

high overall system efficiency

Reso

urc

e &

syste

m e

ffic

ien

cy

Finite fuel resources Large CO2 emissions Infinite fuel resources Emissions free production

Hig

h

Lo

w

Geothermal

Hydro

Wind

Sun

Ocean

Bio

Coal Gas

Oil Nuclear

today

Nuclear

tomorrow

CHP

CCS

Traditional energy production

Exhaustible fuels that burden

the environment

Advanced

energy production Energy efficient and/or

low-emission production

Copyright © Fortum Corporation

All rights reserved by Fortum Corporation and shall be deemed the sole property of Fortum Corporation and nothing in

this slide or otherwise shall be construed as granting or conferring any rights, in particular any intellectual property rights

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Fortum a forerunner in sustainability

• Dow Jones Sustainability World Index

– Included for ten consecutive years

– Fortum the only Nordic power and heat company

• Carbon Disclosure Leadership Index

– Fortum globally best company in the utility sector

2013

– Fortum the only Nordic power and heat company

• SAM Sustainability Yearbook

• STOXX® Global ESG Leaders indices

• oekom

• OMX GES Sustainability Finland Index

• Storebrand SRI

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13

Thank you!

Fuel Hierarchy

Household and Industrial waste

Heat Surplus

Industrial by-products

Biomass

F&A by-products

Biomass

Forrest and Agricultural Biomass

Fossil fuels

Energy efficiency

Resource efficiency

Environmental efficiency

Cost efficiency

Fuels in Fortum Heat Scandinavia

Waste 750 kton/year (86 000 trucks) to Högdalen CHP. Will increase to 1 million tonnes in 2013.

Wood Chips 1 TWh/year to Brista CHP. Domestic supply and import thru port of Hargshamn.

Wood Pellet

300 kton/year to Hässelby CHP. Main supply from Russia and the Baltic states (100-150 vessels/year).

Bio oils

80-100 kton/year. Based on TOP and residues from oleochemic industry in Asia, Brazil and Europe.

Coal

300 kton/year. Mainly Russian coal. Special quality requirements.

Fossile oils

5-20 kton/year. Gasoil and HFO (low sulphur).

Brista CHP

HässelbyCHP

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The sustainable waste

• Local fuel from recycled materials

• Turns cost into commodity

• Landfill problems solved

• Reduces methane by reducing landfills

Plant

Högdalen, Stockholm

40 years experience of waste to energy CHP

700,000 tonnes recycled waste

3.6 TWh heat & 0.3 TWh electricity

90 % of energy content in the waste is utilized

R&D aspiration is to enable a sustainable CO2-free future for Fortum

• Wave power to commercial use

• Pyrolysis 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 heating

• Decentralised energy production and smart grids

• Increased nuclear safety and lifetime, nuclear CHP

• NURES product to remove radioactivity from liquids

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