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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

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              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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)

• Slide Number 1
• Disclaimer
• Highlights in 2010
• Global mega trends drive the industry - Updated strategy supports sustainable business development
• Business environment improved
• Solid performance continued
• Comparable profit close to last years level
• Nordic water reservoirs were historically low
• Price development in the Nordic region and Russia
• Financials
• Comparable and reported operating profit
• 2011 February Nordic Power Exchange forward development minus Down by ~27 euroMWh from 2010 year end
• Power
• Heat
• Distribution
• Electricity Sales
• Russia
• Income statement
• Cash flow statement
• Key ratios
• Debt maturity profile
• Slide Number 22
• Summary on 2010
• Key strategic actions going forward
• Outlook
• Outlook
• Slide Number 27
• Slide Number 28
• Increased power consumption
• Nordic year forwards
• Fuel and CO2 allowance prices

• 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

  • Updated strategy which builds on Fortumrsquos core competences
  • Performance remained firm
  • Demand improved both in the Nordics and Russia
  • Russian power market progressed
  • Liberalised wholesale market
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Fortumrsquos Russian investment programme accelerated
    
  • 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

  • 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

    • Power and heat demand and supply
    • Degree of market liberalization and integration
    • Climate change response
    • Energy system structure
    • Business models and competition

    • 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

      • Leverage the strong Nordic core
      • Create solid earnings growth in Russia
      • Build platform for future growth

      • 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

        • Nordic power consumption up by 5 during 2010
        • Power consumption in the Nordic countries 396 TWh in 2010
          397 TWh in 2008 (pre-recession)
        • Temperature corrected power consumption in Nordic countries was still appr 4
          (~16 TWh ) lower than in 2008
        • Water reservoirs at historically low levels
        • Nordic spot prices increased forward prices more stable
        • Russian power consumption increased by about 4 during 2010
        • 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

          Solid performance continued

          • Comparable operating profit EUR 1833 (1888) million
          • Lower hydro volumes in Power
          • Improvement in Russia Distribution and Heat
          • Earnings per share EUR 146 (148)
          • Negative IAS 39 accounting effect corresponding to EUR 018
          • Net cash from operating activities EUR 1437 (2264) million
          • Decline due to SEK appreciation (roll-over of currency balance sheet hedges)
          • Proposed dividend of EUR 100 per share

          • 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

            • IFRS accounting treatment (IAS 39) of derivatives affected operating profit

            • New English

              New Finnish

              English

              Finnish

              Swedish

              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

              • Comparable operating profit decreased
              • Higher costs in Swedish associated nuclear companies
              • Production mix increased thermal power production during peak hours
              • Nordic achieved power price at same level as in 2009
              • Lower hedge prices
              • Higher prices in thermal during peak hours

              • Sheet1

                Sheet2

                Sheet3

                Heat

                • Comparable operating profit increased due to higher volumes and power prices
                • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

                • ) CHP Combined Heat and Power

                  Sheet1

                  Sheet2

                  Sheet3

                  Distribution

                  • Comparable operating profit increased due to higher sales and strong SEK
                  • Smart metering pilot rollout to network customers in Finland started in Q42010

                  • Sheet1

                    Sheet2

                    Sheet3

                    Electricity Sales

                    • Comparable operating profit decreased
                    • Price peaks in Q1 and Q4
                    • Restructuring of the business market segment continued

                    • Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit turned positive
                      • Wholesale power market liberalised as of January 2011
                      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
                      • Accelerated investment programme

                      • Sheet1

                        Sheet2

                        Sheet3

                        Income statement

                        Sheet1

                        ampA

                        Page ampP

                        Cash flow statement

                        Sheet1

                        ampA

                        Page ampP

                        Key ratios

                        Sheet1

                        Sheet2

                        Sheet3

                        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

                        • Strategy updated to support business actions
                        • Sustainable solutions at the core of the strategy
                        • Solid performance continued
                        • Russia
                        • Power reform proceeding fully liberalised from January 2011
                        • Demand improved
                        • Fortumrsquos investment programme accelerated
                        • Nordic countries
                        • Demand recovered
                        • Water reservoirs historically low
                        • Strong financial position and liquidity

                        • Key strategic actions going forward

                          Focus on performance

                          • Organisational efficiency
                          • Nuclear availability
                          • Value creation from Russian investments

                          • Prepare for growth

                            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
                            • Investigating high growth Asian markets

                            • Create strategic partnerships for new innovative solutions market entries and RampD

                              • Partnerships in nuclear and bio energy
                              • Electricity Sales and Distribution services solutions and partnerships

                              • Continuous development of competences

                                Readiness for change

                                • Leadership and organisational culture enabling readiness for change

                                • Outlook

                                  • Key drivers and risks
                                  • Wholesale price of electricity
                                  • Fuel CO2 emissions prices and water reservoirs
                                  • • Nordic Markets
                                    • Market continues to recover ndash 2008 level reached by 2012-2014
                                    • Electricity continues to gain share of total energy consumption
                                    • Russia
                                    • Wholesale market fully liberalised
                                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                                    • Profits from Russia builds up in pace with the capacity increase

                                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                                      Outlook

                                      • Capex (excluding potential acquisitions)
                                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                                      • 2013-2014 around EUR 11 to 14 billion
                                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                                      • • Hedging
                                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                                        • 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

                                          UNKNOWN-0unknown

                        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

New English

New Finnish

English

Finnish

Swedish

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

• Comparable operating profit decreased
• Higher costs in Swedish associated nuclear companies
• Production mix increased thermal power production during peak hours
• Nordic achieved power price at same level as in 2009
• Lower hedge prices
• Higher prices in thermal during peak hours

• Sheet1

  Sheet2

  Sheet3

  Heat

  • Comparable operating profit increased due to higher volumes and power prices
  • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

  • ) CHP Combined Heat and Power

    Sheet1

    Sheet2

    Sheet3

    Distribution

    • Comparable operating profit increased due to higher sales and strong SEK
    • Smart metering pilot rollout to network customers in Finland started in Q42010

    • Sheet1

      Sheet2

      Sheet3

      Electricity Sales

      • Comparable operating profit decreased
      • Price peaks in Q1 and Q4
      • Restructuring of the business market segment continued

      • Sheet1

        Sheet2

        Sheet3

        Russia

        • Comparable operating profit turned positive
        • Wholesale power market liberalised as of January 2011
        • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
        • Accelerated investment programme

        • Sheet1

          Sheet2

          Sheet3

          Income statement

          Sheet1

          ampA

          Page ampP

          Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Sheet1

          Sheet2

          Sheet3

          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

          • Strategy updated to support business actions
          • Sustainable solutions at the core of the strategy
          • Solid performance continued
          • Russia
          • Power reform proceeding fully liberalised from January 2011
          • Demand improved
          • Fortumrsquos investment programme accelerated
          • Nordic countries
          • Demand recovered
          • Water reservoirs historically low
          • Strong financial position and liquidity

          • Key strategic actions going forward

            Focus on performance

            • Organisational efficiency
            • Nuclear availability
            • Value creation from Russian investments

            • Prepare for growth

              • Prioritized value enhancing acquisitions while maintaining strong balance sheet
              • Investigating high growth Asian markets

              • Create strategic partnerships for new innovative solutions market entries and RampD

                • Partnerships in nuclear and bio energy
                • Electricity Sales and Distribution services solutions and partnerships

                • Continuous development of competences

                  Readiness for change

                  • Leadership and organisational culture enabling readiness for change

                  • Outlook

                    • Key drivers and risks
                    • Wholesale price of electricity
                    • Fuel CO2 emissions prices and water reservoirs
                    • • Nordic Markets
                      • Market continues to recover ndash 2008 level reached by 2012-2014
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Wholesale market fully liberalised
                      • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                      • Profits from Russia builds up in pace with the capacity increase

                      • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                        Outlook

                        • Capex (excluding potential acquisitions)
                        • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                        • 2013-2014 around EUR 11 to 14 billion
                        • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                        • • Hedging
                          • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                          • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                          • 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

                            UNKNOWN-0unknown

          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

New Finnish

English

Finnish

Swedish

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

• Comparable operating profit decreased
• Higher costs in Swedish associated nuclear companies
• Production mix increased thermal power production during peak hours
• Nordic achieved power price at same level as in 2009
• Lower hedge prices
• Higher prices in thermal during peak hours

• Sheet1

  Sheet2

  Sheet3

  Heat

  • Comparable operating profit increased due to higher volumes and power prices
  • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

  • ) CHP Combined Heat and Power

    Sheet1

    Sheet2

    Sheet3

    Distribution

    • Comparable operating profit increased due to higher sales and strong SEK
    • Smart metering pilot rollout to network customers in Finland started in Q42010

    • Sheet1

      Sheet2

      Sheet3

      Electricity Sales

      • Comparable operating profit decreased
      • Price peaks in Q1 and Q4
      • Restructuring of the business market segment continued

      • Sheet1

        Sheet2

        Sheet3

        Russia

        • Comparable operating profit turned positive
        • Wholesale power market liberalised as of January 2011
        • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
        • Accelerated investment programme

        • Sheet1

          Sheet2

          Sheet3

          Income statement

          Sheet1

          ampA

          Page ampP

          Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Sheet1

          Sheet2

          Sheet3

          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

          • Strategy updated to support business actions
          • Sustainable solutions at the core of the strategy
          • Solid performance continued
          • Russia
          • Power reform proceeding fully liberalised from January 2011
          • Demand improved
          • Fortumrsquos investment programme accelerated
          • Nordic countries
          • Demand recovered
          • Water reservoirs historically low
          • Strong financial position and liquidity

          • Key strategic actions going forward

            Focus on performance

            • Organisational efficiency
            • Nuclear availability
            • Value creation from Russian investments

            • Prepare for growth

              • Prioritized value enhancing acquisitions while maintaining strong balance sheet
              • Investigating high growth Asian markets

              • Create strategic partnerships for new innovative solutions market entries and RampD

                • Partnerships in nuclear and bio energy
                • Electricity Sales and Distribution services solutions and partnerships

                • Continuous development of competences

                  Readiness for change

                  • Leadership and organisational culture enabling readiness for change

                  • Outlook

                    • Key drivers and risks
                    • Wholesale price of electricity
                    • Fuel CO2 emissions prices and water reservoirs
                    • • Nordic Markets
                      • Market continues to recover ndash 2008 level reached by 2012-2014
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Wholesale market fully liberalised
                      • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                      • Profits from Russia builds up in pace with the capacity increase

                      • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                        Outlook

                        • Capex (excluding potential acquisitions)
                        • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                        • 2013-2014 around EUR 11 to 14 billion
                        • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                        • • Hedging
                          • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                          • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                          • 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

                            UNKNOWN-0unknown

          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

English

Finnish

Swedish

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

• Comparable operating profit decreased
• Higher costs in Swedish associated nuclear companies
• Production mix increased thermal power production during peak hours
• Nordic achieved power price at same level as in 2009
• Lower hedge prices
• Higher prices in thermal during peak hours

• Sheet1

  Sheet2

  Sheet3

  Heat

  • Comparable operating profit increased due to higher volumes and power prices
  • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

  • ) CHP Combined Heat and Power

    Sheet1

    Sheet2

    Sheet3

    Distribution

    • Comparable operating profit increased due to higher sales and strong SEK
    • Smart metering pilot rollout to network customers in Finland started in Q42010

    • Sheet1

      Sheet2

      Sheet3

      Electricity Sales

      • Comparable operating profit decreased
      • Price peaks in Q1 and Q4
      • Restructuring of the business market segment continued

      • Sheet1

        Sheet2

        Sheet3

        Russia

        • Comparable operating profit turned positive
        • Wholesale power market liberalised as of January 2011
        • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
        • Accelerated investment programme

        • Sheet1

          Sheet2

          Sheet3

          Income statement

          Sheet1

          ampA

          Page ampP

          Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Sheet1

          Sheet2

          Sheet3

          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

          • Strategy updated to support business actions
          • Sustainable solutions at the core of the strategy
          • Solid performance continued
          • Russia
          • Power reform proceeding fully liberalised from January 2011
          • Demand improved
          • Fortumrsquos investment programme accelerated
          • Nordic countries
          • Demand recovered
          • Water reservoirs historically low
          • Strong financial position and liquidity

          • Key strategic actions going forward

            Focus on performance

            • Organisational efficiency
            • Nuclear availability
            • Value creation from Russian investments

            • Prepare for growth

              • Prioritized value enhancing acquisitions while maintaining strong balance sheet
              • Investigating high growth Asian markets

              • Create strategic partnerships for new innovative solutions market entries and RampD

                • Partnerships in nuclear and bio energy
                • Electricity Sales and Distribution services solutions and partnerships

                • Continuous development of competences

                  Readiness for change

                  • Leadership and organisational culture enabling readiness for change

                  • Outlook

                    • Key drivers and risks
                    • Wholesale price of electricity
                    • Fuel CO2 emissions prices and water reservoirs
                    • • Nordic Markets
                      • Market continues to recover ndash 2008 level reached by 2012-2014
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Wholesale market fully liberalised
                      • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                      • Profits from Russia builds up in pace with the capacity increase

                      • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                        Outlook

                        • Capex (excluding potential acquisitions)
                        • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                        • 2013-2014 around EUR 11 to 14 billion
                        • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                        • • Hedging
                          • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                          • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                          • 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

                            UNKNOWN-0unknown

          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

Finnish

Swedish

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

• Comparable operating profit decreased
• Higher costs in Swedish associated nuclear companies
• Production mix increased thermal power production during peak hours
• Nordic achieved power price at same level as in 2009
• Lower hedge prices
• Higher prices in thermal during peak hours

• Sheet1

  Sheet2

  Sheet3

  Heat

  • Comparable operating profit increased due to higher volumes and power prices
  • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

  • ) CHP Combined Heat and Power

    Sheet1

    Sheet2

    Sheet3

    Distribution

    • Comparable operating profit increased due to higher sales and strong SEK
    • Smart metering pilot rollout to network customers in Finland started in Q42010

    • Sheet1

      Sheet2

      Sheet3

      Electricity Sales

      • Comparable operating profit decreased
      • Price peaks in Q1 and Q4
      • Restructuring of the business market segment continued

      • Sheet1

        Sheet2

        Sheet3

        Russia

        • Comparable operating profit turned positive
        • Wholesale power market liberalised as of January 2011
        • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
        • Accelerated investment programme

        • Sheet1

          Sheet2

          Sheet3

          Income statement

          Sheet1

          ampA

          Page ampP

          Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Sheet1

          Sheet2

          Sheet3

          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

          • Strategy updated to support business actions
          • Sustainable solutions at the core of the strategy
          • Solid performance continued
          • Russia
          • Power reform proceeding fully liberalised from January 2011
          • Demand improved
          • Fortumrsquos investment programme accelerated
          • Nordic countries
          • Demand recovered
          • Water reservoirs historically low
          • Strong financial position and liquidity

          • Key strategic actions going forward

            Focus on performance

            • Organisational efficiency
            • Nuclear availability
            • Value creation from Russian investments

            • Prepare for growth

              • Prioritized value enhancing acquisitions while maintaining strong balance sheet
              • Investigating high growth Asian markets

              • Create strategic partnerships for new innovative solutions market entries and RampD

                • Partnerships in nuclear and bio energy
                • Electricity Sales and Distribution services solutions and partnerships

                • Continuous development of competences

                  Readiness for change

                  • Leadership and organisational culture enabling readiness for change

                  • Outlook

                    • Key drivers and risks
                    • Wholesale price of electricity
                    • Fuel CO2 emissions prices and water reservoirs
                    • • Nordic Markets
                      • Market continues to recover ndash 2008 level reached by 2012-2014
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Wholesale market fully liberalised
                      • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                      • Profits from Russia builds up in pace with the capacity increase

                      • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                        Outlook

                        • Capex (excluding potential acquisitions)
                        • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                        • 2013-2014 around EUR 11 to 14 billion
                        • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                        • • Hedging
                          • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                          • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                          • 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

                            UNKNOWN-0unknown

          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

Swedish

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

• Comparable operating profit decreased
• Higher costs in Swedish associated nuclear companies
• Production mix increased thermal power production during peak hours
• Nordic achieved power price at same level as in 2009
• Lower hedge prices
• Higher prices in thermal during peak hours

• Sheet1

  Sheet2

  Sheet3

  Heat

  • Comparable operating profit increased due to higher volumes and power prices
  • CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

  • ) CHP Combined Heat and Power

    Sheet1

    Sheet2

    Sheet3

    Distribution

    • Comparable operating profit increased due to higher sales and strong SEK
    • Smart metering pilot rollout to network customers in Finland started in Q42010

    • Sheet1

      Sheet2

      Sheet3

      Electricity Sales

      • Comparable operating profit decreased
      • Price peaks in Q1 and Q4
      • Restructuring of the business market segment continued

      • Sheet1

        Sheet2

        Sheet3

        Russia

        • Comparable operating profit turned positive
        • Wholesale power market liberalised as of January 2011
        • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
        • Accelerated investment programme

        • Sheet1

          Sheet2

          Sheet3

          Income statement

          Sheet1

          ampA

          Page ampP

          Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Sheet1

          Sheet2

          Sheet3

          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

          • Strategy updated to support business actions
          • Sustainable solutions at the core of the strategy
          • Solid performance continued
          • Russia
          • Power reform proceeding fully liberalised from January 2011
          • Demand improved
          • Fortumrsquos investment programme accelerated
          • Nordic countries
          • Demand recovered
          • Water reservoirs historically low
          • Strong financial position and liquidity

          • Key strategic actions going forward

            Focus on performance

            • Organisational efficiency
            • Nuclear availability
            • Value creation from Russian investments

            • Prepare for growth

              • Prioritized value enhancing acquisitions while maintaining strong balance sheet
              • Investigating high growth Asian markets

              • Create strategic partnerships for new innovative solutions market entries and RampD

                • Partnerships in nuclear and bio energy
                • Electricity Sales and Distribution services solutions and partnerships

                • Continuous development of competences

                  Readiness for change

                  • Leadership and organisational culture enabling readiness for change

                  • Outlook

                    • Key drivers and risks
                    • Wholesale price of electricity
                    • Fuel CO2 emissions prices and water reservoirs
                    • • Nordic Markets
                      • Market continues to recover ndash 2008 level reached by 2012-2014
                      • Electricity continues to gain share of total energy consumption
                      • Russia
                      • Wholesale market fully liberalised
                      • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                      • Profits from Russia builds up in pace with the capacity increase

                      • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                        Outlook

                        • Capex (excluding potential acquisitions)
                        • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                        • 2013-2014 around EUR 11 to 14 billion
                        • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                        • • Hedging
                          • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                          • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                          • 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

                            UNKNOWN-0unknown

          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

Sheet1

Sheet2

Sheet3

Heat

• Comparable operating profit increased due to higher volumes and power prices
• CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

• ) CHP Combined Heat and Power

  Sheet1

  Sheet2

  Sheet3

  Distribution

  • Comparable operating profit increased due to higher sales and strong SEK
  • Smart metering pilot rollout to network customers in Finland started in Q42010

  • Sheet1

    Sheet2

    Sheet3

    Electricity Sales

    • Comparable operating profit decreased
    • Price peaks in Q1 and Q4
    • Restructuring of the business market segment continued

    • Sheet1

      Sheet2

      Sheet3

      Russia

      • Comparable operating profit turned positive
      • Wholesale power market liberalised as of January 2011
      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
      • Accelerated investment programme

      • Sheet1

        Sheet2

        Sheet3

        Income statement

        Sheet1

        ampA

        Page ampP

        Cash flow statement

        Sheet1

        ampA

        Page ampP

        Key ratios

        Sheet1

        Sheet2

        Sheet3

        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

        • Strategy updated to support business actions
        • Sustainable solutions at the core of the strategy
        • Solid performance continued
        • Russia
        • Power reform proceeding fully liberalised from January 2011
        • Demand improved
        • Fortumrsquos investment programme accelerated
        • Nordic countries
        • Demand recovered
        • Water reservoirs historically low
        • Strong financial position and liquidity

        • Key strategic actions going forward

          Focus on performance

          • Organisational efficiency
          • Nuclear availability
          • Value creation from Russian investments

          • Prepare for growth

            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
            • Investigating high growth Asian markets

            • Create strategic partnerships for new innovative solutions market entries and RampD

              • Partnerships in nuclear and bio energy
              • Electricity Sales and Distribution services solutions and partnerships

              • Continuous development of competences

                Readiness for change

                • Leadership and organisational culture enabling readiness for change

                • Outlook

                  • Key drivers and risks
                  • Wholesale price of electricity
                  • Fuel CO2 emissions prices and water reservoirs
                  • • Nordic Markets
                    • Market continues to recover ndash 2008 level reached by 2012-2014
                    • Electricity continues to gain share of total energy consumption
                    • Russia
                    • Wholesale market fully liberalised
                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                    • Profits from Russia builds up in pace with the capacity increase

                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                      Outlook

                      • Capex (excluding potential acquisitions)
                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                      • 2013-2014 around EUR 11 to 14 billion
                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                      • • Hedging
                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                        • 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

                          UNKNOWN-0unknown

        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

Sheet2

Sheet3

Heat

• Comparable operating profit increased due to higher volumes and power prices
• CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

• ) CHP Combined Heat and Power

  Sheet1

  Sheet2

  Sheet3

  Distribution

  • Comparable operating profit increased due to higher sales and strong SEK
  • Smart metering pilot rollout to network customers in Finland started in Q42010

  • Sheet1

    Sheet2

    Sheet3

    Electricity Sales

    • Comparable operating profit decreased
    • Price peaks in Q1 and Q4
    • Restructuring of the business market segment continued

    • Sheet1

      Sheet2

      Sheet3

      Russia

      • Comparable operating profit turned positive
      • Wholesale power market liberalised as of January 2011
      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
      • Accelerated investment programme

      • Sheet1

        Sheet2

        Sheet3

        Income statement

        Sheet1

        ampA

        Page ampP

        Cash flow statement

        Sheet1

        ampA

        Page ampP

        Key ratios

        Sheet1

        Sheet2

        Sheet3

        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

        • Strategy updated to support business actions
        • Sustainable solutions at the core of the strategy
        • Solid performance continued
        • Russia
        • Power reform proceeding fully liberalised from January 2011
        • Demand improved
        • Fortumrsquos investment programme accelerated
        • Nordic countries
        • Demand recovered
        • Water reservoirs historically low
        • Strong financial position and liquidity

        • Key strategic actions going forward

          Focus on performance

          • Organisational efficiency
          • Nuclear availability
          • Value creation from Russian investments

          • Prepare for growth

            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
            • Investigating high growth Asian markets

            • Create strategic partnerships for new innovative solutions market entries and RampD

              • Partnerships in nuclear and bio energy
              • Electricity Sales and Distribution services solutions and partnerships

              • Continuous development of competences

                Readiness for change

                • Leadership and organisational culture enabling readiness for change

                • Outlook

                  • Key drivers and risks
                  • Wholesale price of electricity
                  • Fuel CO2 emissions prices and water reservoirs
                  • • Nordic Markets
                    • Market continues to recover ndash 2008 level reached by 2012-2014
                    • Electricity continues to gain share of total energy consumption
                    • Russia
                    • Wholesale market fully liberalised
                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                    • Profits from Russia builds up in pace with the capacity increase

                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                      Outlook

                      • Capex (excluding potential acquisitions)
                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                      • 2013-2014 around EUR 11 to 14 billion
                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                      • • Hedging
                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                        • 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

                          UNKNOWN-0unknown

        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

Sheet3

Heat

• Comparable operating profit increased due to higher volumes and power prices
• CHP ) plants in Częstochowa Poland and Paumlrnu Estonia inaugurated commercial operation began during Q42010

• ) CHP Combined Heat and Power

  Sheet1

  Sheet2

  Sheet3

  Distribution

  • Comparable operating profit increased due to higher sales and strong SEK
  • Smart metering pilot rollout to network customers in Finland started in Q42010

  • Sheet1

    Sheet2

    Sheet3

    Electricity Sales

    • Comparable operating profit decreased
    • Price peaks in Q1 and Q4
    • Restructuring of the business market segment continued

    • Sheet1

      Sheet2

      Sheet3

      Russia

      • Comparable operating profit turned positive
      • Wholesale power market liberalised as of January 2011
      • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
      • Accelerated investment programme

      • Sheet1

        Sheet2

        Sheet3

        Income statement

        Sheet1

        ampA

        Page ampP

        Cash flow statement

        Sheet1

        ampA

        Page ampP

        Key ratios

        Sheet1

        Sheet2

        Sheet3

        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

        • Strategy updated to support business actions
        • Sustainable solutions at the core of the strategy
        • Solid performance continued
        • Russia
        • Power reform proceeding fully liberalised from January 2011
        • Demand improved
        • Fortumrsquos investment programme accelerated
        • Nordic countries
        • Demand recovered
        • Water reservoirs historically low
        • Strong financial position and liquidity

        • Key strategic actions going forward

          Focus on performance

          • Organisational efficiency
          • Nuclear availability
          • Value creation from Russian investments

          • Prepare for growth

            • Prioritized value enhancing acquisitions while maintaining strong balance sheet
            • Investigating high growth Asian markets

            • Create strategic partnerships for new innovative solutions market entries and RampD

              • Partnerships in nuclear and bio energy
              • Electricity Sales and Distribution services solutions and partnerships

              • Continuous development of competences

                Readiness for change

                • Leadership and organisational culture enabling readiness for change

                • Outlook

                  • Key drivers and risks
                  • Wholesale price of electricity
                  • Fuel CO2 emissions prices and water reservoirs
                  • • Nordic Markets
                    • Market continues to recover ndash 2008 level reached by 2012-2014
                    • Electricity continues to gain share of total energy consumption
                    • Russia
                    • Wholesale market fully liberalised
                    • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                    • Profits from Russia builds up in pace with the capacity increase

                    • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                      Outlook

                      • Capex (excluding potential acquisitions)
                      • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                      • 2013-2014 around EUR 11 to 14 billion
                      • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                      • • Hedging
                        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                        • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                        • 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

                          UNKNOWN-0unknown

        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

Sheet1

Sheet2

Sheet3

Distribution

• Comparable operating profit increased due to higher sales and strong SEK
• Smart metering pilot rollout to network customers in Finland started in Q42010

• Sheet1

  Sheet2

  Sheet3

  Electricity Sales

  • Comparable operating profit decreased
  • Price peaks in Q1 and Q4
  • Restructuring of the business market segment continued

  • Sheet1

    Sheet2

    Sheet3

    Russia

    • Comparable operating profit turned positive
    • Wholesale power market liberalised as of January 2011
    • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
    • Accelerated investment programme

    • Sheet1

      Sheet2

      Sheet3

      Income statement

      Sheet1

      ampA

      Page ampP

      Cash flow statement

      Sheet1

      ampA

      Page ampP

      Key ratios

      Sheet1

      Sheet2

      Sheet3

      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

      • Strategy updated to support business actions
      • Sustainable solutions at the core of the strategy
      • Solid performance continued
      • Russia
      • Power reform proceeding fully liberalised from January 2011
      • Demand improved
      • Fortumrsquos investment programme accelerated
      • Nordic countries
      • Demand recovered
      • Water reservoirs historically low
      • Strong financial position and liquidity

      • Key strategic actions going forward

        Focus on performance

        • Organisational efficiency
        • Nuclear availability
        • Value creation from Russian investments

        • Prepare for growth

          • Prioritized value enhancing acquisitions while maintaining strong balance sheet
          • Investigating high growth Asian markets

          • Create strategic partnerships for new innovative solutions market entries and RampD

            • Partnerships in nuclear and bio energy
            • Electricity Sales and Distribution services solutions and partnerships

            • Continuous development of competences

              Readiness for change

              • Leadership and organisational culture enabling readiness for change

              • Outlook

                • Key drivers and risks
                • Wholesale price of electricity
                • Fuel CO2 emissions prices and water reservoirs
                • • Nordic Markets
                  • Market continues to recover ndash 2008 level reached by 2012-2014
                  • Electricity continues to gain share of total energy consumption
                  • Russia
                  • Wholesale market fully liberalised
                  • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                  • Profits from Russia builds up in pace with the capacity increase

                  • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                    Outlook

                    • Capex (excluding potential acquisitions)
                    • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                    • 2013-2014 around EUR 11 to 14 billion
                    • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                    • • Hedging
                      • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                      • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                      • 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

                        UNKNOWN-0unknown

      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

Sheet2

Sheet3

Distribution

• Comparable operating profit increased due to higher sales and strong SEK
• Smart metering pilot rollout to network customers in Finland started in Q42010

• Sheet1

  Sheet2

  Sheet3

  Electricity Sales

  • Comparable operating profit decreased
  • Price peaks in Q1 and Q4
  • Restructuring of the business market segment continued

  • Sheet1

    Sheet2

    Sheet3

    Russia

    • Comparable operating profit turned positive
    • Wholesale power market liberalised as of January 2011
    • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
    • Accelerated investment programme

    • Sheet1

      Sheet2

      Sheet3

      Income statement

      Sheet1

      ampA

      Page ampP

      Cash flow statement

      Sheet1

      ampA

      Page ampP

      Key ratios

      Sheet1

      Sheet2

      Sheet3

      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

      • Strategy updated to support business actions
      • Sustainable solutions at the core of the strategy
      • Solid performance continued
      • Russia
      • Power reform proceeding fully liberalised from January 2011
      • Demand improved
      • Fortumrsquos investment programme accelerated
      • Nordic countries
      • Demand recovered
      • Water reservoirs historically low
      • Strong financial position and liquidity

      • Key strategic actions going forward

        Focus on performance

        • Organisational efficiency
        • Nuclear availability
        • Value creation from Russian investments

        • Prepare for growth

          • Prioritized value enhancing acquisitions while maintaining strong balance sheet
          • Investigating high growth Asian markets

          • Create strategic partnerships for new innovative solutions market entries and RampD

            • Partnerships in nuclear and bio energy
            • Electricity Sales and Distribution services solutions and partnerships

            • Continuous development of competences

              Readiness for change

              • Leadership and organisational culture enabling readiness for change

              • Outlook

                • Key drivers and risks
                • Wholesale price of electricity
                • Fuel CO2 emissions prices and water reservoirs
                • • Nordic Markets
                  • Market continues to recover ndash 2008 level reached by 2012-2014
                  • Electricity continues to gain share of total energy consumption
                  • Russia
                  • Wholesale market fully liberalised
                  • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                  • Profits from Russia builds up in pace with the capacity increase

                  • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                    Outlook

                    • Capex (excluding potential acquisitions)
                    • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                    • 2013-2014 around EUR 11 to 14 billion
                    • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                    • • Hedging
                      • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                      • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                      • 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

                        UNKNOWN-0unknown

      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

Sheet3

Distribution

• Comparable operating profit increased due to higher sales and strong SEK
• Smart metering pilot rollout to network customers in Finland started in Q42010

• Sheet1

  Sheet2

  Sheet3

  Electricity Sales

  • Comparable operating profit decreased
  • Price peaks in Q1 and Q4
  • Restructuring of the business market segment continued

  • Sheet1

    Sheet2

    Sheet3

    Russia

    • Comparable operating profit turned positive
    • Wholesale power market liberalised as of January 2011
    • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
    • Accelerated investment programme

    • Sheet1

      Sheet2

      Sheet3

      Income statement

      Sheet1

      ampA

      Page ampP

      Cash flow statement

      Sheet1

      ampA

      Page ampP

      Key ratios

      Sheet1

      Sheet2

      Sheet3

      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

      • Strategy updated to support business actions
      • Sustainable solutions at the core of the strategy
      • Solid performance continued
      • Russia
      • Power reform proceeding fully liberalised from January 2011
      • Demand improved
      • Fortumrsquos investment programme accelerated
      • Nordic countries
      • Demand recovered
      • Water reservoirs historically low
      • Strong financial position and liquidity

      • Key strategic actions going forward

        Focus on performance

        • Organisational efficiency
        • Nuclear availability
        • Value creation from Russian investments

        • Prepare for growth

          • Prioritized value enhancing acquisitions while maintaining strong balance sheet
          • Investigating high growth Asian markets

          • Create strategic partnerships for new innovative solutions market entries and RampD

            • Partnerships in nuclear and bio energy
            • Electricity Sales and Distribution services solutions and partnerships

            • Continuous development of competences

              Readiness for change

              • Leadership and organisational culture enabling readiness for change

              • Outlook

                • Key drivers and risks
                • Wholesale price of electricity
                • Fuel CO2 emissions prices and water reservoirs
                • • Nordic Markets
                  • Market continues to recover ndash 2008 level reached by 2012-2014
                  • Electricity continues to gain share of total energy consumption
                  • Russia
                  • Wholesale market fully liberalised
                  • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                  • Profits from Russia builds up in pace with the capacity increase

                  • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                    Outlook

                    • Capex (excluding potential acquisitions)
                    • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                    • 2013-2014 around EUR 11 to 14 billion
                    • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                    • • Hedging
                      • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                      • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                      • 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

                        UNKNOWN-0unknown

      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

Sheet1

Sheet2

Sheet3

Electricity Sales

• Comparable operating profit decreased
• Price peaks in Q1 and Q4
• Restructuring of the business market segment continued

• Sheet1

  Sheet2

  Sheet3

  Russia

  • Comparable operating profit turned positive
  • Wholesale power market liberalised as of January 2011
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Accelerated investment programme

  • Sheet1

    Sheet2

    Sheet3

    Income statement

    Sheet1

    ampA

    Page ampP

    Cash flow statement

    Sheet1

    ampA

    Page ampP

    Key ratios

    Sheet1

    Sheet2

    Sheet3

    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

    • Strategy updated to support business actions
    • Sustainable solutions at the core of the strategy
    • Solid performance continued
    • Russia
    • Power reform proceeding fully liberalised from January 2011
    • Demand improved
    • Fortumrsquos investment programme accelerated
    • Nordic countries
    • Demand recovered
    • Water reservoirs historically low
    • Strong financial position and liquidity

    • Key strategic actions going forward

      Focus on performance

      • Organisational efficiency
      • Nuclear availability
      • Value creation from Russian investments

      • Prepare for growth

        • Prioritized value enhancing acquisitions while maintaining strong balance sheet
        • Investigating high growth Asian markets

        • Create strategic partnerships for new innovative solutions market entries and RampD

          • Partnerships in nuclear and bio energy
          • Electricity Sales and Distribution services solutions and partnerships

          • Continuous development of competences

            Readiness for change

            • Leadership and organisational culture enabling readiness for change

            • Outlook

              • Key drivers and risks
              • Wholesale price of electricity
              • Fuel CO2 emissions prices and water reservoirs
              • • Nordic Markets
                • Market continues to recover ndash 2008 level reached by 2012-2014
                • Electricity continues to gain share of total energy consumption
                • Russia
                • Wholesale market fully liberalised
                • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                • Profits from Russia builds up in pace with the capacity increase

                • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                  Outlook

                  • Capex (excluding potential acquisitions)
                  • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                  • 2013-2014 around EUR 11 to 14 billion
                  • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                  • • Hedging
                    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                    • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                    • 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

                      UNKNOWN-0unknown

    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

Sheet2

Sheet3

Electricity Sales

• Comparable operating profit decreased
• Price peaks in Q1 and Q4
• Restructuring of the business market segment continued

• Sheet1

  Sheet2

  Sheet3

  Russia

  • Comparable operating profit turned positive
  • Wholesale power market liberalised as of January 2011
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Accelerated investment programme

  • Sheet1

    Sheet2

    Sheet3

    Income statement

    Sheet1

    ampA

    Page ampP

    Cash flow statement

    Sheet1

    ampA

    Page ampP

    Key ratios

    Sheet1

    Sheet2

    Sheet3

    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

    • Strategy updated to support business actions
    • Sustainable solutions at the core of the strategy
    • Solid performance continued
    • Russia
    • Power reform proceeding fully liberalised from January 2011
    • Demand improved
    • Fortumrsquos investment programme accelerated
    • Nordic countries
    • Demand recovered
    • Water reservoirs historically low
    • Strong financial position and liquidity

    • Key strategic actions going forward

      Focus on performance

      • Organisational efficiency
      • Nuclear availability
      • Value creation from Russian investments

      • Prepare for growth

        • Prioritized value enhancing acquisitions while maintaining strong balance sheet
        • Investigating high growth Asian markets

        • Create strategic partnerships for new innovative solutions market entries and RampD

          • Partnerships in nuclear and bio energy
          • Electricity Sales and Distribution services solutions and partnerships

          • Continuous development of competences

            Readiness for change

            • Leadership and organisational culture enabling readiness for change

            • Outlook

              • Key drivers and risks
              • Wholesale price of electricity
              • Fuel CO2 emissions prices and water reservoirs
              • • Nordic Markets
                • Market continues to recover ndash 2008 level reached by 2012-2014
                • Electricity continues to gain share of total energy consumption
                • Russia
                • Wholesale market fully liberalised
                • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                • Profits from Russia builds up in pace with the capacity increase

                • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                  Outlook

                  • Capex (excluding potential acquisitions)
                  • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                  • 2013-2014 around EUR 11 to 14 billion
                  • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                  • • Hedging
                    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                    • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                    • 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

                      UNKNOWN-0unknown

    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

Sheet3

Electricity Sales

• Comparable operating profit decreased
• Price peaks in Q1 and Q4
• Restructuring of the business market segment continued

• Sheet1

  Sheet2

  Sheet3

  Russia

  • Comparable operating profit turned positive
  • Wholesale power market liberalised as of January 2011
  • Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
  • Accelerated investment programme

  • Sheet1

    Sheet2

    Sheet3

    Income statement

    Sheet1

    ampA

    Page ampP

    Cash flow statement

    Sheet1

    ampA

    Page ampP

    Key ratios

    Sheet1

    Sheet2

    Sheet3

    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

    • Strategy updated to support business actions
    • Sustainable solutions at the core of the strategy
    • Solid performance continued
    • Russia
    • Power reform proceeding fully liberalised from January 2011
    • Demand improved
    • Fortumrsquos investment programme accelerated
    • Nordic countries
    • Demand recovered
    • Water reservoirs historically low
    • Strong financial position and liquidity

    • Key strategic actions going forward

      Focus on performance

      • Organisational efficiency
      • Nuclear availability
      • Value creation from Russian investments

      • Prepare for growth

        • Prioritized value enhancing acquisitions while maintaining strong balance sheet
        • Investigating high growth Asian markets

        • Create strategic partnerships for new innovative solutions market entries and RampD

          • Partnerships in nuclear and bio energy
          • Electricity Sales and Distribution services solutions and partnerships

          • Continuous development of competences

            Readiness for change

            • Leadership and organisational culture enabling readiness for change

            • Outlook

              • Key drivers and risks
              • Wholesale price of electricity
              • Fuel CO2 emissions prices and water reservoirs
              • • Nordic Markets
                • Market continues to recover ndash 2008 level reached by 2012-2014
                • Electricity continues to gain share of total energy consumption
                • Russia
                • Wholesale market fully liberalised
                • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
                • Profits from Russia builds up in pace with the capacity increase

                • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                  Outlook

                  • Capex (excluding potential acquisitions)
                  • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                  • 2013-2014 around EUR 11 to 14 billion
                  • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                  • • Hedging
                    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                    • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                    • 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

                      UNKNOWN-0unknown

    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

Sheet1

Sheet2

Sheet3

Russia

• Comparable operating profit turned positive
• Wholesale power market liberalised as of January 2011
• Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
• Accelerated investment programme

• Sheet1

  Sheet2

  Sheet3

  Income statement

  Sheet1

  ampA

  Page ampP

  Cash flow statement

  Sheet1

  ampA

  Page ampP

  Key ratios

  Sheet1

  Sheet2

  Sheet3

  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

  • Strategy updated to support business actions
  • Sustainable solutions at the core of the strategy
  • Solid performance continued
  • Russia
  • Power reform proceeding fully liberalised from January 2011
  • Demand improved
  • Fortumrsquos investment programme accelerated
  • Nordic countries
  • Demand recovered
  • Water reservoirs historically low
  • Strong financial position and liquidity

  • Key strategic actions going forward

    Focus on performance

    • Organisational efficiency
    • Nuclear availability
    • Value creation from Russian investments

    • Prepare for growth

      • Prioritized value enhancing acquisitions while maintaining strong balance sheet
      • Investigating high growth Asian markets

      • Create strategic partnerships for new innovative solutions market entries and RampD

        • Partnerships in nuclear and bio energy
        • Electricity Sales and Distribution services solutions and partnerships

        • Continuous development of competences

          Readiness for change

          • Leadership and organisational culture enabling readiness for change

          • Outlook

            • Key drivers and risks
            • Wholesale price of electricity
            • Fuel CO2 emissions prices and water reservoirs
            • • Nordic Markets
              • Market continues to recover ndash 2008 level reached by 2012-2014
              • Electricity continues to gain share of total energy consumption
              • Russia
              • Wholesale market fully liberalised
              • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
              • Profits from Russia builds up in pace with the capacity increase

              • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                Outlook

                • Capex (excluding potential acquisitions)
                • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                • 2013-2014 around EUR 11 to 14 billion
                • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                • • Hedging
                  • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                  • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                  • 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

                    UNKNOWN-0unknown

  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

Sheet2

Sheet3

Russia

• Comparable operating profit turned positive
• Wholesale power market liberalised as of January 2011
• Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
• Accelerated investment programme

• Sheet1

  Sheet2

  Sheet3

  Income statement

  Sheet1

  ampA

  Page ampP

  Cash flow statement

  Sheet1

  ampA

  Page ampP

  Key ratios

  Sheet1

  Sheet2

  Sheet3

  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

  • Strategy updated to support business actions
  • Sustainable solutions at the core of the strategy
  • Solid performance continued
  • Russia
  • Power reform proceeding fully liberalised from January 2011
  • Demand improved
  • Fortumrsquos investment programme accelerated
  • Nordic countries
  • Demand recovered
  • Water reservoirs historically low
  • Strong financial position and liquidity

  • Key strategic actions going forward

    Focus on performance

    • Organisational efficiency
    • Nuclear availability
    • Value creation from Russian investments

    • Prepare for growth

      • Prioritized value enhancing acquisitions while maintaining strong balance sheet
      • Investigating high growth Asian markets

      • Create strategic partnerships for new innovative solutions market entries and RampD

        • Partnerships in nuclear and bio energy
        • Electricity Sales and Distribution services solutions and partnerships

        • Continuous development of competences

          Readiness for change

          • Leadership and organisational culture enabling readiness for change

          • Outlook

            • Key drivers and risks
            • Wholesale price of electricity
            • Fuel CO2 emissions prices and water reservoirs
            • • Nordic Markets
              • Market continues to recover ndash 2008 level reached by 2012-2014
              • Electricity continues to gain share of total energy consumption
              • Russia
              • Wholesale market fully liberalised
              • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
              • Profits from Russia builds up in pace with the capacity increase

              • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                Outlook

                • Capex (excluding potential acquisitions)
                • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                • 2013-2014 around EUR 11 to 14 billion
                • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                • • Hedging
                  • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                  • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                  • 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

                    UNKNOWN-0unknown

  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

Sheet3

Russia

• Comparable operating profit turned positive
• Wholesale power market liberalised as of January 2011
• Pricing principles for ldquooldrdquo and ldquonewrdquo capacity determined
• Accelerated investment programme

• Sheet1

  Sheet2

  Sheet3

  Income statement

  Sheet1

  ampA

  Page ampP

  Cash flow statement

  Sheet1

  ampA

  Page ampP

  Key ratios

  Sheet1

  Sheet2

  Sheet3

  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

  • Strategy updated to support business actions
  • Sustainable solutions at the core of the strategy
  • Solid performance continued
  • Russia
  • Power reform proceeding fully liberalised from January 2011
  • Demand improved
  • Fortumrsquos investment programme accelerated
  • Nordic countries
  • Demand recovered
  • Water reservoirs historically low
  • Strong financial position and liquidity

  • Key strategic actions going forward

    Focus on performance

    • Organisational efficiency
    • Nuclear availability
    • Value creation from Russian investments

    • Prepare for growth

      • Prioritized value enhancing acquisitions while maintaining strong balance sheet
      • Investigating high growth Asian markets

      • Create strategic partnerships for new innovative solutions market entries and RampD

        • Partnerships in nuclear and bio energy
        • Electricity Sales and Distribution services solutions and partnerships

        • Continuous development of competences

          Readiness for change

          • Leadership and organisational culture enabling readiness for change

          • Outlook

            • Key drivers and risks
            • Wholesale price of electricity
            • Fuel CO2 emissions prices and water reservoirs
            • • Nordic Markets
              • Market continues to recover ndash 2008 level reached by 2012-2014
              • Electricity continues to gain share of total energy consumption
              • Russia
              • Wholesale market fully liberalised
              • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
              • Profits from Russia builds up in pace with the capacity increase

              • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

                Outlook

                • Capex (excluding potential acquisitions)
                • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
                • 2013-2014 around EUR 11 to 14 billion
                • Preliminary divestments agreed total approximately EUR 05 billion in 2011
                • • Hedging
                  • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                  • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                  • 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

                    UNKNOWN-0unknown

  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

Sheet1

Sheet2

Sheet3

Income statement

Sheet1

ampA

Page ampP

Cash flow statement

Sheet1

ampA

Page ampP

Key ratios

Sheet1

Sheet2

Sheet3

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

• Strategy updated to support business actions
• Sustainable solutions at the core of the strategy
• Solid performance continued
• Russia
• Power reform proceeding fully liberalised from January 2011
• Demand improved
• Fortumrsquos investment programme accelerated
• Nordic countries
• Demand recovered
• Water reservoirs historically low
• Strong financial position and liquidity

• Key strategic actions going forward

  Focus on performance

  • Organisational efficiency
  • Nuclear availability
  • Value creation from Russian investments

  • Prepare for growth

    • Prioritized value enhancing acquisitions while maintaining strong balance sheet
    • Investigating high growth Asian markets

    • Create strategic partnerships for new innovative solutions market entries and RampD

      • Partnerships in nuclear and bio energy
      • Electricity Sales and Distribution services solutions and partnerships

      • Continuous development of competences

        Readiness for change

        • Leadership and organisational culture enabling readiness for change

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Fuel CO2 emissions prices and water reservoirs
          • • Nordic Markets
            • Market continues to recover ndash 2008 level reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market fully liberalised
            • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
            • Profits from Russia builds up in pace with the capacity increase

            • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

              Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion
              • Preliminary divestments agreed total approximately EUR 05 billion in 2011
              • • Hedging
                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                • 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

                  UNKNOWN-0unknown

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

Sheet2

Sheet3

Income statement

Sheet1

ampA

Page ampP

Cash flow statement

Sheet1

ampA

Page ampP

Key ratios

Sheet1

Sheet2

Sheet3

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

• Strategy updated to support business actions
• Sustainable solutions at the core of the strategy
• Solid performance continued
• Russia
• Power reform proceeding fully liberalised from January 2011
• Demand improved
• Fortumrsquos investment programme accelerated
• Nordic countries
• Demand recovered
• Water reservoirs historically low
• Strong financial position and liquidity

• Key strategic actions going forward

  Focus on performance

  • Organisational efficiency
  • Nuclear availability
  • Value creation from Russian investments

  • Prepare for growth

    • Prioritized value enhancing acquisitions while maintaining strong balance sheet
    • Investigating high growth Asian markets

    • Create strategic partnerships for new innovative solutions market entries and RampD

      • Partnerships in nuclear and bio energy
      • Electricity Sales and Distribution services solutions and partnerships

      • Continuous development of competences

        Readiness for change

        • Leadership and organisational culture enabling readiness for change

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Fuel CO2 emissions prices and water reservoirs
          • • Nordic Markets
            • Market continues to recover ndash 2008 level reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market fully liberalised
            • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
            • Profits from Russia builds up in pace with the capacity increase

            • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

              Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion
              • Preliminary divestments agreed total approximately EUR 05 billion in 2011
              • • Hedging
                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                • 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

                  UNKNOWN-0unknown

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

Sheet3

Income statement

Sheet1

ampA

Page ampP

Cash flow statement

Sheet1

ampA

Page ampP

Key ratios

Sheet1

Sheet2

Sheet3

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

• Strategy updated to support business actions
• Sustainable solutions at the core of the strategy
• Solid performance continued
• Russia
• Power reform proceeding fully liberalised from January 2011
• Demand improved
• Fortumrsquos investment programme accelerated
• Nordic countries
• Demand recovered
• Water reservoirs historically low
• Strong financial position and liquidity

• Key strategic actions going forward

  Focus on performance

  • Organisational efficiency
  • Nuclear availability
  • Value creation from Russian investments

  • Prepare for growth

    • Prioritized value enhancing acquisitions while maintaining strong balance sheet
    • Investigating high growth Asian markets

    • Create strategic partnerships for new innovative solutions market entries and RampD

      • Partnerships in nuclear and bio energy
      • Electricity Sales and Distribution services solutions and partnerships

      • Continuous development of competences

        Readiness for change

        • Leadership and organisational culture enabling readiness for change

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Fuel CO2 emissions prices and water reservoirs
          • • Nordic Markets
            • Market continues to recover ndash 2008 level reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market fully liberalised
            • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
            • Profits from Russia builds up in pace with the capacity increase

            • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

              Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion
              • Preliminary divestments agreed total approximately EUR 05 billion in 2011
              • • Hedging
                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                • 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

                  UNKNOWN-0unknown

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

Sheet1

ampA

Page ampP

Cash flow statement

Sheet1

ampA

Page ampP

Key ratios

Sheet1

Sheet2

Sheet3

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

• Strategy updated to support business actions
• Sustainable solutions at the core of the strategy
• Solid performance continued
• Russia
• Power reform proceeding fully liberalised from January 2011
• Demand improved
• Fortumrsquos investment programme accelerated
• Nordic countries
• Demand recovered
• Water reservoirs historically low
• Strong financial position and liquidity

• Key strategic actions going forward

  Focus on performance

  • Organisational efficiency
  • Nuclear availability
  • Value creation from Russian investments

  • Prepare for growth

    • Prioritized value enhancing acquisitions while maintaining strong balance sheet
    • Investigating high growth Asian markets

    • Create strategic partnerships for new innovative solutions market entries and RampD

      • Partnerships in nuclear and bio energy
      • Electricity Sales and Distribution services solutions and partnerships

      • Continuous development of competences

        Readiness for change

        • Leadership and organisational culture enabling readiness for change

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Fuel CO2 emissions prices and water reservoirs
          • • Nordic Markets
            • Market continues to recover ndash 2008 level reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market fully liberalised
            • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
            • Profits from Russia builds up in pace with the capacity increase

            • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

              Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion
              • Preliminary divestments agreed total approximately EUR 05 billion in 2011
              • • Hedging
                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                • 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

                  UNKNOWN-0unknown

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

Sheet1

ampA

Page ampP

Key ratios

Sheet1

Sheet2

Sheet3

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

• Strategy updated to support business actions
• Sustainable solutions at the core of the strategy
• Solid performance continued
• Russia
• Power reform proceeding fully liberalised from January 2011
• Demand improved
• Fortumrsquos investment programme accelerated
• Nordic countries
• Demand recovered
• Water reservoirs historically low
• Strong financial position and liquidity

• Key strategic actions going forward

  Focus on performance

  • Organisational efficiency
  • Nuclear availability
  • Value creation from Russian investments

  • Prepare for growth

    • Prioritized value enhancing acquisitions while maintaining strong balance sheet
    • Investigating high growth Asian markets

    • Create strategic partnerships for new innovative solutions market entries and RampD

      • Partnerships in nuclear and bio energy
      • Electricity Sales and Distribution services solutions and partnerships

      • Continuous development of competences

        Readiness for change

        • Leadership and organisational culture enabling readiness for change

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Fuel CO2 emissions prices and water reservoirs
          • • Nordic Markets
            • Market continues to recover ndash 2008 level reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market fully liberalised
            • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
            • Profits from Russia builds up in pace with the capacity increase

            • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

              Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion
              • Preliminary divestments agreed total approximately EUR 05 billion in 2011
              • • Hedging
                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                • 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

                  UNKNOWN-0unknown

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

Sheet1

Sheet2

Sheet3

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

• Strategy updated to support business actions
• Sustainable solutions at the core of the strategy
• Solid performance continued
• Russia
• Power reform proceeding fully liberalised from January 2011
• Demand improved
• Fortumrsquos investment programme accelerated
• Nordic countries
• Demand recovered
• Water reservoirs historically low
• Strong financial position and liquidity

• Key strategic actions going forward

  Focus on performance

  • Organisational efficiency
  • Nuclear availability
  • Value creation from Russian investments

  • Prepare for growth

    • Prioritized value enhancing acquisitions while maintaining strong balance sheet
    • Investigating high growth Asian markets

    • Create strategic partnerships for new innovative solutions market entries and RampD

      • Partnerships in nuclear and bio energy
      • Electricity Sales and Distribution services solutions and partnerships

      • Continuous development of competences

        Readiness for change

        • Leadership and organisational culture enabling readiness for change

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Fuel CO2 emissions prices and water reservoirs
          • • Nordic Markets
            • Market continues to recover ndash 2008 level reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market fully liberalised
            • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
            • Profits from Russia builds up in pace with the capacity increase

            • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

              Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion
              • Preliminary divestments agreed total approximately EUR 05 billion in 2011
              • • Hedging
                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                • 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

                  UNKNOWN-0unknown

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

Sheet2

Sheet3

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

• Strategy updated to support business actions
• Sustainable solutions at the core of the strategy
• Solid performance continued
• Russia
• Power reform proceeding fully liberalised from January 2011
• Demand improved
• Fortumrsquos investment programme accelerated
• Nordic countries
• Demand recovered
• Water reservoirs historically low
• Strong financial position and liquidity

• Key strategic actions going forward

  Focus on performance

  • Organisational efficiency
  • Nuclear availability
  • Value creation from Russian investments

  • Prepare for growth

    • Prioritized value enhancing acquisitions while maintaining strong balance sheet
    • Investigating high growth Asian markets

    • Create strategic partnerships for new innovative solutions market entries and RampD

      • Partnerships in nuclear and bio energy
      • Electricity Sales and Distribution services solutions and partnerships

      • Continuous development of competences

        Readiness for change

        • Leadership and organisational culture enabling readiness for change

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Fuel CO2 emissions prices and water reservoirs
          • • Nordic Markets
            • Market continues to recover ndash 2008 level reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market fully liberalised
            • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
            • Profits from Russia builds up in pace with the capacity increase

            • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

              Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion
              • Preliminary divestments agreed total approximately EUR 05 billion in 2011
              • • Hedging
                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                • 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

                  UNKNOWN-0unknown

MEUR
2011		862
2012		624
2013		636
2014		1191
2015		1042
2016		870
2017		243
2018		93
2019		819
2020		43
2021+		959

Sheet3

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

• Strategy updated to support business actions
• Sustainable solutions at the core of the strategy
• Solid performance continued
• Russia
• Power reform proceeding fully liberalised from January 2011
• Demand improved
• Fortumrsquos investment programme accelerated
• Nordic countries
• Demand recovered
• Water reservoirs historically low
• Strong financial position and liquidity

• Key strategic actions going forward

  Focus on performance

  • Organisational efficiency
  • Nuclear availability
  • Value creation from Russian investments

  • Prepare for growth

    • Prioritized value enhancing acquisitions while maintaining strong balance sheet
    • Investigating high growth Asian markets

    • Create strategic partnerships for new innovative solutions market entries and RampD

      • Partnerships in nuclear and bio energy
      • Electricity Sales and Distribution services solutions and partnerships

      • Continuous development of competences

        Readiness for change

        • Leadership and organisational culture enabling readiness for change

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Fuel CO2 emissions prices and water reservoirs
          • • Nordic Markets
            • Market continues to recover ndash 2008 level reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market fully liberalised
            • Achieved efficiency improvements compared to the time of the acquisition to be approximately EUR 100 million in 2011
            • Profits from Russia builds up in pace with the capacity increase

            • NOTE Fuel Co2 emissions prices and water reservoirs found in appendix

              Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion
              • Preliminary divestments agreed total approximately EUR 05 billion in 2011
              • • Hedging
                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh
                • 2012 approximately 40 hedge ratio at approximately EUR 44MWh

                • 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

                  UNKNOWN-0unknown

MEUR
2011		862
2012		624
2013		636
2014		1191
2015		1042
2016		870
2017		243
2018		93
2019		819
2020		43
2021+		959