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| Silent period prior to January-September 2021 result publication | 13/10/2021 - 12/11/2021 |
| January-September 2021 Interim Report | 12/11/2021 |
| Q3 2021 Virtual result presentation, Carnegie | 12/11/2021 |
| Q3 2021 Virtual roadshow, J.P Morgan | 18/11/2021 |
Fortum in brief
Fortum is a European energy company with activities in more than 40 countries. We provide our customers with electricity, gas, heating and cooling as well as smart solutions to improve resource efficiency. Together with our subsidiary Uniper, we are the third largest producer of CO2-free electricity in Europe. Close to 20,000 professionals and a combined balance sheet of approximately EUR 60 billion, we have the scale, competence and resources to grow and to drive the energy transition forward. Fortum's share is listed on Nasdaq Helsinki and Uniper's share on the Frankfurt Stock Exchange.
| Fortum | 15/10/2021 | ||
|---|---|---|---|
| Currency | EUR | Volume | 1,119,404 |
| Previous Close | 26.75 | Number of shares (million) | 888.29 |
| Change (%) | -1.15 | Market Cap (million) | 23,761.88 |
Fortum strategy – Driving the clean energy transition and delivering sustainable financial performance
For a cleaner world
Transform own operations to carbon neutral
- Phase out and exit coal
- Transform gas-fired generation towards clean gas
Strengthen and grow in CO2-free power generation
- Supply significant flexible and reliable CO2-free power generation
- Grow sizeable portfolio of renewables
Leverage strong position in gas to enable the energy transition
- Provide security of supply and flexibility in the power system
- Secure supply of gas for heat, power, and industrial processes
Partner with industrial and infrastructure customers
- Provide decarbonisation and environmental solutions
- Build on first-mover position in hydrogen
Value creation targets
Carbon neutral as a Group latest by 2050, in line with the Paris Agreement, and in our European generation latest by 2035
Sustainable financial performance through attractive value from investments, portfolio optimisation, and benchmark operations
Strong financial position and over time increasing dividend
Fortum strategy – Driving the clean energy transition and delivering sustainable financial performance
For a cleaner world
Transform own operations to carbon neutral
- Phase out and exit coal
- Transform gas-fired generation towards clean gas
Strengthen and grow in CO2-free power generation
- Supply significant flexible and reliable CO2-free power generation
- Grow sizeable portfolio of renewables
Leverage strong position in gas to enable the energy transition
- Provide security of supply and flexibility in the power system
- Secure supply of gas for heat, power, and industrial processes
Partner with industrial and infrastructure customers
- Provide decarbonisation and environmental solutions
- Build on first-mover position in hydrogen
Value creation targets
Carbon neutral as a Group latest by 2050, in line with the Paris Agreement, and in our European generation latest by 2035
Sustainable financial performance through attractive value from investments, portfolio optimisation, and benchmark operations
Strong financial position and over time increasing dividend
Key figures
| EUR million | 2020 | 2019 | 2018 |
|---|---|---|---|
| Sales | 49,015 | 5,447 | 5,242 |
| Comparable EBITDA* | 2,434 | 1,766 | 1,523 |
| Comparable operating profit | 1,344 | 1,191 | 987 |
| Operating profit | 1,599 | 1,118 | 1,138 |
| Share of profit/loss of associates and joint ventures* | 656 | 744 | 38 |
| Profit before income taxes | 2,199 | 1,728 | 1,040 |
| Earnings per share, EUR | 2.05 | 1.67 | 0.95 |
| Net cash from operating activities** | 2,555 | 1,575 | 804 |
| Shareholders’ equity per share, EUR | 14.58 | 14.61 | 13.33 |
| Financial net debt (at period-end)*** | 7,023 | 4,833 | - |
| Adjusted net debt (at period-end)*** | 9,784 | 4,978 | - |
| Interest-bearing net debt (at period-end)*** | N/A | 5,260 | 5,509 |
| Financial net debt/comparable EBITDA* *** | 2.9 | - | - |
* Comparable EBITDA is defined as an alternative performance measure and used as a component in the capital structure target 'Financial net debt-to-Comparable EBITDA'. In 2020 Comparable EBITDA includes contribution from Uniper for the period of 1 April to 31 December 2020 since Uniper was consolidated as a subsidiary from 31 March 2020. Until 31 of March 2020 Uniper's contribution to the income statement was recognised in the Share of profit/loss of associates and joint ventures.
** Change in net margin liabilities has been reclassified from operating cash flows to investing cash flows and to financing cash flows.
*** Following the consolidation of Uniper, Fortum has updated its definition of net debt and uses financial net debt and adjusted net debt.
Dividend
Fortum's dividend policy is to pay a stable, sustainable, and over time increasing dividend.
Dividend per share (EUR) history
Dividend per share (EUR) history
Financial targets
Financial targets give guidance on Fortum's view of the company's long-term value creation potential, its growth strategy and business activities. The long-term financial targets are:
- Financial net debt/comparable EBITDA below 2x
- Hurdle rates for new investments of WACC
+100 bps for green investments
+200 bps for other investments
Fortum continues to be committed to maintaining a rating of at least BBB.
Financial net debt/comparable EBITDA
Financial net debt/comparable EBITDA
Shares and votes
Shares and votes
Fortum's power generation in 2020
Total generation 142.1 TWh
Fortum's power generation in 2020
Total generation 142.1 TWh
Fortum's heat production in 2020
Total production 29.6 TWh
Fortum's heat production in 2020
Total production 29.6 TWh
Financial Calendar
Business |
Comparable operating profit in 2020 | Comparable net assets at 31 Dec 2020 | Volume in 2020 |
|---|---|---|---|
| Generation is responsible for Nordic power generation. The segment comprises CO2-free nuclear, hydro, and wind power generation, as well as power portfolio optimisation, trading, industrial intelligence, thermal power for the capacity reserve, and global nuclear services. The segment does not include the Nordic hydro and nuclear power generation or the trading activities of Uniper. As of 31 March 2020, the segment includes Generation’s proportionate share of OKG | MEUR 722 |
MEUR 6,239 |
Nordic generation 43.9 TWh |
| The Russia segment comprises power and heat generation and sales in Russia. The segment also includes Fortum’s joint ventures for building and operating approximately 2 GW of renewable power generation and for power and heat sales, as well as Fortum’s more than 29% holding in TGC 1. These joint ventures and the associated company are accounted for using the equity method. The segment does not include Uniper’s Russian subsidiary Unipro | MEUR 251 |
MEUR 2,431 |
Power generation 27.1 TWh, Heat production 16.4 TWh |
| City Solutions is responsible for sustainable solutions for urban areas. The segment comprises heating, cooling, waste-to-energy, and other circular economy solutions, as well as solar power generation, services, and development of new biomass-based businesses. The business operations are located in the Nordics, the Baltic countries, Poland, and India. The segment also includes Fortum’s 50% holding in Stockholm Exergi, which is a joint venture and is accounted for using the equity method. The segment does not include the operations of Fortum’s subsidiary Uniper. | MEUR 47 |
MEUR 3,679 |
Power sales 3.0 TWh, Heat sales 9.6 TWh |
| Consumer Solutions is responsible for the electricity and gas retail businesses in the Nordics, Poland, and Spain, including the customer service and invoicing businesses. Fortum is the largest electricity retail business in the Nordics, with approximately 2.4 million customers across different brands in Finland, Sweden, Norway, Poland, and Spain. The business provides electricity, as well as related value-added and digital services. | MEUR 90 |
MEUR 565 |
Electricity sales 29.1 TWh, Gas sales 4.9 TWh |
| The Uniper segment comprises Fortum’s majority ownership in Uniper, a subsidiary of Fortum. Uniper is a leading international energy company with activities in more than 40 countries. Its business is the secure provision of energy and related services. Its main activities include power generation in Europe and Russia as well as global energy trading and optimisation, which Uniper reports in three businesses – European Generation, Global Commodities, and Russian Power Generation – in its financial statements. Approximately 50% of the power generating capacity is gas-based, 30% coal-based, and 20% hydro- or nuclear-based. The segment includes Uniper’s proportionate share of OKG. | MEUR 363 |
MEUR 7,432 |
Generation 68.3 TWh |
| Generation | Russia |
|---|---|
| Business | Business |
| Generation is responsible for Nordic power generation. The segment comprises CO2-free nuclear, hydro, and wind power generation, as well as power portfolio optimisation, trading, industrial intelligence, thermal power for the capacity reserve, and global nuclear services. The segment does not include the Nordic hydro and nuclear power generation or the trading activities of Uniper. As of 31 March 2020, the segment includes Generation’s proportionate share of OKG | The Russia segment comprises power and heat generation and sales in Russia. The segment also includes Fortum’s joint ventures for building and operating approximately 2 GW of renewable power generation and for power and heat sales, as well as Fortum’s more than 29% holding in TGC 1. These joint ventures and the associated company are accounted for using the equity method. The segment does not include Uniper’s Russian subsidiary Unipro |
| Comparable operating profit in 2020 | Comparable operating profit in 2020 |
| MEUR 722 | MEUR 251 |
| Comparable net assets at 31 Dec 2020 | Comparable net assets at 31 Dec 2020 |
| MEUR 6,239 | MEUR 2,431 |
| Volume in 2020 | Volume in 2020 |
| Nordic generation 43.9 TWh | Power generation 27.1 TWh, Heat production 16.4 TWh |
| City Solutions | Consumer Solutions |
|---|---|
| Business | Business |
| City Solutions is responsible for sustainable solutions for urban areas. The segment comprises heating, cooling, waste-to-energy, and other circular economy solutions, as well as solar power generation, services, and development of new biomass-based businesses. The business operations are located in the Nordics, the Baltic countries, Poland, and India. The segment also includes Fortum’s 50% holding in Stockholm Exergi, which is a joint venture and is accounted for using the equity method. The segment does not include the operations of Fortum’s subsidiary Uniper. | Consumer Solutions is responsible for the electricity and gas retail businesses in the Nordics, Poland, and Spain, including the customer service and invoicing businesses. Fortum is the largest electricity retail business in the Nordics, with approximately 2.4 million customers across different brands in Finland, Sweden, Norway, Poland, and Spain. The business provides electricity, as well as related value-added and digital services. |
| Comparable operating profit in 2020 | Comparable operating profit in 2020 |
| MEUR 47 | MEUR 90 |
| Comparable net assets at 31 Dec 2020 | Comparable net assets at 31 Dec 2020 |
| MEUR 3,679 | MEUR 565 |
| Volume in 2020 | Volume in 2020 |
| Power sales 3.0 TWh, Heat sales 9.6 TWh | Electricity sales 29.1 TWh, Gas sales 4.9 TWh |
| Uniper |
|---|
| Business |
| The Uniper segment comprises Fortum’s majority ownership in Uniper, a subsidiary of Fortum. Uniper is a leading international energy company with activities in more than 40 countries. Its business is the secure provision of energy and related services. Its main activities include power generation in Europe and Russia as well as global energy trading and optimisation, which Uniper reports in three businesses – European Generation, Global Commodities, and Russian Power Generation – in its financial statements. Approximately 50% of the power generating capacity is gas-based, 30% coal-based, and 20% hydro- or nuclear-based. The segment includes Uniper’s proportionate share of OKG. |
| Comparable operating profit in 2020 |
| MEUR 363 |
| Comparable net assets at 31 Dec 2020 |
| MEUR 7,432 |
| Volume in 2020 |
| Generation 68.3 TWh |
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