FORTUM Power and heat company in the Nordic area, Russia, Poland and the Baltics Investor / Analyst material February 2015

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.

Content

3

Fortum today pages 4 – 18

European and Nordic power markets pages 19 – 30 Data on Fortum’s nuclear fleet pages 31 – 35 Russia pages 35 – 40 Data on capacity payments pages 38 – 39 Fortum’s investment programme page 40 Financials and outlook pages 41 – 46 Hedges pages 47 – 48 Efficiency programme page 49 Facts of Distribution page 50

Appr. 110,000 shareholders

• Power and heat company in the Nordic countries, Russia, Poland and the Baltics • Listed at the Helsinki Stock Exchange since 1998 • Among the most traded shares on the Nasdaq Helsinki stock exchange • Market cap ~18 billion euros

4

31.1.2015

Foreign investors 31.7% Finnish State 50.8%

Other Finnish investors 7.5%

Households 8.2% Financial and insurance institutions 1.8%

Capital returns : 2014 EUR 1.30 per share ~ EUR 1.2 billion • Fortum’s dividend policy is based on the following preconditions:

– The dividend policy ensures that shareholders receive a fair remuneration for their entrusted capital, supported by the company’s long-term strategy that aims at increasing earnings per share and thereby the dividend.

– When proposing the dividend, the Board of Directors looks at a range of factors, including the macro environment, balance sheet strength as well as future investment plans.

5

Fortum Corporation's target is to pay a stable, sustainable and over time increasing

dividend of 50-80% of earnings per share excluding one-off items

Fortum has since 1998 annually paid dividends

in total ~11,648 MEUR

2010 68% 2011 50% 2012 63% 2013 81% 2014 37%*

1.0 1.0 1.0 1.1

1.3*

* A proposal for the AGM

5 year dividend per share (EUR) history

Fortum Executive Management as of 1st February 2015

6 Country responsibles: Timo Karttinen/Finland, Norway; Per Langer/Sweden;

Alexander Chuvaev/Russia; Markus Rauramo/Poland, Baltics, India

Human Resources and IT Senior Vice President

Mikael Frisk

Finance Chief Financial Officer

Timo Karttinen

Strategy and M&A Senior Vice President

Kari Kautinen

Communications Senior Vice President

Helena Aatinen

Corporate Relations Senior Vice President

Esa Hyvärinen

Legal General Counsel

Sirpa-Helena Sormunen

Business Divisions

Corporate Staff Functions Interim President and CEO Timo Karttinen

Chief Operating Officer

Matti Ruotsala

Distribution Executive Vice

President Timo Karttinen

Russia Executive Vice

President Alexander Chuvaev

Nuclear and Thermal Power

Executive Vice President

Tiina Tuomela

Hydro Power and Technology

Executive Vice President

Per Langer

Heat, Electricity Sales and Solutions

Executive Vice President

Markus Rauramo

Fortum’s Mission and Strategy

7

Strategy

Fortum’s purpose is to create energy that improves life for present and future generations. We provide sustainable solutions for society and deliver excellent

value to our shareholders.

Mission

Build on the strong Nordic core

Create solid earnings growth in Russia

Build a platform for future growth

Strong competence in CO2-free hydro and nuclear, efficient CHP production and energy markets

Our current geographical presence

8

Nordic countries Power generation* 49.2 TWh

Heat sales* 10.9 TWh

Electricity customers 1.3 million

Distribution customers in Sweden 0.9 million

Distribution

Power generation

Electricity sales

Heat

OAO Fortum Power generation 23.3 TWh Heat sales 26.0 TWh

Russia*

* In addition, Fortum has a 29.5% share in TGC-1 * Including Fortum’s associated company Fortum Värme; power generation 1.2 TWh and heat sales 7.6 TWh.

Poland Power generation 0.7 TWh Heat sales 3.4 TWh

Baltic countries Power generation 0.7 TWh Heat sales 1.2 TWh

India Power generation 9 GWh

Key figures 2014 Sales EUR 4.8 bn Operating profit EUR 3.4 bn Balance sheet EUR 21 bn Personnel 8,600

Fortum’s reporting segments and divisions

9

Distribution • Electricity distribution

activities

Russia • Power and heat

generation and sales in Russia

• Includes OAO Fortum and Fortum’s slightly over 29% holding in TGC-1

Power and Technology • Hydro, nuclear and

thermal power generation • Power Solutions with

expert services • Portfolio management and

trading • Technology and R&D

functions The segment incorporates two divisions: • Hydro Power and

Technology • Nuclear and Thermal

Power

Heat, Electricity Sales and Solutions • Combined heat and

power (CHP) production • District heating activities

and business to business heating solutions

• Solar business • Electricity sales and

related customer offering • Corporate Sustainability

10

Fortum mid-sized European power generation player; major producer in global heat

1) Incl. Fortum's associated company Fortum Värme; power generation 1.3 TWh and heat production 8.2 TWh. 2) Veolia incl. Dalkia International and EDF incl. Dalkia's activities in France Source: Company information, Fortum analyses, 2013 figures pro forma, heat production of Beijing DH not available.

Largest global producers, 2013 TWh

Largest producers in Europe and Russia, 2013 TWh

Power generation Heat production Electricity customers in EU, 2013

Millions

Customers

Gazprom

DEI

EuroSibEnergo Iberdrola

1 ) Fortum

EnBW

Vattenfall

CEZ

RWE

IES

DTEK

PGE

Rosenergoatom

NNEGC Energoat.

Enel E.ON EDF

GDF SUEZ

Statkraft

Inter RAO UES RusHydro

EDP

0 100 200 300 400 500 600

KDHC

Quadra

Tatenergo

Minskenergo

DTEK

EuroSibEnergo

TGC-2

1 ) Fortum

Dong Energy

Enel

Lukoil

0 20 40 60 80 100 120 140

Sibgenco

IES

Vattenfall

PGNiG

Inter RAO UES

2) EDF.

RusHydro

2 ) Veolia

Gazprom

GDF SUEZ

DEI CEZ

Enel

Centrica EDP

Iberdrola

SSE EnBW

Fortum

EDF E.ON RWE

Gas Natural Fenosa

PGE Tauron

Hafslund Dong Energy

0 20 40 10 30

Vattenfall

Biggest nuclear an hydro generators in Europe and Russia

11

Figures 2012 pro forma * incl. Fortum's associated company Fortum Värme (CHP 1.2 TWh), ** incl. MOEK, *** incl. Bashkirenergo, **** incl. TGC-5, TGC-6, TGC-7, TGC-9

TWh

Total generation

050

100150200250300350400450500550600

EDF

Ros

ener

goat

om

NN

EG

C E

nerg

oato

m

Rus

Hyd

ro

Vatte

nfal

l

E.O

N

Enel

Euro

SibE

nerg

o

GD

F SU

EZ

Stat

kraf

t

Fortu

m

Iber

drol

a

RW

E

EnBW CE

Z

Axpo

Verb

und

Gaz

prom

Hid

roel

ectri

ca

Cen

trica

Alpi

q

E-C

O E

nerg

i

Ukr

hydr

oene

rgo

Nor

sk H

ydro

EPS,

Ser

bia

BKK

Agde

r Ene

rgi

EDP

Gas

Nat

ural

Fen

osa

DE

I

SSE

Inte

r RAO

UE

S

PGE

DTE

K

IES

Other

Nuclear

Hydro

**

****

***

*

Fortum a forerunner in sustainability

• Nordic Climate Disclosure Leadership Index (CDLI)

• STOXX® Global ESG Leaders indices

• oekom

• OMX GES Sustainability Finland Index

• ECPI® Indices

12

0

200

400

600

800

1 000

1 200

DE

I

RW

E

Dra

x

SS

E

CE

Z

E.O

N

Vat

tenf

all

ED

P

Ene

l

Edi

pow

er

EnB

W

Gas

Nat

ural

Fen

osa

GD

F S

UE

Z

Don

g E

nerg

y

Fortu

m to

tal

Iber

drol

a

PV

O

ED

F

Ver

bund

Fortu

m E

U

Sta

tkra

ft

70

g CO2/kWh electricity, 2013

2014 64% of Fortum's total power generation CO2-free 94% of Fortum’s power generation in the EU CO2-free Close to 100% of the ongoing investment programme in the EU CO2-free

Average 328 g/kWh

202

Fortum's carbon exposure among the lowest in Europe

13

Note: : Fortum’s specific emissions of the power generation in 2014 in the EU were 39 g/kWh and in total 177 g/kWh. Only European generation except “Fortum total“ which includes Russia.

Source: PWC & Enerpresse, December 2014 Climate Change and Electricity, Fortum

Our strategic route

14

Birka Energi 50% → 100%

Østfold

Shares in Lenenergo

Shares in Hafslund

Gullspång

Neste

Divestment of non-strategic heat business

Oil business spin-off

2007

Skandinaviska Elverk

Länsivoima 45% → 65%

Birka Energi 50% Fortum 50% Stockholm Gullspång merged with Stockholm Energi

E.ON Finland

TGC-10

District heating in Poland →

Divestment of Fingrid shares

Divestment of heat operations outside of Stockholm

TGC-1 established

Divestment of Lenenergo shares

1996

IVO Fortum

Divestment of small scale hydro

2012 2008 2006

1997

Lenenergo shares →

Stora Kraft

Länsivoima →100%

2000

Elnova 50% → 100%

2003 2005

2011

1998 2002

Divestment of electricity distribution and heat businesses

Divestment of electricity distribution business

Divestment of Grangemouth power plant

Divestment of Gasum shares

2014

15

Fortum in the Nordic electricity value chain Competitive businesses

Regulated businesses

Power generation Nordic wholesale market

Power exchange and bilateral agreements

Large customers

Retail customers

Private customers, small businesses

Independent transmission system

operator

Independent distribution companies

Distribution Transmission and system services

Fortum's power and heat production by source

16

Natural gas 30%

Nuclear power 32%

Coal 5% Biomass 2%

Total generation 74.6 TWh (Generation capacity 15,251 MW)

Hydro power 30%

Fortum's power generation in 2014

Other 1%

Total production 42.1 TWh (Production capacity 21,038 MW)

Fortum's heat production in 2014

Oil 1%

Waste 6% Heat pumps, electricity 6%

Peat 1%

Biomass 9%

Natural gas 63%

Coal 14%

Incl. Fortum’s associated company Fortum Värme; power generation 1.2 TWh (capacity 627 MW) and heat production 7.5 TWh (capacity 3,636 MW).

Nuclear power 47%

Coal 4%

Other 2%

Hydro power 43%

Natural gas 2%

European generation 51.3 TWh (Generation capacity 10,478 MW)

Fortum's European power generation in 2014

Biomass 2%

European production 15.7 TWh (Production capacity 7,572 MW)

Fortum's European heat production in 2014

Peat 2% Oil 1%

Waste 15%

Natural gas 15%

Biomass 24%

Heat pumps, electricity 17%

Coal 26%

Fortum's European power and heat production

17

Incl. Fortum’s associated company Fortum Värme; power generation 1.2 TWh (capacity 627 MW) and heat production 7.5 TWh (capacity 3,636 MW).

18

Fortum’s Nordic generation capacity

MW Finland

Wind 0.4

Hydro 1 500 Nuclear 1 460 CHP 438 Other thermal 1 127

4 525 Generation capacity in Finland

1 139

4 590

Other thermal

Hydro Nuclear CHP *

3 276

Wind 30

Nordic capacity 10 083

1 048

Nordic MW Price areas MW

SE2 Hydro 1 550 Wind 30

SE3 Hydro 1 540 Nuclear 1 816

Sweden

5 558 Generation capacity in Sweden

Other 12 CHP * 610

SE1

SE2

SE3

SE4

31 March 2014 * incl. Fortum’s associated company Fortum Värme 610 MW

Market coupling milestones - cross-border power flows optimised by power exchanges • Market coupling between NL, BE and FR since 2006 • Germany – Nord Pool Spot coupling started 11/2009 • Market coupling for Central Western Europe (DE, FR, NL, BE)

since 11/2010 with a continued coupling with Nord Pool Spot • NorNed cable (NO-NL) included in January 2011. • Poland coupled with Nord Pool Spot since December 2010 • UK coupling started through BritNed cable in April 2011 • Estonian price area in Nord Pool Spot since 2010 and

Lithuanian area since 6/2012. Latvia joined in June 2013 • Czech, Slovakia and Hungary coupled together since

September 2012. Romania joined in November 2014 • A common day-ahead market coupling for the whole north-

western Europe was started in February 2014. Iberia (Spain & Portugal) joined in May 2014. Italy and Slovenia are due to join on 24 February 2015

• CEE market coupling region to join in 2016, with flow-based cross-border capacity allocation for further trade optimisation

• In addition to day-ahead coupling, intraday market coupling and balancing market integration under development as well

19

2009

2/2015

2012-2014

2010-2013

2016

2014

Current transmission capacity from Nordic area is over 5000 MW

20

• Theoretical maximum in transmission capacity ~40 TWh per annum

• Net export from Nordic area to Continental Europe and Estonia during year 2014 was 14 TWh

• During the dry year 2013 net export was 3 TWh • Approximately 25 TWh of net export is now reachable

Countries Transmission capacity MW

From Nordics To Nordics

Denmark - Germany 2,225 2,100

Sweden - Germany 615 600

Sweden - Poland 600 600

Norway - Netherlands 700 700

Finland - Estonia 1000 1,016

Finland - Russia 320 1,300

Total 5,460 6,316

700

2,225 615 600

1000

320

Nordic, Baltic and Continental markets are integrating – interconnection capacity will double by 2020

21

Two 1400 MW NO-UK links as EU Projects of Common Interest: NSN link to England agreed to be built by 2020, NorthConnect to Scotland still requiring Norwegian permission

First direct 1,400 MW NO-DE link agreed to be built by 2018

EU financial support for a 700 MW DK-NL link, due to be built by 2019

Jutland – DE capacity planned to grow by 860 MW by 2019, with further 500 MW increase by 2022

Svenska Kraftnät agreed 3/2014 with 50Hertz to study a new Hansa PowerBridge DC link between Sweden and Germany

The Northern Seas Offshore Grid and the Baltic Energy Market Integration Plan are included as priority electricity corridors in EU’s Infrastructure Guidelines, approved in April 2013

New interconnections will double the export capacity to over 10,000 MW by 2020

LitPol Link (500+500 MW) to connect the Baltic market to Poland by end-2015/20. It will open a new transmission route from the Nordic market to the Continent

EU’s European Energy Programme for Recovery co-financing 700 MW NordBalt (ready 12/2015)

New internal Nordic grid investments provide for increased available capacity for export to the Continent and Baltics

320 MW of export capacity available on the 1300 MW RU-FI link since December 2014

EU’s Connecting Europe Facility co-financing 3rd EE-LV transmission line, due to be ready by 2020

Q1 Q2 Q3 Q4

20

40

60

80

100

120

rese

rvoi

r con

tent

(TW

h)

0

2000 2003 2014 2013 reference level 2015

Nordic water reservoirs

22

Source: Nord Pool Spot

Nordic year forwards

23

Source: Nasdaq Commodities

0

10

20

30

40

50

60

70

€/MWh 3 February 2015

2014

Q1

2008

Q2 Q3 Q4 Q1

2009

Q2 Q3 Q4 Q1

2010

Q2 Q3 Q4 Q1

2011

Q2 Q3 Q4 Q1

2012

Q2 Q3 Q4 Q1

2013

Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015

Q1

Year15 Year17 Year19 Year10 Year11 Year12 Year13 Year14 Year16 Year18 Year20

Wholesale price for electricity

24

Source: Nord Pool Spot, Nasdaq Commodities

0

10

20

30

40

50

60

70

80

90

100

110EUR/MWh Nord Pool Spot System Price Forwards

2 February 2015

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

Wholesale prices for electricity

25

Source: Nord Pool Spot, Nasdaq Commodities, APX-ENDEX, Bloomberg Finance LP, ATS, NP “Market Council”, Fortum

* Including weighted average capacity price

Dutch

German

Nordic

Russian*

Spot prices Forward prices EUR/MWh

10

20

30

40

50

60

70

80

90

100

110

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2 February 2015

0

30

60

90

120

150

USD

/ bb

l

Crude oil price (ICE Brent)

2007 2008 20112009 2010 20132012 2014 2015 20160

7

14

21

28

35

EUR

/ tC

O2

CO2 price (ICE ECX EUA)

2007 2008 20112009 2010 20132012 2014 2015 2016

0

50

100

150

200

250

USD

/ t

Coal price (ICE Rotterdam)

2007 2008 20112009 2010 20132012 2014 2015 20160

20

40

60

80

100

GB

p / t

herm

Gas price (ICE NBP)

2007 2008 20112009 2010 20132012 2014 2015 2016

26

Source: ICE

Market prices 2 February 2015; 2015-2016 future quotations

Fuel and CO2 allowance prices

Nordic power generation – dominated by hydro, but fossil needed

27

Source: ENTSO-E Statistical Factsheet 2013 *) Normal annual Nordic hydro generation 200 TWh, variation +/- 40 TWh.

0

20

40

60

80

100

120

140

160

Denmark Norway Sweden Finland

Fossil fuels

Nuclear

Biomass

Wind

Hydro *

TWh/a

Total Nordic generation 383 TWh in 2013

Net export in 2013: 0.4 TWh

23

86

TWh %

48

203

23

6

23

13

53

6

Wholesale electricity price too low to attract investments

28

0102030405060708090

100110

Source: Nord Pool spot, Nasdaq Commodities

EUR/MWh

Futures 2 February 2015

1995 2015 2025 0

102030405060708090

100110

Onshore wind

Nuclear Utility scale Solar PV In Italy

Large hydro

Offshore wind

EUR/MWh

Average levelised costs of new electricity generation

Coal condensing

Gas

NOTE: The presented figures are calculated based on data from recent public reports and do not represent Fortum’s view. Average achieved price (€/MWh) for the production type depends on availability and flexibility. There are large variations in the cost of hydro, wind and solar depending on location and conditions. Commodity prices are forward prices as of August 2014.

Still a highly fragmented Nordic power market

29

Power generation 384 TWh

>350 companies

Electricity distribution 15 million customers

~500 companies

Electricity retail 15 million customers

~350 companies

Vattenfall

33% Statkraft

Dong Energy

Others

Fortum *

E.ON PVO

E-CO Energi Agder Energi

Norsk Hydro

Helen

Others

53%

Vattenfall

Fortum

Dong Energy

Hafslund

E.ON

Göteborg, Din El

SEAS-NVE Helen Statkraft

Bixia

Caruna

Vattenfall

Fortum

Others E.ON

57%

SEAS-NVE

Hafslund

Helen Syd Energi

Dong Energy

Elenia

* incl. Fortum’s associated company Fortum Värme ; power generation 1.3 TWh. Source: Fortum, company data, shares of the largest actors, pro forma 2013 figures.

New power generation capacity needed for increasing demand and retiring capacity replacements

30

• Growing global energy demand will be increasingly fulfilled by electricity in the future

• Substantial demand growth in the emerging markets

• Retirements and moderate demand growth in the EU

• Globally, ~7,000 GW of new capacity needed by 2040

Source: IEA WEO 2014 (New polices scenario) 1) Total new capacity needed for increasing demand and replacements of retiring capacity

479

257

736

632

354

986

172

72

244

281

1,435

1,716

91

814

905

787

1,833

2,620

2,442

4,765

7,207 New capacity, total (1

Capacity changes, 2014-2040 (GW)

Retiring capacity

Capacity increase

19%

41%

114%

225%

0%

50%

100%

150%

200%

250%

US Europe Russia China India Other areas

World total

Growth, 2012-2040 Primary energy demand Electricity generation

Overview of Fortum’s nuclear fleet

31

LOVIISA OLKILUOTO OSKARSHAMN FORSMARK

Commercial operation started

Unit 1: 1977 Unit 2: 1981

Unit 1: 1978 Unit 2: 1980 Unit 3: (Under construction)

Unit 1: 1972 Unit 2: 1974 Unit 3: 1985

Unit 1: 1980 Unit 2: 1981 Unit 3: 1985

Generation Capacity Fortum’s share

Unit 1: 496 MW Unit 2: 496 MW Total: 992 MW

Unit 1: 880 MW Unit 2: 880 MW (Unit 3: 1,600 MW) Total: 1,760 MW (3,360) 27% 468 MW

Unit 1: 473 MW Unit 2: 638 MW Unit 3: 1,400 MW Total: 2,511 MW 43% 1,089 MW

Unit 1: 984 MW Unit 2: 1,120 MW Unit 3: 1,170 MW Total: 3,274 MW 22% 720 MW

Yearly production Fortum’s share of production

8 TWh 8 TWh

14 TWh 4 TWh

17 TWh 7 TWh

25 TWh 5.5 TWh

Share of Fortums Nordic production 18% 9% 16% 13%

Majority owner Fortum’s share

Fortum

Pohjolan Voima 26.6%

E.ON 43.4%

Vattenfall 22.2%

Operated by Fortum Teollisuuden Voima (TVO) OKG Aktiebolag Forsmarks Kraftgrupp

Responsibilities Loviisa: Fortum is the owner, licensee and operator with all the responsibilities specified in the Nuclear Energy Act, Nuclear Liability Act, and other relevant nuclear legislation Other units: Fortum is solely an owner with none of the responsibilities assigned to the licensee in the nuclear legislation. Other responsibilities are specified in the Companies Act and the Articles of Association and are mostly financial.

Olkiluoto

Loviisa Forsmark

Oskarshamn

Fortum's nuclear power in the Nordics

32

• Finnish units world class in availability • Overview of production and consumption:

www.fortum.com/investors - energy related links

Source: Fortum

Load factor (%) 2005 2006 2007 2008 2009 2010 2011 2012 2013

2014

Osakarshamn 1 80 51 63 85 68 77 72 1 13 74

Oskarshamn 2 90 78 76 86 75 90 77 81 33 0

Oskarshamn 3 85 95 88 70 17 31 75 69 77 75

Forsmarks 1 85 76 81 81 88 93 79 88 87 94

Forsmark 2 94 72 85 79 64 39 94 82 89 89

Forsmark 3 95 92 88 69 86 81 85 93 88 82

Loviisa 1 95 93 94 86 96 93 94 84 92 92

Loviisa 2 95 88 96 93 95 89 94 91 93 89

Olkiluoto 1 98 94 97 94 97 92 94 90 97 94

Olkiluoto 2 94 97 94 97 95 95 90 96 93 97

Variety of technologies and ages

33

Planned capacity increases

• Oskarshamn 2 in 2017, capacity increase 180 MW (Fortum’s share 78 MW), Fortum’s share of total capacity after increase 355 MW

• Forsmark 1 in 2017-2020, capacity increase 120 MW (Fortum’s share 27 MW), Fortum’s share of total capacity after increase 257 MW

PWR = Pressurized Water Reactor The most common reactor type in the world (e.g. all French units, most US units). Also the Loviisa units are PWRs, but based on Russian design. High pressure prevents water from boiling n the reactor. The steam rotating the turbine is generated in separate steam generators.

BWR = Boiling Water Reactor Similar to the PWR in many ways, but the steam is generated directly in the reactor. Popular reactor type e.g. in Sweden, the US and Japan.

*Generation refers to technical resemblence based on KSU classification and not to reactor design generations. All reactors are of Generation II except Olkiluoto-3 (EPR) which is of Generation III.

Unit MWe (Net) Share (%) Share (MWe) Commercial operation

Age Type/ Generation *

Supplier

Loviisa 1 Loviisa 2

496 496

100,0 100,0

496 496

1977-05-09 1981-01-05

36 33

PWR / 1 PWR / 1

AEE (Atomenergoexport) AEE (Atomenergoexport)

Olkiluoto 1 Olkiluoto 2 Olkiluoto 3

880 880

(1,600)

26,6 26,6 25,0

234 234

(400)

1979-10-10 1982-07-10

(?)

34 31

BWR / 3 BWR / 3 PWR / 3

Asea-Atom / Stal-Laval Asea-Atom / Stal-Laval

Areva / Siemens

Oskarshamn 1 Oskarshamn 2 Oskarshamn 3

473 638

1,400

43,4 43,4 43,4

205 277 607

1972-02-06 1975-01-01 1985-08-15

42 39 28

BWR / 1 BWR / 2 BWR / 4

Asea-Atom / Stal-Laval Asea-Atom / Stal-Laval Asea-Atom / Stal-Laval

Forsmark 1 Forsmark 2 Forsmark 3

984 1,120 1,170

23,4 23,4 20,1

230 233 236

1980-12-10 1981-07-07 1985-08-18

33 32 28

BWR / 3 BWR / 3 BWR / 4

Asea-Atom / Stal-Laval Asea-Atom / Stal-Laval Asea-Atom / Stal-Laval

Third party nuclear liability in case of severe accident

34

Sweden (new, not in force)

Finland, temporary legislation

Current, Sweden

700 M€

200 M€ 360 M€

500 M€ Responsibility of company (insurance or guarantee)

Unlimited company responsibility Convention parties 300 M€

State responsibility

300 M€

500 M€

700 M€

New Paris convention

700 M€

145 M€

145 M€

Old, Finland

240 M€

145 M€

In force since 1.1.2012.

Law approved by Parliament in 2010, requires separate decision from Government to come into force.

Requires ratification by 2/3 of member states to come into force. In Finland approved by Parliament in 2005

Russia is the World’s 5th largest power market

35

Power generation in 2013 based on gross output. Source: BP Statistical Review of World Energy June 2014

0

1,000

2,000

3,000

4,000

5,000

6,000 TWh

Fortum - a major player in Russia

OAO Fortum (former TGC-10) • Operates in the heart of Russia’s oil and gas producing region, fleet

mainly gas-fired CHP capacity • 23 TWh power generation, 26 TWh heat production in 2014;

more than Fortum’s Nordic heat sales (11 TWh, incl. Fortum Värme) • Investment programme to add 85%, almost 2,400 MW to power

generation capacity

TGC-1 • 29.5% of territorial generating company TGC-1 operating in north-

west Russia • ~7,200 MW electricity production capacity (more than 40% hydro),

~24 TWh electricity, ~28 TWh heat in 2014

36

OAO Fortum

Tyumen

Tobolsk

Chelyabinsk

Nyagan

TGC-1

St. Petersburg

Moscow

37

Day ahead wholesale market prices – increase driven by recovering demand and gas price

Key electricity, capacity and gas prices in the OAO Fortum area

IV/14 IV/13 2014 2013

Electricity spot price (market price), Urals hub, RUB/MWh

1,041 1,043 1,089 1,021

Average regulated gas price, Urals region, RUB 1000 m3

3,362 3,423 3,362 3,131

Average capacity price for CCS ”old capacity”, tRUB/MW/month

180 181 167 163

Average capacity price for CSA ”new capacity”, tRUB/MW/month

603 635 552 576

Average capacity price, tRUB/MW/month

331 326 304 276

Achieved power price for OAO Fortum, EUR/MWh 28.0 33.3 30.4 32.1

0

200

400

600

800

1 000

1 200

1 400

RU

B /

MW

h

2008 2009 2010 2011 2012 2013 2014 2015

0

5

10

15

20

25

30

35

40

€/ M

Wh

Day ahead power market prices for Urals

In addition to the power price generators receive a capacity payment. Source: ATS

2008 2009 2010 2011 2012 2013 2014 2015

Power market liberalisation – two markets

38

Capacity wholesale market Electricity wholesale market

Capacity prices • Competitive capacity selection (CCS) and free bilateral

agreements (FBA)

• A higher, fixed capacity price for new capacity (CSA* agreements, built after 2007)

• Lower capacity price for old capacity, price caps limits the price in some areas

• Old capacity intended for households are priced by regulated bilateral agreements (RBA)

Electricity prices • Day ahead (spot) market, financial market, free bilateral

agreements (FBA) and regulated bilateral agreements (RBA)

• Fully liberalised from 1 Jan 2011 except for volumes intended for households priced by RBA (~10% of volume)

* Capacity supply agreement

•CSA is the intended mechanism for earning a (reasonable) return on invested capital in new capacity •Capacity prices are a big part of a power generator’s income

– a typical CHP plant ~35%, CCGT ~55%, of revenues •In the day ahead (spot) market, the price mechanism is a day ahead hourly auction. Supply – demand balance and variable cost (fuel) are the key drivers for the spot price •Financial market for electricity started in June, 2010

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Capacity prices for new capacity considerably higher than prices for old capacity prices

• Long term rules and price parameters approved • Both “old” and “new” capacity can participate in capacity auctions • Old capacity (pre 2007) and new capacity priced differently

– Old capacity is priced by capacity auctions; price cap possibility – New capacity under capacity supply agreements to receive guaranteed payments

• The payments for new capacity are based on approved pricing formulas – Vary according to plant size, fuel, geographic location, capital costs – Allow the recovery of capital costs and include return on invested capital; the targeted ROCE level 12-

14% (with current government benchmark bond yields) – After three years (2014), the regulator will review the earnings from the electricity-only market and can

revise the payments, same goes after 6 years.

“Old” capacity prices will depend on auction outcomes, but will likely remain relatively low; potentially price caps could limit the price

85% increase in power generation capacity in Russia by 2015 through the investment programme

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Income statement MEUR IV/2014 IV/2013 2014 2013 Sales 1,285 1,390 4,751 5,309

Other income and expenses 849 967 3,400 3,906

Comparable operating profit 436 423 1,351 1,403

Capital gains and other items affecting comparability 213 83 2,077 106

Operating profit 650 507 3,428 1,508

Share of profit of associates and jv’s 38 63 149 178

Financial expenses, net -48 -77 -217 -289

Profit before taxes 639 493 3,360 1,398

Income tax expense -64 -29 -199 -186

Net profit for the period 575 465 3,161 1,212

Non-controlling interests 4 6 7 8

Net profit for the owners of the parent 571 458 3,154 1,204

EPS, basic (EUR) 0.64 0.52 3.55 1.36

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Comparable and reported operating profit

IV/2014 IV/2013 IV/2014 IV/2013 2014 2013 2014 2013

Power and Technology 276 207 318 278 877 859 855 922 Heat, Electricity Sales and Solutions 49 42 221 51 104 109 337 134

Russia 59 110 59 111 161 156 161 156

Distribution 67 76 66 75 266 332 2,132 349

Other -14 -12 -14 -8 -57 -54 -58 -53

Total 436 423 650 507 1,351 1,403 3,428 1,508

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Comparable operating profit

Reported operating profit MEUR

• Non-recurring items (mainly to the sale of the Finnish electricity distribution business), IFRS accounting treatment (IAS 39) of derivatives and nuclear fund adjustments had an impact on the reported operating profit EUR 213 (83) million in the fourth quarter and 2,077 (106) million in January-December 2014

Comparable operating profit

Reported operating profit

Note: The divested distribution operations are included in the segment information until the closing of the transactions.

Cash flow statement MEUR IV/2014 IV/2013 2014 2013

Operating profit before depreciations 769 668 3,954 2,129

Non-cash flow items and divesting activities -209 -158 -2,111 -262

Financial items and fx gains/losses 125 54 176 -188

Taxes -47 -61 -211 -210

Funds from operations (FFO) 638 503 1,808 1,469

Change in working capital -186 -106 -46 79

Total net cash from operating activities 452 398 1,762 1,548

Paid capital expenditures -244 -334 -768 -1,004

Divestments of shares* 376 15 3,193 144

Other investment activities 7 -128 391 -84

Cash flow before financing activities 591 -49 4,578 604

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* Including Proceeds from the interest-bearing receivables relating to divestments

Key ratios

MEUR 2014 2013

Comparable EBITDA 1,873 1,975

Interest-bearing net debt 4,217 7,793

Comparable net debt/EBITDA 2.3 3.9

excluding Värme financing 2.0 3.4

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Return on capital employed, ROCE (%) 19.5 9.0

Return on shareholders’ equity, ROE (%) 30.0 12.0

Good liquidity – committed credit lines total EUR 2.2 billion

Debt Maturity Profile, December 31, 2014

0

250

500

750

1000

1250

1500

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2015 1,103

2016 860

2017 530

2018 614

2019 820

2020 75

2021 548

2022 1,076

2023 109

2024 3

2025+

TOTAL

1,245

6,983

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per 31 Dec, 2014 per 31 Dec, 2013 Average Interest Rate (incl. swaps and forwards) 3.7% 3.6% Portion of floating / fixed debt 46 / 54% 51 / 49%

Outlook

Nordic markets • Fortum continues to expect that the average annual electricity demand

growth will be on average approximately 0.5% in the coming years • Electricity is expected to continue to gain share of total energy consumption

Russia

• The run-rate operating profit (EBIT) target for the Russia Segment RUB 18.2 billion is expected to be reached during 2015, but the euro result level will be volatile, mainly due to the translation effect

Key drivers and risks • Economic • Political • Currency • Wholesale price of electricity and volumes

• demand and supply • fuels • hydrological situation • power plant availability • CO2 emissions allowance prices

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Outlook

Annual capex estimate, excluding potential acquisitions • 2015 approximately EUR 0.9 billion

Hedging

• 2015 approx. 50% hedge ratio at approx. EUR 40/MWh • 2016 approx. 10% hedge ratio at approx. EUR 39/MWh

Taxation

• Effective tax rate for 2015 for the Group 19-21% • In Finland, the power plant tax (“windfall tax”) was revoked • The Swedish Government proposal to increase the tax on installed nuclear capacity as of

2015 is on hold – not in the current budget

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Hedging improves stability and predictability

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2009 onwards thermal and import from Russia excluded

• The efficiency programme successfully finalised during 2014

• Total annual cost savings visible in all divisions • Improved working capital efficiency • Divestments of non-core assets totalling approximately EUR 800 million

Fortum's efficiency programme 2013-2014

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SPEED - Cash flow improved by EUR 1 billion – FLEXIBILITY

CAPEX EUR 250-350 million

DIVESTMENTS EUR 500 million

WORKING CAPITAL Reduction

FIXED COSTS Reduce EUR 150 million compared to 2012

WHY WHAT WHEN 2013-2014

Facts of Distribution MEUR Fortum’s

Swedish distribution operations in 2014

Operating profit 236

Comparable operating profit 235

Comparable EBITDA 366

Capital expenditure 134

Number of employees 390

Volume of distr. Electricity, TWh 26.9

Number of el. Distr. Custom. (‘000) 906

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January 2013: Strategic assessment

commenced

December 2013: Assessment has been

completed, divestment the best alternative

– Evaluation of divestment opportunities country by

country

Closed by the end of Q1/2014:

Divestment of Distribution Finland

Ongoing: Preparation and evaluation of divestment possibilities

in Sweden

Closed by the end of Q2/2014:

Divestment of Distribution Norway

Annual General Meeting 2015 and dividend distribution proposal

• Fortum’s Annual General Meeting will be held at 14:00 on Tuesday, 31 March 2015, at the Finlandia Hall, Mannerheimintie 13, in Helsinki, Finland

• The Board of Directors’ dividend proposal EUR 1.10 per share, and in addition extra dividend EUR 0.20 per share for 2014

• Dividend-related dates planned for 2015

• Ex-dividend date 1 April 2015 • Record date for dividend payment 2 April 2015 • Dividend payment date 14 April 2015

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For more information, please visit www.fortum.com/investors