1. Interim report January–March 2015
Fortum Corporation
29 April 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.

3. IFRS restatement relating to discontinued operations
Distribution segment has been reclassified as discontinued operations in Q1/ As a result, continuing operations and discontinued operations are presented separately for Fortum Group. Comparative period information for 2014 has been restated accordingly.
Restated information for the interim periods of 2014 can be found in a stock exchange release published 15 April 2015

4. Q1 2015 Results Key figures (MEUR) I/2015 I/2014 2014 LTM
Sales, continuing operations
1,040
1,208
4,088
3,920
Comparable EBITDA, continuing operations
396
456
1,457
1,397
Operating profit:
Continuing operations
350
366
1,296
1,280
Discontinued operations 81
1,968
2,132
245
Fortum total
431
2,333
3,428
1,526
Comparable operating profit:
343
358
1,085
1,070 82
119
266
229
425
477
1,351
1,299
Profit before taxes:
374
1,232 80
2,128
240
2,341
3,360
1,450
Earnings per share:
0.33
0.35
1.22
1.20
0.07
2.18
2.33
0.22
0.40
2.53
3.55
1.42
Net cash from operating activities, continuing operations
516
405
1,406
1,517

5. Summary of the first quarter of 2015
Strong cash flow from operations
Hydro production impacted by later spring floods and inflow; nuclear volumes impacted by unplanned outages in co-owned plants
Binding agreement to sell the Swedish electricity distribution business – concludes the Distribution divestment process
Discussions and preparations for a possible restructuring of Russian TGC-1 ownership continue
Nyagan 3, in Russia, started receiving capacity payments as of 1 January 2015
Russian CSA payments revised upwards to reflect the higher bond rates
Pekka Lundmark appointed new President and CEO, starting at the beginning of September

6. Market conditions in the first quarter of 2015
Nordic countries
Power consumption in the Nordic countries at the same level as in Q1 2014
Hydro reservoirs at long-term average level
Nordic system spot prices approximately EUR 2 per MWh lower than in Q1 2014, while Finnish and Swedish area prices EUR1-3 per MWh lower
European business environment and carbon market
European Commission is developing a reference market model for countries planning a capacity market
A market stability reserve of the EU emissions trading system is being negotiated
Russia
Power consumption in Fortum’s operating areas was on the same level as in Q
Electricity spot price (in RUB) in the Urals hub was on same level as in Q1 2014
RUB strengthened during the quarter

7. Nordic water reservoirsQ1 Q2 Q3 Q4 20 40 60 80
100
120
reservoir content (TWh)
2000
2003
2014
2013
reference level
2015
Source: Nord Pool Spot

8. Wholesale price for electricity
EUR/MWh
Nord Pool Spot System Price
Forwards
27 April 2015
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
Source: Nord Pool Spot, Nasdaq Commodities

9. Fuel and CO2 allowance prices
Source: ICE
Market prices 27 April 2015; future quotations

10. Price development in the Nordic region and Russia
-7%
+3%
-5%
-15%
Includes capacity income

11. Q1: Fortum’s market environment remained weak
Comparable operating profit, EUR million

12. Financials

13. Comparable and reported operating profit
MEUR
I/2015
I/2014
Power and Technology
203
251
262
Heat, Electricity Sales and Solutions 58 48 64 45
Russia 97 73 98
Other
-15
-14
Total, continuing operations
343
358
350
366
Discontinued operations 82
119 81
1,968
Total, Fortum
425
477
431
2,333
Sales gains, IFRS accounting treatment (IAS 39) of derivatives and nuclear fund adjustments had an impact EUR 7 (8) million on the reported operating profit for continuing operations

14. Power and Technology
Q1 2015
Lower achieved power price, hydro and nuclear volumes
Later spring floods
Several small unplanned outages in co-owned nuclear power plants
MEUR
I/2015
I/2014
2014
LTM
Sales
500
586
2,156
2,070
Comparable EBITDA
232
282
998
948
Comparable operating profit
203
251
877
829
Net assets
6,019
6,276
6,001
Comparable RONA %
14.2
13.6
Gross investments 28 35
198
191

15. Heat, Electricity Sales and Solutions
Q1 2015
Comparable operating profit improved mainly due to lower fuel costs and higher heat prices during the period. In addition, the customer base in retail electricity continued to grow and sales margin improved.
Heat sales volumes as well as power sales volumes on approximately same levels as Q1 2014
MEUR
I/2015
I/2014
2014
LTM
Sales
406
446
1,332
1,292
Comparable EBITDA 82 74
204
212
Comparable operating profit 58 48
104
114
Net assets
2,164
2,365
2,112
Comparable RONA %
8.7
8.6
Gross investments 12 13
124
123

16. Russia
Q1 2015
Lower heat production volumes, due to warm weather, and bad debt provisions for heat trade receivables impacted the result negatively
Russian rouble affected the result negatively by EUR 47 million
Result includes CSA provision release of EUR 29 million
MEUR
I/2015
I/2014
2014
LTM
Sales
263
333
1,055
985
Comparable EBITDA * 94
113
304
285
Comparable operating profit 97 73
161
185
Net assets
3,104
3,619
2,597
Comparable RONA %
5.6
6.5
Gross investments 45 59
367
353
* Excluding the net release of CSA provision

17. Discontinued operations (Distribution)
Q1 2015
Binding agreement signed to divest the Swedish electricity distribution business
Volumes in Sweden in line with last year
Table below includes January-March 2014 results for the Finnish, January-May 2014 results for the Norwegian and full year 2014 results as well as January-March 2015 for the Swedish distribution business
MEUR
I/2015
I/2014
2014
LTM
Sales
180
300
751
631
Comparable EBITDA
112
171
416
357
Comparable operating profit 82
119
266
229
Net assets
2,634
2,872
2,615
Comparable RONA %
9.3
8.5
Gross investments 20 25
147
142

18. Income statement I/2015 I/2014 2014 LTM Sales 1,040 1,208 4,088 3,920
MEUR
I/2015
I/2014
2014
LTM
Sales
1,040
1,208
4,088
3,920
Other income and expenses
-697
-850
-3,003
-2,850
Comparable operating profit
343
358
1,085
1,070
Items affecting comparability 7 8
211
210
Operating profit
350
366
1,296
1,280
Share of profit of associates and jv’s 58 69
146
135
Financial expenses, net
-57
-62
-210
-205
Profit before taxes
374
1,232
Income tax expense
-55
-143
-136
Net profit, continuing operations
295
312
1,089
1,072
Net profit, discontinued operations 63
1,943
2,073
193
Net profit, Fortum total
2,255
3,161
1,264
EPS, basic (EUR), continuing operations
0.33
0.35
1.22
1.20
EPS, basic (EUR), discontinued operations
0.07
2.18
2.33
0.22
EPS, basic (EUR), Fortum Total
0.40
2.53
3.55
1.42

19. Cash flow statement I/2015 I/2014 2014 LTM
MEUR
I/2015
I/2014
2014
LTM
Cash from operating activities:
Realised FX gains/losses
168 74
352
446
Other funds from operations (FFO)
314
371
1,096
1,039
Change in working capital 34
-40
-42 32
Cash from operating activities, continuing operations
516
405
1,406
1,517
Cash from operating activities, discontinued operations 87
161
356
282
Cash from operating activities, total Fortum
603
566
1,762
1,799
Cash used in investing activities:
Paid capital expenditures
-101
-123
-622
-600
Proceeds from divestments 36 3
499
532
Other investment activities 19 46
364
337
Total investing activities, continuing operations
-46
-74
241
269
Total investing activities, discontinued operations
-43
2,461
2,574 70
Cash used in investing activities, total Fortum
-89
2,387
2,816
340
Cash flow before financing activities, total Fortum
514
2,953
4,578
2,139

20. Good liquidity – committed credit lines total EUR 2.2 billion
Key ratios
MEUR
LTM
2014
Comparable EBITDA, continuing operations
1,397
1,457
Comparable EBITDA, total Fortum
1,754
1,873
Interest-bearing net debt, total Fortum
3,714
4,217
Comparable net debt/EBITDA, total Fortum
2.1
2.3
excluding Värme financing
1.8
2.0
ROCE % Return on capital employed, total Fortum
9.0
19.5
Good liquidity – committed credit lines total EUR 2.2 billion

21. Debt Maturity Profile 31 March 2015
MEUR
2015
1,036
2016
863
2017
538
2018
621
2019
821
2020 75
2021
549
2022
1,087
2023
110
2024 3
2025+
1,279
TOTAL
6,982
per 31 March per 31 Dec, 2014
Average Interest Rate % 3.7%
Portion of floating / fixed debt / 53% / 54%

22. Outlook

23. 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) level for the Russia Segment, RUB billion, is targeted to be reached during 2015, but the euro result level will be volatile, 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

24. Outlook Annual capex estimate, excluding potential acquisitions
2015 approximately EUR 0.8 billion
Hedging
Rest of 2015 approx. 50% hedge ratio at approx. EUR 41/MWh
2016 approx. 20% hedge ratio at approx. EUR 37/MWh
Taxation
Effective tax rate for 2015 for the Group 19-21%
The Swedish Government decided to re-propose an increase of 17% on the tax on installed nuclear capacity to the spring budget

25. For more information