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| Annual General Meeting 2019 | 26/03/2019 |
| Proposed ex-dividend date 2019 | 27/03/2019 |
| Proposed record date for dividend payment 2019 | 28/03/2019 |
| Silent & closed period prior to January-March 2019 result publication | 03/04/2019 - 26/04/2019 |
Fortum in brief
Fortum is a leading clean-energy company that provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. We employ some 9,000 professionals in the Nordic and Baltic countries, Russia, Poland and India. Fortum's share is listed on Nasdaq Helsinki.
| Fortum | 22/03/2019 | ||
|---|---|---|---|
| Currency | EUR | Volume | 1,499,281 |
| Previous Close | 19.68 | Number of shares (million) | 888.29 |
| Change (%) | -0.86 | Market Cap (million) | 17,481.64 |
Megatrends
Climate change and resource efficiency
Urbanisation
Active Customers
Digitalisation, new technologies
Mission
We engage our customers and society to drive the change towards a cleaner world. Our role is to acelerate this change by reshaping the energy system, improving resource efficiency and providing smart solutions. This way we deliver excellent shareholder value.
Strategy
 |
Drive productivity and industry transformation |  |
Grow in solar and wind |
 |
Create solutions for sustainable cities |  |
Build new energy ventures |
Megatrends
Climate change and resource efficiency
Urbanisation
Active Customers
Digitalisation, new technologies
Mission
We engage our customers and society to drive the change towards a cleaner world. Our role is to acelerate this change by reshaping the energy system, improving resource efficiency and providing smart solutions. This way we deliver excellent shareholder value.
Strategy
| |
Drive productivity and industry transformation | |
Grow in solar and wind |
| |
Create solutions for sustainable cities | |
Build new energy ventures |
Key figures
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Sales | 3,459 | 3,632 | 4,520 |
| Operating profit | -150 | 633 | 1,158 |
| Profit before income tax | -305 | 595 | 1,111 |
| Capital employed | 19,870 | 18,649 | 18,172 |
| Interest-bearing net debt | -2,195 | -48 | 988 |
| Capital expenditure and gross investments in shares | 625 | 1,435 | 1,815 |
| Return on capital employed (%) | 22.7 | 4.0 | 7.1 |
| Return on shareholders’ equity (%) | 33.4 | 3.7 | 6.6 |
| Gearing (%) | -16 | 0 | 7 |
| Equity-to-assets ratio (%) | 61 | 62 | 61 |
| Net cash from operating activities | 1,381 | 621 | 993 |
| Dividend | 977 | 977 | 977 |
Financial targets
Fortum's long-term over the cycle financial targets give guidance on our value creation potential, growth strategy and business activities.
ROCE
Comparable net debt/EBITDA
ROCE
Comparable net debt/EBITDA
Dividend
Fortum's target is to pay a stable, sustainable and over time increasing dividend of 50-80% of earnings per share excluding one-off items
Dividend history (EUR/share)
Dividend history (EUR/share)
Debt maturity profile 31 December 2017
Total interest-bearing debt EUR 4,885 million
Debt maturity profile 31 December 2017
Total interest-bearing debt EUR 4,885 million
Shares and votes
Shares and votes
| Fortum’s business operations | Generation | City Solutions | Consumer Solutions | Russia | Other |
|---|---|---|---|---|---|
| Business description | The Generation segment comprises power production in the Nordics including nuclear, hydro and thermal power production, power portfolio optimisation, trading and industrial intelligence, and nuclear services globally. | City Solutions develops sustainable solutions for urban areas into a growing business for Fortum. The segment comprises heating and cooling, waste-to-energy, biomass and other circular economy solutions. The business operations are located in the Nordics, the Baltic countries and Poland. | Consumer Solutions comprises electricity and gas retail businesses in the Nordics and Poland, including the customer service, invoicing and debt collection business. Fortum is the largest electricity retail business in the Nordics, with approximately 2.5 million customers across different brands in Finland, Sweden, Norway and Poland. | The Russia segment comprises power and heat generation and sales in Russia. The segment also includes Fortum’s over 29% holding in TGC-1, which is an associated company and is accounted for using the equity method. | Technology and New Ventures - to speed up innovation and new business development. This unit is responsible for Fortum's research and development. M&A and Solar and Wind Development - Fortum strives to create value by driving utility industry consolidation and restructuring through transformational mergers and acquisitions in its current home markets and in the integrating European market. The company also targets a gigawatt-scale solar and wind portfolio. |
| Drivers | Nordic power price, generation volumes, availability | Fuel mix, heat and power price, gate fees | Electricity sales, competition, customer base | New capacity and capacity price, electricity and heat price, availability | |
| Comparable operating profit | EUR 478 million | EUR 98 million | EUR 41 million | EUR 296 million | |
| Comparable net assets | EUR 5,672 million | EUR 3,728 million | EUR 638 million | EUR 3,161 million | |
| Volume | Nordic generation 44.2 TWh | Power sales 2.6 TWh, Heat sales 10.0 TWh | Electricity sales 20.5 TWh, Gas sales 4.0 TWh | Power generation 30.5 TWh, Heat sales 19.8 TWh |
| Generation | City Solutions |
|---|---|
| Business description | Business description |
| The Generation segment comprises power production in the Nordics including nuclear, hydro and thermal power production, power portfolio optimisation, trading and industrial intelligence, and nuclear services globally. | City Solutions develops sustainable solutions for urban areas into a growing business for Fortum. The segment comprises heating and cooling, waste-to-energy, biomass and other circular economy solutions. The business operations are located in the Nordics, the Baltic countries and Poland. |
| Drivers | Drivers |
| Nordic power price, generation volumes, availability | Fuel mix, heat and power price, gate fees |
| Comparable operating profit | Comparable operating profit |
| EUR 478 million | EUR 98 million |
| Comparable net assets | Comparable net assets |
| EUR 5,672 million | EUR 3,728 million |
| Volume | Volume |
| Nordic generation 44.2 TWh | Power sales 2.6 TWh, Heat sales 10.0 TWh |
| Consumer Solutions | Russia |
|---|---|
| Business description | Business description |
| Consumer Solutions comprises electricity and gas retail businesses in the Nordics and Poland, including the customer service, invoicing and debt collection business. Fortum is the largest electricity retail business in the Nordics, with approximately 2.5 million customers across different brands in Finland, Sweden, Norway and Poland. | The Russia segment comprises power and heat generation and sales in Russia. The segment also includes Fortum’s over 29% holding in TGC-1, which is an associated company and is accounted for using the equity method. |
| Drivers | Drivers |
| Electricity sales, competition, customer base | New capacity and capacity price, electricity and heat price, availability |
| Comparable operating profit | Comparable operating profit |
| EUR 41 million | EUR 296 million |
| Comparable net assets | Comparable net assets |
| EUR 638 million | EUR 3,161 million |
| Volume | Volume |
| Electricity sales 20.5, TWh Gas sales 4.0 TWh | Powe generation 30.5, TWh Heat sales 19.8 TWh |
| Other |
|---|
| Business description |
| Technology and New Ventures - to speed up innovation and new business development. This unit is responsible for Fortum's research and development. M&A and Solar and Wind Development - Fortum strives to create value by driving utility industry consolidation and restructuring through transformational mergers and acquisitions in its current home markets and in the integrating European market. The company also targets a gigawatt-scale solar and wind portfolio. |
Business drivers and risks
- One of the key factors influencing Fortum's business performance is the wholesale price of electricity in the Nordic region
- Fortum expects the annual electricity demand growth to be approximately 0.5% on average in the coming years
- Electricity is expected to continue to gain share of total energy consumption
- Generation sensitivity: achieved price +/- EUR 1/MWh = ~EUR 45 million in annual comparable operating profit
- Hedging at the end of 2017 for 2018 approximately 70% hedged at EUR 28/MWh and for 2019 approximately 40% hedged at EUR 25/MWh
- Annual CAPEX estimate excluding acquisitions in 2018 in the range of EUR 600-700 million (maintenance CAPEX at approximately EUR 300 million, well below the level of depreciation)
- The effective tax rate estimate for 2018 is 19-21%
Fortum is a forerunner in sustainability
We engage our customers and society to drive the change towards a cleaner world. Our role is to accelerate this change by reshaping the energy system, improving resource efficiency and providing smart solutions. This way we deliver excellent shareholder value.
Fortum's power generation in 2017
Total generation 73.2 TWh
Fortum's power generation in 2017
Total generation 73.2 TWh
Fortum's heat production in 2017
Total production 28.6 TWh
Fortum's heat production in 2017
Total production 28.6 TWh
Financial Calendar
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