2 February 2011
Fortum Corporation Financial year 2010
2
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
3
Highlights in 2010
bull
Updated strategy which builds on Fortumrsquos core competences
bull
Performance remained firm
bull
Demand improved both in the Nordics and Russia
bull
Russian power market progressed ndash
Liberalised wholesale marketndash
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determined
bull
Fortumrsquos Russian investment programme accelerated
bull
CO2
five-year average performance is lower than target level at 69 gkWh ndash
within EU 86 of the power generated by Fortum is CO2
free
44
Global mega trends drive the industry - Updated
strategy supports sustainable business development
Create solid earnings growth in Russia
Leverage the strong Nordic core
Build platform for future growth
Competence in CO2
free nuclear hydro and energy efficient CHP production and operating in competitive energy markets
Strategy
bull
Power and heat demand and supplybull
Degree of market liberalization and integrationbull
Climate change responsebull
Energy system structurebull
Business models and competition
5
Business environment improved
bull
Nordic power consumption up by 5 during 2010ndash
Power consumption in the Nordic countries 396 TWh in 2010
397 TWh in 2008 (pre-recession)
ndash
Temperature corrected power consumption in Nordic countries was still appr 4 (~16 TWh
) lower than in 2008ndash
Water reservoirs at historically low levelsndash
Nordic spot prices increased forward prices more stable
bull
Russian power consumption increased by about 4 during 2010ndash
Electricity spot price in Russia up 32 from a year ago
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
6
Solid performance continued
bull
Comparable operating profit EUR 1833 (1888) million ndash
Lower hydro volumes in Powerndash
Improvement in Russia Distribution and Heatbull
Earnings per share EUR 146 (148)ndash
Negative IAS 39 accounting effect corresponding to EUR 018bull
Net cash from operating activities EUR 1437 (2264) million ndash
Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
bull
Proposed dividend of EUR
100
per share
7
Comparable profit close to last years level
Comparable operating profit EUR million
44 281888 1833-156
45 -11 -5
PowerGeneration
2009 Heat Distribution ElectricitySales
Russia Other 2010
8
Nordic water reservoirs were historically low
Source Nord Pool Spot
rese
rvoi
r con
tent
(TW
h)
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4
2003 2008 2009 20112010 reference level
9
Average regulated electricity price for OAO Fortum
536620 610 607 613
0
125
250
375
500
625
750
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Spot price for power (market price) Urals hub
693817 770
936817
0
200
400
600
800
1 000
1 200
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Powers Nordic power price
515545
448 472514
0
10
20
30
40
50
60
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
2
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
3
Highlights in 2010
bull
Updated strategy which builds on Fortumrsquos core competences
bull
Performance remained firm
bull
Demand improved both in the Nordics and Russia
bull
Russian power market progressed ndash
Liberalised wholesale marketndash
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determined
bull
Fortumrsquos Russian investment programme accelerated
bull
CO2
five-year average performance is lower than target level at 69 gkWh ndash
within EU 86 of the power generated by Fortum is CO2
free
44
Global mega trends drive the industry - Updated
strategy supports sustainable business development
Create solid earnings growth in Russia
Leverage the strong Nordic core
Build platform for future growth
Competence in CO2
free nuclear hydro and energy efficient CHP production and operating in competitive energy markets
Strategy
bull
Power and heat demand and supplybull
Degree of market liberalization and integrationbull
Climate change responsebull
Energy system structurebull
Business models and competition
5
Business environment improved
bull
Nordic power consumption up by 5 during 2010ndash
Power consumption in the Nordic countries 396 TWh in 2010
397 TWh in 2008 (pre-recession)
ndash
Temperature corrected power consumption in Nordic countries was still appr 4 (~16 TWh
) lower than in 2008ndash
Water reservoirs at historically low levelsndash
Nordic spot prices increased forward prices more stable
bull
Russian power consumption increased by about 4 during 2010ndash
Electricity spot price in Russia up 32 from a year ago
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
6
Solid performance continued
bull
Comparable operating profit EUR 1833 (1888) million ndash
Lower hydro volumes in Powerndash
Improvement in Russia Distribution and Heatbull
Earnings per share EUR 146 (148)ndash
Negative IAS 39 accounting effect corresponding to EUR 018bull
Net cash from operating activities EUR 1437 (2264) million ndash
Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
bull
Proposed dividend of EUR
100
per share
7
Comparable profit close to last years level
Comparable operating profit EUR million
44 281888 1833-156
45 -11 -5
PowerGeneration
2009 Heat Distribution ElectricitySales
Russia Other 2010
8
Nordic water reservoirs were historically low
Source Nord Pool Spot
rese
rvoi
r con
tent
(TW
h)
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4
2003 2008 2009 20112010 reference level
9
Average regulated electricity price for OAO Fortum
536620 610 607 613
0
125
250
375
500
625
750
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Spot price for power (market price) Urals hub
693817 770
936817
0
200
400
600
800
1 000
1 200
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Powers Nordic power price
515545
448 472514
0
10
20
30
40
50
60
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
3
Highlights in 2010
bull
Updated strategy which builds on Fortumrsquos core competences
bull
Performance remained firm
bull
Demand improved both in the Nordics and Russia
bull
Russian power market progressed ndash
Liberalised wholesale marketndash
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determined
bull
Fortumrsquos Russian investment programme accelerated
bull
CO2
five-year average performance is lower than target level at 69 gkWh ndash
within EU 86 of the power generated by Fortum is CO2
free
44
Global mega trends drive the industry - Updated
strategy supports sustainable business development
Create solid earnings growth in Russia
Leverage the strong Nordic core
Build platform for future growth
Competence in CO2
free nuclear hydro and energy efficient CHP production and operating in competitive energy markets
Strategy
bull
Power and heat demand and supplybull
Degree of market liberalization and integrationbull
Climate change responsebull
Energy system structurebull
Business models and competition
5
Business environment improved
bull
Nordic power consumption up by 5 during 2010ndash
Power consumption in the Nordic countries 396 TWh in 2010
397 TWh in 2008 (pre-recession)
ndash
Temperature corrected power consumption in Nordic countries was still appr 4 (~16 TWh
) lower than in 2008ndash
Water reservoirs at historically low levelsndash
Nordic spot prices increased forward prices more stable
bull
Russian power consumption increased by about 4 during 2010ndash
Electricity spot price in Russia up 32 from a year ago
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
6
Solid performance continued
bull
Comparable operating profit EUR 1833 (1888) million ndash
Lower hydro volumes in Powerndash
Improvement in Russia Distribution and Heatbull
Earnings per share EUR 146 (148)ndash
Negative IAS 39 accounting effect corresponding to EUR 018bull
Net cash from operating activities EUR 1437 (2264) million ndash
Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
bull
Proposed dividend of EUR
100
per share
7
Comparable profit close to last years level
Comparable operating profit EUR million
44 281888 1833-156
45 -11 -5
PowerGeneration
2009 Heat Distribution ElectricitySales
Russia Other 2010
8
Nordic water reservoirs were historically low
Source Nord Pool Spot
rese
rvoi
r con
tent
(TW
h)
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4
2003 2008 2009 20112010 reference level
9
Average regulated electricity price for OAO Fortum
536620 610 607 613
0
125
250
375
500
625
750
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Spot price for power (market price) Urals hub
693817 770
936817
0
200
400
600
800
1 000
1 200
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Powers Nordic power price
515545
448 472514
0
10
20
30
40
50
60
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
44
Global mega trends drive the industry - Updated
strategy supports sustainable business development
Create solid earnings growth in Russia
Leverage the strong Nordic core
Build platform for future growth
Competence in CO2
free nuclear hydro and energy efficient CHP production and operating in competitive energy markets
Strategy
bull
Power and heat demand and supplybull
Degree of market liberalization and integrationbull
Climate change responsebull
Energy system structurebull
Business models and competition
5
Business environment improved
bull
Nordic power consumption up by 5 during 2010ndash
Power consumption in the Nordic countries 396 TWh in 2010
397 TWh in 2008 (pre-recession)
ndash
Temperature corrected power consumption in Nordic countries was still appr 4 (~16 TWh
) lower than in 2008ndash
Water reservoirs at historically low levelsndash
Nordic spot prices increased forward prices more stable
bull
Russian power consumption increased by about 4 during 2010ndash
Electricity spot price in Russia up 32 from a year ago
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
6
Solid performance continued
bull
Comparable operating profit EUR 1833 (1888) million ndash
Lower hydro volumes in Powerndash
Improvement in Russia Distribution and Heatbull
Earnings per share EUR 146 (148)ndash
Negative IAS 39 accounting effect corresponding to EUR 018bull
Net cash from operating activities EUR 1437 (2264) million ndash
Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
bull
Proposed dividend of EUR
100
per share
7
Comparable profit close to last years level
Comparable operating profit EUR million
44 281888 1833-156
45 -11 -5
PowerGeneration
2009 Heat Distribution ElectricitySales
Russia Other 2010
8
Nordic water reservoirs were historically low
Source Nord Pool Spot
rese
rvoi
r con
tent
(TW
h)
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4
2003 2008 2009 20112010 reference level
9
Average regulated electricity price for OAO Fortum
536620 610 607 613
0
125
250
375
500
625
750
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Spot price for power (market price) Urals hub
693817 770
936817
0
200
400
600
800
1 000
1 200
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Powers Nordic power price
515545
448 472514
0
10
20
30
40
50
60
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
5
Business environment improved
bull
Nordic power consumption up by 5 during 2010ndash
Power consumption in the Nordic countries 396 TWh in 2010
397 TWh in 2008 (pre-recession)
ndash
Temperature corrected power consumption in Nordic countries was still appr 4 (~16 TWh
) lower than in 2008ndash
Water reservoirs at historically low levelsndash
Nordic spot prices increased forward prices more stable
bull
Russian power consumption increased by about 4 during 2010ndash
Electricity spot price in Russia up 32 from a year ago
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
6
Solid performance continued
bull
Comparable operating profit EUR 1833 (1888) million ndash
Lower hydro volumes in Powerndash
Improvement in Russia Distribution and Heatbull
Earnings per share EUR 146 (148)ndash
Negative IAS 39 accounting effect corresponding to EUR 018bull
Net cash from operating activities EUR 1437 (2264) million ndash
Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
bull
Proposed dividend of EUR
100
per share
7
Comparable profit close to last years level
Comparable operating profit EUR million
44 281888 1833-156
45 -11 -5
PowerGeneration
2009 Heat Distribution ElectricitySales
Russia Other 2010
8
Nordic water reservoirs were historically low
Source Nord Pool Spot
rese
rvoi
r con
tent
(TW
h)
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4
2003 2008 2009 20112010 reference level
9
Average regulated electricity price for OAO Fortum
536620 610 607 613
0
125
250
375
500
625
750
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Spot price for power (market price) Urals hub
693817 770
936817
0
200
400
600
800
1 000
1 200
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Powers Nordic power price
515545
448 472514
0
10
20
30
40
50
60
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
6
Solid performance continued
bull
Comparable operating profit EUR 1833 (1888) million ndash
Lower hydro volumes in Powerndash
Improvement in Russia Distribution and Heatbull
Earnings per share EUR 146 (148)ndash
Negative IAS 39 accounting effect corresponding to EUR 018bull
Net cash from operating activities EUR 1437 (2264) million ndash
Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
bull
Proposed dividend of EUR
100
per share
7
Comparable profit close to last years level
Comparable operating profit EUR million
44 281888 1833-156
45 -11 -5
PowerGeneration
2009 Heat Distribution ElectricitySales
Russia Other 2010
8
Nordic water reservoirs were historically low
Source Nord Pool Spot
rese
rvoi
r con
tent
(TW
h)
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4
2003 2008 2009 20112010 reference level
9
Average regulated electricity price for OAO Fortum
536620 610 607 613
0
125
250
375
500
625
750
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Spot price for power (market price) Urals hub
693817 770
936817
0
200
400
600
800
1 000
1 200
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Powers Nordic power price
515545
448 472514
0
10
20
30
40
50
60
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
7
Comparable profit close to last years level
Comparable operating profit EUR million
44 281888 1833-156
45 -11 -5
PowerGeneration
2009 Heat Distribution ElectricitySales
Russia Other 2010
8
Nordic water reservoirs were historically low
Source Nord Pool Spot
rese
rvoi
r con
tent
(TW
h)
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4
2003 2008 2009 20112010 reference level
9
Average regulated electricity price for OAO Fortum
536620 610 607 613
0
125
250
375
500
625
750
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Spot price for power (market price) Urals hub
693817 770
936817
0
200
400
600
800
1 000
1 200
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Powers Nordic power price
515545
448 472514
0
10
20
30
40
50
60
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
8
Nordic water reservoirs were historically low
Source Nord Pool Spot
rese
rvoi
r con
tent
(TW
h)
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4
2003 2008 2009 20112010 reference level
9
Average regulated electricity price for OAO Fortum
536620 610 607 613
0
125
250
375
500
625
750
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Spot price for power (market price) Urals hub
693817 770
936817
0
200
400
600
800
1 000
1 200
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Powers Nordic power price
515545
448 472514
0
10
20
30
40
50
60
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
9
Average regulated electricity price for OAO Fortum
536620 610 607 613
0
125
250
375
500
625
750
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Spot price for power (market price) Urals hub
693817 770
936817
0
200
400
600
800
1 000
1 200
Q42009 Q12010 Q22010 Q32010 Q42010
RUBMWh
Powers Nordic power price
515545
448 472514
0
10
20
30
40
50
60
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009 Q12010 Q22010 Q32010 Q42010
eurMWh
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Financials
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
11
Comparable and reported operating profit
MEURIV2010 IV2009 IV2010 IV2009 2010 2009 2010 2009
Power 336 391 129 327 1 298 1 454 1 132 1 363Heat 122 104 124 109 275 231 303 252Distribution 91 80 93 81 307 262 321 263Electricity Sales 3 11 40 37 11 22 46 29Russia 17 8 16 8 8 -20 53 -20Other -28 -24 -81 -40 -66 -61 -147 -105Total 541 570 321 522 1 833 1 888 1 708 1 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
bull
IFRS accounting treatment (IAS 39) of derivatives affected operating profit
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
12
0
10
20
30
40
50
60
70
80
902
820
10
168
201
0
308
201
0
139
201
0
279
201
0
111
020
10
251
020
10
811
201
0
221
120
10
612
201
0
201
220
10
31
2011
171
201
1
2011 February Nordic Power Exchange forward development minus
Down by ~27 euroMWh
from 2010 year end30122011Year high ateuro851 per MWh
2712011Last price ateuro581 per MWh
Change +6330 Sept -30 Dec 2010
Change -3230 Dec 2010 -27 Jan 2011
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
13
Power
bull
Comparable operating profit decreasedndash
Higher costs in Swedish associated nuclear companiesndash
Production mix increased thermal power production during peak hours
bull
Nordic achieved power price at same level as in 2009ndash
Lower hedge pricesndash
Higher prices in thermal during peak hoursMEUR 2010 2009
Sales 2 702 2 531
Comparable operating profit 1 298 1 454
Net Assets 5 806 5 494
Comparable RONA 223 264
Gross Investments 122 153
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
14
MEUR 2010 2009
Sales 1 770 1 399
Comparable operating profit 275 231
Net Assets 4 182 3 787
Comparable RONA 77 73
Gross Investments 305 359
Heat
bull
Comparable operating profit increased due to higher volumes and power prices
bull
CHP )
plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010
) CHP Combined Heat and Power
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
15
MEUR 2010 2009
Sales 963 800
Comparable operating profit 307 262
Net Assets 3 683 3 299
Comparable RONA 93 86
Gross Investments 213 193
Distribution
bull
Comparable operating profit increased due to higher sales and strong SEK
bull
Smart metering pilot rollout to network customers in Finland started in Q42010
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
16
MEUR 2010 2009
Sales 1 798 1 449
Comparable operating profit 11 22
Net Assets 210 125
Comparable RONA 93 186
Gross Investments 0 1
Electricity Sales
bull
Comparable operating profit decreasedndash
Price peaks in Q1 and Q4bull
Restructuring of the business market segment continued
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
17
MEUR 2010 2009
Sales 804 632
Comparable operating profit 8 -20
Net Assets 2 817 2 260
Comparable RONA 07 00
Gross Investments 599 218
Russia
bull
Comparable operating profit turned positivebull
Wholesale power market liberalised as of January 2011bull
Pricing principles for ldquooldrdquo
and ldquonewrdquo
capacity determinedbull
Accelerated investment programme
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
18
MEUR IV2010 IV2009 2010 2009
Sales 1 902 1 563 6 296 5 435Expenses -1 361 -993 -4 463 -3 547
Comparable operating profit 541 570 1 833 1 888
Other items affecting comparability -220 -48 -125 -106
Operating profit 321 522 1 708 1 782Share of profit of associates and jvs 21 22 62 21Financial expenses net -57 -39 -155 -167
Profit before taxes 285 505 1 615 1 636Income tax expense -25 -74 -261 -285
Net profit for the period 260 431 1 354 1 351Non-controlling interests 29 25 54 39
EPS basic (EUR) 026 046 146 148EPS diluted (EUR) 026 046 146 148
Income statement
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
19
MEUR IV2010 IV2009 2010 2009
Operating profit before depreciations 468 658 2 271 2 292
Non-cash flow items and divesting activities 222 -4 124 46
Financial items and fx gainslosses -192 -102 -641 146
Taxes -107 -34 -355 -239
Funds from operations (FFO) 391 518 1 399 2 245
Change in working capital -170 -122 38 19
Total net cash from operating activities 221 396 1 437 2 264
Paid capital expenditures -432 -266 -1 134 -845
Acquisition of shares -20 -28 -28 -87
Other investing activities -23 -27 60 -42
Cash flow before financing activities -254 75 335 1 290
Cash flow statement
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
20
MEUR 2010 2009EBITDA 2 271 2 292Comparable EBITDA 2 396 2 398Interest-bearing net debt 6 826 5 969Net debtEBITDA 30 26Comparable Net debtEBITDA 28 25
Return on capital employed () 116 121Return on shareholders equity () 157 160
Key ratios
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
21
Debt maturity
profile
per 31 Dec 2010 per 31 Dec 2009Duration (years) 21 18Average interest rate (incl swaps and forwards) 35 34Portion of floating fixed debt 49 51 62 38
MEUR
2011 862
2012 624
2013 636
2014 1191
2015 1042
2016 870
2017 243
2018 93
2019 819
2020 43
2021+ 9590
250
500
750
1000
1250
1500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+Bonds Financial institutions Other long-term debt CPs
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
23
Summary on 2010
bull
Strategy updated to support business actionsndash
Sustainable solutions at the core of the strategybull
Solid performance continuedbull
Russiandash
Power reform proceeding fully liberalised from January 2011ndash
Demand improvedndash
Fortumrsquos investment programme acceleratedbull
Nordic countriesndash
Demand recoveredndash
Water reservoirs historically lowbull
Strong financial position and liquidity
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
242424
Key strategic actions going forward
Focus on performancendash
Organisational efficiencyndash
Nuclear availabilityndash
Value creation from Russian investments
Prepare for growthndash
Prioritized value enhancing acquisitions while maintaining strong balance sheetndash
Investigating high growth Asian markets
Create strategic partnerships for new innovative solutions market entries and RampDndash
Partnerships in nuclear and bio energyndash
Electricity Sales and Distribution services solutions and partnerships
Continuous development of competences
Readiness for changendash
Leadership and organisational culture enabling readiness for change
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
25
Outlook
bull
Key drivers and risksndash
Wholesale price of electricitybull
Fuel CO2
emissions prices and water reservoirs
bull
Nordic Marketsndash
Market continues to recover ndash
2008 level reached by 2012-2014ndash
Electricity continues to gain share of total energy consumption
bull
Russiandash
Wholesale market fully liberalisedndash
Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
ndash
Profits from Russia builds up in pace with the capacity increase
NOTE Fuel Co2
emissions prices and water reservoirs found in appendix
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
26
Outlook
bull
Capex
(excluding potential acquisitions)ndash
2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
ndash
2013-2014 around EUR 11 to 14 billionndash
Preliminary divestments agreed total approximately EUR 05 billion in 2011
bull
Hedgingndash
2011 approximately 70 hedge ratio at approximately EUR 45MWhndash
2012 approximately 40 hedge ratio at approximately EUR 44MWh
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
28
Appendices
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
29
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh
) lower than in 2008
-1
3
7
11
15
Tyumen Chelyabinsk Russia Uralsarea
Russia
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
0
5
10
15
Finland Sweden Norway Denmark Nordic
Q1 2010 vs
Q1 2009Q2 2010 vs
Q2 2009Q3 2010 vs
Q3 2009Q4 2010 vs
Q4 2009
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
30
Nordic year forwards
Source NASDAQ OMX Commodities Europe
0
10
20
30
40
50
60
70
euroMWh Year 15Year 08 Year 09 Year 10 Year 11 Year 12 Year 13 Year 14 Year 16
2007
Q1 Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
31 January 2011
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
31
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
Crude oil price (ICE Brent)
020406080
100120140160
USD
bb
l
CO2 price (NP EUA)
05
101520253035
EUR
tC
O2
Coal price (ICE Rotterdam)
04080
120160200240
USD
t
Gas price (ICE NBP)
0
20
40
60
80
100
GB
p t
herm
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2006 2007 20102008 2009 20122011
2010 average80 (63)
2010 average14 (13)
2010 average92 (70)
2010 average41 (32)
2 February 2011
Fortum Corporation
Financial year 2010
Disclaimer
This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser
Highlights in 2010
Global mega trends drive the industry - Updated strategy supports sustainable business development
Create solid earnings
growth in Russia
Leverage the strong
Nordic core
Build platform for
future growth
Competence in CO2 free nuclear hydro and energy efficient CHP production and
operating in competitive energy markets
Strategy
This is our new mission and strategy
ldquoFortumrsquos purpose is to create energy that improves life for present and future generations We provide sustainable solutions that fulfill the needs for low emissions resource efficiency and energy supply security and deliver excellent value to our shareholdersrdquo
The mission is very much about why we exist and what we as a company should deliver The aim was also to make it clear and to simplify
In our revised strategy we have three areas of focus
We build this on our strong competences in CO2 free nuclear hydro and energy efficient CHP generation We also have proven track record in trading and hedging in competitive power markets as well as in MampA integration and turnarounds These competencies provide a solid basis for the future value creating development for Fortum In the Nordic core we have also our electricity distribution and retail sales with stable profits and cash flow
Business environment improved
The overall Nordic and Russian power consumption continued to increase in 2010
Industrial activity clearly picked up in Fortumrsquos key market areas and the Russian
economy continued a solid path of recovery
Solid performance continued
Comparable profit close to last years level
Comparable operating profit EUR million
44
28
1888
1833
-156
45
-11
-5
Power
Generation
2009
Heat
Distribution
Electricity
Sales
Russia
Other
2010
Nordic water reservoirs were historically low
Source Nord Pool Spot
Q1
Q2
Q3
Q4
2003
2008
2009
2011
2010
reference level
reservoir content (TWh)
0
20
40
60
80
100
120
Price development in the Nordic region and Russia
-0
+18
+14
+69
Financials
Comparable and reported operating profit
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
MEUR | Comparable operating profit | Reported operating profit | Comparable operating profit | Reported operating profit | ||||||||||||||||||||||
IV2010 | IV2009 | IV2010 | IV2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Electricity Sales | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Other | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Total | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Vertkelpliikevoitto | Raportoitu liikevoitto | Vertkelpliikevoitto | Raportoitu liikevoitto | |||||||||||||||||||||||
II2010 | II2009 | II2010 | II2009 | I-II2010 | I-II2009 | I-II2010 | I-II2009 | |||||||||||||||||||
Power | 336 | 391 | 129 | 327 | 1298 | 1454 | 1132 | 1363 | ||||||||||||||||||
Heat | 122 | 104 | 124 | 109 | 275 | 231 | 303 | 252 | ||||||||||||||||||
Distribution | 91 | 80 | 93 | 81 | 307 | 262 | 321 | 263 | ||||||||||||||||||
Saumlhkoumlnmyynti | 3 | 11 | 40 | 37 | 11 | 22 | 46 | 29 | ||||||||||||||||||
Russia | 17 | 8 | 16 | 8 | 8 | -20 | 53 | -20 | ||||||||||||||||||
Muut | -28 | -24 | -81 | -40 | -66 | -61 | -147 | -105 | ||||||||||||||||||
Yhteensauml | 541 | 570 | 321 | 522 | 1833 | 1888 | 1708 | 1782 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
Operating profit II2010 | Operating profit II2009 | Operating profit I-II2010 | Operating profit I-2009 | |||||||||||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Electricity Sales | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Other | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Total | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
Currency translation effects on comparable operating profit | ||||||||||||||||||||||||||
I2009 | I-III2009 | |||||||||||||||||||||||||
SEK | Other | Total | SEK | Other | Total | |||||||||||||||||||||
Power Generation | -55 | -3 | -58 | Power Generation | -67 | -3 | -70 | |||||||||||||||||||
Heat | -12 | -3 | -15 | Heat | -10 | -2 | -12 | |||||||||||||||||||
Distribution | -11 | -1 | -12 | Distribution | -13 | -1 | -14 | |||||||||||||||||||
Markets | -1 | 0 | -1 | Markets | -1 | -1 | -2 | |||||||||||||||||||
Russia | 0 | 1 | 1 | Russia | 0 | 6 | 6 | |||||||||||||||||||
Other | 1 | 0 | 1 | Other | 0 | 1 | 1 | |||||||||||||||||||
Total | -78 | -6 | -84 | Total | -91 | 0 | -91 |
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Liikevoitto II2010 | Liikevoitto II2009 | Liikevoitto I-II2010 | Liikevoitto I-II2009 | |||||||||||||||||||||||
Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Power | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Heat | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Saumlhkoumlnmyynti | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Russia | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Muut | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Yhteensauml | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 | ||||||||||||||||||
I-III2009 | ||||||||||||||||||||||||||
SEK | Muut | Yhteensauml | ||||||||||||||||||||||||
Saumlhkoumlntuotanto | -67 | -3 | -70 | |||||||||||||||||||||||
Laumlmpouml | -10 | -2 | -12 | |||||||||||||||||||||||
Saumlhkoumlnsiirto | -13 | -1 | -14 | |||||||||||||||||||||||
Markets | -1 | -1 | -2 | |||||||||||||||||||||||
Venaumljauml | 0 | 6 | 6 | |||||||||||||||||||||||
Muu | 0 | 1 | 1 | |||||||||||||||||||||||
Yhteensauml | -91 | 0 | -91 |
2011 February Nordic Power Exchange forward development
minus Down by ~27 euroMWh from 2010 year end
30122011
Year high at
euro851 per MWh
2712011
Last price at
euro581 per MWh
Change +63
30 Sept -30 Dec 2010
Change -32
30 Dec 2010 -27 Jan 2011
Power
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Liikevoitto 2007 | Liikevoitto 2006 | |||||||||||||||||||||||||
Vertkelp | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | comp | op | |||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Liikevoitto I2008 | Liikevoitto I2007 | |||||||||||||||||||||||||
Vertkelpoinen | Raportoitu | Ero | Vertkelpoinen | Raportoitu | Ero | |||||||||||||||||||||
Saumlhkoumlntuotanto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Laumlmpouml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Saumlhkoumlnsiirto | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Markets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Venaumljauml | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Muu | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Yhteensauml | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Roumlrelseresultat II2009 | Roumlrelseresultat II2008 | Liikevoitto 2008 | Liikevoitto 2007 | |||||||||||||||||||||||
Jaumlmfoumlrbart | Rapporterat | Jaumlmfoumlrbart | Rapporterat | Vertkelp | Raportoitu | Vertkelp | Raportoitu | |||||||||||||||||||
Kraftproduktion | 271 | 280 | 340 | 307 | 695 | 747 | 755 | 739 | ||||||||||||||||||
Vaumlrme | 33 | 35 | 26 | 39 | 165 | 194 | 140 | 154 | ||||||||||||||||||
Distribution | 53 | 53 | 54 | 54 | 155 | 166 | 135 | 135 | ||||||||||||||||||
Markets | 10 | 23 | 6 | 20 | -3 | -6 | 4 | -1 | ||||||||||||||||||
Ryssland | -9 | -9 | -14 | -15 | 7 | 23 | -8 | -9 | ||||||||||||||||||
Oumlvrigt | -19 | -31 | -12 | -30 | -29 | -49 | -24 | -44 | ||||||||||||||||||
Summa | 339 | 351 | 400 | 375 | 990 | 1075 | 1002 | 974 |
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
MEUR | 2010 | 2009 | ||||
Sales | 2702 | 2531 | ||||
Comparable operating profit | 1298 | 1454 | ||||
Net Assets | 5806 | 5494 | ||||
Comparable RONA | 223 | 264 | ||||
Gross Investments | 122 | 153 |
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
Heat
) CHP Combined Heat and Power
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
MEUR | 2010 | 2009 | ||||
Sales | 1770 | 1399 | ||||
Comparable operating profit | 275 | 231 | ||||
Net Assets | 4182 | 3787 | ||||
Comparable RONA | 77 | 73 | ||||
Gross Investments | 305 | 359 |
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
Distribution
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
MEUR | 2010 | 2009 | ||||
Sales | 963 | 800 | ||||
Comparable operating profit | 307 | 262 | ||||
Net Assets | 3683 | 3299 | ||||
Comparable RONA | 93 | 86 | ||||
Gross Investments | 213 | 193 |
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
Electricity Sales
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
MEUR | 2010 | 2009 | ||||
Sales | 1798 | 1449 | ||||
Comparable operating profit | 11 | 22 | ||||
Net Assets | 210 | 125 | ||||
Comparable RONA | 93 | 186 | ||||
Gross Investments | 0 | 1 |
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
Russia
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
MEUR | 2010 | 2009 | ||||
Sales | 804 | 632 | ||||
Comparable operating profit | 8 | -20 | ||||
Net Assets | 2817 | 2260 | ||||
Comparable RONA | 07 | 00 | ||||
Gross Investments | 599 | 218 |
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
Income statement
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
Cash flow statement
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
MEUR | Q1-Q300 | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | 2004 | ||||||||||||||||
Sales | 7732 | 1902 | 1563 | 6296 | 5435 | 5636 | 3159 | 5354 | 0 | 3835 | ||||||||||||||||
Expenses | -7109 | -1361 | -993 | -4463 | -3547 | -3673 | -1832 | -3482 | 0 | -2640 | ||||||||||||||||
Comparable operating profit | 623 | 541 | 570 | 1833 | 1888 | 1963 | 1327 | 1872 | 0 | 1195 | ||||||||||||||||
Other items affecting comparability | -220 | -48 | -125 | -106 | ||||||||||||||||||||||
Operating profit | 321 | 522 | 1708 | 1782 | ||||||||||||||||||||||
Share of profit of associates and jvs | 21 | 22 | 62 | 21 | 126 | 223 | 96 | 0 | 12 | |||||||||||||||||
Financial expenses net | -209 | -57 | -39 | -155 | -167 | -239 | -117 | -222 | 0 | -245 | ||||||||||||||||
Profit before taxes | 0 | 285 | 505 | 1615 | 1636 | 1850 | 1433 | 1746 | 0 | 0 | ||||||||||||||||
Income tax expense | -83 | -25 | -74 | -261 | -285 | -254 | -218 | -364 | 0 | -259 | ||||||||||||||||
Net profit for the period | -26 | 260 | 431 | 1354 | 1351 | 1596 | 1215 | 1382 | 0 | 0 | ||||||||||||||||
Non-controlling interests | 29 | 25 | 54 | 39 | 54 | 31 | 35 | 0 | 33 | |||||||||||||||||
EPS basic (EUR) | 039 | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 148 | ||||||||||||||||
EPS diluted (EUR) | 026 | 046 | 146 | 148 | 174 | 133 | 152 | 171 | 079 | |||||||||||||||||
069 |
Key ratios
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
MEUR | IV2010 | IV2009 | 2010 | 2009 | 2007 | I-III2007 | LTM | LTM | |||||||||
Operating profit before depreciations | 468 | 658 | 2271 | 2292 | 2478 | 1663 | 2370 | 0 | |||||||||
Non-cash flow items and divesting activities | 222 | -4 | 124 | 46 | -275 | -268 | -56 | 0 | |||||||||
Financial items and fx gainslosses | -192 | -102 | -641 | 146 | 233 | ||||||||||||
Taxes | -107 | -34 | -355 | -239 | -332 | -231 | -534 | 0 | |||||||||
Funds from operations (FFO) | 391 | 518 | 1399 | 2245 | 2104 | 1164 | 1780 | 0 | |||||||||
Change in working capital | -170 | -122 | 38 | 19 | -102 | 161 | 5 | 0 | |||||||||
Total net cash from operating activities | 221 | 396 | 1437 | 2264 | 2002 | 1325 | 1785 | 0 | |||||||||
Paid capital expenditures | -432 | -266 | -1134 | -845 | -1018 | -341 | -931 | 0 | |||||||||
Acquisition of shares | -20 | -28 | -28 | -87 | -1243 | -257 | -1243 | 0 | |||||||||
Other investing activities | -23 | -27 | 60 | -42 | -21 | 258 | -34 | 0 | |||||||||
Cash flow before financing activities | -254 | 75 | 335 | 1290 | -280 | 985 | -423 | 0 |
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
MEUR | 2010 | 2009 | 2008 | 2006 | 2005 | ||||||
EBITDA | 2271 | 2292 | 2478 | 1884 | |||||||
Comparable EBITDA | 2396 | 2398 | 1151 | 1271 | |||||||
Interest-bearing net debt | 6826 | 5969 | 6179 | 4345 | 3158 | ||||||
Net debtEBITDA | 30 | 26 | 25 | 8161 | |||||||
Comparable Net debtEBITDA | 28 | 25 | 16839 | 15130 | |||||||
23 | 18 | ||||||||||
Return on capital employed () | 116 | 121 | 150 | 134 | 135 | ||||||
Return on shareholders equity () | 157 | 160 | 187 | 144 | 135 |
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |
Debt maturity profile
per 31 Dec 2010 per 31 Dec 2009
Duration (years)2118
Average interest rate (incl swaps and forwards)3534
Portion of floating fixed debt 49 51 62 38
Summary on 2010
Key strategic actions going forward
Focus on performance
Prepare for growth
Create strategic partnerships for new innovative solutions market entries and RampD
Continuous development of competences
Readiness for change
Outlook
NOTE Fuel Co2 emissions prices and water reservoirs found in appendix
Outlook
Appendices
Increased power consumption
Fortum currently expects Nordic power demand to recover back to the 2008 level by 2012-2014
Temperature corrected power consumption in Nordic countries is still appr 4 (~16 TWh ) lower than in 2008
-1
3
7
11
15
Tyumen
Chelyabinsk
Russia Urals
area
Russia
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
0
5
10
15
Finland
Sweden
Norway
Denmark
Nordic
Q1 2010 vs Q1 2009
Q2 2010 vs Q2 2009
Q3 2010 vs Q3 2009
Q4 2010 vs Q4 2009
Nordic year forwards
Source NASDAQ OMX Commodities Europe
Year 15
Year 08
Year 09
Year 10
Year 11
Year 12
Year 13
Year 14
Year 16
2007
Q1
Q2
Q3
Q4
Q1
2008
Q2
Q3
Q4
Q1
2009
Q2
Q3
Q4
Q1
2010
Q2
Q3
Q4
Q1
2011
0
10
20
30
40
50
60
70
euroMWh
31 January 2011
Fuel and CO2 allowance prices
Source ICE NASDAQ OMX Commodities Europe
Market prices 10 January 2011 2011-2012 future quotations
2010 average
80 (63)
2010 average
14 (13)
2010 average
92 (70)
2010 average
41 (32)
MEURIV2010IV200920102009
Operating profit before depreciations4686582 2712 292
Non-cash flow items and divesting activities
222-412446
Financial items and fx gainslosses
-192-102-641146
Taxes
-107-34-355-239
Funds from operations (FFO)
3915181 3992 245
Change in working capital
-170-1223819
Total net cash from operating activities2213961 4372 264
Paid capital expenditures-432-266-1 134-845
Acquisition of shares-20-28-28-87
Other investing activities-23-2760-42
Cash flow before financing activities-254753351 290
MEUR
IV2010IV2009IV2010IV20092010200920102009
Power3363911293271 2981 4541 1321 363
Heat122104124109275231303252
Distribution91809381307262321263
Electricity Sales311403711224629
Russia1781688-2053-20
Other-28-24-81-40-66-61-147-105
Total5415703215221 8331 8881 7081 782
Comparable operating profit
Reported operating profit
Comparable operating profit
Reported operating profit
Spot price for power in NordPool power exchange
366
595
460
620
450
0
12
24
36
48
60
72
Q42009Q12010Q22010Q32010Q42010
eurMWh
MEUR20102009
Sales1 7981 449
Comparable operating profit1122
Net Assets210125
Comparable RONA 93186
Gross Investments01
MEUR20102009
Sales2 7022 531
Comparable operating profit1 2981 454
Net Assets5 8065 494
Comparable RONA 223264
Gross Investments122153
0
10
20
30
40
50
60
70
80
90
282010
1682010308201013920102792010
1110201025102010
8112010
22112010
6122010
20122010
312011
1712011
MEUR20102009
Sales963800
Comparable operating profit307262
Net Assets3 6833 299
Comparable RONA 9386
Gross Investments213193
MEUR20102009
EBITDA2 2712 292
Comparable EBITDA2 3962 398
Interest-bearing net debt6 8265 969
Net debtEBITDA3026
Comparable Net debtEBITDA2825
Return on capital employed ()116121
Return on shareholders equity ()157160
MEUR20102009
Sales804632
Comparable operating profit8-20
Net Assets2 8172 260
Comparable RONA 0700
Gross Investments599218
MEUR20102009
Sales1 7701 399
Comparable operating profit275231
Net Assets4 1823 787
Comparable RONA 7773
Gross Investments305359
Crude oil price
(ICE Brent)
0
20
40
60
80
100
120
140
160
USD bbl
CO
2
price
(NP EUA)
0
5
10
15
20
25
30
35
EUR tCO
2
Coal price
(ICE Rotterdam)
0
40
80
120
160
200
240
USD t
Gas price
(ICE NBP)
0
20
40
60
80
100
GBp therm
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
2006200720102008200920122011
MEURIV2010IV200920102009
Sales1 902
1 5636 296
5 435
Expenses-1 361-993-4 463-3 547
Comparable operating profit5415701 8331 888
Other items affecting comparability-220-48-125-106
Operating profit3215221 7081 782
Share of profit of associates and jvs21226221
Financial expenses net-57-39-155-167
Profit before taxes2855051 6151 636
Income tax expense-25-74-261-285
Net profit for the period2604311 3541 351
Non-controlling interests29255439
EPS basic (EUR)026046146148
EPS diluted (EUR)026046146148
Powers Nordic power price
515
545
448
472
514
0
10
20
30
40
50
60
Q42009Q12010Q22010Q32010Q42010
eurMWh
Spot price for power (market price) Urals hub
693
817
770
936
817
0
200
400
600
800
1 000
1 200
Q42009Q12010Q22010Q32010Q42010
RUBMWh
Average regulated electricity price for OAO Fortum
536
620
610
607
613
0
125
250
375
500
625
750
Q42009Q12010Q22010Q32010Q42010
RUBMWh
0
250
500
750
1000
1250
1500
20112012201320142015201620172018201920202021+
BondsFinancial institutionsOther long-term debtCPs
MEUR | |||
2011 | 862 | ||
2012 | 624 | ||
2013 | 636 | ||
2014 | 1191 | ||
2015 | 1042 | ||
2016 | 870 | ||
2017 | 243 | ||
2018 | 93 | ||
2019 | 819 | ||
2020 | 43 | ||
2021+ | 959 |