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 8,000 professionals in the Nordic and Baltic countries, Russia, Poland and India. Fortum's share is listed on Nasdaq Helsinki.

Fortum		24/06/2019
Currency	EUR	Volume	1,681,334
Previous Close	18.96	Number of shares (million)	888.29
Change (%)	0.11	Market Cap (million)	16,837.62

Key figures

EUR million	2018	2017	2016
Sales	5,242	4,520	3,632
Comparable EBITDA	1,523	1,275	1,015
Comparable operating profit	987	811	644
Operating profit	1,138	1,158	633
Share of profits of associates and joint ventures	38	148	131
Profit before income taxes	1,040	1,111	595
Earnings per share, EUR	0.95	0.98	0.56
Net cash from operating activities	804	993	621
Shareholders’ equity per share, EUR	13.33	14.69	15.15
Interest-bearing net debt (at the end of the period)	5,509	988	-48
Return on capital employed, %	6.7	7.1	4.0
Comparable net debt/EBITDA	3.6	0.8	0.0
Return on shareholders' equity	6.8	6.6	3.7
Equity to assets ratio, %	54	61	62

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)

Debt portfolio and average interest rate 31 December 2018

Total interest-bearing debt EUR 6,093 million

Debt portfolio and average interest rate 31 December 2018

Total interest-bearing debt EUR 6,093 million

Shares and votes

Fortum’s business operations	Generation	City Solutions	Consumer Solutions	Russia	Other
Business description	Generation is responsible for Nordic power production. The division comprises nuclear, hydro, wind, and thermal power production, as well as power portfolio optimisation, trading, industrial intelligence, and nuclear services globally.	City Solutions is responsible for developing sustainable solutions for urban areas into a growing business for Fortum. The division comprises heating, cooling, waste-to-energy, biomass, and other circular economy solutions as well as solar power production. The business operations are located in the Nordics, the Baltic countries, and Poland. The division also includes Fortum’s 50% holding in Stockholm Exergi (formerly Fortum Värme), which is a joint venture and is accounted for using the equity method.	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.	Other Operations mainly comprises corporate functions as well as Fortum's shareholding in Uniper, which is consolidated as an associated company.
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 631 million	EUR 113 million	EUR 53 million	EUR 271 million
Comparable net assets	EUR 6,295 million	EUR 3,743 million	EUR 648 million	EUR 2,789 million
Volume	Nordic generation 42.0 TWh	Power sales 2.7 TWh, Heat sales 10.8 TWh	Electricity sales 30.3 TWh, Gas sales 4.1 TWh	Power generation 29.6 TWh, Heat sales 20.7 TWh

Generation	City Solutions
Business description	Business description
Generation is responsible for Nordic power production. The division comprises nuclear, hydro, wind, and thermal power production, as well as power portfolio optimisation, trading, industrial intelligence, and nuclear services globally.	City Solutions is responsible for developing sustainable solutions for urban areas into a growing business for Fortum. The division comprises heating, cooling, waste-to-energy, biomass, and other circular economy solutions as well as solar power production. The business operations are located in the Nordics, the Baltic countries, and Poland. The division also includes Fortum’s 50% holding in Stockholm Exergi (formerly Fortum Värme), which is a joint venture and is accounted for using the equity method.
Drivers	Drivers
Nordic power price, generation volumes, availability	Fuel mix, heat and power price, gate fees
Comparable operating profit	Comparable operating profit
EUR 631 million	EUR 113 million
Comparable net assets	Comparable net assets
EUR 6,295 million	EUR 3,743 million
Volume	Volume
Nordic generation 42.0 TWh	Power sales 2.7 TWh, Heat sales 10.8 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 53 million	EUR 271 million
Comparable net assets	Comparable net assets
EUR 648 million	EUR 2,789 million
Volume	Volume
Electricity sales 30.3 TWh, Gas sales 4.1 TWh	Power generation 29.6 TWh, Heat sales 20.7 TWh

Other
Business description
Other Operations mainly comprises corporate functions as well as Fortum's shareholding in Uniper, which is consolidated as an associated company.

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 2018 for 2019 approximately 75% hedged at EUR 31/MWh and for 2020 approximately 45% hedged at EUR 29/MWh
Annual CAPEX estimate excluding acquisitions in 2019 in the range of EUR 600-650 million (maintenance CAPEX at approximately EUR 300 million, well below the level of depreciation)
The effective tax rate estimate for 2019 is 19-21%

Fortum's carbon exposure among the lowest in Europe

g CO2/kWh electricity, 2017

Fortum's power generation in 2018

Total generation 74.6 TWh

Fortum's power generation in 2018

Total generation 74.6 TWh

Fortum's heat production in 2018

Total production 29.8 TWh

Fortum's heat production in 2018

Total production 29.8 TWh

Financial Calendar

Silent & closed period prior to January-June 2019 result publication	19/06/2019 - 19/07/2019
Half-year Financial Report 2019	19/07/2019
Results news conference/webcast	19/07/2019
Result presentation in Helsinki, SEB	19/07/2019