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Norway – Opportunity in Leading the Mobility Revolution Rami Syväri, Nordic Smart Electric Transport, 19.11.2015

Why is there need for revolution?

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CLIMATE CHANGE

FINITE RESOURCES

HEALTH

Why are EVs so revolutionary?• Climate change– ZERO EMISSIONS • Zero CO2 while driving • Possible zero CO2 while producing • Zero Emission due emission trade

• Health – Zero fine particles• Beijing • Paris• Bergen

• Lack of Resources– 3 x more efficient – Closing up to perfection

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3,3 million

3 million

2,5 million

Global – or First Regional Evolution

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Globally 10 Million by 2020 Of 1,1 Billion

Exponentially growing number of EVs – TIME TO ACT?

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20302014 202620222018

Accumulated volumes

By end of Million EVs2014 12015 22016 22017 32018 52019 82020 112021 172022 262023 382024 582025 862026 1302027 1952028 2922029 4382030 6572031 9852032 1 4782033 2 2172034 3 3252035 4 988

By end of Million EVs2014 12015 22016 32017 42018 72019 102020 172021 272022 432023 692024 1102025 1762026 2812027 4502028 7212029 1 1532030 1 8452031 2 9512032 4 7222033 7 5562034 12 0892035 19 343

By end of Million EVs2014 12015 22016 32017 52018 82019 142020 242021 412022 702023 1192024 2022025 3432026 5832027 9902028 1 6842029 2 8622030 4 8662031 8 2722032 14 0632033 23 9072034 40 6422035 69 092

50% 60% 70%

Global EV sales +54% YTD

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”Swiss tiples sales comparedto the same month last year.”

”The French EV market up 60% YoY”

”Germany sold 120% morethen last year’s comparable”

”Norway up 60% YoY”

”China’s YTD 190% higher then last year”

Expected 500.000 sold Evs in 2015

(in 2012 150.000)

Norway’s potential and opportunity – time to act!

• Leading EV country per capita -­ by far

• First country and market to move to early mass

• Probably per capita: – Most moving energy storage per capita – Most charging events– Most service events– Most usage experience – For long time leading country with harshest conditions for EVs

– Most second hand EVs

• HOW LONG WILL THE LEAD LAST??

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Opportunity we work on - All these cars need charging

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Fortum Charge & Drive Operating and growing your charging business

Rami SyväriProgram Manager International ExpansionCharge & Drive, New Business, Fortum

Fortum Corporation and Charge & Drive

Fortum Corporation• Leading power company in Nordics with Generation, Distribution and Sales of electricity and heat

• Division in Russia and investing in India Solar PV

Fortum Key figures 2014• Sales EUR 4.75 bn• Operating profit EUR 1.35 bn• Personnel 8,500

Charge & Drive• Leading full service EV Charging Operator in Norway, Sweden and Finland offeringturn-­key installations, end-­user operations and our cloud based business system

• Over 350 smart public chargers operated– over 100 DC Quick Charger

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Finland

Sweden

Russia

Great Britain Poland

Estonia

Latvia

Norway

Lithuania

India

• One of the leading energy providers in the Nordic region, the Baltic States and Russia

• Listed on Nasdaq OMX Helsinki since 1998• Generation and Sales of electricity and heat• Developing and investing also in solar power, wave power, smart home solutions and eMobility

Key figures 2014

Sales EUR 4.1 bnOperating profit EUR 1.3 bnPersonnel 8,800

Fortum Corporation

Charge & Drive complementing Solar Economy Vision of Fortum

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Transition towards Solar Economy

Copyright © Fortum Corporation

Resource & system efficiency

Finite fuel resources Large CO2 emissions Infinite fuel resources Emissions free production

High

Low

Solar EconomyInexhaustible and emissions-­free,

solar-­based production

Geothermal

Hydro

Wind

Sun

Ocean

Bio

Traditionalenergy production

Exhaustible fuels and productionthat burdens the environment

Coal GasOil

Advancedenergy productionEnergy efficient and/orlow-­emission production

Nuclear today

Nucleartomorrow

CHP

All rights reserved by Fortum Corporation and shall be deemed the sole property of Fortum Corporation and nothing in this slide or otherwise shall be construed as granting or conferring any rights, in particular any intellectual property rights

Fortum's power and heat production by source

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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).

0

200

400

600

800

1 000

1 200

DEI

RWE

Drax

SSE

CEZ

E.ON

Vattenfall

EDP

Enel

Edipower

EnBW

Gas Natural Fenosa

GDF SUEZ

Dong Energy

Fortum total

Iberdrola

PVO

EDF

Verbund

Fortum EU

Statkraft

64

g CO2/kWh electricity, 2013

201464% of Fortum's total power generation CO2-­free94% of Fortum’s power generation in the EU CO2-­free

Close to 100% of the ongoing investment programin the EU CO2-­free

Average 328 g/kWh

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Fortum's Carbon Exposure Among the Lowest in Europe

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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 2014Climate Change and Electricity, Fortum

Fortum a Forerunner in Sustainability

• Carbon Disclosure Nordic Leadership Index– Fortum no. 1, scores 100/100

• SAM Sustainability Yearbook

• STOXX® Global ESG Leaders indices

• oekom

• OMX GES Sustainability Finland Index

• ECPI® Indices

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Fortum Charge & Drive

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The leading charging operator in the Nordics

Charge & Drive

Leading electric vehicle charging service provider in the Nordic countriesTurn-­key installations, provencharging business system, Nordic public chargingnetwork

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Trusted and used by brands such as

• Cloud service A business system software for operating any smart charging network

• Turn-­key solution in Nordics home marketsComprehensive charging solutions for B2B and B2G

Charge & DriveFull Service Electric Vehicle Charging OperatorBuild on extensive experience in Norway, Sweden and Finland. R&D since the 90s. Commercialized as Charge & Drive in 2011.

Services applicable for any charging network and service provider.Runs business with any IP-­connected EV-­chargers.

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Trusted and used by brands such as

• Charge & Drive – the cloud-­based business system Customer experience, infrastructure and business management

• Nordic Public Charging NetworkLeading charging operator in the Nordics

• Turn-­key charging solutions for B2B and B2G From planning and hardware to services and a mobile web apps.

Cloud Service Backed by Learnings from the Nordics

• Leading EV charging operator with over 450 smart chargers, including over 150 quick chargers in Norway, Sweden and Finland (map.chargedrive.com)– Target 1000 by end 2015

• Home market with three – countries– languages – currencies – tax systemswithin and outside the EU

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Part of European Roaming Network

• Through the Hubject roaming platform Charge & Drive reaches 200 European Charging Partners

• Charge & Drive offers customers additional access to over 2000 chargers in Europe

• The cooperation also enables European customers the usage of Charge & Drive’s Nordic network

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The Fortum Fast Charging Network to Connect Nordic Capitols

• Executed Nordic project to connect Nordic Capitols

• Installed 50 Quick Charger and operate these at partner locations

• Cooperation with Nissan, McDonalds, Preemand ABC

• See all stations at map.chargedrive.com

• Through the cooperation with Hubject, Fortumwill connect to further 2.000 chargers in Europe and enable the customers so called eRoaming

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Charge & Drive is hardware agnostic

McDonalds, Sweden Inspiria Science Center, Norway Hageby Centrum, Sweden

Quick10-­30 min

Semi-­fast 2-­3 h (3x3A)

Normal6-­8 h (1x16A)

Fortum Charge & Drive’s Deals Further Strengthen Position in Norway, the World’s Leading EV Market per Capita

• Installation and operations of 150 -­ 450 smart chargers at shopping malls, restaurants etc.

• Operations of 50 rapid chargers 50kW at Kiwi’s grocery stores across Norway

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Dette bildet kan ikke vises akkurat nå.

• Norway with population of 5 Mio is the world leading market of EVs per capita

• YTD Sept 2015 – 74 282 EV/PHEVs

• March 2015 25,9% of new car sales where EV/PHEVs

Worlds First Country Crossing the Chasm to Early Mass

• With present sales rates of over ¼ EVs and PHEVs Norway is moving from early adopters to early mass

• Not like the users before

• Pragmatics – people from across the street

• What do they need? What do you need to provide?

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ON Power, Iceland first customer outside of home markets

• ON Power chose the cloud based Fortum Charge & Drive charging business system for the operation of their EV charging network in Iceland

• “Fortum Charge & Drive has a high professional standard, and it is highly recognized in the business, so the choice was easy” Ásdis Gíslason, Marketing Manager, ON Power

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The Fortum Charge & Drive Cloud Based Business System

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Operating and Growing Your Charging Business

Fortum Charge & Drive’s Offering in the Value Chain

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Customer Service

IT-­system Provider

Charge&DriveInternational Offering

Charge&DriveNordicMarket Activity

Land Owner

Electricity SupplierHardwareImporter /Distributor

Charging Service Operator

Hardware Reseller

Hardware Owner

Maintenance & Repairs

Hardware Installation

Charger OEM

Turn-­key Provider / ProjectMgmt

Charge & Drive - The Cloud Based Charging Business System

• Customer experience (EMP)– Customer app, with map and payment functionality. Also SMS & RFID payment

– Mypages for user account management and charging history with receipts

– 24/7 customer service – Cross-­European Roaming

• Infrastructure Management (CPO)– Integration of leading smart chargers– Remote monitoring and steering of charging networks

• Business Management – Easy to integrate to existing system – Real-­Time Dashboards and dynamic reports– Integrated Sales and Marketing tools

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Mobile web app supporting locating and using chargers

• Locate Charge & Drive chargers– or chargers from other integrated databases

• Filter chargers based on plug or status

• Navigation to chosen charger

• Credit Card based payment functionality for one time or subscription use

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Charge & Drive My Pages give users control of their account

• Account management for– Personal information – Registration of credit cards

• Overview of charging history– Volume – Costs– Receipts

• Reports and data export to excel

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RFID-key for subscribed users for most convenient charging

• RFID-­keys are the most convenient way of charging. – Identification of user by holding RFID-­key to the RFID-­reader at the charger.

– Direct payment with registered credit card

– Stored receipts

• Web based order process for RFID-­keys

• Web based registration of credit cards to RFID-­keys through MyPages

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Instructions and Customer Service support user charging session

• User instruction templates for most integrated chargers – As stickers at the charger– In the mobile app

• 24/7 multilingual customer service to answer user questions about charging– New languages can be agreed on

• Experience of more then 1500 calls / month – just for charging issues

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The Charge & Drive System Build on Leading M2M Platform

• Won the best M2M solution in 2012 Euro Cloud Awards

• Is operational for 10 years, last 3 years uptime 100%

• Handles already close to 2 billion transactions per year

• High level of data security

• Cloud based, Agile, Open, Scalable & Robust

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Example Set-Up of Our Services for Charging Service Providers

Set-­Up(one time cost)

• Set up of customer portal with Internal Users and Super Users• Pilot project can include set-­up of max three chargers

Connection & Web Portal

• Own portal to see chargers online status and usage• Charger data publishing on the Web, databases and app• Statistics on usage and payment transactions• Alarm function to the service organization via e-­mail

User identification(optional)

• RFID or SMS based user identification

Customer Service24/7(optional)

• Monitoring 24/7 365 days a year• Remote control for customer support• Trained staff that can assist customers with problems and information

Payments(optional)

• RFID linked to credit card• SMS payment• Different tariffs to choose from and various opening hours, reservationof charging points, cash back offers, etc.

• Advanced pricing tariffs can be defined • (Payment with Web App released during Q2/2015)

Mobile Web App(optional)

• OS agnostic, open end-­user service • Possibility to white label

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Organizations and brands trusting in us to operate their services

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Vägrestauranger Hotellkedjor Parkeringsbolag

Affärscenter Bensinstationer Kommuner & Elbolag

Bilhandlare

Daglighandel

Looking forward to operate and grow charging businesses

• Presently we lead in the Nordics and we are expanding

• Are looking for a proven, leading, cost effective, continuously developing system to run a charging business?

• What is needed? • What can we do for your?

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Opening of Most Northern QC in Finland at Hullu Poro, Levi

Operating and growing your charging business

Web: chargedrive.comApp: map.chargedrive.comTwitter: @forChargeDrive

Rami SyväriProgram Manager International Expansionrami.syvari@fortum.com+358 40 7095566

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Attachments

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Fortum Charge & Drive in 3 minutesFortum Charge & Drive offers a operator system for Electric Vehicle (EV) charging service providers as well as infrastructure investors. The system is cloud based. It’s architecture enables flexible, modular pay as you grow models as well as alternatively white label. We serve EV charging service operators, businesses, governmental organizations and NGOs. When investing into charging infrastructure, we provide the operator an of the shelf system, reducing their capital expenditure compared to their existing system or act as a full service operator to run their chargers and customer interface.The Charge & Drive system is a full blown business system for operating any smart* Charging Stations. It builds on our experiences from Norway, Sweden and Finland. It is OEM/HW independent and has multiple functionalities, such as: real time communication down to the chargers for remote control and steering and load balancing, advanced billing and tariff engines structured to handle multiple and interlinked organization relationships, payment transactions through mobile App, SMS or RFID for the end-user, CRM module and CRM integration to i.e. Sales Force, predefined user hierarchy structures, social media integration and information for back-office support and 24/7 available customer service.

Fortum’s program for electric transportation has been on-going in various forms since the 90-ties and in 2011 it was commercialized under the Charge & Drive brand. The company is in a market acceleration phase with investments in strengthening the market position in the Nordics, continuously developing the IT-platform and deployment of the own Fast Charging network. The Charge & Drive network operates across Norway, Sweden and Finland. In these markets Charge & Drive also offers charging services for electric vehicles (EV) users and turn key solutions for infrastructure investors.

Organizations like BMW, City of Stockholm, McDonalds, Nissan, Renault and VW have trusted in us to operate services for them.

41*smart chargers can be connected to the internet via sim-­card, LAN, etc