Fortum - EV Report

Fortum Corporation
January−December 2023 Financial Statements Bulletin
Contents
A year of transformation and stabilising business operations - good quarterly performance with elevated
power prices from cold spells in the Nordics 3
Fortum’s President and CEO Markus Rauramo’s comments 4
Changes in the reporting structure 6
Fortum’s strategy 7
Financial results 7
Financial position and cash flow 9
Segment reviews 11
Capital expenditures, divestments and investments in shares 18
Operating and regulatory environment 19
Key drivers and risks 22
Outlook 24
Sustainability 25
Legal actions 25
Shares and share capital 29
Group personnel 29
Changes in Group management 29
Remuneration and share-based incentive plans for 2023–2025 30
Authorisations of the Board 30
Annual General Meeting 2023 30
Other major events during the fourth quarter of 2023 32
Events after the balance sheet date 32
Dividend distribution proposal 33
Annual General Meeting 2024 33
Further information 34
Tables to the Financial Statements Bulletin

Condensed consolidated income statement 35
Condensed consolidated statement of comprehensive income 36
Condensed consolidated balance sheet 37
Condensed consolidated statement of changes in total equity 38
Condensed consolidated cash flow statement 40
Change in financial net debt 42
Capital risk management 42
Key figures 44
Notes to the condensed consolidated interim financial statements 45
Definitions and reconciliations of key figures 70
Market conditions and achieved power prices 77
Fortum’s production and sales volumes 78
Financial results discussed in this Financial Statements Bulletin comprise the continuing operations of the Fortum
Group. As a result of the Presidential decree (No. 302) issued by Russia on 25 April 2023 and the seizure of Fortum’s
Russian assets, the company lost control of its Russian operations. Consequently, the Russia segment was
deconsolidated and reclassified as discontinued operations in the second quarter of 2023. Comparative information for
the first quarter of 2023 and for 2022 was restated following the reclassification of the Russia segment as discontinued
operations. The Uniper segment is included in the comparison figures for 2022, as it was deconsolidated and
reclassified as discontinued operations in September 2022. For further details, see Notes 1, 2 and 6.
Figures in brackets refer to the comparison period, i.e. the same period last year, unless otherwise stated.
Fortum Corporation
A year of transformation and stabilising business

operations - good quarterly performance with elevated
power prices from cold spells in the Nordics
October–December 2023, continuing operations
• Comparable EBITDA was EUR 459 (774) million.
• Comparable operating profit was EUR 359 (669) million.
• Operating profit was EUR 376 (-174) million. In the comparison period, items affecting comparability included
fair value changes in non-hedge-accounted derivatives of EUR -804 million.
• Comparable earnings per share were EUR 0.35 (0.42).
• Earnings per share were EUR 0.45 (0.48).
• Cash flow from operating activities totalled EUR 149 (451) million.
January–December 2023, continuing operations

• Comparable EBITDA was EUR 1,903 (2,025) million.
• Comparable operating profit was EUR 1,544 (1,611) million.
• Operating profit was EUR 1,662 (1,967) million, mainly impacted by fair value changes in non-hedge-
accounted derivatives. In the comparison period, items affecting comparability included tax-exempt capital
gains of EUR 785 million.
• Comparable earnings per share were EUR 1.28 (1.21).
• Earnings per share were EUR 1.68 (2.34).
• Cash flow from operating activities totalled EUR 1,710 (1,717) million.
• Financial net debt was EUR 942 million and the financial net debt-to-comparable EBITDA ratio was at 0.5
times.
• In March, the Group’s new strategy and new financial and environmental targets were published. A renewed
Group operating model, business structure and a revised Fortum Leadership Team became effective at the
end of March.
• In the second quarter, the Russian authorities seized control of Fortum’s assets in Russia, Fortum lost control
of and deconsolidated and reported these operations as discontinued operations. The Russian assets were
fully written down and impairments of EUR 1.7 billion (equity impact) and deconsolidation-related negative
cumulative foreign exchange translation differences of EUR 1.9 billion (no equity impact) were recorded.
• On 17 May, Fortum successfully issued five- and ten-year bonds with a total nominal amount of EUR 1.15
billion.
• On 7 June, Fortum agreed to acquire the entire shareholding in the Swedish electricity solutions provider
Telge Energi AB on a cash and debt-free basis for approximately SEK 450 million (EUR 39 million). On 31
August, the transaction was completed.
• On 21 June, Fortum announced that it will invest approximately EUR 225 million in waste heat projects in
Espoo and Kirkkonummi in Finland.
• Fortum's Board of Directors proposes a dividend of EUR 1.15 (0.91) per share and that the dividend will be
paid in two instalments.
Summary of outlook
• The Generation segment’s Nordic outright generation hedges: approximately 70% at EUR 47 per MWh for
2024, and approximately 40% at EUR 43 per MWh for 2025.
• Capital expenditure, including maintenance but excluding acquisitions, is expected to be approximately EUR
550 million in 2024 and the annual maintenance capital expenditure is expected to be EUR 300 million. For
the 2024-2026 period, Fortum’s capital expenditure is expected to be approximately EUR 1.7 billion (excluding
acquisition) of which growth capital expenditure is expected to be EUR 800 million and annual maintenance
capital expenditure EUR 300 million.
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Fortum Corporation
Key figures, continuing operations
IV/2022 2022
EUR million or as indicated IV/2023 restated 2023 restated
Reported
Sales 1,858 2,407 6,711 7,774
Operating profit 376 -174 1,662 1,967
Share of profit/loss of associates and joint ventures 89 -59 59 -185
Net profit 413 427 1,515 2,084
Net profit (after non-controlling interests) 410 431 1,514 2,080
Earnings per share, EUR 0.45 0.48 1.68 2.34
Net cash from operating activities 149 451 1,710 1,717
IV/2022 2022
Comparable
EBITDA 459 774 1,903 2,025
Operating profit 359 669 1,544 1,611
Earnings per share, EUR 0.35 0.42 1.28 1.21
31 Dec 31 Dec
EUR million or as indicated 2023 2022
Financial position
Financial net debt (at period-end) 942 1,084
Financial net debt, at period-end, excl. Russia N/A 1,127
Financial net debt/comparable EBITDA excl. Russia 0.5 0.6
Key figures, total of continuing and discontinued operations
Fortum’s condensed consolidated income statement and consolidated cash flow statement include the Russia
segment as discontinued operations in the first quarter of 2023 and in 2022, and the Uniper segment as discontinued
operations in 2022. Comparative information for the first quarter of 2023 and all quarters of 2022 was restated
following the classification of the Russia segment as discontinued operations in the second quarter of 2023. For
further details, see Note 1.
IV/2022 2022
Reported
Net profit (after non-controlling interests) 410 -608 -2,069 -2,416
Earnings per share, EUR 0.45 -0.68 -2.31 -2.72
Net cash from operating activities 149 607 1,819 -8,767
Comparable
Net profit (after non-controlling interests) 317 216 1,184 -988
Earnings per share, EUR 0.35 0.25 1.32 -1.11
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Fortum Corporation
Fortum’s President and CEO Markus Rauramo:

“Year 2023 was characterised by a downward trend for gas and power prices in Europe. In the autumn, the Nordic
weather realised milder than normal, however, turned cold and dry in the fourth quarter. The cold breeze, together
with below-normal wind conditions, led to a rapidly decreasing water reservoir balance; consequently Nordic spot
prices recovered by the end of the year from the lower levels seen in the previous quarter.
In our 2023 financial results, the Generation segment’s strong performance was the key earnings driver throughout
the year. The segment benefitted from high power prices in the Nordics and good physical optimisation supported by
high price volatility, posting an all-time high comparable operating profit of EUR 1,679 million and an achieved power
price of 63.1 euro per MWh for the full year. In the fourth quarter, the Generation segment’s comparable operating
profit declined due to the lower achieved power price, lower power production of condensing power generation, lower
results in the renewables and decarbonisation businesses and higher costs related to co-owned production
companies. This was partly offset by higher power generation volumes and lower depreciations in the Loviisa nuclear
power plant.
During 2023, we successfully regained our financial strength, driven by solid earnings and cash flow. At the end of the
year, our leverage was at 0.5 times, and we had undrawn credit facilities and liquid funds of EUR 7.5 billion. In May,
we successfully returned to the fixed income market by issuing two bonds totalling EUR 1.15 billion. To finance future
potential investments in clean energy, we prepared the Green Finance Framework, which was published in January
2024.
Based on the strong Group results in 2023, Fortum's Board of Directors is proposing to the Annual General Meeting a
dividend of EUR 1.15 per share, corresponding to a 90% payout of comparable EPS.
Overall, after a period of unprecedented turbulence, 2023 was a year of stabilising and transforming our operations. In
March, we announced our new strategy and purpose with a Nordic focus along with new financial and environmental
targets.
One of our strategic priorities is to deliver reliable and clean energy. To ensure long-term productivity and security of
supply, we announced several projects in 2023 that enhance our best-in-class operations, such as the Loviisa nuclear
power plant lifetime extension until 2050 and upgrades of the hydropower plants, for example Untra in Sweden. A
hugely important event was the start of commercial power generation of the Olkiluoto 3 nuclear power unit, of which
Fortum owns 25%. The construction of our Pjelax 380-MW wind farm, which is Finland's third largest, progressed on
time and within budget. Testing of power generation has started, and the wind farm will be commissioned in the
second quarter of 2024. The acquisition of Telge Energi, one of the 10 largest clean energy providers in Sweden, is a
very good fit with our consumer business, and it increases our consumer and enterprise customer base by 150,000.
During the winter months, Finland’s last coal-fired condensing plant, Meri-Pori, has operated on a commercial basis to
support security of supply in the Nordic power market, but it will be transferred to production reserve for emergency
situations in March 2024.
Our second strategic priority is to drive decarbonisation in industries. Our aim is to offer clean and stable power supply
for our customers’ decarbonisation needs and to actively develop projects to enable growth longer term to build new
clean energy production in partnership with strategic customers. In the scope of our nuclear feasibility study, we have
partnered up and are exploring potential cooperation opportunities with both technology suppliers as well as energy
customers. The support for nuclear power in Finland and Sweden is at a record high at the moment, and we are
engaging with both governments to discuss how the conditions for potential new nuclear could be improved. During
the year, we made a 225-million-euro investment decision related to the Espoo Clean Heat programme and began the
groundworks of the heat pump plant in Kirkkonummi. As part of a unique collaboration project with Microsoft, we will
capture sustainable waste heat from their new data centres for use in our district heating. We also saw progress in our
strategic target to build a strong power purchase agreement (PPA) portfolio by signing power supply contracts with
various industrial customers; these contracts support decarbonisation of industries while also lowering risks and
contributing to stabilisation of earnings and cash flow from our outright power generation.
With our third strategic priority to transform and develop, we launched a new operating model and business structure,
appointed a new leadership team, completed a reorganisation and set up new core governance processes. We are
continuing to develop our culture and leadership to enable efficient strategy execution. As Fortum is a much smaller
company than it was a year ago, we need to adjust to fit the new structure and purpose; therefore, we launched an
efficiency improvement programme with the target to gradually lower annual fixed costs by EUR 100 million until the
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Fortum Corporation
end of 2025. To reach the target, actions unfortunately also include personnel reductions. We are also addressing
turnaround actions for underperforming businesses as well as a rescoping of our focus areas.
Geopolitical tensions remained high during the year and, unfortunately, Russia’s attack on Ukraine and the full-blown
war continued. In the second quarter, we closed the books on our operations in Russia for good. Due to the Russian
authorities’ unlawful seizure of our assets in Russia, we lost control of our operations, impaired them in full and
deconsolidated the Russia segment. As Russia’s actions are a crude violation of the international investment
protection treaties and deprive Fortum of its shareholder rights, we have sent notices of dispute to Russia and the
consequent arbitration proceedings are expected to be initiated in early 2024.
In the second half of 2023, uncertainty in Fortum’s operating environment increased further. Economic softness is
widespread, with elevated inflation and interest rates that dampen the investment sentiment across all sectors. One
decisive factor for investments is abundant subsidies available for non-economic decarbonisation projects, which
seems to steer investments outside Finland and the Nordics. As economic weakness is forecasted to continue in
2024, we will navigate the uncertainty through our phased strategy execution. In the near term, we will sharpen our
focus and ensure optimisation of existing operations, especially our generation portfolio, as well as manage business
risks. At the same time, we are building preparedness for the electrification and growth phase longer term. As one of
the largest energy companies in the Nordics, we are in a unique position. The Nordic power market as well as our
power generation are already almost fully decarbonised and clean with hardly any fossil production to be replaced.
Together with our customers, we are preparing for the growth phase and are ready to pave the way for
decarbonisation of other industries as well once demand picks up again.
The developments in the Nordic power market following the winter of 2022-23 crisis show that high price volatility and
even extreme price peaks have become the new normal. The main reason is the increasing share of intermittent wind
power and lower share of firm and flexible capacity in the Nordic energy system. While the market works as it was
designed to, the volatility was extreme as the spot price was negative during 11 days in 2023 and reached a daily
average of up to 900 euros per megawatt hour on the harshest cold spell day in January 2024. An expectation of
future rare price peaks, however, will not be a sufficient incentive for merchant investments in new firm or flexible
capacity. On the contrary, induced fears could deter investments into electrification for decarbonisation. It is evident
that additional measures, such as capacity mechanisms or other investment incentives, are needed to ensure security
of electricity supply and to encourage investments into industrial decarbonisation.
Finally, I would like to thank all our employees for their commitment and hard work during the year and our customers
and all other stakeholders for their continued trust in us to deliver our purpose to power a world where people,
businesses and nature thrive together.”
Changes in the reporting structure

Fortum reorganised its operating structure at the end of March 2023. The target of the new organisation is the
successful implementation of the company’s new vision and strategy. The new organisation consists of the following
business units: Corporate Customers and Markets, Nuclear Generation, Hydro Generation, Renewables and
Decarbonisation, Consumer Solutions, and Circular Solutions.
Fortum revised its financial segment reporting to reflect the new business structure and strategy. As of the first quarter
of 2023, Fortum reports its financial performance in the following reportable segments:
• The Generation segment includes the Corporate Customers and Markets, Nuclear Generation, Hydro
Generation, and Renewables and Decarbonisation business units.
• The Consumer Solutions segment includes the Consumer Solutions business unit.
• The Other Operations segment includes the Circular Solutions business unit, innovation and venturing
activities, enabling functions and corporate management.
On 17 April, Fortum published restated segment information for the year 2022 for the new reportable segments.
Following the Presidential decree (No. 302), dated 25 April 2023, the Russian authorities seized control of Fortum’s
assets in Russia. Based on the control assessment, Fortum lost control of its Russian operations and the Russia
segment was consequently deconsolidated and reported as discontinued operations in the second quarter of 2023.
On 11 May, to reflect the deconsolidation of the Russian operations, Fortum published the restated comparative
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Fortum Corporation
consolidated income statement, consolidated statement of other comprehensive income, consolidated cash flow
statement and certain quarterly key ratios for the year 2022 and for the first quarter of 2023. The consolidated balance
sheet was not restated.
Following the signing of the agreement in principle with the German Government to divest Uniper, Uniper was
deconsolidated and reclassified as discontinued operations in the third quarter of 2022. The transaction was
completed in December 2022.
The financial results discussed in this report relate to the continuing operations of Fortum Group.
Fortum’s strategy
At the beginning of February 2024, the Fortum Board of Directors resolved on clarifications to Fortum’s strategy, see
‘Events after the balance sheet date’ section and a separate Stock Exchange Release.
At the beginning of March 2023, Fortum’s Board of Directors resolved on Fortum’s new strategy. Fortum’s strategic
priorities are to deliver reliable clean energy and drive decarbonisation in industries in the Nordics.
The financial and environmental targets were as follows:
• Financial guidance to ensure a credit rating of at least BBB and optimal financial flexibility for future growth
with long-term financial net debt-to-comparable EBITDA of 2.0–2.5 times.
• Disciplined growth in clean energy with revised capital expenditure of up to EUR 1.0 billion during 2023–2025
(revised on 2 November 2023 from up to EUR 1.5 billion). Investment hurdles of project WACC + 150–400
basis points will be applied and evaluated against the company’s climate and biodiversity targets.
• Dividend policy with a payout ratio of 60–90% of comparable EPS.
• Tightened environmental and decarbonisation ambitions with updated targets to reach carbon neutrality
already by 2030, exit coal by the end of 2027, target for specific emissions, and commitment to SBTi (1.5°C)
and biodiversity targets.
On 2 November 2023, Fortum initiated an efficiency programme to manage uncertainty in the operating environment,
to improve profitability and secure cash flows. With the efficiency programme, Fortum targets to reduce its annual
fixed costs by EUR 100 million gradually until the end of 2025. The reduction of EUR 100 million corresponds to some
10% of the Group’s fixed costs for the year 2022. The efficiency programme includes strategic prioritisation and
assessment of allocated resources as well as turnaround actions for underperforming businesses. Reaching the
programme’s targets is expected to require personnel reductions.
Financial results
Sales by segment
IV/2022 2022
EUR million IV/2023 restated 2023 restated
Generation 1,339 1,617 4,420 4,465
Consumer Solutions 1,069 1,460 3,766 4,578
Other Operations 147 161 548 589
Netting of Nord Pool transactions -612 -917 -1,510 -2,312
Eliminations -85 87 -514 454
Total continuing operations 1,858 2,407 6,711 7,774
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Fortum Corporation
Comparable EBITDA by segment
IV/2022 2022
Generation 452 743 1,874 1,876
Consumer Solutions 30 43 108 173
Other Operations -23 -12 -80 -23
Total continuing operations 459 774 1,903 2,025
Comparable operating profit by segment
IV/2022 2022
Generation 390 683 1,679 1,629
Consumer Solutions 12 25 38 97
Total continuing operations 359 669 1,544 1,611
Operating profit by segment
IV/2022 2022
Generation 370 808 2,058 2,128
Consumer Solutions 59 -921 -215 -149
Total continuing operations 376 -174 1,662 1,967
October–December 2023
Sales decreased to EUR 1,858 ( 2,407) million, mainly due to lower electricity prices.
Comparable operating profit decreased to EUR 359 (669) million. The Generation segment results decreased to EUR
390 (683) million, mainly due to the lower achieved power price, lower power production on condensing power as well
as higher costs related to co-owned production companies. The result for the Consumer Solutions segment declined,
mainly due to lower electricity sales margins and regulated electricity price cap for the year 2023 set for end users by
the Polish Government.
Operating profit for the period was impacted by EUR 18 (-843) million of items affecting comparability. In the
comparison period, items affecting comparability included EUR -804 million related to changes in fair values of non-
hedge-accounted derivatives.
Comparable share of profits of associates and joint ventures was EUR 31 (-68) million (Note 7).
Comparable earnings per share were EUR 0.35 (0.42).
January−December 2023
Sales decreased to EUR 6,711 (7,774) million, mainly due to lower electricity prices.
Comparable operating profit was EUR 1,544 (1,611) million. The earnings improvement of the Generation segment
was offset by the negative effects from the lower results in the Consumer Solutions and Other Operations segments.
Operating profit for the period was impacted by EUR 118 (356) million of items affecting comparability, mainly related
to changes in fair values of non-hedge-accounted derivatives. In the comparison period 2022, items affecting
comparability included tax-exempt capital gains of EUR 638 million for the divestment of Fortum Oslo Varme, EUR
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Fortum Corporation
138 million from the divestments of the Recharge and Plugsurfing businesses and EUR -376 million related to
changes in fair values of non-hedge-accounted derivatives (Note 4).
Comparable share of profits of associates and joint ventures was EUR 7 (-40) million (Note 7). The share of profits of
associates and joint ventures amounted to EUR 59 (-185) million, including effects from nuclear waste-related
provisions and nuclear waste funds in co-owned nuclear companies of EUR 50 (-191) million.
Finance costs – net amounted to EUR -138 (-218) million. Finance costs – net includes interest expenses on
borrowings of EUR 286 (202) million and interest income on loan receivables and deposits of EUR 153 (46) million. In
2023, the interest expenses relating to the bridge financing loan provided by the Finnish state-owned holding company
Solidium were EUR 41 (26) million. Comparable finance costs – net amounted to EUR -137 (-170) million (Note 8).
Income taxes for the period totalled EUR -69 tax expense (520 tax income) million. In 2023, income taxes included
EUR 225 million relating to the one-time positive tax impacts, mainly recognised in Ireland and in the Netherlands, due
to the impairment of the Russian assets. In 2022, the income tax expense included EUR 746 million relating to a one-
time tax impact realised in Ireland, mainly due to the Uniper divestment. The comparable effective income tax rate
was 19.1% (21.9%) (Note 9).
Net profit was EUR 1,515 (2,084) million and comparable net profit was EUR 1,150 (1,076) million. Comparable net
profit is adjusted for items affecting comparability, adjustments to the share of profit of associates and joint ventures,
finance costs – net, income tax expenses and non-controlling interests (Note 4.2).
Earnings per share for continuing operations were EUR 1.68 (2.34). Comparable earnings per share for continuing
operations were EUR 1.28 (1.21) (Note 4).
For further details, see ‘Segment reviews’.
Financial position and cash flow

Cash flow
Net cash from operating activities was impacted by the strong comparable EBITDA and positive change in working
capital, partly offset by higher paid income taxes. Net cash from operating activities, EUR 1,710 million, remained on
the same level as in the comparison year.
Net cash from investing activities, EUR 1,433 (1,818) million, was positively impacted by the significant decrease in
margin receivables of EUR 2,024 (increase 1,311) million. Capital expenditure amounted to EUR 576 (479) million.
Divestment of shares and capital returns in the 2022 comparison period, EUR 1,156 million, mainly include the
divestment of the 50% ownership in the district heating company Fortum Oslo Varme AS in Norway. The comparison
period also includes the EUR 1,500 million payment to Uniper from Fortum’s granted shareholder loan. In December
2022, when Fortum sold its ownership in Uniper and the transaction was closed, Uniper repaid the entire shareholder
loan of EUR 4,000 million to Fortum. The consideration of EUR 498 million received from the sale of the Uniper shares
is presented in the cash flow from discontinued operations in 2022.
Net cash used in financing activities was EUR -2,640 (-4,684) million. The net repayments in interest-bearing liabilities
were EUR 1,622 (3,634) million, while the change in margin liabilities was EUR -221 (150) million. The first dividend
instalment of EUR 413 million was paid on 24 April 2023 (1,013) and the second instalment of EUR 404 million was
paid on 10 October 2023.
Liquid funds increased by EUR 503 (decrease 1,148) million.
Cash flow from discontinued operations in 2023 include Russia-related cash flows from the first quarter of 2023 netted
with liquid funds of EUR 284 million lost through the seizure of the Russian assets.
Liquid funds at the beginning of the period, EUR 3,919 million, included liquid funds of EUR 247 million held by the
Russia segment.
For further details, see the ‘Financing’ section below.
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Fortum Corporation
Assets
At the end of 2023, total assets amounted to EUR 18,739 (23,642) million. The change from December 2022 was
mainly related to the deconsolidation of the Russian assets during the second quarter of 2023, lower fair values of
derivative financial instruments, and reduced margin receivables. At the end of 2023, net margin receivables
amounted to EUR 459 (2,255) million.
Equity
Total equity amounted to EUR 8,499 (7,737) million. Equity attributable to owners of the parent company totalled EUR
8,438 (7,670) million. Equity was negatively impacted by the net loss for the year of EUR -2,069 million and the
dividend of EUR 817 million approved by the Annual General Meeting in April 2023. In addition to the profit from
continuing operations for the year, the net loss for the year includes the full write-down of the Russian assets of EUR
1.7 billion, and EUR 1.9 billion negative cumulative translation differences previously recognised in equity. These
cumulative translation differences were recycled from equity to the income statement, due to the deconsolidation
according to IFRS, and did not impact total equity. Equity was positively impacted by the fair valuation of cash flow
hedges of EUR 1,860 million.
A dividend for 2022 of EUR 0.91 per share, amounting to a total of EUR 817 million, was approved by the Annual
General Meeting on 13 April 2023. The first dividend instalment of EUR 0.46 per share, totalling EUR 413 million, was
paid on 24 April 2023. The second dividend instalment of EUR 0.45, amounting to a total of EUR 404 million, was paid
on 10 October 2023.
Financing
In 2023, commodity prices trended down and the extreme volatility decreased. Due to the declining prices and the
consequent release of cash collaterals in combination with the financing measures taken during 2023, the Group’s
financial position is very solid. At the end of December, the ratio for financial net-debt-to comparable EBITDA for
continuing operations was very low, at 0.5 times.
At the end of 2023, financial net debt was EUR 942 (1,084) million. Fortum’s total interest-bearing liabilities were EUR
5,909 (7,785) million and liquid funds amounted to EUR 4,183 (3,919) million. The first dividend instalment, EUR 413
million, was paid on 24 April 2023 and the second instalment, EUR 404 million, on 10 October 2023.
During the first quarter of 2023, Fortum repaid the drawn amount EUR 600 million of its Liquidity revolving credit
facility and a EUR 1,000 million maturing bond. In March, Fortum repaid the drawn amount of EUR 350 million and
cancelled the entire EUR 2,350 million Finnish State bridge loan facility.
In May, Fortum successfully returned to the fixed income markets by issuing a dual-tranche bond with a five-year
tranche of EUR 500 million carrying a fixed coupon of 4% and a ten-year tranche of EUR 650 million carrying a fixed
coupon of 4.5%. Consequently, Fortum repaid the final drawn amount of EUR 500 million of its Liquidity revolving
credit facility in May and the SEK 1,000 million bond in June.
In June, Fortum cancelled EUR 2,100 million of the total EUR 3,100 million Liquidity revolving credit facility, and the
six-month extension option was used for the remaining facility of EUR 1,000 million with new maturity in December
2023. Fortum renewed its maturing drawn bullet loan of EUR 500 million to a new maturity date in February 2025. At
the end of June, the remaining parent company guarantee facility of approximately EUR 1 billion granted to Uniper
was released.
In December, the Liquidity revolving credit facility of EUR 1,000 million matured, as Fortum did not use the six-month
extension option. Additionally, a one-year borrowers’ extension option was agreed on for the EUR 500 million bullet
loan.
Current loans, including EUR 717 million of the current portion of long-term loans, amounted to EUR 1,316 million.
Short-term loans, EUR 599 million, include EUR 418 million of collateral arrangements and use of commercial paper
programmes of EUR 174 million (Note 13).
The nuclear waste fund loans amounted to EUR 951 million (Note 13).
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Fortum Corporation
At the end of 2023, Fortum had undrawn committed credit facilities of EUR 3,200 million, including the Core revolving
credit facility of EUR 2,400 million (maturity in June 2025 with a maximum two-year extension option by the lenders)
and the bilateral EUR 800 million revolving credit facility (maturity in June 2025 with a one-year extension option by
the lender). In addition, Fortum has EUR 100 million committed overdraft limits that are valid until further notice.
On 9 March, S&P Global Ratings affirmed Fortum’s current BBB long-term credit rating and revised the outlook from
negative to stable.
On 21 March, Fitch Ratings affirmed Fortum’s long-term credit rating at BBB and revised the outlook from negative to
stable.
Segment reviews
Generation
Generation is responsible for power generation mainly in the Nordics. The segment comprises CO2-free hydro,
nuclear, wind and solar power generation, as well as district heating and cooling, and decarbonisation of heat
production assets. The Generation segment is responsible for hedging and value creation both in physical and
financial power markets and is a customer interface for industrial and municipal customers to drive decarbonisation of
industries and provide clean energy at scale. Furthermore, the business develops capabilities and projects in
renewables and nuclear and explores clean hydrogen.
IV/2022 2022
Reported
Sales 1,339 1,617 4,420 4,465
- power sales 1,164 1,447 3,889 3,802
of which Nordic outright power sales* 728 848 2,799 2,461
- heat sales 162 125 481 499
- other sales 13 45 50 163
Share of profit/loss of associates and joint
ventures** 89 -59 59 -178
Capital expenditure and gross investments in
shares 112 106 454 316
Number of employees 1,758 1,660
IV/2022 2022
Comparable
EBITDA 452 743 1,874 1,876
Share of profit/loss of associates and joint
ventures** 31 -68 7 -34
Return on net assets, % 24.2 23.2
Net assets (at period-end) 7,263 6,597
* Nordic outright power sales includes hydro and nuclear generation. It does not include CHP and condensing power generation, minorities, customer business, or other
purchases.
** Power plants are often built jointly with other power producers, and owners purchase power at cost. The share of profit/loss is mainly IFRS adjustments (e.g.
accounting for nuclear-related assets and liabilities) and depreciations on fair value adjustments from historical acquisitions (Note 18 in the Consolidated Financial
Statements 2022).
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Power generation by source

IV/2022 2022
TWh IV/2023 restated 2023 restated
Hydropower, Nordic 6.0 4.8 20.9 19.1
Nuclear power, Nordic 6.9 6.1 24.8 23.4
Wind power, Nordic 0.1 - 0.1 -
CHP and condensing power* 0.3 0.7 1.0 1.5
Total 13.3 11.7 46.8 44.1
* CHP and condensing power generation in Finland, Poland and Norway. Norwegian district heating company Fortum Oslo Varme is included in the comparison figures
for 2022. The 50% ownership in Fortum Oslo Varme was divested in the second quarter of 2022.
Sales volumes
IV/2022 2022
TWh IV/2023 restated 2023 restated
Power sales volume, Nordic 19.0 14.4 62.6 51.7
of which Nordic outright power sales volume* 12.5 10.5 44.4 41.1
Power sales volume, Other 0.2 0.8 0.6 3.1
Heat sales volume, Nordic 0.8 0.7 2.1 3.1
Heat sales volume, Other 1.2 1.2 3.4 3.5
* The Nordic outright power sales volume includes hydro and nuclear generation. It does not include CHP and condensing power generation, minorities, customer
business, or other purchases.
Achieved power price
EUR/MWh IV/2023 IV/2022 2023 2022

Generation’s Nordic achieved power price* 58.1 80.5 63.1 59.9
* Generation’s Nordic achieved power price includes hydro and nuclear generation. It does not include CHP and condensing power generation, minorities, customer
business, or other purchases.
The Generation segment’s total power generation increased in the fourth quarter of 2023. Hydro generation volumes
increased clearly by 25% due to higher water inflow compared to the previous year. Nuclear volumes increased by
13% compared to the previous year due to the commercial operation of TVO’s third Olkiluoto power plant unit (OL3).
Power and heat generation of CHP and condensing power was lower due to warmer weather in October 2023.
The achieved power price decreased by EUR 22.4 per MWh, clearly down by 28%, and was EUR 58.1 per MWh. The
reason for the decrease in the achieved power price was mainly the lower spot price and lower physical optimisation
result, the effects of which were partly offset by a higher hedge price. The optimisation premium continued to be at a
good level, however physical optimisation was exceptionally high in 2022 due to extremely high volatility and higher
power prices during the comparison period in 2022. While the spot power price decreased by 64% in the Generation
segment’s power generation areas, the negative result effect from the lower spot price on the achieved power price
was partly offset by the fairly high hedge levels and a higher hedge price compared to the spot price. The spot power
price declined to 55.8 EUR/MWh compared to 155.8 EUR/MWh in the fourth quarter in 2022.
Comparable operating profit decreased by 43% impacted mainly by the lower achieved power price, lower condensing
power generation (Meri-Pori) as well as higher costs related to co-owned production companies, partly offset by higher
hydro and nuclear volumes and lower depreciations due to the lifetime extension of the Loviisa nuclear power plant
(Note 3). The renewables and decarbonisation businesses were loss-making in the fourth quarter. The result of the
district heating business was negatively impacted by clearly lower power prices and higher fixed costs.
Operating profit was affected by EUR -21 (125) million of items affecting comparability, related to the fair value change
of non-hedge-accounted derivatives (Note 3).
Comparable share of profits of associates and joint ventures totalled EUR 31 (-68) million (Notes 3 and 7).
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Fortum Corporation
January−December 2023
The Generation segment’s total power generation increased compared to 2022. Nuclear generation increased due to
commissioning and power generation of TVO’s third Olkiluoto power plant unit OL3. Hydro generation increased,
mainly due to higher water inflow compared to the second half of 2022. The segment’s overall operational
performance and load factor for nuclear generation remained at a good level. CO2-free generation accounted for 98%
of total power generation. Power and heat generation of CHP and condensing power declined due to warmer weather
during the year. Structural changes following the divestment of the 50% ownership in the district heating company
Fortum Oslo Varme AS in Norway in 2022 also had a negative impact.
The achieved power price increased by EUR 3.2 per MWh, up by 5%, and was all time high at EUR 63.1 per MWh.
The main reason for the increase in the achieved power price was the higher hedge price, the effect of which was
partly offset by the lower result from physical optimisation. In 2022 the physical optimisation was exceptionally high
mainly due to extremely high volatility and higher power prices. While the spot power price decreased by 59% in the
Generation segment’s power generation areas, the negative result effect from the lower spot price on the achieved
power price was more than offset by the fairly high hedge levels and the higher hedge price.
The 3% improvement in the comparable operating profit derived from the higher achieved power price, higher hydro
volumes and lower depreciations due to the lifetime extension of the Loviisa nuclear power plant (Note 3). This was
partly offset by lower generation of condensing power (Meri-Pori) as well as higher costs related to co-owned
production companies. The renewables and decarbonisation businesses were clearly loss-making. The result of the
district heating business was negatively impacted by lower power prices, higher fuel costs and higher fixed costs. The
comparison period of 2022 also included approximately EUR 36 million from the divested Norwegian district heating
operations and a tax-exempt sales gain of EUR 9 million from the divestment of the 250-MW Rajasthan solar plant in
India (Note 3).
Operating profit was affected by EUR 380 (499) million of items affecting comparability, related to the fair value
change of non-hedge-accounted derivatives. In 2022, items affecting comparability included tax-exempt capital gains
of EUR 638 million for the divestment of Fortum Oslo Varme and EUR -130 million related to changes in fair values of
non-hedge-accounted derivatives. (Note 3).
Comparable share of profits of associates and joint ventures totalled EUR 7 (-34) million (Notes 3 and 7), impacted by
inflation adjustments in Swedish nuclear waste-related provisions in co-owned nuclear companies.
On 16 February, the Finnish Government granted a new operating licence for both units at Fortum’s Loviisa nuclear
power plant until the end of 2050. On 21 December, Fortum submitted a statement to the Ministry of Economic Affairs
and Employment on the procurement arrangements of fresh nuclear fuel, as stipulated by the new operating license.
Over the course of the new licence period, the plant is expected to generate up to 170 terawatt hours of CO2-free
electricity. Investments related to the continuation of operations and lifetime extension will amount to an estimated
EUR 1 billion during 2023-2050. Over the past five years, Fortum has already invested approximately EUR 200 million
in refurbishing the Loviisa power plant. In November 2022, Fortum and Westinghouse Electric Company signed an
agreement for the design and supply of a new fuel type for the Loviisa power plant. In addition to Westinghouse,
Fortum is exploring the capabilities of an alternative western fuel supplier to develop a compatible fuel type for the
Loviisa nuclear power plant to secure the fuel supply.
On 30 March, Fortum received the licence from the Finnish Government to operate the final disposal facility for low-
and intermediate-level radioactive waste until the end of 2090. The facility, operational since 1998, is located 110
metres underground on the Loviisa nuclear power plant site. The spent fuel generated at the Loviisa power plant will
eventually be deposited in Posiva’s final disposal facility for spent nuclear fuel, jointly owned by Fortum and
Teollisuuden Voima (TVO).
On 16 April, after a test generation phase, regular electricity generation of TVO’s third Olkiluoto nuclear power plant
unit (OL3) in Finland started and the commercial operation of the plant began on 1 May. The total capacity of OL3 is
approximately 1,600 MW (Fortum’s share is approximately 400 MW), and it will produce approximately 14% of
Finland’s total electricity consumption (Note 14). In 2023, Fortum’s annual share of OL3 regular electricity generation
was approximately 2.6 TWh. On 10 October, TVO announced that the company had initiated an environmental impact
assessment (EIA) procedure concerning the possible operating licence extension and potential power uprating of the
Olkiluoto 1 (OL1) and Olkiluoto 2 (OL2) plant units. At the moment, the plant units are licensed until 2038.
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Fortum Corporation
In October 2022, Fortum started a two-year feasibility study to explore prerequisites for new nuclear in Finland and
Sweden. Fortum will examine commercial, technological and societal, including political, legal and regulatory,
conditions both for small modular reactors (SMRs) and conventional large reactors. The feasibility study will also
explore the potential for service business offerings for new projects in Europe and hydrogen for industrial applications.
Potential ventures in the nuclear industry will most likely involve partnership constellations. In late 2022 and during
2023, Fortum announced the exploration of potential cooperation opportunities regarding nuclear with the Finnish
energy company Helen, the French Electricité de France (EDF), the Swedish Kärnfull Next AB, the British Rolls-Royce
SMR, the Finland-based stainless steel company Outokumpu, the Korea Hydro & Nuclear Power Co. (KHNP), the
American Westinghouse Electric Company and the Swedish Studsvik. Any potential investment decisions would be
made at a later stage.
On 5 June, Fortum and the steel company SSAB announced the launch of a joint commercial feasibility study and
technical Front End Engineering Design (FEED) study to explore the possibilities of producing hydrogen-reduced
fossil-free sponge iron in Raahe, Finland. In October, SSAB and Fortum jointly concluded that it was not possible to
find a commercial arrangement that would work for both parties given the existing preconditions. The FEED study was
consequently concluded.
On 15 June, Fortum announced the start of the design of a small-scale hydrogen pilot plant in Loviisa, Finland, piloted
for industrial customer use.
On 20 June, Fortum announced that it is starting to develop an 80-MW industrial-scale solar power project in Virolahti.
The project is Fortum's first solar power development project in Finland. On 25 August, the company announced it is
investigating the possibility of a 90-MW solar park in Havdhem, in southern Gotland. In line with its strategy, Fortum is
exploring possibilities for growth in renewable power in the Nordics. The permit processes for a solar park in Finland
and Sweden take 1-3 years; after a possible investment decision, the construction is expected to take about a year.
On 21 June, Fortum announced that it had decided to invest approximately EUR 225 million during 2023-2027 in
projects within the Espoo Clean Heat programme to drive decarbonisation and build sustainable waste heat solutions
in the Helsinki metropolitan area. The total capital expenditure of the Espoo Clean Heat programme amounts to
approximately EUR 300 million. During 2023, EUR 31 million of these investments materialised. For further details,
see the ‘Capital expenditures’ section.
On 29 September, Fortum announced that it will invest over SEK 700 million (over EUR 60 million) during 2023-2030
to modernise Untra, one of Sweden's oldest hydropower plants. For further details, see the ‘Capital expenditures’
section.
On 5 October, Fortum announced that it had signed a 13-year fixed price Power Purchase Agreement (PPA) with the
Norwegian aluminium and renewable energy company Hydro Energi AS for the delivery of 0.44 TWh of electricity per
annum in Sweden. The power is sourced from Fortum’s electricity portfolio in the SE2 (Sundsvall) price area in central
Sweden. The contract period is 2024-2036.
On 30 October, Fortum announced that it had signed an agreement with Finland’s National Emergency Supply
Agency, Huoltovarmuuskeskus (NESA) under which NESA reserves the production of the Meri-Pori coal condensing
power plant for severe disruptions and emergencies to guarantee security of supply in the electricity system in
Finland. The agreement period is from 1 March 2024 until 31 December 2026. Over the coming winter months, the
Meri-Pori power plant will operate on a commercial basis to support security of supply in the Nordic power market.
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Fortum Corporation
Consumer Solutions
Consumer Solutions is responsible for offering energy solutions to consumers including small- and medium-sized
enterprises, predominantly in the Nordics and Poland. Fortum is the largest energy solutions provider across different
brands in the Nordics, with over two million customers. The business provides electricity, as well as related value-
added and digital services, mainly to retail customers.
EUR million IV/2023 IV/2022 2023 2022

Reported
Sales 1,069 1,460 3,766 4,578
- power sales 922 1,321 3,219 4,026
- gas sales 114 104 422 392
- other sales 33 35 125 161
Operating profit 59 -921 -215 -149
shares 22 20 103 71
EUR million IV/2023 IV/2022 2023 2022

Comparable
EBITDA 30 43 108 173
Operating profit 12 25 38 97
Return on net assets, % 4.5 9.1
Net assets (at period-end) 838 1,365
Sales volumes
TWh IV/2023 IV/2022 2023 2022

Electricity 10.3 8.2 33.0 29.6
Gas 1.6 1.3 5.2 4.8
Number of customers
Thousands* 31 Dec 2023 31 Dec 2022

Electricity 2,290 2,130
E-mobility** 60 70
Gas 40 40
Total 2,380 2,240
* Rounded to the nearest 10,000.
** Measured as average monthly paying customers for the quarter.
The electricity sales volume increased by 26%, and the gas sales volume increased by 23%. Higher volumes were
driven by colder weather and the acquisition of Telge Energi AB. Total sales revenue decreased by 27% due to lower
electricity and gas prices in the Nordics and Poland.
Comparable operating profit more than halved by EUR 13 million to EUR 12 million, mainly due to lower electricity
sales margins and the regulated electricity price cap for 2023 set for end users by the Polish Government. The
negative impact was partly offset by higher sales margins of value-added services and lower fixed costs. The
decrease in electricity sales margins was mainly due to customers migrating to lower margin spot products.
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Fortum Corporation
January–December 2023
The electricity sales volume increased by 11% and the gas sales volume in Poland increased by 8% in 2023. As
electricity and gas prices declined, consumption patterns normalised during the third and fourth quarter, and
consumers less actively targeted consumption to off-peak hours. Total sales revenue decreased by 18%, mainly due
to lower average electricity and gas prices in Nordics and Poland.
Comparable operating profit decreased by EUR 59 million and was EUR 38 million, mainly due to lower sales margins
partly offset by higher gas sales margins and lower fixed costs. The lower electricity sales margins were mainly the
result of losses due to customer outflow in certain hedged customer contracts in very volatile and high-price market
conditions, especially during the first half of the year. The regulated Polish power price cap for 2023 set for end users
by the Polish Government also had a negative impact on comparable operating profit.
Compared to the end of 2022, the number of customers increased by approximately 140,000, mainly due to the
acquisition of Telge Energi AB.
Especially during the first half of the year, Fortum continued to develop its product portfolio to meet its customers’
needs and to help support them in managing the exceptional market situation of unprecedentedly high and volatile
power prices. Fortum continues to offer advice on electricity conservation and encourages smart consumption, such
as shifting consumption away from peak-hours to support the energy system. Fortum also offers support to customers
on how to more actively manage invoices and provides flexible payment plans.
On 31 August, Fortum completed the acquisition of the Swedish electricity solutions provider Telge Energi AB from
Telge AB. The total consideration for the entire shareholding in Telge Energi on a cash and debt-free basis was
approximately SEK 450 million (EUR 39 million). The transaction was originally announced on 7 June.
Other Operations
The Other Operations segment includes the Circular Solutions business, which is responsible for operating,
maintaining and developing Fortum’s recycling and waste assets, as well as turbine and generator services and
biobased solutions. The Other Operations segment also comprises innovation and venturing activities, enabling
functions and corporate management.
IV/2022 2022
Reported
Sales 147 161 548 589
- power sales 2 6 9 24
- heat sales 13 10 31 28
- waste treatment sales 63 61 226 219
- other sales 69 85 281 318
Operating profit -52 -61 -181 -13
Share of profit/loss of associates and joint ventures -1 0 0 -7
shares 35 33 107 111
IV/2022 2022
Comparable
EBITDA -23 -12 -80 -23
Operating profit -43 -38 -173 -116
Share of profit/loss of associates and joint ventures -1 0 0 -7
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Fortum Corporation
Comparable operating profit decreased by EUR 5 million and amounted to EUR -43 million, mainly due to
development costs for the new operating model and higher costs in enabling functions, the negative effect of which
was partly offset by improved performance of the Circular Solutions business, especially in the Sustainable materials
business.
January–December 2023
Comparable operating profit decreased by EUR 57 million and amounted to EUR -173 million, mainly due to lower
results in the recycling and waste and battery businesses, including higher costs largely arising from the expansion of
the battery recycling business, write-downs of certain IT projects, development costs for the new operating model and
higher costs in enabling functions. The comparison period included structural changes in the Circular Solutions
business and one-time positive impacts from changes in pension fund arrangements in Sweden affecting the Group’s
enabling functions.
On 4 August, Fortum announced that the company had decided to assess strategic options, including potential
divestments of its Circular Solutions businesses, as a result of the continuous review of its business portfolio. In March
2023 when Fortum launched its new strategy, it was communicated that the Circular Solutions businesses are not in
the core of the strategy. The Circular Solutions businesses are responsible for operating, maintaining and developing
Fortum’s recycling and waste assets, as well as turbine and generator services and biobased solutions. For further
details, see the ‘Capital expenditures’ section.
Discontinued operations (Russia and Uniper)

IV/2022 2022
Sales - 329 287 129,126
Comparable operating profit - 75 86 -4,487
Operating profit - -479 -3,521 -17,091
Net profit from discontinued operations - -1,038 -3,582 -12,374
Net profit from discontinued operations, attributable
to the owners of the parent - -1,038 -3,583 -4,496
Net cash from/used in operating activities - 156 109 -10,484
On 25 April, Fortum’s subsidiary PAO Fortum (Fortum JSC) was put under asset management based on a Russian
Presidential decree that introduced a “temporary” asset management to assets owned by certain foreign entities in
Russia. On 26 April, PAO Fortum announced that this caused a replacement of the company’s CEO, and the Russian
State Property Management, Rosimushchestvo, seized control of Fortum’s assets in Russia and deprived Fortum of
its shareholder rights. Fortum no longer has control of its Russian operations and the Russia segment was
deconsolidated in the second quarter of 2023. Further, Fortum recorded impairments of EUR 1.7 billion (full book
value) and deconsolidation-related negative cumulated foreign exchange translation differences of EUR 1.9 billion.
The impairments of EUR 1.7 billion negatively impacted the Group equity. However, the negative cumulative
translation differences of EUR 1.9 billion were only reclassified within equity and recycled through the income
statement as required by IFRS, having no impact on equity.
In order to protect its legal position and shareholder interests, Fortum will seek compensation through arbitration, in
particular for the value of its shares in PAO Fortum and its investments in Russia, and has sent notices of dispute due
to the Russian Federation’s violations of its investment treaty obligations under the Bilateral Investment Treaties that
the Russian Federation has concluded with the Netherlands and Sweden. These notices of dispute are the first step
required in arbitration proceedings, which are expected to be initiated in early 2024.
The Uniper segment is included in the comparison figures for 2022, as it was deconsolidated and reclassified as
discontinued operations in September 2022 following the signing of the agreement in principle with the German
Government to divest Uniper. The transaction was completed in December 2022.
For further details, see Notes 1, 2, 6 and 11.
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Fortum Corporation
Capital expenditures, divestments and investments in

shares
In the fourth quarter of 2023, capital expenditures and investments in shares totalled EUR 169 (159) million. Capital
expenditures were EUR 159 (153) million (Notes 3 and 6).
In 2023, capital expenditures and investments in shares totalled EUR 664 (496) million. Capital expenditures were
EUR 611 (467) million (Notes 3 and 6).
Fortum expects to start, or has started, power and heat production capacity of new power plants and expects to
upgrade its existing plants as follows:
Electricity Heat
capacity, capacity, Supply Latest
Type MW MW starts/started announced
Generation
Pjelax-Böle and Kristinestad Norr,
Finland Wind 380 II/2024 12 Oct 2023
Lifetime
Loviisa, Finland Nuclear extension 16 Feb 2023
Waste
heat
Espoo and Kirkkonummi, Finland utilisation 360 IV/2025 21 Jun 2023
Untra, Sweden Hydro 6 29 Sep 2023
Generation
On 3 March 2021, Fortum announced a substantial investment in dam safety in Sweden for an extensive rebuild of the
over 100-year-old Forshuvud hydropower plant. Fortum is investing approximately SEK 650 million (approximately
EUR 59 million) during 2021–2025. This investment guarantees safe operation of the power plant as a supplier of
renewable electricity and balancing power for more weather-dependent types of power.
On 22 December 2021, Fortum announced an investment decision to construct the 380-MW Pjelax-Böle and
Kristinestad Norr wind farm in Närpes and Kristinestad in Finland in partnership with the Finnish energy company
Helen Ltd. Construction started in January 2022, and the wind farm is expected to be fully operational in the second
quarter of 2024 at the latest. The construction project is progressing according to plan, and the testing of power
generation at the wind farm started in October 2023. Fortum has a 60% majority and Helen a 40% minority ownership
in the project; Fortum consolidates the investment on its balance sheet. The total capital expenditure of the project is
approximately EUR 360 million, of which Fortum’s share is approximately EUR 216 million.
On 16 February, the Finnish Government granted a new operating licence for both units at Fortum’s Loviisa nuclear
power plant until the end of 2050. Over the course of the new licence period, the plant is expected to generate up to
170 terawatt hours of CO2-free electricity. Investments related to the continuation of operations and lifetime extension
will amount to an estimated EUR 1 billion during 2023-2050. Over the past five years, Fortum has already invested
approximately EUR 200 million in refurbishing the Loviisa power plant. The Loviisa power plant is the first nuclear
power plant in Finland and has two units: unit 1 started operating in February 1977, and unit 2 in November 1980.
On 21 June, Fortum announced that it had decided to invest approximately EUR 225 million during 2023-2027 in
projects within the Espoo Clean Heat programme to drive decarbonisation and build sustainable waste heat solutions
in the Helsinki metropolitan area. The total capital expenditure of the Espoo Clean Heat programme amounts to
approximately EUR 300 million. During 2023, EUR 31 million of these investments materialised. Fortum’s district heat
in Finland will be coal-free already in 2025 and carbon-neutral before 2030. In March 2022, Fortum and Microsoft
announced cooperation on waste heat. A significant part of the programme’s targets can be achieved by utilising
waste heat from Microsoft’s planned large-scale data centres that will be built in Espoo and Kirkkonummi. The
investment includes building heat pump plants on the Espoo and Kirkkonummi sites for waste heat recovery and
approximately 15 km of new or upgraded district heating main pipeline. Construction of Fortum’s sustainable heat
solutions on the Kirkkonummi site began in September 2023. Heat production with air-to-water heat pumps and
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Fortum Corporation
electric boilers at the sites in Kirkkonummi and Espoo is expected to start in the heating season of 2025-2026. The
district heat production capacity is expected to be approximately 180 MW per site, producing a total of approximately
1.4 TWh annually by utilising Microsoft Kirkkonummi and Espoo data centres’ waste heat, air-to-water heat pumps
and electric boilers.
On 29 September, Fortum announced that it will invest over SEK 700 million (over EUR 60 million) during 2023-2030
to modernise Untra, one of Sweden's oldest hydropower plants. After the modernisation, the power plant will have an
output of 48 MW. The renovation will involve the replacement of three turbine units and a significant restructuring of
the power plant, all aimed to ensure Untra's ability to provide flexibility to the power system and to supply fossil-free
electricity to Sweden. With the advanced turbine technology, the annual electricity production will increase from 270
GWh to approximately 300 GWh. Of the total investment, approximately half is classified as growth capital
expenditure. Approximately EUR 15 million of the investment is already included in Fortum’s committed growth capital
expenditure of EUR 800 million for the years 2023-2025.
Consumer Solutions
On 7 June, Fortum announced that the company had agreed to acquire the entire shareholding in the Swedish
electricity solutions provider Telge Energi AB on a cash and debt-free basis for approximately SEK 450 million (EUR
39 million) from Telge AB. The acquisition supports Fortum’s strategic priorities and further strengthens its leading
position in providing clean electricity solutions to consumer and enterprise customers in the Nordics. Telge Energi is
among the 10 largest clean electricity retailers in Sweden, with a portfolio of approximately 150,000 customer
contracts. In 2022, Telge Energi delivered 1.8 TWh of electricity, the total of which was clean energy, with an EBITDA
of SEK 23 million (approximately EUR 2 million). The transaction, which required approvals from the municipal
government and the local government council of Södertälje, as well as clearance by the European Commission, was
completed on 31 August 2023.
Other Operations
In July 2022, Fortum and GIG (Green Investment Group, a specialist green investor within Macquarie Asset
Management) agreed to invest in a new waste-to-energy plant in Glasgow, Scotland, through a 50/50 joint venture.
When fully commissioned, the South Clyde Waste-to-Energy plant will have an annual processing capacity of 350,000
tonnes of waste. The plant will have a power generation gross capacity of 45 MWe, corresponding to the average
annual electricity consumption of approximately 90,000 homes.
In June 2021, Fortum made an investment decision to expand its lithium-ion battery recycling capacity by building a
hydrometallurgical plant in Harjavalta. The investment of approximately EUR 30 million increased Fortum’s
hydrometallurgical recycling capacity and enabled the production of battery chemicals. In December 2022, Fortum
announced that the construction work and the gradual deployment tests of the company’s new battery material
recycling facility in Finland were completed according to plan. On 27 April 2023, Fortum announced that the
hydrometallurgical battery recycling facility had started commercial operations.
On 4 August 2023, Fortum announced that the company had decided to assess strategic options, including potential
divestments of its Circular Solutions businesses, as a result of the continuous review of its business portfolio. In March
2023 when Fortum launched its new strategy, it was communicated that the Circular Solutions businesses are not in
the core of the strategy. The Circular Solutions businesses are responsible for operating, maintaining and developing
Fortum’s recycling and waste assets, as well as turbine and generator services and biobased solutions. In 2023, these
business operations employed approximately 1,200 people mainly in the Nordics (Finland, Sweden and Denmark),
and its comparable EBITDA was approximately EUR 40 million. At the end of 2023, the net assets of the Circular
Solutions businesses were approximately EUR 750 million. Fortum expects the strategic assessment to take
approximately one year.
Operating and regulatory environment

European power markets
In Continental Europe, autumn was milder than normal, which helped the gas and power markets to continue on the
downward development that characterised the whole year 2023. In the Nordics, however, the weather turned cold and
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Fortum Corporation
dry in the fourth quarter. This, together with below normal wind conditions, led to a rapidly decreasing reservoir
balance; Nordic spot prices consequently recovered by the end of the year from the lower levels seen in the previous
quarter.
According to preliminary statistics, power consumption in the Nordic countries was 113 (103) TWh during the fourth
quarter of 2023. Power demand was clearly above the five-year average, due to cold weather and continuing recovery
of the Nordic power demand. In 2023, power consumption in the Nordics was 386 (386) TWh.
In Central Western Europe (Germany, France, Austria, Switzerland, Belgium and the Netherlands), power
consumption in the fourth quarter of 2023 was 335 (329) TWh, according to preliminary statistics. In 2023, power
consumption in Central Western Europe was 1,272 (1,322) TWh. Power demand in Continental Europe continued to
be clearly below the five-year average, affected by energy conservation measures and mild winter quarters.
At the beginning of the fourth quarter of 2023, the Nordic hydro reservoirs were at 106 TWh, which was 5 TWh above
the long-term average and 17 TWh above the level of the previous year. Inflow was clearly below normal and hydro
generation was above the normal level, especially during October and November. At the end of 2023, the reservoir
levels were at 77 TWh, which is 7 TWh below the long-term average and 2 TWh lower than in the previous year.
During the fourth quarter of 2023, power prices recovered significantly throughout the Nordics on a quarter-to-quarter
basis but remained clearly below the corresponding price levels compared to one year earlier. The average system
spot price at Nord Pool was EUR 58 (136) per MWh. The average area price in Finland was EUR 61 (185) per MWh.
In Sweden, the average area price in the SE3 area (Stockholm) was EUR 56 (147) per MWh, and the price in the SE2
area (Sundsvall) was EUR 44 (116) per MWh. In Germany, the average spot price in the fourth quarter was EUR 82
(193) per MWh.
For 2023, the average system spot price in Nord Pool was EUR 56 (136) per MWh. The average area price in Finland
was EUR 56 (154) per MWh, in the SE3 area in Sweden (Stockholm) EUR 52 (129) per MWh, and in the SE2 area in
Sweden (Sundsvall) EUR 40 (62) per MWh. In Germany, the average spot price during 2023 was EUR 95 (235) per
MWh.
In early February, the Nordic system electricity forward price on Nasdaq Commodities for the remainder of 2024 was
around EUR 45 per MWh and for 2025 around EUR 41 per MWh. The Nordic water reservoirs were at 63 TWh, which
is about 9 TWh below the long-term average and 5 TWh lower than one year earlier. The German electricity forward
price for the remainder of 2024 was around EUR 74 per MWh and for 2025 around EUR 81 per MWh.
European commodity markets

Gas demand in Central Western Europe was 512 (524) TWh in the fourth quarter and 1,715 (1,867) TWh in full-year
2023. The Central Western European gas storage levels decreased from 607 TWh at the beginning of the quarter to
559 TWh at the end of the quarter, which is 27 TWh higher than one year ago and 101 TWh higher than the five-year
average (2018–2022).
The average gas front-month price (TTF) in the fourth quarter of 2023 was EUR 43 (124) per MWh. The average gas
front-month price (TTF) for full-year 2023 was EUR 41 (133) per MWh. The 2024 forward price decreased from EUR
46 per MWh at the beginning of the fourth quarter to EUR 34 per MWh at the end of the year. At the beginning of
2023, the TTF forward price for 2024 delivery was at EUR 78 per MWh.
The EUA (EU Allowance) price decreased from EUR 81 per tonne at the beginning of the fourth quarter of 2023 to
EUR 80 per tonne at the end of the year. The average EUA price for full-year 2023 was EUR 85 per tonne.
The forward quotation for coal (ICE Rotterdam) for 2024 decreased from USD 126 per tonne at the beginning of the
fourth quarter of 2023 to USD 98 per tonne at the end of the year. At the beginning of 2023, the forward quotation for
coal (ICE Rotterdam) for 2024 delivery was at EUR 173 per tonne.
In early February, the TTF forward price for gas for the remainder of 2024 was EUR 31 per MWh. The forward
quotation for EUAs for 2024 was at the level of EUR 63 per tonne. The forward price for coal (ICE Rotterdam) for the
remainder of 2024 was USD 95 per tonne.
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Fortum Corporation
Regulatory environment
EU institutions reached an agreement on the revised EU electricity market design
On 13 December 2023, the European Council and the Parliament reached a final agreement on the European market
design legislation at a record speed of nine months of negotiations. The revised market design framework is putting
forth a large array of de-risking instruments ranging from state-backed power purchase agreements, two-way
contracts for difference (CfD) or equivalent, capacity remuneration mechanisms (CRMs) to other forms of support
including targeted investment aid to counter-balance the volatility of energy prices. Fortum welcomes the revised
framework which is expected to facilitate clean energy investments needed for the energy transition whilst providing
more predictable prices to electricity consumers.
The majority of the provisions contained in this regulation will be applicable six months after its entry into force.
Agreement reached on the decarbonised gas market package
In December 2023, the European Parliament and the Council reached a final agreement on the hydrogen and
decarbonised gas market package which establishes internal market rules and enables conditions for renewable and
natural gas, including hydrogen.
A general definition for low-carbon hydrogen is introduced, but the detailed methodology for calculating the emission
reduction will not be presented until 2025. Until this secondary legislation is available, labelling or certifying low-carbon
hydrogen, in particular based on nuclear power, will not be possible, and public funding instruments will not be
available for projects producing low-carbon hydrogen, thus leaving mainly renewable fuels of non-biogenic origin
(RFNBO) eligible for public funding.
The official endorsement of the regulation is expected in March 2024, and it will enter into force six months after the
official publication.
Nature restoration regulation trilogues finalised
In November 2023, the European Parliament and Council reached a provisional political agreement on the EU nature
restoration regulation. The regulation combines an overarching restoration objective for the long-term recovery of
nature in the EU’s land and sea areas with binding restoration targets for specific habitats and species. EU countries
will be obliged to submit National Restoration Plans to the Commission on how they will deliver on the targets.
The impacts of the regulation on Fortum’s hydropower assets will depend on the national implementation.
Swedish nuclear waste fund fees to be recalculated
On 21 December 2023, the Swedish Government decided on the nuclear waste fund fees for a one-year period
covering 2024 instead of the earlier three-year period.
Swedish roadmap for new nuclear investments published
On 16 November 2023, the Swedish Government published its roadmap for new nuclear. The aim is to promote
investments to provide long-term predictability especially through credit guarantees totalling EUR 35 billion and a long-
term risk-sharing model between the Swedish state and companies. According to the roadmap, new nuclear capacity
equivalent to two large-scale reactors (totalling 2,500 MW) shall be commissioned by 2035 and new capacity
equivalent to ten reactors by 2045. A specific nuclear coordinator from the energy industry has been appointed to
identify needed actions and to summon all relevant stakeholders.
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Key drivers and risks

Fortum’s operations are exposed to a number of financial, operational, strategic and sustainability-related risks.
Fortum is exposed to these risks both directly and indirectly through its subsidiaries, associated companies and joint
ventures. The principal associated companies and joint ventures are Teollisuuden Voima Oyj, Forsmarks Kraftgrupp
AB, OKG AB and Kemijoki Oy. For more information, see Fortum’s Financials 2022.
Fortum’s new strategy, launched in March 2023, has been developed partly in order to reduce the Group’s business
risks. With Fortum’s core business consisting mainly of outright generation assets in the Nordics, the Nordic power
price exposure remains the single largest key driver and financial risk for Fortum. It is a key priority for Fortum to
successfully mitigate this market risk, including managing the related credit and liquidity risks from hedging this
exposure.
The main strategic risks are that the business and/or regulatory environment develop in ways that have not been
foreseen and prepared for. The current geopolitical uncertainty continues to pose material operational and business
risks for Fortum as the owner and operator of power and heat generation in the Nordics and Poland. Future energy
market, regulation and climate scenarios as well as scenarios for how the current geopolitical situation develops,
including the impact of these to Fortum’s existing and potential new businesses, are regularly updated and used in the
development of the strategy.
Sustainability-related risks including exposure to climate change, continue to be a focus area for Fortum and we are
well-positioned to take advantage of opportunities in the green transition with our existing portfolio of largely CO2-free
assets.
Business operating environment

Fortum operates in a global business environment, with a main operational focus in the Nordics, and is therefore
exposed to political and other risks that affect the macroeconomic development and consumer behaviour in Fortum’s
markets.
The global landscape has experienced a further escalation of conflict and increasing geopolitical uncertainty. Several
regional and territorial disputes have worsened, increasing instability and insecurity in energy-producing regions,
potentially disrupting energy supply chains and raising concerns about energy security. Russia’s attack on Ukraine in
February 2022 severely impacted Fortum’s businesses. A number of geopolitical risks have realised, while other risks
remain on an elevated level as a result of the ongoing war. Following the unlawful seizure by the Russian authorities
and loss of control of the Russian operations in spring 2023, the Russian assets were fully written down,
deconsolidated and discontinued. Fortum has sent notices of dispute to the Russian Federation in order to protect its
legal position and shareholder interests. These notices of dispute are the first step required in arbitration proceedings
planned to be initiated in early 2024. A further escalation of the war may increase the risk of hostile actions by the
Russian Federation against foreign companies. This could have severe implications, such as an increased risk of
sabotage including direct physical or cyber-attacks on, for example, energy infrastructure in Fortum’s operating
countries.
The current geopolitical uncertainty has also intensified the trend of nationalistic policies and protectionism, which may
lead to further trade restrictions or sanctions – which, in turn, could affect demand for Fortum’s products and services,
production capabilities, asset values and access to financing. The EU, US and UK have implemented a broad range of
sanctions towards Russia, the scope of which may be further increased. The unpredictable nature of sanctions
remains a risk for Fortum, despite having lost control of the Russian business.
Regulatory environment
The energy sector is heavily influenced by national and EU-level energy and climate policies and regulations. The
overall complexity and possible regulatory changes in Fortum’s operating countries pose risk and create opportunities
for the generation and consumer businesses. Fortum analyses and assesses a number of future market and
regulation scenarios, including the impact of these on different generation forms and technologies, as part of its
strategy. Fortum maintains an active dialogue with different policymakers and legislators involved in the development
of laws, policies and regulations in order to manage these risks and to proactively contribute to the development of the
energy and climate policy and regulatory framework in line with Fortum’s strategic objectives.
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Nordic power price exposure and related risks

The earnings capability and profitability of Fortum’s outright power generation, such as hydro, nuclear and wind power
generation, are primarily exposed to fluctuations in the Nordic power prices. In the Nordics, power prices exhibit
significant short- and long-term variations on the back of several factors, including, but not limited to, weather
conditions, outage patterns in production and transmission lines, CO₂ emission allowance prices, commodity prices,
energy mix and the supply-demand balance. An economic downturn, lower commodity prices, warm weather or wet
hydrology could lead to significantly lower Nordic power prices, which would negatively impact earnings from Fortum’s
outright power production. The increased geopolitical uncertainty and fears of escalation of other conflicts may impact
power and other commodity prices and volatility, especially in case of disturbances to other sources of power or gas
supply. In general, price volatility is expected to continue also with the increasing share of intermittent generation and
the occasionally re-emerging concerns over security of energy supply. This also increases the risk of further political
market interventions going forward. Fortum hedges its exposure to commodity market prices in order to improve
predictability of future results by reducing volatility in earnings while ensuring that there is sufficient cash flow and
liquidity to cover financial commitments.
Fortum’s liquidity and refinancing risks are primarily related to the need to finance its business operations, including
margining payments and collaterals issued to enable hedging of commodity market risk exposures. Higher and more
volatile commodity prices increase the net margining payments toward clearing houses and clearing banks. Fortum
mitigates this risk by entering into over-the-counter (OTC) derivatives contracts directly with bilateral counterparties
without margining requirements. Consequently, credit exposure from hedges with OTC counterparties has increased.
Due to Fortum’s net short position in Nordic power hedges, the credit exposure would increase in line with the value of
hedges if Nordic power prices decrease. Trading OTC also exposes the Group to liquidity risk in case of a
counterparty default. A default could trigger a termination payment in cases where the net market value of the bilateral
contracts is positive for the counterparty.
Fortum targets to maintain a solid investment grade-rating of at least BBB. A lowering of the credit ratings, in particular
to below investment-grade level (BB+ or below), could trigger counterparties’ rights to demand additional cash or non-
cash collateral. In March 2023, both S&P Global Ratings and Fitch rating agencies affirmed Fortum’s BBB rating and
revised the outlook to stable. Fortum continues to constantly monitor all rating-related developments and to regularly
exchange information with the rating agencies. In 2023, a new risk management framework was developed to manage
credit, liquidity and market risks holistically and to support in maintaining our rating under different market scenarios.
Operational Risks
Fortum’s business activities include energy generation, storage and control of operations, as well as the construction,
modernisation, maintenance and decommissioning of power plants or other energy-related industrial facilities. Any
unwanted operational event (which could be caused by, e.g., technical failure, human or process error, natural
disaster, sabotage, failure of key suppliers, or terrorist attack) can endanger personal safety or lead to environmental
or physical damage, business interruptions, project delays and possible third-party liability. The associated costs can
be high, especially in Fortum’s largest units and projects.
Climate change
Fortum believes that the growing awareness and concern about climate change will increase the demand for low-
carbon and resource- and energy-efficient energy products and services. The company is leveraging its know-how in
CO2-free hydro, nuclear, wind and solar power by offering its customers low-carbon energy solutions. The
electrification of energy-intensive industry, services and transportation is likely to increase the consumption of low-
carbon electricity in particular. The development of the hydrogen economy, and especially clean hydrogen produced
with CO2-free power, will offer business opportunities for Fortum.
Driving the transition to a lower-carbon economy is therefore an integral part of Fortum’s strategy. Fortum’s strategy
includes ambitious sustainability and decarbonisation ambitions. However, the transition to a low-carbon economy
poses a number of strategic and operative risks related to changes in energy and climate policy and regulation,
technology development and the business environment in which Fortum operates.
Fortum’s operations are exposed to the physical risks caused by climate change, including changes in weather
patterns that could alter energy production volumes and energy demand. Fluctuating precipitation, flooding and
extreme temperatures may affect, e.g., hydropower generation, dam safety, availability of cooling water, and the price
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and availability of biofuels. Hydrological conditions, precipitation, temperatures, and wind conditions also affect the
short-term electricity price in the Nordic power market. In addition to climate change mitigation, we also aim to adapt
our operations, and we take climate change into consideration in, among other things, the assessment of growth
projects and investments as well as in operation and maintenance planning. Fortum identifies and assesses its assets’
resilience towards different acute and chronic physical climate-related risks within different Intergovernmental Panel
on Climate Change (IPCC) climate scenarios and creates adaptation plans for the most material risks.
For further information about Fortum’s risks and risk management systems, see Fortum’s Financial Statements for
2022 and Financial Statements for 2023, which will be published in week 7 at the latest.
Outlook
In the near term, the ongoing disruption of the energy sector is impacted by geopolitical tensions, the general negative
economic outlook with high inflation and interest rates, tightening regulations and volatile commodity markets. In
addition, in the short-term, price elasticity to counter high electricity prices has an impact on power consumption.
In the long-term, electricity is expected to continue to gain a significantly higher share of total energy consumption.
The electricity demand growth rate will largely be determined by classic drivers, such as macroeconomic and
demographic development, but also increasingly by decarbonisation of energy-intensive industrial, transport and
heating sectors through direct electrification and green hydrogen.
Hedging
At the end of 2023, approximately 70% of the Generation segment’s estimated Nordic power sales volume was
hedged at EUR 47 per MWh for 2024 (at the end of the third quarter of 2023: 65% at EUR 47 per MWh) and
approximately 40% at EUR 43 per MWh for 2025 (at the end of the third quarter of 2023: 30% at EUR 43 per MWh).
At the end of 2023, for the rolling 10-year period of 2024-2033, approximately 15% of the Generation segment’s
estimated Nordic power sales volume was hedged. These hedges relate to Fortum’s new strategic target of a hedged
share of rolling 10-year outright generation volume more than 20% by end of 2026.
The reported hedge ratios are based on the hedges and power generation forecasts of the Generation segment.
The reported hedge ratios may vary significantly, depending on Fortum’s actions on the electricity derivatives markets.
Hedges are mainly financial contracts, most of which are electricity derivatives quoted on Nasdaq Commodities and
traded either on Nasdaq Commodities or with bilateral counterparties. As an additional liquidity risk mitigation
measure, Fortum has mainly been hedging with bilateral agreements, and the exposure on the Nasdaq Commodities
exchange has been clearly lower during the past year.
In the fourth quarter of 2023, Fortum continued to utilise dual channels for its hedging: both trading on the Nasdaq
Commodities exchange, depending on the market liquidity and financial optimisation, as well as with bilateral
arrangements. The majority of the trades still remained in bilateral contracts.
Capital expenditure
Fortum estimates its capital expenditure, including maintenance but excluding acquisitions, to be approximately EUR
550 million in 2024, of which the share of maintenance capital expenditure is estimated to be approximately EUR 300
million, below the level of depreciation. For 2024-2026, Fortum’s capital expenditure is expected to be approximately
EUR 1.7 billion (excluding acquisitions), of which growth capital expenditure is expected to be EUR 800 million and
annual maintenance capital expenditure EUR 300 million. Of the growth capital expenditure of EUR 800 million, EUR
300 million is uncommitted.
Generation
The Generation segment’s achieved Nordic power price typically depends on factors such as hedge ratios, hedge
prices, spot prices, availability and utilisation of Fortum’s flexible generation portfolio, as well as currency fluctuations.
Excluding the potential effects from changes in the power generation mix (currently approximately 45 TWh), a EUR 1
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per MWh change in the Generation segment’s achieved Nordic power price will result in an approximately EUR 45
million change in the segment’s annual comparable operating profit. The achieved power price also includes the
results of optimisation of Fortum’s hydro and nuclear generation, as well as operations in the physical and financial
commodity markets. Historically, the optimisation margin included in the achieved power price has been in the range
of EUR 1-3 per MWh. Due to the increased price volatility, Fortum updated in the third quarter of 2023 the estimated
optimisation margin and expects it to be in the range of EUR 6-8 per MWh, depending on the overall market
conditions, level of volatility and electricity prices.
Income taxation
The comparable effective income tax rate for Fortum is estimated to be in the range of 18-20% for 2024-2026.
Fortum’s comparable effective tax rate is impacted by the weight of the profit in different jurisdictions and differences
in standard nominal tax rates in these jurisdictions. The tax rate guidance excludes items affecting comparability.
Sustainability
In this financial statements bulletin, sustainability key performance indicators are presented for continuing operations.
Comparative information for I/2023 and I-IV/2022 has been restated following the classification of the Russia segment
as discontinued operations in II/2023.
Fortum highlights the importance of decarbonisation and climate change mitigation, while at the same time the
necessity to secure reliable and affordable energy for all. Fortum also gives balanced consideration in its operations to
the promotion of energy efficiency and a circular economy, as well as its impacts on personnel and societies.
Fortum’s sustainability performance is monitored and disclosed in interim and annual reporting. Fortum publishes an
annual Sustainability Report with more extensive information on Fortum’s sustainability performance.
Sustainability targets
Fortum’s position as a leading Nordic clean energy company is complemented by considerably enhanced
environmental targets with the aim to be a leader in sustainability. Fortum has set a target to reach carbon neutrality
(Scopes 1, 2, 3) by 2030 and will exit all coal-based generation by the end of 2027. Fortum also commits to set
emission reduction targets based on climate science (SBTi 1.5°C). To measure the progress, mid-point targets have
also been set for specific emissions at below 20 g CO2/kWh for total energy production and below 10 g CO2/kWh for
power generation by 2028.
Further, Fortum has also committed to an ambitious biodiversity target to have no net loss of biodiversity (excluding
any aquatic impacts) from existing and new operations (Scopes 1, 2) from 2030 onwards. In addition, the company will
reduce its negative dynamic terrestrial impacts in upstream Scope 3 by 50% by 2030 (base year 2021). Fortum will
continue to implement local initiatives, especially in hydropower production, and is committed to participate in the
development of a science-based methodology to assess the aquatic impacts of hydropower.
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Emission reduction targets and performance for continuing operations
Group emission reduction targets set in 2023 are part of 2023 reporting, and performance against the climate targets
are presented in the table below.
Base Change
year 2022, compared to
Climate target Indicator 2023 restated base year, %
Carbon neutrality by 2030 at the latest Total Scope 1, 2 and 3
emissions,
million tonnes CO2-eq 14.4 11.8 22
Exit all coal generation by the end of 2027 Coal-based capacity, GW 1.3 1.4 -
Coal-based power generation
capacity, GW 0.7 0.7 -
Coal-based heat production
capacity, GW 0.6 0.6 -
Coal-based power and heat
production, TWh 1.9 2.9 -34
Coal-based power
generation, TWh 0.6 1.2 -50
Coal-based heat production,
TWh 1.2 1.7 -29
Coal share of Fortum’s
revenues, % 3 4 -25
Specific emissions of below 20 g CO2/kWh Specific emissions for total
for total energy production by 2028 energy production, g CO2/kWh 32 45 -29
Specific emissions of below 10 g CO2/kWh Specific emissions for power
for power generation by 2028 generation, g CO2/kWh 16 25 -36
In 2023, Fortum’s CO2-eq emissions, including all Scope 1, 2 and 3, totalled 14.4 million tonnes, compared to 11.8
million tonnes in 2022. Major changes in emissions were due to the increase of indirect Scope 3 emissions related to
electricity retail to customers and to the decrease of direct Scope 1 emissions.
Fortum’s direct CO2 emissions (Scope 1) and indirect CO2 emissions (Scope 2) totalled 1.7 million tonnes, which
decreased by 23% compared to 2022. In 2023, Fortum’s Scope 3 greenhouse gas emissions totalled 12.7 million
CO2-eq tonnes, compared to 9.5 million CO2-eq tonnes in 2022, i.e. increasing 34%.
For Fortum, excellence in safety and caring about both its own employees and contractors is the foundation of the
company’s business and an absolute prerequisite for efficient and interruption-free production.
Fortum’s safety targets for 2023 are:
• Total Recordable Injury Frequency (TRIF), for own personnel and contractors, <1.0 by the end of 2030,
• No severe or fatal injuries,
• 95% execution rate for the Management Safety and Security Leadership Programme, and
• 60% execution rate for Safety improvement plans.
In 2023, Fortum participated in the ‘Energy for a Just Transition’ collaboration, facilitated by BSR in partnership with
The B Team, aiming to bring together committed energy utilities, related companies and critical stakeholders to help
the energy industry to better plan and implement a just, fair and inclusive transition.
Fortum has a long-standing focus on mitigating climate change and has adopted the reporting recommendations of
the Task Force on Climate-related Financial Disclosures (TCFD) starting from the financial year 2019.
Fortum’s Climate Lobbying Review is publicly disclosed on Fortum’s website together with the company’s Lobbying
Guidelines.
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Group sustainability performance for continuing operations
IV/2022 2022
IV/2023 restated 2023 restated
Climate and resources
Direct CO2 emissions, million tonnes 0.4 0.8 1.6 2.1
Specific CO2 emissions from total energy production,
gCO2/kWh 30 64 32 45
Specific CO2 emissions from power generation, gCO2/kWh
12 45 16 25
Major environmental incidents*, no. 0 0 2 2
Personnel and society
Total Recordable Injury Frequency (TRIF), own personnel
and contractors, injuries per million working hours 4.4 2.2 5.0 4.0
Lost Time Injury Frequency (LTIF), own personnel and
contractors, injuries per million working hours 2.8 1.7 3.9 2.3
Severe occupational accidents, no. 0 0 0 2
Safety improvement plan**, % 68.3 - 78 -
Management Safety and Security Leadership
Programme**, % 25 - 100 -
Sickness-related absences, % 3.5 3.5 3.1 3.4
* Number of environmental incidents that resulted in significant harm to the environment (ground, water, air) or an environmental non-compliance with legal or regulatory
requirements.
** Completion rate.
Fortum’s goal is to achieve excellent financial performance in strategically selected core areas through strong
competence and responsible ways of operating. Fortum received a score of “B“ in the CDP Climate Change 2022
rating and “A-“ in the CDP Supplier Engagement rating. In 2023, Fortum received a rating of “A” (on a scale of AAA-
CCC) in the MSCI ESG Ratings assessment. Fortum also participated in the ISS ESG Corporate Rating in 2023 and
received a “Prime B-” rating. In 2023, Fortum was awarded Gold EcoVadis Medal. In 2022, Fortum was rated 62
points out of a maximum 100 points by Moody’s ESG Solutions. In addition, Fortum is listed on the Nasdaq Helsinki
exchange and is included in the OMX Sustainability Finland and ECPI® indices. Fortum has been certified as a
Nasdaq ESG Transparency Partner.
Climate and resources

Fortum’s key performance indicators for climate and resources are related to CO2 emissions, security of supply, and
major environmental incidents. Operational-level activities follow the requirements set forth in the ISO 14001
environmental management standard, and 100% of Fortum’s power and heat production worldwide has ISO 14001
certification.
Fortum’s power generation in the Nordic countries is mainly based on CO2-free hydro and nuclear power. Fortum also
has solar and wind power generation with partners. Fortum has district heating and cooling generation in Finland and
in Poland. Heat is mainly produced at energy-efficient combined heat and power (CHP) plants. In addition, Fortum
offers industrial and infrastructure solutions, e.g., waste-to-energy, as well as energy sales.
In 2023, Fortum’s direct CO2 emissions were 1.6 (2.1) Mt. Of the total CO2 emissions, 1.1 (1.6) Mt were within the EU
emissions trading system (ETS). The estimate for Fortum’s free emission allowances in 2023 is approximately 0.2
(0.2) Mt.
In 2023, Fortum’s power generation was 47.0 TWh. Of Fortum’s total power generation, 98% was CO2-free. Fortum’s
coal-based power generation capacity totalled 0.7 GW at the end of December, and generation 0.6 TWh in 2023.
Fortum’s coal-based heat production capacity totalled 0.6 GW at the end of December, and production 1.2 TWh in
2023. The share of coal of Fortum’s revenues was 3% (4%). The share of fossil fuels of Fortum’s revenues was 11%,
including fossil-based production and gas trading. The share of fossil fuels of Fortum’s production-based revenues
was 5% (6%).
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Fortum’s direct CO2 emissions (million tonnes, Mt,

continuing operations) IV/2023 IV/2022 2023 2022
Total emissions* 0.4 0.8 1.6 2.1
Emissions subject to ETS 0.3 0.7 1.1 1.6
Free emission allowances - - 0.2 0.2
Emissions not subject to ETS in Europe 0.1 0.1 0.5 0.5
* The total emissions comparison figure for 2022 has been restated and is excluding Russia.
In 2023, Fortum’s specific CO2 emissions from total energy production were 32 (45) gCO2/kWh. Specific CO2
emissions from power generation were 16 (25) gCO2/kWh.
Major environmental incidents are monitored, reported and investigated, and corrective actions are implemented.
Major environmental incidents are environmental incidents that resulted in significant harm to the environment
(ground, water, air) or environmental non-compliances with legal or regulatory requirements. In 2023, there were 2 (2)
major environmental incidents: low water flow due to low water level in the fish-holding tanks caused the death of
salmon and broodstock salmon in the hydropower plants in Ljusnefors and in Forshaga, Sweden. Both incidents have
been investigated following Fortum’s investigation procedure and corrective actions have been determined.
Personnel and society

Fortum’s key performance indicators for personnel and society are related to occupational safety and to employee
health and wellbeing.
Fortum strives to be a safe workplace for the employees, contractors and service providers who work for the
company. A certified ISO 45001 safety management system covers 100% of Fortum’s power and heat production
worldwide.
In 2023, Fortum’s TRIF (Total Recordable Injury Frequency) for own personnel and contractors was 5.0 (4.0).
Fortum’s LTIF (Lost Time Injury Frequency) for own personnel and contractors was 3.9 (2.3). Fortum strives for zero
severe occupational accidents. In 2023, there were no (2) severe occupational accidents in the operations.
The 2023 safety targets included participation in the Management Safety and Security Leadership Programme, as well
as identification and completion of key safety actions to improve safety culture. In 2023, the completion rates of
planned Management Safety and Security Leadership trainings and Safety improvement plan were 100% and 78%,
respectively.
Fortum’s goal regarding workplace wellbeing activities is to promote the health and occupational safety of employees
and the functionality of the work community. The sickness-related absences target for year 2023 is 3.0%. In 2023,
Fortum’s percentage of sickness-related absences was 3.1 (3.4).
Fortum’s approach to human rights due diligence is based on the UN Guiding Principles on Business and Human
Rights and follows the six steps outlined in the OECD Guidelines for Multinational Enterprises. Human rights due
diligence is an ongoing process where risks and impacts are assessed continuously as part of various processes.
Fortum’s approach to human rights and the due diligence process is disclosed on Fortum’s website.
Fortum expects its business partners to act responsibly and to comply with the requirements set forth in the Code of
Conduct and Supplier Code of Conduct. Fortum assesses the performance of its business partners with supplier
qualification, with supplier audits and with a Know Your Counterparty process. In 2023, Fortum conducted seven on-
site supplier audits in China. Fortum is a member of the Bettercoal initiative and uses the Bettercoal tools to improve
sustainability in the coal supply chain. In 2023, Fortum continued to support and participate in the development of the
Solar Stewardship Initiative (SSI) together with other industry actors and organisations. Through the SSI, the sector is
striving to establish the mechanisms to increase the traceability and sustainability of solar products, components and
raw materials.
In 2023, Fortum participated in the ‘Energy for a Just Transition’ collaboration to identify and address the impacts of a
green energy transition on people and communities.
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Legal actions
There were no major developments in the ongoing legal actions during the fourth quarter of 2023. For further
information on legal actions, see Note 17.
Shares and share capital

Fortum shares on Nasdaq Helsinki
January–December No. of shares Total value High Low Average Last

2023 traded EUR EUR EUR EUR* EUR
FORTUM 412,321,576 5,337,056,247 16.18 10.25 12.94 13.06
* Volume weighted average.
31 December 2023 31 December 2022

Market capitalisation, EUR billion 11.7 13.9
Number of shareholders 218,160 192,968
Finnish State holding, % 51.3 51.3
Nominee registrations and direct foreign shareholders, % 22.9 26.8
Households, % 12.8 10.8
Financial and insurance corporations, % 2.4 2.1
Other Finnish investors, % 10.6 9.1
In addition to Nasdaq Helsinki, Fortum shares were traded on several alternative market places, for example Boat,
Cboe and Turquoise, and on the OTC market. In 2023, approximately 78% of Fortum’s shares were traded on
markets other than Nasdaq Helsinki (source Bloomberg).
On 31 December 2023, Fortum Corporation’s share capital was EUR 3,046,185,953 and the total number of
registered shares was 897,264,465. Fortum Corporation does not hold any of the company’s own shares.
Group personnel
Fortum’s operations are mainly based in the Nordic countries. The total number of employees at the end 2023 was
5,225 (4,988).
At the end of 2023, the Generation segment had 1,758 (1,660) employees, the Consumer Solutions segment 1,281
(1,179), and the Other Operations segment 2,186 (2,149).
Changes in Group management

On 2 March, Fortum announced a reorganisation of the Group’s operating model to drive the execution of the Group’s
new strategy. The new business structure and revised Fortum Leadership Team (earlier Fortum Executive
Management) became effective at the end of March.
Fortum Leadership Team as per 31 March 2023:
• Markus Rauramo, President and CEO

• Mikael Lemström, Executive Vice President, Hydro Generation
• Petra Lundström, Executive Vice President, Nuclear Generation
• Peter Strannegård, Executive Vice President, Renewables and Decarbonisation
• Simon-Erik Ollus, Executive Vice President, Corporate Customers and Markets
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• Mikael Rönnblad, Executive Vice President, Consumer Solutions

• Tiina Tuomela, CFO
• Nebahat Albayrak, Executive Vice President, Sustainability and Corporate Relations
• Eveliina Dahl, Executive Vice President, People and Procurement
• Nora Steiner-Forsberg, Executive Vice President, Legal, General Counsel
• Bernhard Günther, Chief Transformation Officer (CTO), Transformation and IT
Remuneration and share-based incentive plan for

2023-2025
In March 2023, Fortum’s Board of Directors approved the company’s new strategy, operating model and Fortum
Leadership Team (FLT). The Board also decided to commence the 2023-2025 long-term incentive (LTI) plan and
resolved on the maximum share allocations for the President and CEO and other FLT members. Additionally, the
President and CEO was authorised to decide on the LTI participants below the FLT level and their maximum share
allocations in accordance with the nomination guideline approved by the Board.
In 2023, due to the reorganisation of Fortum operating structure, businesses and enabling functions, the timeline for
the LTI allocations deviated from the normal annual timeline. The first phase was completed at the end of August, and
the allocation process was finalised by the end of November.
The maximum number of shares granted (gross) to the President and CEO is 110,000. Due to the management
remuneration restrictions in the Solidium bridge financing facility from 2022, the maximum share allocation is pro-rated
and amounts to 73,370 shares for the President and CEO. Respectively, the maximum number of shares granted
(gross) to the other FLT members is 232,000 shares and the pro-rated number is 154,744 shares. The total number of
shares granted in the 2023-2025 LTI plan will be available once all nominations are completed.
The outcome of the 2023–2025 LTI plan shall be confirmed in spring 2026.
More information about share-based incentive plans, including the Renumeration reports, can be found on Fortum’s
website at www.fortum.com/governance.
Authorisations of the Board

Fortum’s Annual General Meeting (AGM) 2023 authorised the Board of Directors to decide on the repurchase and
disposal of the company's own shares up to 20,000,000 shares, which corresponds to approximately 2.23% of all the
shares in the company. Only the unrestricted equity of the company can be used to repurchase own shares on the
basis of the authorisation. These authorisations cancelled the authorisation resolved by the AGM of 2022 and will be
effective until the next AGM and, in any event, no longer than for a period of 18 months. These authorisations have
not been used as of 6 February 2024.
In addition, the AGM authorised the Board of Directors to decide on contributions of a maximum of EUR 500,000 for
charitable or similar purposes. In addition, in the total maximum amount of EUR 1,000,000 for incidental emergency
relief or similar purposes as needed, and to decide on the recipients, purposes and other terms of the contributions.
The authorisation will be effective until the next AGM. As of 6 February 2024, EUR 18,000 of the authorisation for
charitable or similar purposes and EUR 200,000 for incidental emergency relief have been used.
Annual General Meeting 2023

On 13 April, the 2023 Annual General Meeting of Fortum Corporation was held at Messukeskus in Helsinki, Finland.
The Annual General Meeting adopted the Financial Statements and the Consolidated Financial Statements for the
financial period 1 January–31 December 2022 and resolved to discharge from liability for the financial year 2022 all
the persons who had served as members of the Board of Directors and as President and CEO during the year 2022.
30
Fortum Corporation
The AGM resolved that a dividend of EUR 0.91 per share will be distributed for the financial year that ended on 31
December 2022 and that the dividend will be paid in two instalments. The first dividend instalment of EUR 0.46 per
share was paid to the shareholders on 24 April 2023. The second dividend instalment of EUR 0.45 per share was paid
on 10 October 2023.
The Annual General Meeting resolved to reject the remuneration report for the Company’s governing bodies for 2022.
The resolution made was advisory. After the Annual General Meeting, the Board of Directors reassessed the
implementation of the remuneration restrictions set forth in the Bridge financing arrangement with the Finnish State
last autumn and decided on the long-term share incentive plans that the results of all years will be measured, but no
shares can be earned in 2022 and 2023. Fortum supplemented the 2022 remuneration report and published the
update for the report on the company's website on 4 May 2023.
The Annual General Meeting approved the annual fees for the Chair, Deputy Chair and other members of the Board of
Directors as follows:
• for the Chair EUR 88,800 per year,

• for the Deputy Chair EUR 63,300 per year,
• for a Member EUR 43,100 per year, and
• for the Chair of the Audit and Risk Committee: EUR 63,300 per year in case he/she does not simultaneously
act as Chair or Deputy Chair of the Board of Directors.
In addition, fixed fees will be paid for the Committee work as follows:
• for a Member of the Audit and Risk Committee EUR 3,000 per year,
• for the Chair of the Nomination and Remuneration Committee EUR 5,000 per year,
• for a Member of the Nomination and Remuneration Committee EUR 2,000 per year,
• for the Chair of any additional Committee established by a Board decision EUR 5,000 per year, and
• for a Member of any additional Committee established by a Board decision EUR 2,000 per year.
The meeting fee payable to a Board member, also for the Committee meetings, is EUR 800 for each meeting, or EUR
1,600 in case the member travels to the meeting outside his/her country of residence. When a member participates in
the meeting via remote connection, or for the decisions that are confirmed without convening a meeting, the meeting
fee is EUR 800. The travel expenses of Board members are compensated in accordance with the company’s travel
policy. The annual fee for the Board work of the Board members is paid in company shares and in cash in such a way
that approximately 40% of the amount of the annual fee is payable in shares acquired on behalf and in the name of
the Board members, and the remainder in cash. The company will pay the costs and the transfer tax related to the
purchase of the company shares. The shares were be acquired on behalf and in the name of the Board members
following the publication of the company’s first-quarter 2023 Interim Report.
The AGM resolved that the Board of Directors will consist of ten members, and the following persons were elected to
the Board of Directors for a term ending at the end of the Annual General Meeting 2024: Mikael Silvennoinen as
Chair, Essimari Kairisto as Deputy Chair, and Ralf Christian, Luisa Delgado, Jonas Gustavsson, Marita Niemelä,
Teppo Paavola, Maija Strandberg, Johan Söderström and Vesa-Pekka Takala as members.
In addition, Deloitte Oy was re-elected as the auditor. The auditor’s fee is paid pursuant to an invoice approved by the
company.
The AGM resolved on amendments to Articles 12, 15 and 16 of the Company’s Articles of Association.
The AGM authorised the Board of Directors to decide on the repurchase and disposal of the company's own shares,
up to 20,000,000 shares, which corresponds to approximately 2.23 per cent of all the shares in the company. Only the
unrestricted equity of the company can be used to repurchase own shares on the basis of the authorisation. These
authorisations will be effective until the next Annual General Meeting and, in any event, no longer than for a period of
18 months.
The AGM resolved to authorise the Board of Directors to decide on contributions of a total maximum amount of EUR
500,000 for charitable or similar purposes, and, in addition, to a total maximum amount of EUR 1,000,000 for
incidental emergency relief or similar purposes as needed, and to decide on the recipients, purposes and other terms
of the contributions. The authorisations will be effective until the next Annual General Meeting.
31
Fortum Corporation
Other major events during the fourth quarter of 2023

On 10 November, Fortum’s Board of Directors decided to launch the savings period for the year 2024 under its
Employee Share Savings (ESS) programme. The terms and conditions of the savings programme are the same as in
previous programmes. The total amount of all savings for the 2024 savings period may not exceed EUR 6 million.
On 20 December, the Board of Directors decided to commence the 2024–2026 long-term incentive (LTI) plan for key
employees and executives. The 2024–2026 LTI plan is part of Fortum's ongoing LTI programme and follows the same
principles as the previous plan. The performance measures for the LTI plan support the execution of Fortum’s
strategic priorities to deliver clean energy reliably, drive decarbonisation in industries and to transform and develop.
The measures are also in line with the company’s ambitious environmental targets. The relative Total Shareholder
Return (TSR) is measured relative to the peer group comprising selected European utility companies. The other
performance measures are based on the increase in the share of long-term customer power purchasing agreements
(PPA) as part of hedging, and the ESG measures are based on the development of a pipeline of renewable energy for
future optionality, and emission reduction targets aligned with SBTi. The rewards related to the 2024–2026 LTI plan
will be paid in the spring 2027, assuming that the performance targets are achieved. The 2024–2026 LTI plan will
comprise a maximum amount of approximately 110 participants, including the members of the Fortum Leadership
Team. The Board of Directors also decided to commence the 2024–2026 restricted share (RS) plan as a supplement
to the LTI programme and reserve shares that potentially will be delivered in the spring 2027. The maximum number
of shares of the plan that may be delivered as a reward is expected to be approximately 1,100,000 shares for the
2024–2026 LTI plan and 110,000 shares for the 2024–2026 RS plan.
Events after the balance sheet date

On 22 January 2024, Fortum announced that the company has established a Green Finance Framework to further
integrate the company’s sustainability ambitions into its financing. The Green Finance Framework allows Fortum to
raise capital via green bonds and loans (Green Debt) to refinance and finance renewable energy and energy
efficiency projects, and/or nuclear power projects. Fortum will always inform at issuance if it intends to finance any
nuclear power generation projects with the proceeds of a given Green Debt instrument. Projects financed by Green
Debt may include fixed assets, capital expenditures and/or operational expenditures (including R&D expenditures).
On 26 January 2024, Fortum announced that as part of the efficiency programme launched in November 2023,
Fortum’s Consumer Solutions business unit and the IT unit are conducting change negotiations on possible
redundancies. In total, the negotiations concern some 1,080 employees in Finland, Sweden, Norway, and the IT unit
in Poland. According to a preliminary estimate, change negotiations could result in the redundancies of a maximum of
130 job positions.
At the beginning of February 2024, the Fortum Board of Directors resolved on clarifications to Fortum’s strategy. As
the operating environment shows increased uncertainty, reduced visibility and postponement of industrial investments,
the company has specified its business portfolio, clarified capital allocation and set new strategic targets with
measurable key performance indicators (KPIs). Fortum’s renewed strategy, launched in March 2023, with focus on the
Nordics remains unchanged, as well as its strategic priorities to ‘deliver reliable clean energy’, ‘drive decarbonisation
in industries’, and ‘transform and develop’. The company’s financial and environmental targets are also unaltered.
The financial and environmental targets are as follows:
• To ensure the current rating of BBB, Financial net debt-to-Comparable EBITDA can be a maximum of 2.0-2.5
times.
• For the period of 2024-2026, Fortum’s capital expenditure is expected to be approximately EUR 1.7 billion
(excluding acquisition) of which growth capital expenditure is expected to be EUR 800 million and annual
maintenance capital expenditure EUR 300 million.
• To ensure required returns for any potential new investments, Fortum continues to be selective and applies
earlier set investment criteria; project based WACC + 150-400 investment hurdles depending on technology
or investment project, as well as environmental targets.
32
Fortum Corporation
• Fortum’s dividend policy - a payout ratio of 60-90% of comparable EPS - remains unchanged. The payout
ratio will be used so that the upper end of the range of the pay-out ratio is applied in situations with a strong
balance sheet and low investments, while the lower end of the range would be applied with high leverage
and/or significant investments and high capital expenditure.
Please see a separate Stock Exchange Release published on 7 February 2024.
Dividend distribution proposal

The distributable funds of Fortum Corporation as at 31 December 2023 amounted to EUR 7,397,637,631, including
the profit for the financial period 2023 of EUR 1,922,872,686. The Company’s liquidity is good, and the dividend
proposed by the Board of Directors will not compromise the Company’s liquidity.
The Board of Directors proposes that a dividend of EUR 1.15 per share be paid for the financial year 2023. The
dividend will be paid in two instalments.
Based on the number of shares registered as at 6 February 2024, the total amount of dividend would be EUR
1,031,854,135. The Board of Directors proposes that the remaining part of the distributable funds be retained in the
shareholders’ equity.
The first dividend instalment of EUR 0.58 per share would be paid to shareholders who on the record date of the first
dividend instalment 27 March 2024 are recorded in the Company’s shareholders’ register held by Euroclear Finland
Oy. The Board of Directors proposes that the first dividend instalment be paid on 5 April 2024.
The second dividend instalment of EUR 0.57 per share would be paid to the shareholders who on the record date of
the second dividend instalment 2 October 2024 are recorded in the Company’s shareholders’ register held by
Euroclear Finland Oy. The Board of Directors proposes that the second dividend instalment be paid on 9 October
2024.
The Board of Directors further proposes that the General Meeting authorise the Board of Directors to resolve, if
necessary, on a new record date and date of payment for the second dividend instalment, should the rules of
Euroclear Finland Oy or statutes applicable to the Finnish book-entry system be amended or should other rules
binding upon the Company so require.
Annual General Meeting 2024

Fortum's Annual General Meeting 2024 is planned to be held on 25 March 2024, and the possible dividend-related
dates are:
• The ex-dividend date of the first dividend instalment: 26 March 2024

• The record date of the first dividend instalment: 27 March 2024
• The payment date of the first dividend instalment: 5 April 2024
• The ex-dividend date of the second dividend instalment: 1 October 2024

• The record date of the second dividend instalment: 2 October 2024
• The payment date of the second dividend instalment: 9 October 2024
Espoo, 6 February 2024
Fortum Corporation
Board of Directors
33
Fortum Corporation
Further information:
Investor Relations and Financial Communications: Ingela Ulfves, tel. +358 40 515 1531, Rauno Tiihonen, tel.
+358 10 453 6150, Pirjo Lifländer, tel. +358 40 643 3317, and investors@fortum.com
Media: Fortum News Desk, tel. +358 40 198 2843
The Board of Directors has approved Fortum’s 2023 Financial Statements and Fortum’s auditors have issued their
unqualified Audit Report for 2023 on 6 February 2024. The Financial Statements Bulletin has been prepared in
accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU. The
Financial Statements Bulletin is unaudited.
Financial calendar in 2024
Fortum’s Financial Statements and Operating and Financial Review for 2023 will be published during week 7 at the
latest.
Fortum will publish three interim reports in 2024:
• January-March on 30 April 2024 at approx. 9.00 EEST

• January-June on 15 August 2024 at approx. 9.00 EEST
• January-September on 29 October 2024 at approx. 9.00 EET
Fortum's Annual General Meeting 2024 is planned to be held on 25 March 2024. The Board of Directors will summon
the Annual General Meeting and publish the dates related to possible dividend at a later date.
Distribution:
Nasdaq Helsinki
Key media
www.fortum.com
More information, including detailed quarterly information, is available at www.fortum.com/investors
34
Fortum Corporation
The Financial Statements Bulletin is unaudited.
Condensed consolidated income statement

segment as discontinued operations in I/2023 and 2022, and the Uniper segment as discontinued operations in 2022.
Comparative information for I/2023 and I-IV/2022 was restated following the classification of the Russia segment as
discontinued operations in II/2023. For further information, see Note 1 Significant accounting policies, Note 2 Critical
accounting estimates and judgements and Note 6 Acquisitions, disposals and discontinued operations.
IV/2022 2022
EUR million Note IV/2023 restated 2023 restated
Sales 3 1,858 2,407 6,711 7,774
Other income 10 19 32 74
Materials and services -1,106 -1,368 -3,808 -4,853
Employee benefits -120 -113 -436 -432
Depreciation and amortisation 3 -101 -106 -359 -415
Other expenses -182 -171 -595 -538
Comparable operating profit 3 359 669 1,544 1,611
Items affecting comparability 3, 4 18 -843 118 356
Operating profit 3 376 -174 1,662 1,967
Share of profit/loss of associates and joint ventures 3, 7 89 -59 59 -185
Interest expense -52 -90 -269 -200
Interest income 50 27 165 75
Other financial items - net 25 -55 -34 -93
Finance costs - net 8 24 -118 -138 -218
Profit before income tax 488 -351 1,583 1,564
Income tax expense 9 -76 777 -69 520
Net profit from continuing operations 413 427 1,515 2,084
Attributable to:
Owners of the parent 410 431 1,514 2,080
Non-controlling interests 3 -4 1 4
Net profit from discontinued operations 6.3 - -1,038 -3,582 -12,374

Attributable to:
Owners of the parent 6.3 - -1,038 -3,583 -4,496
Non-controlling interests 6.3 - 0 1 -7,878
Net profit, total Fortum 413 -611 -2,067 -10,290

Attributable to:
Owners of the parent 410 -608 -2,069 -2,416
Non-controlling interests 3 -4 2 -7,874
Earnings per share for profit attributable to the equity owners of the
company (EUR per share)
Basic, continuing operations 0.45 0.48 1.68 2.34
Basic, discontinued operations - -1.17 -3.99 -5.07
Basic, total Fortum 0.45 -0.68 -2.31 -2.72
As Fortum currently has no dilutive instruments outstanding, diluted earnings per share is the same as basic earnings
per share.
IV/2022 2022
Comparable operating profit 359 669 1,544 1,611
Impairment charges and reversals - 0 - 0
Capital gains and other related items 2 5 4 785
Changes in fair values of derivatives hedging future cash flow 21 -804 111 -376
Other -5 -44 3 -52
Items affecting comparability 3, 4 18 -843 118 356
Operating profit 376 -174 1,662 1,967
See Note 20 Definitions and reconciliations of key figures.
35
Fortum Corporation
Condensed consolidated statement of comprehensive

income
IV/2022 2022
Net profit, total Fortum 413 -611 -2,067 -10,290
Other comprehensive income

Items that may be reclassified to profit or loss in subsequent periods:
Cash flow hedges
Fair value gains/losses 1) -576 2,619 2,185 -2,601
Transfers to income statement 112 121 150 1,102
Transfers to inventory/property, plant and equipment 0 0 -3 0
Deferred taxes 100 -553 -473 294
Net investment hedges
Fair value gains/losses -1 17 -16 21
Deferred taxes 0 -3 3 -4
Exchange differences on translating foreign operations 2) -23 -54 -43 -312
Share of other comprehensive income of associates and joint ventures -19 0 -17 41
-407 2,147 1,788 -1,461
Items that will not be reclassified to profit or loss in subsequent
periods:
Remeasurement of investments 0 -8 1 -15
Actuarial gains/losses on defined benefit plans -7 25 -9 49
Actuarial gains/losses on defined benefit plans in associates and joint ventures -3 7 -3 7
-10 24 -11 41
Other comprehensive income/expense from continuing operations,
net of deferred taxes -417 2,171 1,777 -1,419
Recycling of translation differences including net investment hedges related
to Russia 3) - - 1,940 -
Other comprehensive income/expense from discontinued operations, net of
deferred taxes - -365 -69 953
Total comprehensive income/expense -4 1,195 1,581 -10,757
Total comprehensive income/expense for total Fortum attributable to:

Owners of the parent -7 1,203 1,580 -3,337
Non-controlling interests 3 -8 1 -7,420
-4 1,195 1,581 -10,757
1) Fair valuation of cash flow hedges mainly relates to fair valuation of derivatives, such as futures and forwards, hedging commodity price for future transactions,
where hedge accounting is applied. When commodity price is higher (lower) than the hedging price, the impact on equity is negative (positive).
2) Translation differences from translation of foreign entities, mainly SEK, NOK and PLN.
3) The deconsolidation of Russian operations in II/2023 resulted in the recycling of EUR 1.9 billion negative cumulative translation differences from equity to the
income statement. The recycling did not have any impact on total equity.
36
Fortum Corporation
Condensed consolidated balance sheet

EUR million Note 31 Dec 2023 31 Dec 2022
ASSETS
Non-current assets
Intangible assets 643 657
Property, plant and equipment and right-of-use assets 6,612 7,266
Participations in associates and joint ventures 1,059 1,249
Share in the State Nuclear Waste Management Fund 14 1,058 966
Other non-current assets 201 628
Deferred tax assets 958 933
Derivative financial instruments 5 216 343
Long-term interest-bearing receivables 12 644 624
Total non-current assets 11,392 12,668
Current assets
Inventories 452 465
Derivative financial instruments 5 389 1,486
Short-term interest-bearing receivables 12 389 660
Income tax receivables 59 71
Margin receivables 13 590 2,607
Trade and other receivables 1,286 1,767
Liquid funds 13 4,183 3,919
Total current assets 7,347 10,975
Total assets 18,739 23,642
EQUITY
Equity attributable to owners of the parent
Share capital 3,046 3,046
Share premium 73 73
Retained earnings 5,592 6,467
Other equity components -273 -1,916
Total 8,438 7,670
Non-controlling interests 60 67
Total equity 8,499 7,737
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 13 4,573 3,658
Derivative financial instruments 5 216 756
Deferred tax liabilities 428 152
Nuclear provisions 14 1,058 966
Other provisions 125 118
Pension obligations, net 10 13
Other non-current liabilities 122 121
Total non-current liabilities 6,532 5,784
Current liabilities
Derivative financial instruments 5 1,057 3,973
Other provisions 2 13
Margin liabilities 13 131 352
Trade and other payables 1,181 1,657
Total current liabilities 3,708 10,122
Total liabilities 10,240 15,905
Total equity and liabilities 18,739 23,642
37
Fortum Corporation
Condensed consolidated statement of changes in total

equity
Retained earnings Other equity components
OCI items
asso-
Translation Other ciates Non-
Share Share Retained of foreign Cash flow OCI and joint Owners of controlling Total
EUR million capital premium earnings operations hedges items ventures the parent interests equity
Total equity 1 January 2023 3,046 73 9,499 -3,031 -2,182 172 93 7,670 67 7,737
IS Net profit, total Fortum 1) -2,069 -2,069 2 -2,067
Translation differences -36 -6 0 0 -43 0 -43
Translation differences, recycled to
Income statement 2,106 -166 1,940 - 1,940
Other comprehensive income 1,860 -21 -19 1,820 0 1,820
OCI related to discontinued operations -63 -9 0 5 -68 -2 -69
Total comprehensive income for the period -2,069 2,006 1,844 -186 -14 1,580 1 1,581
Cash dividend -817 -817 0 -817
Deconsolidation of subsidiary companies - -22 -22
Transactions with non-controlling interests - 15 15
Other 5 5 0 5
BS Total equity 31 December 2023 3,046 73 6,618 -1,026 -337 -14 79 8,438 60 8,499
Total equity 1 January 2022 3,046 73 12,830 -2,768 -1,138 34 54 12,131 1,534 13,665
IS Net profit, total Fortum -2,416 -2,416 -7,874 -10,290
Translation differences -340 40 1 -4 -304 -9 -312
Other comprehensive income 209 -1,196 -160 44 -1,102 -4 -1,107
OCI related to discontinued operations 76 112 298 -1 485 468 953
Total comprehensive income for the period -2,208 -264 -1,044 139 39 -3,337 -7,420 -10,757
Cash dividend -1,013 -1,013 -23 -1,036
Deconsolidation of subsidiary companies 16 16 6,104 6,119
Transactions with non-controlling interests -127 -127 -122 -249
Other 1 1 -6 -5
BS Total equity 31 December 2022 3,046 73 9,499 -3,031 -2,182 172 93 7,670 67 7,737
1) Of which EUR -1,940 million is related to the recycling of the negative cumulative translation differences and related net investment hedges from Russian
operations, to the income statement.
Translation differences
Translation of financial information from subsidiaries in foreign currency is done using the average rate for the income
statement and the end rate for the balance sheet. The exchange rate differences arising from translation to EUR are
recognised in equity (related to continuing operations, mainly SEK, NOK and PLN).
For information regarding exchange rates used, see Note 1.5 Key exchange rates used in consolidated financial
statements.
38
Fortum Corporation
Equity impact from recycling of cumulative translation difference and related hedges relating to Russia
The deconsolidation of Russian operations in II/2023 resulted in the recycling of EUR 1.9 billion negative cumulative
translation differences from translation of foreign operations from equity to the income statement. The recycling did not
have any impact on total equity. The cumulative translation differences are due to the significant weakening of the
Russian rouble since the acquisition of the Russian operations in 2008.
Translation Other Owners

Retained of foreign OCI of the
EUR million earnings operations items parent
Impact included in Net profit for the year -1,940 -1,940
Impact to other equity items 2,106 -166 1,940
Total equity impact -1,940 2,106 -166 -
Cash flow hedges
The impact on equity attributable to owners of the parent from fair valuation of cash flow hedges mainly relates to fair
valuation of commodity derivatives, such as futures and forwards, hedging commodity sales price of future
transactions, where hedge accounting is applied. When commodity market price is higher (lower) than the hedging
price, the impact on equity is negative (positive).
Cash dividends
A dividend for 2022 of EUR 0.91 per share, amounting to a total of EUR 817 million, was decided in the Annual
General Meeting on 13 April 2023. The dividend was paid in two instalments. The first dividend instalment of EUR
0.46 per share was paid on 24 April 2023, amounting to a total of EUR 413 million. The second dividend instalment of
EUR 0.45 was paid on 10 October 2023, amounting to a total of EUR 404 million.
39
Fortum Corporation
Condensed consolidated cash flow statement

IV/2022 2022
Cash flow from operating activities
IS Net profit from continuing operations 413 427 1,515 2,084
Adjustments:
Income tax expense 76 -777 69 -520
Finance costs - net -24 118 138 218
Share of profit/loss of associates and joint ventures 7 -89 59 -59 185
Depreciation and amortisation 3 101 105 359 415
Operating profit before depreciations (EBITDA) 477 -69 2,021 2,381
Items affecting comparability 3, 4 -18 843 -118 -356
Comparable EBITDA 459 774 1,903 2,025
Non-cash and other items 25 79 129 157
Interest received 44 61 153 99
Interest paid -44 -49 -228 -213
Dividends received 6 6 16 14
Income taxes paid -41 -47 -454 -164
Funds from operations 449 825 1,519 1,918
Change in working capital -300 -374 191 -200
Net cash from operating activities, continuing operations 149 451 1,710 1,717
Cash flow from investing activities, continuing operations

Capital expenditures 3 -130 -177 -576 -479
Acquisitions of shares 6 -10 -6 -53 -29
Proceeds from sales of property, plant and equipment 10 1 12 3
Divestments of shares and capital returns 6 0 0 5 1,156
Shareholder loans to associated companies and joint ventures 12 -9 6 -30 49
Change in margin receivables 87 1,090 2,024 -1,311
Change in other interest-bearing receivables and other 1) 12 -5 3,979 52 2,429
Net cash from/used in investing activities, continuing operations -58 4,894 1,433 1,818
Cash flow before financing activities, continuing operations 91 5,344 3,143 3,536
Cash flow from financing activities, continuing operations

Proceeds from long-term liabilities 13 8 0 1,755 2,421
Payments of long-term liabilities 13 -12 -2,414 -1,620 -5,885
Change in short-term liabilities 13 -78 -2,725 -1,757 -170
Dividends paid to the owners of the parent 10 -404 0 -817 -1,013
Dividends paid to non-controlling interests 0 0 0 -19
Change in margin liabilities 18 -396 -221 150
Other financing items 5 0 19 -168
Net cash from/used in financing activities, continuing operations -463 -5,536 -2,640 -4,684
Net increase(+)/decrease(-) in liquid funds, continuing operations -372 -191 503 -1,148
Cash flow from discontinued operations

Net cash from/used in operating activities, discontinued operations - 156 109 -10,484
Net cash from/used in investing activities, discontinued operations 2) - 372 -333 -2,789
Net cash from/used in financing activities, discontinued operations - 54 21 10,739
Net increase(+)/decrease(-) in liquid funds, discontinued operations 6.3 - 583 -202 -2,534
Cash flow, total Fortum

Total net cash from/used in operating activities 149 607 1,819 -8,767
Total net cash from/used in investing activities -58 5,266 1,095 -970
Total net cash from/used in financing activities -463 -5,482 -2,614 6,055
Net increase(+)/decrease(-) in liquid funds, total Fortum -372 392 301 -3,682
Liquid funds at the beginning of the period 13 4,552 3,638 3,919 7,592
Foreign exchange differences and expected credit loss allowance in liquid funds 2 -111 -36 7
Liquid funds at the end of the period 13 4,183 3,919 4,183 3,919
1) In 2021 Fortum granted Uniper a shareholder loan of EUR 4,000 million of which EUR 2,500 million was drawn in 2021 and EUR 1,500 million in I/2022. In
December 2022, as part of the closing of the Uniper transaction, the EUR 4,000 million shareholder loan was fully repaid to Fortum.
2) Cash flow from investing activities for discontinued operations in 2023 includes Russia related cash flows from I/2023 netted with liquid funds of EUR 284 million
lost through the seizure of the Russian assets. The consideration received for the Uniper shares, EUR 498 million, is presented in cash flow from discontinued
operations in 2022.
40
Fortum Corporation
Additional cash flow information

Non-cash and other items
Non-cash and other items EUR 129 million in 2023 (2022: 157) mainly relate to realised foreign exchange gains and
losses EUR 186 million (2022: 208), change in liability to return emission rights EUR -32 million (2022: 57) and paid
commitment fee for Solidium bridge loan facility EUR -39 million (2022: 0).
Change in working capital
IV/2022 2022
Change in interest-free receivables, decrease(+)/increase(-) -429 -773 348 -352
Change in inventories, decrease(+)/increase(-) -124 -168 -14 -182
Change in interest-free liabilities, decrease(-)/increase(+) 252 567 -143 334
CF Total -300 -374 191 -200
Capital expenditure in cash flow
IV/2022 2022
Capital expenditure 159 153 611 467
Change in not yet paid investments, decrease(+)/increase(-) -24 26 -16 16
Capitalised borrowing costs -5 -2 -20 -4
CF Total 130 177 576 479
Acquisition of shares in cash flow
Acquisition of shares, net of cash acquired, amounted to EUR 53 million during 2023 (2022: 29). In III/2023 Fortum
acquired the Swedish electricity solutions provider Telge Energi AB. For further information, see Note 6.1 Acquisitions.
Divestment of shares in cash flow
IV/2022 2022
Proceeds from sales of subsidiaries, net of cash disposed 0 1 1 1,070
Proceeds from sales and capital returns of associates and joint ventures 0 -1 0 86
Proceeds from sales of other investments 0 0 3 0
CF Total 0 0 5 1,156
There were no material divestments during 2023. During 2022, Fortum completed the divestment of the 50%
ownership in the district heating company Fortum Oslo Varme AS in Norway, the e-mobility business Plugsurfing and
the 30% stake in the public charging operator Recharge AS. For further information, see Note 6.2 Disposals.
On 21 December 2022 Fortum completed the divestment of Uniper. The consideration of the share transaction of EUR
498 million is presented in the cash flow from discontinued operations.
41
Fortum Corporation
Change in financial net debt
2022
EUR million Note 2023 restated
Financial net debt, beginning of the period 1,084 789
Uniper's net financial position in Uniper's Interim financial report - 1,969
Internal shareholder loans to Uniper and OKG - 2,764
Reversal of purchase price allocation - -187
Uniper impact total on Financial net debt, beginning of the period - 4,546
Financial net debt excl. Uniper, beginning of the period 1,084 5,335
Russia impact on Financial net debt, beginning of the period 43 296
Financial net debt excl. Russia and Uniper, beginning of the period 1,127 5,631
Net cash flow:

Comparable EBITDA 1,903 2,025
Non-cash and other items 129 157
Paid net financial costs and dividends received -59 -100
Income taxes paid -454 -164
Change in working capital 191 -200
Capital expenditures -576 -479
Acquisitions -53 -29
Divestments and proceeds from sale of property, plant and equipment 17 1,159
Change in interest-bearing receivables 22 2,478
Dividends to the owners of the parent -817 -1,013
Dividends to non-controlling interests 0 -19
Other financing activities 19 -168
Net cash flow, continuing operations ('-' increase in financial net debt) 322 3,647
Consideration received for Uniper shares - 498
Foreign exchange rate differences and other changes 1) 137 -359
Financial net debt excl. Russia, end of the period 13 942 1,127
1) The comparison period 2022 includes EUR 210 million deconsolidated debt from the divestment of Fortum Oslo Varme in II/2022.
Capital risk management

At the beginning of February 2024, the Fortum Board of Directors resolved on clarifications to Fortum’s strategy, see
Note 19 Events after the balance sheet date.
Fortum’s long-term financial targets before these clarifications were:
• Long-term financial net debt-to-comparable EBITDA of 2.0–2.5 times

• Disciplined growth in clean energy with capital expenditure of up to EUR 1 billion during 2023–2025 (revised
on 2 November 2023 from up to EUR 1.5 billion)
• Investment hurdles of project WACC + 150–400 basis points
• Dividend policy with payout ratio of 60–90% of comparable EPS
On 2 November 2023, Fortum initiated an efficiency programme targeting to reduce annual fixed costs by EUR 100
million gradually until the end of 2025.
Comparable EBITDA is defined as an alternative performance measure and used as a component in the capital
structure target 'Financial net debt-to-Comparable EBITDA'.
On 9 March 2023, S&P Global Ratings (S&P) affirmed Fortum’s current long-term credit rating at BBB, and revised the
outlook from negative to stable. According to S&P the stable outlook reflects the rating agency’s assumption that
Fortum's cash flow from power generation will remain significant, but volatile in 2023 and 2024, with electricity prices
above historical levels. The rating agency assesses that Fortum has a strong position in the Nordics with an already
42
Fortum Corporation
very low emission profile that supports the business risk profile. It believes that the price risk over time will be reduced
by driving decarbonisation of industrial customers and by signing various long-term power supply agreements. In
addition, S&P assesses that Fortum’s financial risk position is strong with a headroom that provides good financial
flexibility due to very low leverage and good liquidity.
On 21 March 2023, Fitch Ratings (Fitch) affirmed Fortum’s current long-term credit rating at BBB and revised the
outlook from negative to stable. According to Fitch, the change in outlook mainly reflects the positive impact of the
Uniper exit for Fortum's credit profile and the company’s commitment to maintain an adequate capital structure with
high scrutiny in capex allocation prioritising profitability over growth. Fitch assesses that the company is well
positioned to benefit from the strong fundamentals for clean power generation.
Fortum remains committed to maintain a credit rating of at least BBB to preserve financial flexibility and good access
to capital markets.
Financial net debt/comparable EBITDA
Continuing
operations
EUR million Note 2022 2023
+ Interest-bearing liabilities 7,785 5,909
- BS Liquid funds 3,919 4,183
- Collateral arrangement 527 325
- BS Margin receivables 2,607 590
+ BS Margin liabilities 352 131
+/- Net margin liabilities/receivables -2,255 -459
Financial net debt 13 1,084 942
- Interest bearing liabilities, Russia 204 -
+ Liquid funds, Russia 247 -
Financial net debt, excluding Russia 1,127 -
IS Operating profit 1,967 1,662

+ IS Depreciation and amortisation 415 359
EBITDA 2,381 2,021
- IS Items affecting comparability -356 -118
Comparable EBITDA from continuing operations 2,025 1,903
Comparable EBITDA Russia 411 -
Comparable EBITDA (as presented in the consolidated financial statements 2022) 2,436 -
Financial net debt/comparable EBITDA, excl. Russia 0.6 0.5

Financial net debt/comparable EBITDA (as presented in the consolidated financial statements 2022) 0.4 -
43
Fortum Corporation
Key figures
Continuing operations
IV/2022 2022
Reported
IS Sales 1,858 2,407 6,711 7,774
IS Operating profit 376 -174 1,662 1,967
IS Share of profit/loss of associates and joint ventures 89 -59 59 -185
IS Net profit 413 427 1,515 2,084
IS Net profit (after non-controlling interests) 410 431 1,514 2,080
Earnings per share (basic), EUR 0.45 0.48 1.68 2.34
CF Net cash from operating activities 149 451 1,710 1,717
Capital expenditure and gross investments in shares 169 159 664 496
Capital expenditure 159 153 611 467
IV/2022 2022
Comparable
EBITDA 459 774 1,903 2,025
IS Operating profit 359 669 1,544 1,611
Earnings per share (basic), EUR 0.35 0.42 1.28 1.21
Continuing and discontinued operations (total)
segment as discontinued operations in I/2023 and 2022, and the Uniper segment as discontinued operations in 2022.
Comparative information for I/2023 and I-IV/2022 was restated following the classification of the Russia segment as
discontinued operations in II/2023. For further information, see Note 1 Significant accounting policies, Note 2 Critical
accounting estimates and judgements and Note 6 Acquisitions, disposals and discontinued operations.
IV/2022 2022
Reported
Net profit (after non-controlling interests) 410 -608 -2,069 -2,416
Earnings per share, EUR 0.45 -0.68 -2.31 -2.72
Net cash from operating activities 149 607 1,819 -8,767
Comparable
Net profit (after non-controlling interests) 317 216 1,184 -988
Earnings per share, EUR 0.35 0.25 1.32 -1.11
EUR million or as indicated 2023 2022

Financial position
Financial net debt, at period-end 942 1,084
Financial net debt, at period-end, excl. Russia N/A 1,127
Financial net debt/comparable EBITDA excl. Russia 0.5 0.6
Financial net debt/comparable EBITDA (as presented in the consolidated financial statements 2022) N/A 0.4
EUR or as indicated 31 Dec 2023 31 Dec 2022

Equity per share, EUR 9.40 8.55
Average number of shares, 1,000 shares 897,264 889,204
Diluted adjusted average number of shares, 1,000 shares 897,264 889,204
Number of registered shares, 1,000 shares 897,264 897,264
44
Fortum Corporation Notes to the condensed consolidated interim financial statements
Notes to the condensed consolidated interim financial

statements
1. Significant accounting policies

1.1 Basis of preparation
The unaudited condensed interim financial statements have been prepared in accordance with International
Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU. The condensed interim financial
report should be read in conjunction with the consolidated financial statements for the year ended 31 December 2022.
The figures in the consolidated interim financial statements have been rounded and consequently the sum of
individual figures may deviate from the sum presented. Key figures have been calculated using exact figures.
Part of Fortum’s business operations are seasonal, with the comparable operating profit usually being higher for the
first and fourth quarter of the year.
The following symbols show which amounts in the notes reconcile to the items in the income statement, balance sheet
and cash flow statement:
IS = Income statement
BS = Balance sheet
CF = Cash flow
1.2 Changes in reporting
Reportable segments
In March 2023, Fortum announced the reorganisation of its business structure. From I/2023, the business units are
classified into the following reportable segments under IFRS: the Generation segment, the Consumer Solutions
segment, and the Other Operations segment. Segment comparatives for 2022 were restated and a separate stock
exchange release with restated comparatives was issued on 17 April 2023. See also Note 3 Segment information.
Discontinued operations
Russia
Control over Fortum’s Russian operations was lost on 25 April 2023 following the Russian Presidential decree No.
302, which enables the authorities to introduce temporary asset management to assets owned by certain foreign
entities in Russia, and the subsequent nomination of the new external CEO to PAO Fortum. Consequently, in II/2023
Fortum’s Russia segment was deconsolidated, and classified as discontinued operations as required by IFRS 5 Non-
current assets held for sale and discontinued operations. Fortum has not had access to financial or non-financial
information from the Russia segment since the first quarter 2023 reporting, and therefore information for the
deconsolidation is based on the 31 March 2023 balance sheet.
45
Comparatives for I/2023 and 2022 were restated and a separate stock exchange release with restated comparatives
was issued on 11 May 2023. See also Note 2 Critical accounting estimates and judgements and Note 6.3
Discontinued operations.
The deconsolidation in II/2023 resulted in EUR 3.6 billion one-time, non-cash negative effect. The amount consists of
the full write-down of the Russian assets of EUR 1.7 billion, and EUR 1.9 billion negative cumulative translation
differences previously recognised in equity. These cumulative translation differences are recycled from equity to profit
and loss on deconsolidation according to IFRS. The recycling did not have any impact on total equity.
Uniper in 2022
Discontinued operations in I-III/2022 also include Fortum’s former subsidiary Uniper SE and its consolidated group
companies. Fortum lost control of Uniper on the signing of the agreement in principle to sell the shares in Uniper SE to
the German State on 21 September 2022 and Uniper was deconsolidated at 30 September 2022. The transaction was
completed on 21 December 2022.
On deconsolidation of Uniper at 30 September 2022, Fortum recorded EUR 28.0 billion one-time, non-cash positive
effect. The amount consists of the net effect from the deconsolidation of Uniper’s assets, liabilities and non-controlling
interest, and the book value of Uniper-related goodwill and other fair value adjustments made on acquisition; as well
as certain items previously recognised in other comprehensive income, mainly foreign exchange differences, that are
reclassified to profit and loss on disposal. See also Note 6.3 Discontinued operations.
1.3 Alternative performance measures

According to the ESMA Guidelines on Alternative Performance Measures, an Alternative Performance Measure
(APM) is understood as a financial measure of historical or future financial performance, financial position, or cash
flows, other than a financial measure defined or specified in the applicable financial reporting framework.
Fortum uses APMs, such as Comparable operating profit and Comparable EBITDA, in the financial target setting and
forecasting, management's follow-up of financial performance of segments and the Group, as well as for the allocation
of resources in the Group's performance management process. Items affecting comparability are excluded from
Comparable operating profit and Comparable EBITDA and disclosed separately in Fortum's consolidated income
statement to support the transparency of underlying business performance when comparing results between periods.
Fortum’s long-term financial target for capital structure is Financial net debt to comparable EBITDA (see Capital risk
management and Note 20 Definitions and reconciliations of key figures).
To provide additional financial performance indicators to support meaningful comparison of financials for Fortum's
strategic businesses, Fortum introduced in IV/2022 the following APMs: ‘Comparable EBITDA from continuing
operations excl. Russia’, ‘Comparable operating profit from continuing operations excl. Russia’, ‘Comparable net profit
from continuing operations excl. Russia’, ‘Comparable earnings per share from continuing operations excl. Russia’,
and ‘Financial net debt/comparable EBITDA excl. Russia’. Following the deconsolidation of Russia in II/2023, these
APMs, with the exception of ‘Financial net debt/comparable EBITDA excl. Russia’, are no longer presented.
See Note 4 Comparable operating profit and comparable net profit and Note 20 Definitions and reconciliations of key
figures.
1.4 Accounting policies

The same accounting policies that were applied in the preparation of the consolidated financial statements for the year
ended 31 December 2022, have been applied in these condensed interim financial statements. New standards,
amendments and interpretations effective from 1 January 2023 have not had a material impact on Fortum's
consolidated financial statements.
46
1.5 Key exchange rates used in consolidated financial statements

The balance sheet date rate is based on the exchange rate published by the European Central Bank for the closing
date. The average exchange rate is calculated as an average of daily closing rates from the European Central Bank.
The European Central Bank stopped publishing rouble (RUB) rates from 2 March 2022. From 2 March 2022, the daily
spot rate at 17:15 EET from the market has been used. RUB rate is no longer presented from II/2023 due to the
deconsolidation of the Russia segment.
Key exchange rates used in consolidated financial statements:
Jan-Dec Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar

Average rate 2023 2023 2023 2023 2022 2022 2022 2022
Norway (NOK) 11.4248 11.3483 11.3195 10.9901 10.1026 10.0070 9.9817 9.9247
Poland (PLN) 4.5420 4.5820 4.6244 4.7081 4.6861 4.6724 4.6354 4.6230
Russia (RUB) N/A N/A N/A 78.5649 73.6173 76.6455 85.0393 99.1783
Sweden (SEK) 11.4788 11.4789 11.3329 11.2030 10.6296 10.5274 10.4796 10.4807
31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar

Balance sheet date rate 2023 2023 2023 2023 2022 2022 2022 2022
Norway (NOK) 11.2405 11.2535 11.7040 11.3940 10.5138 10.5838 10.3485 9.7110
Poland (PLN) 4.3395 4.6283 4.4388 4.6700 4.6808 4.8483 4.6904 4.6531
Russia (RUB) N/A N/A N/A 84.3190 77.8998 59.3288 56.4004 91.5833
Sweden (SEK) 11.0960 11.5325 11.8055 11.2805 11.1218 10.8993 10.7300 10.3370
2. Critical accounting estimates and judgements

The preparation of interim financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of assets and liabilities, income and expense. Actual results may differ
from these estimates. In preparing these interim financial statements, significant judgements made by management in
applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that
applied to the consolidated financial statements for the year ended 31 December 2022.
Geopolitical uncertainties and impacts on Russian operations

On 25 April 2023, Fortum’s subsidiary PAO Fortum (Fortum JSC) was put under asset management in accordance
with a Russian Presidential decree No. 302 which introduced a ‘temporary’ asset management to assets owned by
certain foreign entities in Russia. On 26 April 2023, this caused the forced replacement of the company’s CEO and the
Russian authorities seized control of Fortum’s assets in Russia.
The decree and the subsequent forced nomination of the external CEO to PAO Fortum triggered a control assessment
as required by IFRS 10 Consolidated financial statements. Based on the assessment, Fortum’s rights are no longer
substantive as it does not have practical ability to use control over its Russian operations, and that the Russian State
is in practice able to approve or reject the most important decisions in relation to these operations. Consequently,
control was lost on 25 April 2023 and the Russia segment was deconsolidated in II/2023. See also Note 6.3
Discontinued operations.
47
3. Segment information
In March 2023, Fortum announced the reorganisation of its business structure. From the first quarter of 2023, the new
business units are: Hydro Generation, Nuclear Generation, Renewables and Decarbonisation, Corporate Customers
and Markets, Consumer Solutions and Circular Solutions.
The business units are classified into the following reportable segments under IFRS:
• The Generation segment includes the Hydro Generation, Nuclear Generation, Corporate Customers and
Markets, and Renewables and Decarbonisation business units.
• The Consumer Solutions segment includes the Consumer Solutions business unit.
• The Other Operations segment includes the Circular Solutions business unit, Innovation and Venturing
activities, enabling functions and corporate management.
Segment comparatives for 2022 were restated and a separate stock exchange release with restated comparatives
was issued on 17 April 2023.
Russia segment was classified as discontinued operations in II/2023. Comparatives for I/2023 and 2022 were restated
and a separate stock exchange release with restated comparatives was issued on 11 May 2023. See also Note 1
Significant accounting policies and Note 6.3 Discontinued operations.
Quarter
Consumer Other Total

Generation 1) Solutions Operations continuing operations
IV/2022 IV/2022 IV/2022
EUR million Note IV/2023 restated IV/2023 IV/2022 IV/2023 restated IV/2023 restated
Income statement data by segment
Power sales 1) 1,164 1,447 922 1,321 2 6 2,088 2,774
Heat sales 162 125 - - 13 10 175 134
Gas sales - - 114 104 - - 114 104
Waste treatment sales 2 3 - - 63 61 65 63
Other sales 11 42 33 35 69 85 113 162
Sales 1,339 1,617 1,069 1,460 147 161 2,555 3,238
Internal eliminations -58 116 -3 -2 -24 -27 -85 87
Netting of Nord Pool transactions 2) -612 -917
IS External sales 1,281 1,733 1,066 1,458 123 134 1,858 2,407
Comparable EBITDA 452 743 30 43 -23 -12 459 774

IS Depreciation and amortisation -62 -61 -18 -19 -20 -26 -101 -106
IS Comparable operating profit 390 683 12 25 -43 -38 359 669
Impairment charges and reversals - - - - - 0 - 0
Capital gains and other related items 1 4 1 0 0 1 2 5
Changes in fair values of derivatives
hedging future cash flow -25 141 46 -945 0 - 21 -804
Other 4 -20 - - -9 -24 -5 -44
IS Items affecting comparability 4 -21 125 47 -945 -9 -23 18 -843
IS Operating profit 370 808 59 -921 -52 -61 376 -174
Comparable share of profit/loss of
associates and joint ventures 4, 7 31 -68 - - -1 0 31 -68
IS Share of profit/loss of associates
and joint ventures 7 89 -59 - - -1 0 89 -59
Gross investments / divestments

by segment
Gross investments in shares 6 1 0 -1 0 10 6 10 6
Capital expenditure 112 106 22 20 25 26 159 153
Gross divestments of shares 6 0 4 0 0 0 0 0 4
1) Sales, both internal and external, include effects from realised hedging contracts. Effect on sales can be negative or positive depending on the difference between
average contract price and realised spot price. Power sales contains realised result from commodity derivatives, which have not had hedge accounting status
under IFRS 9, but have been considered operatively as hedges.
2) Sales and purchases with Nord Pool Spot are netted on Group level on an hourly basis and posted either as revenue or cost depending on if Fortum is a net seller
or net buyer during any particular hour.
48
Year-to-date
Consumer Other Total continuing

Generation 1) Solutions Operations operations
2022 2022 2022
EUR million Note 2023 restated 2023 2022 2023 restated 2023 restated
Income statement data by segment
Power sales 1) 3,889 3,802 3,219 4,026 9 24 7,117 7,852
Heat sales 481 499 - - 31 28 512 527
Gas sales - - 422 392 - - 422 392
Waste treatment sales 7 19 - - 226 219 234 238
Other sales 43 144 125 161 281 318 450 623
Sales 4,420 4,465 3,766 4,578 548 589 8,734 9,632
Internal eliminations -394 585 -20 -30 -99 -101 -514 454
Netting of Nord Pool transactions 2) -1,510 -2,312
IS External sales 4,026 5,049 3,745 4,549 449 488 6,711 7,774
Comparable EBITDA 1,874 1,876 108 173 -80 -23 1,903 2,025
IS Depreciation and amortisation -195 -247 -70 -75 -93 -92 -359 -415
IS Comparable operating profit 1,679 1,629 38 97 -173 -116 1,544 1,611
Impairment charges and reversals - - - - - 0 - 0
Capital gains and other related items 2 648 1 0 1 137 4 785
Changes in fair values of derivatives
hedging future cash flow 366 -130 -254 -246 - - 111 -376
Other 12 -19 - - -9 -33 3 -52
IS Items affecting comparability 4 380 499 -253 -246 -8 103 118 356
IS Operating profit 2,058 2,128 -215 -149 -181 -13 1,662 1,967
Comparable share of profit/loss of
associates and joint ventures 4, 7 7 -34 - - 0 -7 7 -40
IS Share of profit/loss of associates
and joint ventures 7 59 -178 - - 0 -7 59 -185
Gross investments / divestments

by segment
Gross investments in shares 6 5 2 22 0 26 26 53 29
Capital expenditure 450 314 81 71 81 85 611 467
Gross divestments of shares 6 0 1,212 0 0 4 152 4 1,365
1) Sales, both internal and external, include effects from realised hedging contracts. Effect on sales can be negative or positive depending on the difference between
average contract price and realised spot price. Power sales contains realised result from commodity derivatives, which have not had hedge accounting status
under IFRS 9, but have been considered operatively as hedges.
2) Sales and purchases with Nord Pool Spot are netted on Group level on an hourly basis and posted either as revenue or cost depending on if Fortum is a net seller
or net buyer during any particular hour.
49
Segment assets and liabilities
Consumer Other
Generation Solutions Operations Total Russia Total
31 Dec 31 Dec
31 Dec 2022 31 Dec 31 Dec 31 Dec 2022 31 Dec 31 Dec 31 Dec
EUR million Note 2023 restated 2023 2022 2023 restated 2023 2022 2022
Non-interest-bearing assets 6,864 6,599 1,311 1,801 1,094 1,073 9,269 1,614 11,087
BS Participations in associates and joint
ventures 7 1,000 987 - - 59 51 1,059 211 1,249
Eliminations -105 -332
Total segment assets 7,864 7,585 1,311 1,801 1,153 1,124 10,223 1,825 12,004
Interest-bearing receivables 12 1,033 1,284
BS Deferred tax assets 958 933
Other assets 2,342 5,502
BS Liquid funds 4,183 3,919
BS Total assets 18,739 23,642
Segment liabilities 601 988 472 436 313 350 1,387 134 1,908
Eliminations -105 -332
Total segment liabilities 1,282 1,576
BS Deferred tax liabilities 428 152
Other liabilities 2,621 6,392
Total liabilities included in capital
employed 4,331 8,120
BS Total equity 8,499 7,737
BS Total equity and liabilities 18,739 23,642
Number of employees 1,758 1,660 1,281 1,179 2,186 2,149 5,225 2,724 7,712
Comparable operating profit including comparable share of profits of associates and joint ventures
and Comparable return on net assets
Consumer
Generation Solutions
31 Dec 2022
EUR million Note 31 Dec 2023 restated 31 Dec 2023 31 Dec 2022
Comparable operating profit 1,679 1,629 38 97
Comparable share of profit/loss of associates and joint ventures 4, 7 7 -34 - -
Comparable operating profit including comparable share of
profit/loss of associates and joint ventures 1,686 1,595 38 97
Segment assets at the end of the period 7,864 7,585 1,311 1,801
Segment liabilities at the end of the period 601 988 472 436
Comparable net assets 7,263 6,597 838 1,365
Comparable net assets average 1) 6,959 6,873 847 1,068
Comparable return on net assets, % 24.2 23.2 4.5 9.1

1) Average net assets are calculated using the opening balance of the financial year and each quarter's closing value.
50
4. Comparable operating profit and comparable net

profit
4.1 Reconciliation of operating profit to comparable operating profit
Quarter
Changes in fair
values of
Impairment Capital gains and derivatives
charges and other related hedging future
Unadjusted reversals items cash flow Other Reported
IV/2022 IV/2022 IV/2022 IV/2022 IV/2022 IV/2022
EUR million IV/2023 restated IV/2023 restated IV/2023 restated IV/2023 restated IV/2023 restated IV/2023 restated
Sales 1,862 2,407 - - - - -4 1 - - 1,858 2,407
Other income -17 166 - - -2 -5 29 -142 - - 10 19
Materials and services -1,039 -1,713 - - - - -64 325 -4 20 -1,106 -1,368
Employee benefits -120 -113 - - - - - - - - -120 -113
Depreciation and
amortisation -101 -106 - 0 - - - - - - -101 -106
Other expenses -209 -815 - - 0 - 18 620 9 24 -182 -171
IS Comparable operating
profit - 0 -2 -5 -21 804 5 44 359 669
IS Items affecting
comparability - 0 2 5 21 -804 -5 -44 18 -843
IS Operating profit 376 -174 376 -174
Year-to-date
Changes in fair
values of
Impairment Capital gains and derivatives
charges and other related hedging future
Unadjusted reversals items cash flow Other Reported
2022 2022 2022 2022 2022 2022
EUR million 2023 restated 2023 restated 2023 restated 2023 restated 2023 restated 2023 restated
Sales 6,716 7,797 - - - - -5 -23 - - 6,711 7,774
Other income 397 707 - - -4 -785 -361 153 0 -1 32 74
Materials and services -3,606 -5,079 - - - - -190 206 -12 20 -3,808 -4,853
Employee benefits -436 -432 - - - - - - - - -436 -432
Depreciation and
amortisation -359 -415 - 0 - - - - - - -359 -415
Other expenses -1,049 -612 - - 0 - 444 40 9 33 -595 -538
IS Comparable operating
profit - 0 -4 -785 -111 376 -3 52 1,544 1,611
IS Items affecting
comparability - 0 4 785 111 -376 3 -52 118 356
IS Operating profit 1,662 1,967 1,662 1,967
51
Impairment charges and reversals
Impairment charges are adjusted from depreciation and amortisation and presented in items affecting comparability.
Comparative information for I/2023 and I-IV/2022 was restated following the classification of Russia segment as
discontinued operations in II/2023. See Note 6.3 Discontinued operations.
Capital gains and other related items
Capital gains and other related items in 2022 included EUR 638 million gain from the sale of the 50% ownership in the
district heating company Fortum Oslo Varme AS in Norway, EUR 77 million gain from the sale of the 30% ownership
in the public charging point operator for electric vehicles Recharge AS, as well as EUR 61 million gain from the sale of
the e-mobility business Plugsurfing (see Note 6.2 Disposals).
Changes in fair values of derivatives hedging future cash flow
Fair value changes of derivatives to which hedge accounting is not applied and which hedge future cash flows are
adjusted from other income and other expenses and presented in items affecting comparability. Impacts from
settlement of physical contracts that have been treated as derivatives are adjusted to sales and materials and services
to reflect the contract pricing as opposed to market pricing.
52
4.2 Reconciliation from operating profit to comparable net profit

IV/2022 2022
IS Items affecting comparability 4.1 -18 843 -118 -356
IS Comparable operating profit 359 669 1,544 1,611
Adjustments to share of profit/loss of associates and joint ventures 7 -58 -9 -52 145
Comparable share of profit/loss of associates and joint ventures 31 -68 7 -40
IS Finance costs - net 24 -118 -138 -218
Adjustments to finance costs - net 8 -30 9 2 48
Comparable finance costs - net -7 -108 -137 -170
Comparable profit before income tax 383 492 1,415 1,400
IS Income tax expense -76 777 -69 520
Adjustments to income tax expense 8 -905 -201 -836
Comparable income tax expense -67 -127 -269 -316
IS Non-controlling interests -3 4 -1 -4
Adjustments to non-controlling interests 4 1 5 -5
Comparable non-controlling interests 2 5 4 -9
Comparable net profit from continuing operations 317 370 1,150 1,076
Comparable net profit from discontinued operations 6.3 - -154 34 -2,064

Comparable net profit, total Fortum 317 216 1,184 -988
Comparable earnings per share, continuing operations EUR 20 0.35 0.42 1.28 1.21
Comparable earnings per share, discontinued operations EUR 20 - -0.17 0.04 -2.32
Comparable earnings per share, total Fortum, EUR 20 0.35 0.25 1.32 -1.11
Comparable share of profit/loss of associates and joint ventures
Share of profit/loss of associates and joint ventures is adjusted for significant items, similar to adjustments made to
arriving at comparable net profit.
Comparable finance costs - net
Finance costs – net are adjusted for e.g. nuclear-related items recognised in other financial items - net, fair value
changes on financial items, as well as impairment charges and reversals of previously recorded impairment charges
on financial items.
Comparable income tax expense
Income tax expense is adjusted for tax impacts on items affecting comparability, adjustments to finance costs – net,
tax rate changes and other onetime adjustments. In 2023, adjustments to income tax expense included EUR 225
million relating to one-time tax impacts mainly recognised in Ireland and in the Netherlands, due to the impairment of
the Russian assets. In 2022, adjustments to income tax expense included EUR 746 million relating to onetime tax
impact realised in Ireland mainly due to the Uniper divestment.
See also Note 20 Definitions and reconciliations of key figures.
53
5. Financial risk management

See Fortum Group's consolidated financial statements for the year ended 31 December 2022 for current financial risk
management objectives and policies.
Fair value hierarchy information
Financial instruments that are measured in the balance sheet at fair value are presented according to following fair
value measurement hierarchy:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices);
Level 3: inputs for the asset or liability that is not based on observable market data (unobservable inputs).
See also accounting policies in the consolidated financial statements 2022, in Note 15 Financial assets and liabilities
by fair value hierarchy.
Financial assets
Level 1 Level 2 Level 3 Netting 1) Total

31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
EUR million 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
In non-current assets
Other investments 2) 123 543 123 543
Derivative financial instruments
Commodity derivatives
Hedge accounting 59 54 59 54
Non-hedge accounting 10 85 14 58 20 57 -1 -30 42 170
Interest rate and currency
derivatives
Non-hedge accounting 2 3 2 3
Interest-bearing receivables 31 - 31
Total in non-current assets 10 85 188 231 143 631 -1 -30 339 917
In current assets
Hedge accounting 200 781 160 542 -110 -546 251 777
Non-hedge accounting 408 1,129 33 252 4 9 -320 -796 124 594
derivatives
Interest-bearing receivables 3) 325 527 7 325 535
Total in current assets 933 2,437 206 909 4 16 -430 -1,342 714 2,021
Total in assets 943 2,522 394 1,140 147 648 -431 -1,372 1,053 2,938
1) Receivables and liabilities from electricity and other commodity standard derivative contracts against exchanges with same delivery period are netted.
2) Other investments includes shares in unlisted companies. The comparison period 31 December 2022 also includes 1.3 GW portfolio of wind projects located in
Russia.
3) Interest-bearing receivables, Level 1, include collateral arrangement covering margin requirement. See also Note 12 Interest-bearing receivables and Note 13
Interest-bearing net debt.
54
Financial liabilities
Level 1 Level 2 Level 3 Netting 1) Total

31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
EUR million 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
In non-current liabilities
Interest-bearing liabilities 2) 973 580 973 580
Hedge accounting 14 58 390 73 390
derivatives
Total in non-current liabilities 26 38 1,156 1,324 9 4 -1 -30 1,189 1,336
In current liabilities
Interest-bearing liabilities 376 527 376 527
Hedge accounting 606 2,672 264 1,240 -110 -546 761 3,366
derivatives
Total in current liabilities 844 3,555 1,016 2,286 2 1 -430 -1,342 1,432 4,500
Total in liabilities 870 3,593 2,172 3,610 11 5 -431 -1,372 2,621 5,836
1) Receivables and liabilities from standard electricity and other commodity derivative contracts against exchanges with same delivery period are netted.
2) Fair valued part of bonds when hedge accounting is applied (fair value hedge).
At the end of December 2023, the net fair value of commodity derivatives was EUR -464 million, including assets of
EUR 476 million and liabilities of EUR 940 million (EUR -2,960 million in December 2022, including assets of EUR
1,594 million and liabilities of EUR 4,554 million). The change from December 2022 mainly relates to impacts from
decreased commodity market prices and maturity of contracts.
Net fair value amount of interest rate and currency derivatives was EUR -204 million, including assets of EUR 129
million and liabilities of EUR 333 million. Fortum has cash collaterals based on collateral agreements with some
counterparties. At the end of December 2023, Fortum had received EUR 42 million and paid EUR 176 million from
foreign exchange and interest rate derivatives under Credit Support Annex agreements.
Regarding derivative financial instruments, see Note 4 Comparable operating profit and comparable net profit.
Regarding interest-bearing receivables and liabilities, see Note 12 Interest-bearing receivables, Note 13 Interest-
bearing net debt and Note 16 Pledged assets and contingent liabilities.
There were no transfers in or out of level 3. Gains and losses of level 3 items in consolidated income statement are
presented mainly in items affecting comparability. See note 4 Comparable operating profit and comparable net profit.
Changes in fair value hierarchy Level 3
Gains / Decon-
losses in solidation of
Sales and income subsidiary
1 Jan 2023 Purchases disposals Settlements statement companies 1) 31 Dec 2023
On balance sheet, net
Other investments 543 17 -4 -29 -404 123
Commodity derivatives, fair values 61 -8 -40 13
Interest-bearing receivables 39 -4 -5 -29 0
Total on balance sheet, net 643 17 -4 -12 -74 -433 137
1) Deconsolidation of Russian operations in II/2023. See note 6.3 Discontinued operations.
55
6. Acquisitions, disposals and discontinued

operations
6.1 Acquisitions
IV/2022 2022
Gross investments in shares in subsidiary companies -1 0 22 0
Gross investments in shares in associated companies and joint ventures 3 3 12 10
Gross investments in other shares 8 3 19 19
Total 10 6 53 29
On 31 August 2023, Fortum acquired the Swedish electricity solutions provider Telge Energi AB from Telge AB. The
total consideration for the entire shareholding in Telge Energi on a cash and debt-free basis was approximately SEK
450 million (EUR 39 million). The purchase price, net of cash acquired and other adjustments, was EUR 22 million.
Telge Energi AB is included in the Consumer Solutions segment.
6.2 Disposals
IV/2022 2022
Gross divestments of shares in subsidiary companies 0 4 1 1,279
Gross divestments of shares in associated companies and joint ventures - 0 0 86
Gross divestments of other investments 0 0 3 0
Total 0 4 4 1,365
Disposals during 2023
There were no material disposals in 2023.
Disposals during 2022
On 21 September 2022, Fortum, the German government and Uniper signed an agreement in principle allowing the
German State to take full control of Uniper and Uniper was deconsolidated. On 21 December 2022, the transaction
was completed and Fortum received the consideration of the share transaction of EUR 498 million and Uniper repaid
the EUR 4 billion shareholder loan. The consideration received for the shares is presented in the cash flow from
discontinued operations in IV/2022. See also Note 6.3 Discontinued operations.
On 1 September 2022, Fortum announced that it had concluded the sale of its e-mobility business Plugsurfing to
Fleetcor Technologies, Inc., a leading global business payments company. The transaction price was approximately
EUR 75 million on a cash and debt free basis and Fortum recorded a tax-exempt capital gain of EUR 61 million in the
Other Operations’ third quarter 2022 results.
On 18 August 2022, Fortum concluded the sale of its 30% ownership in Recharge AS, a public charging point operator
for electric vehicles, to Infracapital, the infrastructure equity investment arm of M&G Plc. The transaction price was
approximately EUR 85 million. Fortum recorded a tax-exempt capital gain of EUR 77 million in Other Operations’ third
quarter 2022 results.
On 19 May 2022, Fortum announced that it had concluded the sale of its 50% ownership in the district heating
company Fortum Oslo Varme AS in Norway to a consortium of institutional investors of Hafslund Eco, Infranode and
HitecVision. The total consideration of the sale amounted to approximately EUR 1 billion on a cash- and debt-free
basis; and as part of the transaction, Fortum deconsolidated a related EUR 210 million shareholder loan from the City
of Oslo. Fortum recorded a tax-exempt capital gain of EUR 638 million in the Generation segment’s second quarter
2022 results. In 2022, Fortum Oslo Varme AS was part of the City Solutions segment (see Note 3 Segment
information).
56
In May 2022, the second phase of the Rajasthan divestment was concluded and a tax-exempt sales gain of EUR 5
million was recorded in comparable operating profit in Generation (previously City Solutions) segment’s second
quarter 2022 results.
6.3 Discontinued operations

The Russia segment was classified as discontinued operations in II/2023, and the Uniper segment was classified as
discontinued operations in III/2022. See also Note 1 Significant accounting policies. Financial performance and cash
flow information for the discontinued operations is presented until 31 March 2023 for the Russia segment, and until 30
September 2022 for the Uniper segment.
Financial performance
The result from discontinued operations is disclosed on one line on the face of the consolidated income statement.
The following table presents breakdown of income statement information for discontinued operations. Discontinued
operations include the Russia segment in I/2023 and I-IV/2022; as well as the Uniper segment in I-III/2022. The
effects of eliminations from internal sales and purchases have been included in the discontinued operations. The net
financial costs are based on the historical financial costs in the separate companies.
IV/2022 2022
Sales - 329 287 129,126
Other income - 10 6 22,535
Materials and services - -162 -148 -132,778
Employee benefits - -22 -20 -781
Depreciation and amortisation - -45 -23 -724
Other expenses - -35 -15 -21,865
Comparable operating profit - 75 86 -4,487
Deconsolidation effect - 27,966 -3,608 27,966
Items affecting comparability - -28,520 0 -40,570
Operating profit - -479 -3,521 -17,091
Share of profit/loss of associates and joint ventures - -236 26 -372
Finance costs - net - -492 -88 -1,028
Profit before income tax - -1,208 -3,584 -18,491
Income tax expense - 170 2 6,117
Net profit from discontinued operations - -1,038 -3,582 -12,374
Attributable to:
Owners of the parent - -1,038 -3,583 -4,496
Non-controlling interests 1) - 0 1 -7,878
Earnings per share, discontinued operations, EUR - -1.17 -3.99 -5.07
Comparable net profit from discontinued operations - -154 34 -2,064

Comparable earnings per share, discontinued operations, EUR - -0.17 0.04 -2.32
1) Non-controlling interest is not calculated on the Deconsolidation effect as the deconsolidation effect is calculated based on Fortum’s share of Russia’s and
Uniper’s net assets.
Impact from the deconsolidation of Russia and Uniper
Russia
The deconsolidation of Russian operations in II/2023 resulted in EUR 3.6 billion one-time, non-cash negative effect.
The amount consists of the full write-down of the Russian assets of EUR 1.7 billion, and EUR 1.9 billion negative
cumulative translation differences previously recognised in equity. These cumulative translation differences are
recycled from equity to profit and loss on deconsolidation according to IFRS. The recycling did not have any impact on
total equity.
Fortum has not had access to financial or non-financial information from the Russia segment since the first quarter
2023 reporting, and therefore information for the deconsolidation is based on the 31 March 2023 balance sheet.
57
EUR million 31 Mar 2023

Intangible assets 18
Property, plant and equipment and right-of-use assets 896
Participations in associates and joint ventures 221
Interest-bearing receivables 33
Other non-current and current assets 594
Liquid funds 284
Non-controlling interests -22
Interest-bearing liabilities -178
Other liabilities -161
Net assets deconsolidated 1,685
Items recycled to Income statement -1,922
Deconsolidation effect (negative) -3,608
Uniper
On deconsolidation of Uniper at 30 September 2022, Fortum recorded EUR 28.0 billion one-time, mainly non-cash
positive effect that is included in 2022 in net profit from discontinued operations in the consolidated income statement.
The amount consists of the net effect from the consideration received for the shares, EUR 498 million; Uniper’s
negative net assets divested resulting in a positive impact to the deconsolidation effect of EUR 26 658 million; as well
as certain items previously recognised in other comprehensive income, EUR 810 million, mainly foreign exchange
differences, that are reclassified to Income statement on disposal.
EUR million 30 Sep 2022

Net assets divested -26,658
Consideration received for the shares 498
Items recycled to Income statement 810
Deconsolidation effect 27,966
Fortum’s total pre-tax loss from the Uniper investment was slightly below EUR 6 billion which is the net effect from the
investments in Uniper shares during 2018-2022 of approximately EUR 7.2 billion, the sales proceeds of EUR 0.5
billion received and dividends of approximately EUR 0.9 billion received during the Uniper ownership.
Cash flow information
In the cash flow statement, the net cash flows attributable to the operating, investing and financing activities of the
discontinued operations are disclosed separately. The table below shows the Russia segment in I/2023 and I-IV/2022;
as well as the Uniper segment in I-III/2022.
The Russian operations were deconsolidated due to loss of control as opposed to sale (see Note 2 Critical accounting
estimates and judgements), i.e. no consideration has been received for the Russian operations. Cash flow from
investing activities for discontinued operations in 2023 includes Russia related cash flows from I/2023 netted with
liquid funds of EUR 284 million lost through the seizure of the Russian assets.
The consideration received for the shares of Uniper, EUR 498 million, is presented in net cash from/used in investing
activities of the discontinued operations in 2022. Net cash from/used in investing activities in 2022 is presented net of
liquid funds due to the deconsolidation of Uniper. Liquid funds of Uniper were EUR 2,248 million at 30 September
2022.
IV/2022 2022
Net cash from/used in operating activities - 156 109 -10,484
Net cash from/used in investing activities - 372 -333 -2,789
Net cash from/used in financing activities - 54 21 10,739
Total net decrease/increase in liquid funds - 583 -202 -2,534
58
7. Share of profit/loss of associates and joint ventures

IV/2022 2022
Principal associates
Forsmark Kraftgrupp AB 27 -15 17 -78
Kemijoki Oy 0 -5 -1 -1
OKG AB 32 -35 7 -99
Principal joint ventures
TVO Oyj 29 -3 25 -13
Other associates 0 0 1 -6
Other joint ventures 1 0 9 13
IV/2022 2022
Adjustments to share of profit/loss of associates and joint ventures -58 -9 -52 145
Comparable share of profit/loss of associates and joint ventures 31 -68 7 -40
Share of profits from associated companies and joint ventures increased mainly due to the improved nuclear fund returns and updates for
the nuclear decommissioning costs mainly due to inflation in Sweden.
8. Finance costs – net

IV/2022 2022
Interest expense
Borrowings -56 -91 -286 -202
Leasing and other interest expenses -1 -1 -2 -2
Capitalised borrowing costs 5 2 20 4
IS Total -52 -90 -269 -200
Interest income
Loan receivables and deposits 48 26 153 46
Leasing and other interest income 3 1 12 30
IS Total 50 27 165 75
Other financial items - net

Return from nuclear fund, nuclear fund adjustment and unwinding of
nuclear provisions 31 -4 1 -71
Fair value changes, impairments and reversals -1 -5 -3 -3
Unwinding of discounts on other provisions and pension obligations 1 11 0 10
Other financial expenses and income -6 -57 -33 -29
IS Total 25 -55 -34 -93
IV/2022 2022
Adjustments to finance costs - net
Return from nuclear fund, nuclear fund adjustment and unwinding of
nuclear provisions -31 4 -1 71
Fair value changes, impairments, reversals and other adjustments 1 5 3 -23
Comparable finance costs - net -7 -108 -137 -170
Interest expenses on borrowings in 2023 totalled EUR 286 million (2022: 202), including interest expenses on loans of
EUR 246 million (2022: 187), and EUR 40 million (2022: 15) interest cost – net from derivatives hedging the loan
59
portfolio. Interest expenses on loans includes EUR 41 million (2022: 26) relating to the Finnish State bridge financing
recognised in I/2023.
Interest income on loan receivables and deposits, EUR 153 million (2022: 46) in 2023, includes EUR 133 million
(2022: 2) from deposits and cash, and EUR 21 million (2022: 44) interest income from shareholder loan receivables
and other loan receivables.
Return from nuclear fund, nuclear fund adjustment and unwinding of nuclear provisions relate to the Loviisa nuclear
power plant. Unwinding of nuclear provisions was EUR -63 million in 2023 (2022: -39).
Other financial expenses and income, EUR 33 million in 2023 (2022: 29), include EUR 26 million costs relating to
financing arrangements of which EUR 15 million (2022: 23) related to the Finnish State bridge financing.
9. Income taxes
Income taxes during 2023 totalled EUR -69 million (tax expense) (2022: 520 tax income). In 2023, income taxes
included EUR 225 million relating to one-time positive tax impacts mainly recognised in Ireland and in the
Netherlands, due to the impairment of the Russian assets. In 2022, income tax expense included EUR 746 million
relating to onetime tax impact realised in Ireland mainly due to the Uniper divestment. The effective income tax rate
according to the income statement was 4.3% (2022: -33.3%). The comparable effective income tax rate was 19.1%
(2022: 21.9%). Fortum’s comparable effective tax rate is impacted by the weight of the taxable result in different
jurisdictions and differences in standard nominal tax rates in these jurisdictions.
10. Dividend per share

The Board of Directors proposes that a dividend of EUR 1.15 per share be paid for the financial year 2023. The
dividend will be paid in two instalments. Based on the number of shares registered as at 6 February 2024, the total
amount of dividend would be EUR 1,032 million. These Financial statements do not reflect this dividend
A dividend for 2022 of EUR 0.91 per share, amounting to a total of EUR 817 million, was decided in the Annual
General Meeting on 13 April 2023. The dividend was paid in two instalments. The first dividend instalment of EUR
0.46 per share was paid on 24 April 2023, amounting to a total of EUR 413 million. The second dividend instalment of
EUR 0.45 was paid on 10 October 2023, amounting to a total of EUR 404 million.
A dividend for 2021 of EUR 1.14 per share, amounting to a total of EUR 1,013 million, was decided in the Annual
General Meeting on 28 March 2022. The dividend was paid on 6 April 2022.
11. Impairment of non-current assets

The carrying values of goodwill, other intangible assets, property, plant and equipment, right-of-use assets,
participations in associates and joint ventures, and non-financial investments are reviewed regularly for indication of
impairment. Impairment testing is performed if there is an indication of impairment; and the asset is written down to its
recoverable amount if its carrying amount is greater than the estimated recoverable amount. See Note 19 Impairment
testing in the 2022 consolidated financial statements for further information on the accounting policy and assumptions
related to impairment testing.
No impairments were recognised based on the annual impairment testing in the fourth quarter 2023.
In Fortum’s II/2023 financials the loss of control over Russian operations on 25 April 2023 resulted to a full write down
of the Russian assets, EUR 1.7 billion. The impairment charge is included in the results of discontinued operations.
Total impairment charges in 2022 for the Russia CGU based on impairment testing in December 2022 amounted to
EUR 1,697 million, including EUR 905 million impairment of intangible assets and property, plant and equipment, EUR
60
475 million impairment of participations in associates and joint ventures, EUR 145 million expected credit losses on
Russian deposits and receivables, as well as EUR 171 million write down of other shares. In Fortum’s 2023 financials,
these impairment charges are included in the results of discontinued operations for 2022.
12. Interest-bearing receivables

EUR million 31 Dec 2023 31 Dec 2022
Interest-bearing receivables 1,033 1,281
Finance lease receivables - 3
Total 1,033 1,284
Carrying Fair Carrying Fair

amount value 1) amount value
EUR million 31 Dec 2023 31 Dec 2023 31 Dec 2022 31 Dec 2022
Long-term loan receivables from associates and joint ventures 644 670 593 612
Other long-term interest-bearing receivables 0 - 31 31
Total long-term interest-bearing receivables 644 670 624 643
Collateral arrangement 325 325 527 527
Other short-term interest-bearing receivables 64 64 130 130
Total short-term interest-bearing receivables 389 389 657 657
Total 1,033 1,059 1,281 1,301
1) Fair values do not include accrued interest.
Changes in interest-bearing receivables from 31 December 2022 include EUR 33 million from the deconsolidation of
Russian operations in II/2023. See Note 6.3 Discontinued operations.
Long-term interest-bearing receivables from associated companies and joint ventures, EUR 644 million (31 Dec 2022:
593), include EUR 546 million from Swedish nuclear companies, Forsmarks Kraftgrupp AB and OKG AB (31 Dec
2022: 498), which are mainly funded with shareholder loans, pro rata to each shareholder’s ownership.
Other short-term interest-bearing receivables include EUR 51 million collateral for default fund. In II/2023 the cash
collateral in Nasdaq default fund was replaced by securities included in Fortum’s collateral arrangement to the Nordic
Power Exchange. See Note 13 Interest-bearing net debt.
13. Interest-bearing net debt

Financial net debt

- BS Margin receivables 590 2,607
+/- Net margin liabilities/receivables -459 -2,255
Financial net debt 942 1,084
Interest-bearing liabilities of EUR 5,909 million includes Fortum’s collateral arrangement to the Nordic Power
Exchange totalling EUR 376 million (31 Dec 2022: 527). Equalling amount is included in short-term interest-bearing
receivables of which collateral relating to margin requirement, EUR 325 million (31 Dec 2022: 527), is netted from the
Financial net debt in the Collateral arrangement row. However the collateral for default fund, EUR 51 million, is not
netted from the Financial net debt. See Note 12 Interest-bearing receivables.
Financial net debt excluding Russia at 31 December 2022 was EUR 1,127 million.
61
Interest-bearing liabilities

Non-current loans 4,475 3,558
Current loans 1,316 4,108
Total loans 5,791 7,666
Non-current lease liabilities 97 100
Current lease liabilities 21 19
Total lease liabilities 118 119
Total 5,909 7,785
Loans
Carrying Fair Carrying Fair

amount value 3) amount value
EUR million 31 Dec 2023 31 Dec 2023 31 Dec 2022 31 Dec 2022
Bonds 2,736 2,729 2,634 2,569
Loans from financial institutions 1,306 1,314 1,519 1,545
Reborrowing from the Finnish State Nuclear Waste Management Fund 1) 951 952 918 938
Other long-term interest-bearing liabilities 200 199 115 126
Total long-term loans 2) 5,192 5,194 5,187 5,178
Collateral arrangement liability 376 376 527 527
Other short-term interest-bearing liabilities 224 224 1,952 1,952
Total short-term loans 599 599 2,479 2,479
Total 5,791 5,793 7,666 7,657
1) The reborrowing from the Finnish State Nuclear Waste Management Fund includes the part relating to Loviisa nuclear power plant as well as borrowing done
through TVO.
2) Includes current portion of long-term liabilities of EUR 717 million (31 Dec 2022: 1,629).
3) Fair values do not include accrued interest.
Changes in interest-bearing liabilities from 31 December 2022 include EUR 178 million from the deconsolidation of
Russian operations in II/2023. See Note 6.3 Discontinued operations.
In January 2023, Fortum repaid the drawn amount EUR 600 million of its Liquidity revolving credit facility. In February
2023, EUR 1,000 million maturing bond was repaid. In March 2023, Fortum repaid the drawn amount of EUR 350
million and cancelled the entire EUR 2,350 million Finnish State bridge loan facility. Nuclear waste fund loans are in
total EUR 951 million after the drawdown of EUR 33 million.
In May 2023, Fortum issued a dual-tranche bond with a five-year tranche of EUR 500 million and a ten-year tranche of
EUR 650 million. Fortum repaid the final drawn amount of EUR 500 million of its Liquidity revolving credit facility in
May 2023 and the SEK 1,000 million bond in June 2023.
In June 2023, Fortum cancelled EUR 2,100 million of the total EUR 3,100 million Liquidity revolving credit facility, and
the six-month extension option was used for the remaining facility of EUR 1,000 million with new maturity in December
2023 with a six-month extension option by Fortum.
In June 2023, Fortum renewed its maturing drawn bullet loan of EUR 500 million with a new maturity date in February
2025. Undrawn bilateral revolving credit facility of EUR 800 million maturing in December 2023 was renewed with new
maturity date in June 2025 with a one-year extension option by the lender.
In December 2023, the Liquidity revolving credit facility of EUR 1,000 million matured, as Fortum did not use the six-
month extension option. Additionally, for the EUR 500 million bullet loan a one-year borrowers’ extension option was
agreed.
Current loans, EUR 1,316 million (31 Dec 2022: 4,108), include the current portion of long-term loans EUR 717 million
(31 Dec 2022: 1,629) and short-term loans EUR 599 million (31 Dec 2022: 2,479).
Short-term loans, EUR 599 million, include EUR 418 million collateral arrangements and use of commercial paper
programmes of EUR 174 million.
62
The average interest rate for the portfolio of EUR loans was 4.0% at the balance sheet date (31 Dec 2022: 3.1%). The
average interest rate on total loans and derivatives was 4.3% at the balance sheet date (31 Dec 2022, excluding
Russia: 3.7%).
Maturity of loans
EUR million 31 Dec 2023

2024 1,316
2025 509
2026 747
2027 17
2028 520
2029 and later 2,682
Total 5,791
Maturities in 2024 include EUR 418 million loans with no contractual due date.
Maturity of undiscounted lease liabilities

Due within a year 21
Due after one year and within five years 55
Due after five years 56
Total 131
Liquid funds

Deposits and securities with maturity more than 3 months - 147
Cash and cash equivalents 4,183 3,771
BS Total 4,183 3,919
Changes in liquid funds from 31 December 2022 include EUR 284 million from the deconsolidation of Russian
operations in II/2023. See Note 6.3 Discontinued operations.
At the end of the reporting period, the Group’s liquid funds totalled EUR 4,183 million (31 Dec 2022: 3,919), and of
these funds EUR 4,122 million (31 Dec 2022: 3,600) are placed with counterparties that have an investment grade
credit rating.
The average interest rate for the liquid funds was 3.9% at the balance sheet date (31 Dec 2022: 1.7%).
Committed credit facilities
At the end of the reporting period, Fortum had undrawn committed credit facilities of EUR 3,200 million, including the
Core revolving credit facility of EUR 2,400 million (maturity in June 2025 with max. 2 years extension option by the
lenders) and the EUR 800 million bilateral revolving credit facility (maturity in June 2025 with 1 year extension option
by the lender). In addition, Fortum has EUR 100 million committed overdraft limits that are valid until further notice.
14. Nuclear-related assets and liabilities

Fortum owns Loviisa nuclear power plant in Finland. On Fortum's consolidated balance sheet, Share in the State
Nuclear Waste Management Fund and the Nuclear provisions relate to Loviisa nuclear power plant.
Fortum also has minority interests in nuclear power companies, i.e. Teollisuuden Voima Oyj (TVO) in Finland and
OKG Aktiebolag (OKG) and Forsmarks Kraftgrupp AB (Forsmark) in Sweden. The minority shareholdings are
classified as associated companies and joint ventures and are consolidated with equity method. Both the Finnish and
the Swedish companies are non-profit making, i.e. electricity production is invoiced to the owners at cost according to
local GAAP.
63
In Finland and Sweden nuclear operators are legally obligated for the decommissioning of the plants and the disposal
of spent fuel (nuclear waste management). In both countries, the nuclear operators are obligated to secure the funding
of nuclear waste management by paying to government managed nuclear waste funds. The nuclear operators also
have to give securities to guarantee that sufficient funds exist to cover future expenses of decommissioning of the
power plant and the disposal of spent fuel.
14.1 Nuclear-related assets and liabilities for consolidated nuclear power

plants
Carrying values on the balance sheet
BS Nuclear provisions 1,058 966
BS Fortum's share in the State Nuclear Waste Management Fund 1,058 966
Fortum's share of the fair value of the net assets in the State Nuclear Waste Management Fund 1,197 1,148
Share of fund not recognised on the balance sheet 139 182
Nuclear provision and fund accounted for according to IFRS
Nuclear provisions include the provision for the decommissioning and the provision for the disposal of spent fuel.
Provisions are based on the total cost estimate in which future costs are discounted to net present value.
The carrying value of nuclear provisions, calculated according to IAS 37, increased by EUR 92 million compared to 31
December 2022, totalling EUR 1,058 million at 31 December 2023. The change is mainly due to the Loviisa lifetime
extension and updates in Posiva’s project budget.
Fortum's share of the State Nuclear Waste Management Fund is from an IFRS perspective overfunded by EUR 139
million, since Fortum's share of the Fund on 31 December 2023 was EUR 1,197 million and the carrying value on the
balance sheet was EUR 1,058 million. The Fund on Fortum's balance sheet can at maximum be equal to the amount
of the provisions according to IFRS. As long as the Fund is overfunded from an IFRS perspective, other financial
items are adjusted positively if the provisions increase more than the Fund, and negatively if the provision decreases
below the actual value of the Fund.
Legal liability for Loviisa nuclear power plant
The legal liability on 31 December 2023, decided by the Ministry of Economic Affairs and Employment in December
2023, was EUR 1,253 million.
The legal liability is based on a cost estimate, which is updated every year; and a technical plan, which is updated
every three years. The legal liability is determined by assuming that the decommissioning would start at the beginning
of the year following the assessment year and discounting is not applied in determining the amount.
Fortum's share in the Finnish Nuclear Waste Management Fund
According to the Nuclear Energy Act, Fortum is obligated to contribute funds in full to the State Nuclear Waste
Management Fund to cover the legal liability. Fortum contributes funds to the Finnish State Nuclear Waste
Management Fund based on the yearly funding obligation target decided by the governmental authorities in
connection with the decision of size of the legal liability. The current funding obligation target decided in December
2023 is EUR 1,253 million.
Borrowing from the State Nuclear Waste Management Fund
Participants in the Finnish State Nuclear Waste Management Fund are allowed to borrow from the Fund according to
certain rules. Fortum uses the right to borrow back and has pledged shares in Kemijoki Oy as security for the loans.
The loans are renewed annually. See Note 13 Interest-bearing net debt and Note 16 Pledged assets and contingent
liabilities.
64
14.2 Nuclear power plants in associated companies and joint ventures

OKG, Forsmark and TVO are non-profit making companies, i.e. electricity production is invoiced to the owners at cost.
Invoiced cost is accounted according to local GAAP. In addition to the invoiced electricity production cost, Fortum
makes IFRS adjustments to comply with Fortum's accounting principles. These adjustments include also Fortum's
share of the companies' nuclear waste funds and nuclear provisions.
The tables below present the 100% figures relating to nuclear funds and provisions for the companies as well as
Fortum's net share.
TVO's total nuclear-related assets and liabilities (100%)

Carrying values in TVO with Fortum assumptions
Nuclear provisions 1,614 1,620
Share of the State Nuclear Waste Management Fund 1,199 1,157
Net amount -415 -463
of which Fortum's net share consolidated with equity method -104 -116
TVO's legal liability and actual share of the State Nuclear Waste Management Fund
Liability for nuclear waste management according to the Nuclear Energy Act 1,918 1,840
Share in the State Nuclear Waste Management Fund 1,458 1,436
Share of the fund not recognised on the balance sheet 259 279
TVO's legal liability, provision and share of the fund are based on same principles as described above for Loviisa
nuclear power plant. The liabilities and shares in the Fund are calculated and recorded separately for OL1/OL2 plant
units and OL3 plant unit, as the corresponding total cost estimates are prepared separately.
The difference between TVO's share in the State Nuclear Waste Management Fund and the carrying value of the
TVO's share in the Fund is due to IFRIC 5, which requires that the carrying amount of the share in the State Nuclear
Waste Management Fund is the lower of fair value or the value of the related liability. On 31 December 2023, the
OL1/OL2 plant units' share in the Fund is higher than the provision according to IFRS. The OL3 plant unit's share in
the Fund is on the other hand lower than the provision according to IFRS. TVO's share of the Finnish State Nuclear
Waste Management Fund is from an IFRS perspective overfunded by EUR 259 million (of which Fortum's share is
EUR 69 million), since TVO's share of the Fund on 31 December 2023 was EUR 1,458 million and the carrying value
on the consolidated balance sheet with Fortum assumptions was EUR 1,199 million.
Participants in the Finnish State Nuclear Waste Management Fund are allowed to borrow from the fund according to
certain rules. Fortum is using the right to reborrow funds through TVO based on its ownership. See more information
in Note 13 Interest-bearing net debt.
OKG’s and Forsmark’s total nuclear-related assets and liabilities (100%)

OKG's and Forsmark's nuclear-related assets and liabilities with Fortum assumptions
Nuclear provisions 5,001 4,641
Share in the State Nuclear Waste Management Fund 3,506 3,200
Net amount -1,495 -1,441
of which Fortum's net share consolidated with equity method -472 -456
In Sweden, Svensk Kärnbränslehantering AB (SKB), a company owned by the nuclear operators, takes care of all
nuclear waste management-related activities on behalf of nuclear operators. SKB receives its funding from the
Swedish Nuclear Waste Fund, which in turn is financed by the nuclear operators.
Nuclear waste fees and guarantees are normally updated every three years by governmental decision after a proposal
from the Swedish Radiation Safety Authority (SSM). The proposal is based on cost estimates done by SKB and the
license holders. An updated technical plan for nuclear waste management was decided by SKB in December 2022. In
January 2022, the Swedish government decided the waste fees and guarantees for 2022-2023. In December 2023,
the Swedish Government decided on nuclear waste fees and guarantees in accordance with the proposal from the
National Debt Office, but for the year 2024 only. Nuclear waste fees paid by licensees with a unit/units that are still in
65
operation are currently based on future costs with the assumed lifetime of 50 years for each unit of a nuclear power
plant. The fee is calculated in relation to the energy delivered.
15. Capital and other commitments

Capital and other commitments are contractual or regulatory obligations that are not recognised as liabilities on the
balance sheet, or disclosed as contingent liabilities.
Capital commitments
At 31 December 2023, Fortum had EUR 292 million (31 Dec 2022: 441) capital commitments for the acquisition of
property, plant and equipment and intangible assets. The decrease in capital commitments is mainly due to the
deconsolidation of Fortum’s Russian operations.
Other commitments
Teollisuuden Voima Oyj (TVO) built Olkiluoto 3, the nuclear power plant funded through external loans, share issues
and shareholder loans according to shareholders' agreement between the owners of TVO. At 31 December 2023,
Fortum had EUR 232 million (31 Dec 2022: 232) outstanding receivables regarding Olkiluoto 3 and was until 31
December 2023 committed to providing at maximum EUR 100 million additional funding. TVO shareholder loan is
classified as participation in joint ventures. For more information, see Note 14 Nuclear-related assets and liabilities.
For more information on other commitments, see Note 35 Capital and other commitments of the consolidated financial
statements 2022.
16. Pledged assets and contingent liabilities

Fortum has issued direct and indirect guarantees and warranties on own behalf and on behalf of associated
companies and joint ventures, which may obligate Fortum to make payments on the occurrence of certain events. For
the Swedish nuclear companies there are two types of guarantees given. The Financing Amount is given to cover
Fortum's share of the uncovered part in the Nuclear Waste Fund, assuming no further production and that no further
nuclear waste fees are paid in. The uncovered amount is calculated by the authorities and is based on the difference
between the expected costs and the funds to cover these costs at the time of the calculation. The Supplementary
Amount constitutes a guarantee for deficits that can arise as a result of unplanned events.
The guarantee given on behalf of Teollisuuden Voima Oyj to the Ministry of Economic Affairs and Employment
amounts to EUR 142 million (31 Dec 2022: 136). The guarantee covers the unpaid legal liability due to periodisation,
as well as risks for unexpected future costs. For more information, see Note 14 Nuclear-related assets and liabilities.
Further, Fortum has pledged shares in Kemijoki Oy as a security for the reborrowing from the Finnish State Nuclear
Waste Management Fund for the Loviisa nuclear power plant part, amounting to EUR 718 million (31 Dec 2022: 689).
Fortum has also pledged real estate mortgages in Pyhäkoski hydro plant as security for the uncovered part of the
legal nuclear liability to the Ministry of Economic Affairs and Employment amounting to EUR 122 million (31 Dec 2022:
126).
Pledges assets include securities of EUR 325 million (31 Dec 2022: 527) to the Nordic Power Exchange (Nasdaq
Commodites), margin receivables of EUR 590 million (31 Dec 2022: 2,607) and restricted cash of EUR 13 million (31
Dec 2022: 27). Margin receivables of EUR 590 million consist of cash collaterals for trading in commodities
exchanges, as well as foreign exchange and interest rate derivatives under Credit Support Annex agreements.
Pledged assets on behalf of others consist of restricted cash of EUR 51 million (31 Dec 2022: 96) posted as collateral
toward Nasdaq Clearing AB covering Fortum’s required contribution to the Commodity Market Default Fund (default
fund). The default fund is a mutualised fund whereby all participants on the Nordic power exchange (Nasdaq
Commodities) post collateral in relation to their exposure on the market in order to cover potential defaults by
members which may cause losses exceeding the members' own collateral.
66
The remaining parent company guarantee facility that Fortum had granted to Uniper, approximately EUR 1.0 billion,
was released at the end of June 2023.
In 2021 Fortum signed an EUR 8 billion credit facility agreement with Uniper comprising tranches for both a
shareholder loan and a parent company guarantee. The shareholder loan, EUR 4 billion, was repaid on 21 December
2022 on completion of the transaction to sell Uniper to the German State. Out of the EUR 4.0 billion parent company
guarantee facility, a total of EUR 3.0 billion was released by year-end 2022.
For more information, see Note 36 Pledged assets and contingent liabilities of the consolidated financial statements
2022.
17. Legal actions and official proceedings

Various routine court actions, arbitration proceedings, tax and regulatory investigations and proceedings are currently
pending against entities of the Group, and further actions or proceedings may be instituted or asserted in the future.
For more information, see Note 37 Legal actions and official proceedings of the consolidated financial statements
2022.
Environmental liability litigation in Sweden
Fortum is party to an ongoing environmental liability litigation in Sweden concerning barrels of mercury placed in the
Baltic Sea outside Sundsvall during the 1950s and 1960s. On 2 June 2023, the Court of Appeal, contrary to the Land
and Environment Court, ruled that Fortum shall compensate a third party for the costs of a related environmental
investigation. Fortum has requested for a leave to appeal to the Supreme Court. Fortum has not at any time had any
involvement in producing mercury, or placing the mercury waste in the sea. At the time, a company called Stockholms
superfosfat fabriks was operating the industrial activities. In 1985, these industrial activities, including all rights and
obligations thereof, were transferred from Stockholms superfosfat fabriks AB to the third party. In 1995, Stockholms
superfosfat fabriks AB was sold to an external party, only then ending up in the Fortum Group (and name changed to
Fortum Ljunga Kraft AB).
The current litigation is concerning the liability for the environmental investigation into the extent of required
environmental measures. The County Administrative Board has in parallel an ongoing errand on the environmental
liability for the barrels. In this process, the County Administrative Board will first make a decision on which company
shall carry out the environmental investigations and only thereafter it may decide on the liability for the environmental
measures. At this point in time, it is not possible to estimate either the cost of the full environmental investigations, or
the cost of potential environmental measures required.
Fennovoima’s Hanhikivi nuclear power plant project
RAOS Project Oy and JSC Rusatom Energy International and Fennovoima Oy are engaged in International Chamber
of Commerce (ICC) arbitration proceedings regarding Fennovoima's EPC Contract for the Hanhikivi nuclear power
plant project. RAOS Project Oy has requested also Fortum and certain other parties to be joined in these proceedings.
Fortum disputes the existence of any contractual relation, obligation, or arbitration agreement between Fortum and
RAOS Project Oy. Therefore, Fortum is of the opinion that an arbitral tribunal has no jurisdiction to decide any claims
against Fortum. As Fortum is not a party to the agreement under dispute, it considers the request to be completely
unfounded and strongly opposes it.
67
18. Related party transactions

Related parties are described in more detail in the consolidated financial statements for the year ended 31 December
2022.
Transactions with associates and joint ventures
IV/2022 2022
Sales 5 33 12 74
Purchases 185 110 602 438
Other income - 2 -3 4
Interest income on loan receivables 2 3 10 12
Balances with associates and joint ventures

Long-term interest-bearing loan receivables 644 593
Trade and other receivables 30 87
Long-and short-term loan payables 239 229

Trade and other payables 72 53
Other transactions with related parties
At the end of 2022, the Finnish State owned 51.26% of Fortum's shares. There has been no change in the number of
shares the Finnish State owns in Fortum during 2023.
On 30 October 2023, Fortum announced that an agreement have been signed with the National
Emergency Supply Agency (NESA). Under this agreement, NESA reserves the production of the Meri-Pori power
plant for severe disruption and emergencies to guarantee security of supply in the electricity system in Finland. The
agreement period is 1 March 2024 until 31 December 2026.
On 6 September 2022, Fortum announced that it had agreed with the Finnish State on a EUR 2.35 billion bridge
financing arrangement. On 26 September 2022, Fortum announced to draw the first tranche of the liquidity facility,
EUR 350 million. The bridge loan facility was linked to the six-month Euribor; the margin for the first six months was
10% and for the following six months 12%. As a condition in the agreement following the first draw down, the Finnish
State-owned holding company, Solidium Oy, was entitled to subscribe 8,970,000 new ordinary registered shares in
Fortum in a directed share issue, without payment. The share issue to Solidium Oy was resolved in the Extraordinary
General Meeting on 23 November 2022 and the new shares were registered with the Finnish trade register on 25
November 2022. The new shares carry full shareholder rights, including the right to dividend, as of the registration
date. As a consequence, the proportion of shares under the control of the State of Finland increased to 51.26%. In
March 2023, Fortum repaid EUR 350 million of the Solidium bridge loan and cancelled the entire EUR 2,350 million
bridge loan facility. Total interest expenses and fees relating to the bridge loan facility amounting to EUR 105 million
(2023: 56 and 2022: 49) were recognised in Finance costs - net.
68
19. Events after the balance sheet date

On 26 January 2024, Fortum announced that as part of the efficiency programme launched in November 2023,
Fortum’s Consumer Solutions business unit and the IT unit are conducting change negotiations on possible
redundancies. In total, the negotiations concern some 1,080 employees in Finland, Sweden, Norway, and the IT unit
in Poland. According to a preliminary estimate, change negotiations could result in the redundancies of a maximum of
130 job positions.
At the beginning of February 2024, the Fortum Board of Directors resolved on clarifications to Fortum’s strategy. As
the operating environment shows increased uncertainty, reduced visibility and postponement of industrial investments,
the company has specified its business portfolio, clarified capital allocation and set new strategic targets with
measurable key performance indicators (KPIs). Fortum’s renewed strategy, launched in March 2023, with focus on the
Nordics remains unchanged, as well as its strategic priorities to ‘deliver reliable clean energy’, ‘drive decarbonisation
in industries’, and ‘transform and develop’. The company’s financial and environmental targets are also unaltered.
The financial and environmental targets are as follows:
• To ensure the current rating of BBB, Financial net debt-to-Comparable EBITDA can be a maximum of 2.0-2.5
times.
• For the period of 2024-2026, Fortum’s capital expenditure is expected to be approximately EUR 1.7 billion
(excluding acquisition) of which growth capital expenditure is expected to be EUR 800 million and annual
maintenance capital expenditure EUR 300 million.
• To ensure required returns for any potential new investments, Fortum continues to be selective and applies
earlier set investment criteria; project based WACC + 150-400 investment hurdles depending on technology
or investment project, as well as environmental targets.
• Fortum’s dividend policy - a payout ratio of 60-90% of comparable EPS - remains unchanged. The payout
ratio will be used so that the upper end of the range of the pay-out ratio is applied in situations with a strong
balance sheet and low investments, while the lower end of the range would be applied with high leverage
and/or significant investments and high capital expenditure.
69
20. Definitions and reconciliations of key figures

Alternative performance measures
Reference to
Business performance Definition Reason to use the measure reconciliation
Comparable EBITDA Operating profit + depreciations and Comparable EBITDA is Key ratios after cash flow
amortisations - items affecting comparability representing the underlying cash statement
flow generated by the total Group
and segments. Used as a
component in the capital structure
target of Financial net debt to
Comparable EBITDA.
Comparable operating profit Operating profit - items affecting Comparable operating profit is Income statement
comparability used in financial target setting
and forecasting, management's
follow up of financial performance
and allocation of resources in the
group's performance
management process.
Items affecting comparability Impairment charges and reversals + capital Component used in calculating Income statement
gains and other related items + changes in comparable operating profit and
fair values of derivatives hedging future comparable EBITDA.
cash flow + other
Impairment charges and Impairment charges and related provisions Component used in calculating Income statement
reversals (mainly dismantling), as well as the reversal comparable operating profit and
of previously recorded impairment charges. comparable EBITDA.
Impairment charges are adjusted from
depreciation and amortisation, and
reversals from other income.
Capital gains and other Capital gains and transaction costs from Component used in calculating Income statement
related items acquisitions, which are adjusted from other comparable operating profit and
income and other expenses respectively. comparable EBITDA.
Profits are reported in comparable
operating profit, if this reflects the business
model.
Changes in fair values of Effects from financial derivatives hedging Component used in calculating Income statement
derivatives hedging future future cash flows where hedge accounting comparable operating profit and
cash flow is not applied or own use exemption cannot comparable EBITDA.
be used according to IFRS 9 and are
adjusted from other income or expense to
sales and materials and services
respectively when calculating Fortum's
alternative performance measures.
Other Restructuring and cost management Component used in calculating Income statement
expenses, and other miscellaneous non- comparable operating profit and
operating items, which are adjusted mainly comparable EBITDA.
from materials and services or other
expenses.
70
Reference to
Business performance Definition Reason to use the measure reconciliation
Comparable share of profit/loss Share of profit/loss of associates and joint Component used in calculating Note 4 Comparable
of associates and joint ventures ventures +/- significant adjustments for comparable net profit and operating profit and
share of profit /loss in associates and joint comparable return on net assets. comparable net profit
ventures.
Comparable finance costs – net Finance costs – net +/- return from nuclear Component used in calculating Note 4 Comparable
funds, nuclear fund adjustment and comparable net profit. operating profit and
unwinding of nuclear provisions +/- fair comparable net profit
value changes on financial items +/-
impairment charges and reversals of
previously recorded impairment charges on
financial items and other one-time
adjustments.
Comparable profit before Comparable operating profit +/- comparable Subtotal in comparable net profit Note 4 Comparable
income tax share of profit/loss of associates and joint calculation. operating profit and
ventures +/- comparable finance costs – comparable net profit
net.
Comparable income tax Income tax expense excluding taxes on Component used in calculating Note 4 Comparable
expense items affecting comparability, adjustments comparable net profit. operating profit and
to finance costs – net, tax rate changes and comparable net profit
other onetime adjustments.
Comparable net profit Comparable operating profit +/- comparable Comparable net profit is used to Note 4 Comparable
share of profit/loss of associates and joint provide additional financial operating profit and
ventures +/- comparable finance costs - net performance indicators to comparable net profit
+/- comparable income tax expense +/- support meaningful comparison
comparable non-controlling interests. of underlying net profitability
between periods.
Comparable earnings per share Note 4 Comparable

is used to provide additional operating profit and
financial performance indicators comparable net profit
to support meaningful
comparison of underlying net
Comparable earnings per share Comparable net profit profitability between periods.
Average number of shares during the period
Comparable return on net assets Note 3 Segment

is used in financial target setting information
and forecasting, management's
follow up of financial
performance and allocation of
Comparable operating profit + comparable resources in the group's
Comparable return on net share of profit /loss of associates and joint performance management
assets, % ventures x 100 process.
Comparable net assets average
Comparable net assets Non-interest-bearing assets - non-interest- Comparable net assets is a Note 3 Segment
bearing liabilities - provisions (non-interest- component in Comparable return information
bearing assets and liabilities do not include on net assets calculation where
finance-related items, tax and deferred tax return on capital allocated
and assets and liabilities from fair valuations directly to the businesses is
of derivatives used for hedging future cash measured.
flows).
71
Reference to
Capital structure Definition Reason to use the measure reconciliation
Financial net debt to Comparable

EBITDA is Fortum’s long-term
Financial net debt / financial target for capital Key ratios after cash flow
comparable EBITDA Financial net debt structure. statement
Comparable EBITDA
Financial net debt Interest-bearing liabilities - liquid funds - Financial net debt is used in the Note 13 Interest-bearing
securities in interest-bearing receivables +/- follow-up of the indebtedness of net debt
net margin liabilities/receivables the group and it is a component in
the capital structure target of
Financial net debt to Comparable
EBITDA.
Alternative performance measures excluding Russia
Reference to
Capital structure Definition Reason to use the measure reconciliation
Financial net debt/comparable

EBITDA excluding Russia is an
additional financial performance
indicator to support meaningful
Financial net comparison of the capital
debt/comparable EBITDA structure for Fortum's strategic Key ratios after cash flow
excl. Russia Financial net debt excl. Russia businesses. statement
Comparable EBITDA from continuing
operations excl. Russia
Financial net debt excl. Financial net debt - Interest-bearing Financial net debt excluding Key ratios after cash flow
Russia liabilities, Russia + Liquid funds, Russia Russia is an additional financial statement
performance indicator to support
meaningful comparison in the
follow-up of the indebtedness of
the group and it is a component in
the calculation of Financial net
debt to Comparable EBITDA
excluding Russia.
72
Other key figures

Share based key figures
Earnings per share (EPS) Profit for the period - non-controlling interests
Average number of shares during the period
Equity per share Shareholder's equity

Number of shares at the end of the period
Other key figures
Capital expenditure Capitalised investments in property, plant and equipment and intangible assets including maintenance,
productivity, growth and investments required by legislation including borrowing costs capitalised during
the construction period. Maintenance investments expand the lifetime of an existing asset, maintain
usage/availability and/or maintains reliability. Productivity investments improve productivity in an existing
asset. Growth investments' purpose is to build new assets and/or to increase customer base within
existing businesses. Legislation investments are done at certain point of time due to legal requirements.
Gross investments in shares Investments in subsidiary shares, shares in associated companies and joint ventures and other
investments. Investments in subsidiary shares are net of liquid funds and grossed with interest-bearing
liabilities and other items included in financial net debt in the acquired company.
Tax key figures
Effective income tax rate, % Income tax expense x 100

Profit before income tax
Comparable effective income tax rate, % Comparable income tax x 100

Comparable profit before income tax excluding comparable share of profit/loss
of associated companies and joint ventures
73
Reconciliations of alternative performance measures

Comparable EBITDA
IV/2022 2022
+ IS Depreciation and amortisation 101 106 359 415
EBITDA 477 -69 2,021 2,381
- IS Items affecting comparability 4 -18 843 -118 -356
Comparable EBITDA 459 774 1,903 2,025
Comparable operating profit
IV/2022 2022
IS Comparable operating profit 4 359 669 1,544 1,611
Items affecting comparability
IV/2022 2022
Impairment charges and reversals - 0 - 0
Capital gains and other related items 2 5 4 785
Changes in fair values of derivatives hedging future cash flow 21 -804 111 -376
Other -5 -44 3 -52
IS Items affecting comparability 4 18 -843 118 356
Comparable net profit
IV/2022 2022
IS Net profit 413 427 1,515 2,084
- Adjustments to share of profit/loss of associates and joint ventures 7 -58 -9 -52 145
- Adjustments to finance costs - net 8 -30 9 2 48
- Adjustments to income tax expenses 8 -905 -201 -836
- IS Non-controlling interests -3 4 -1 -4
- Adjustments to non-controlling interests 4 1 5 -5
Comparable net profit from continuing operations 4 317 370 1,150 1,076
Comparable net profit from discontinued operations 6.3 - -154 34 -2,064

Comparable net profit, total Fortum 317 216 1,184 -988
74
Comparable earnings per share
IV/2022 2022
Note IV/2023 restated 2023 restated
Comparable net profit from continuing operations, EUR million 4 317 370 1,150 1,076
Average number of shares during the period, 1,000 shares 897,264 892,811 897,264 889,204
Comparable earnings per share from continuing operations, EUR 0.35 0.42 1.28 1.21
Comparable net profit from discontinued operations, EUR million 4 - -154 34 -2,064
Comparable earnings per share from discontinued operations, EUR - -0.17 0.04 -2.32
Comparable net profit, total Fortum, EUR million 4 317 216 1,184 -988
Comparable earnings per share, total Fortum, EUR 0.35 0.25 1.32 -1.11
Financial net debt
EUR million Note 31 Dec 2023 31 Dec 2022

- BS Margin receivables 590 2,607
+/- Net margin liabilities/receivables -459 -2,255
Financial net debt 13 942 1,084
Financial net debt/comparable EBITDA
Continuing
operations
EUR million Note 2022 2023
- BS Margin receivables 2,607 590
+/- Net margin liabilities/receivables -2,255 -459
Financial net debt 13 1,084 942
- Interest bearing liabilities, Russia 204 -
+ Liquid funds, Russia 247 -
Financial net debt, excluding Russia 1,127 -
IS Operating profit 1,967 1,662

+ IS Depreciation and amortisation 415 359
EBITDA 2,381 2,021
- IS Items affecting comparability -356 -118
Comparable EBITDA from continuing operations 2,025 1,903
Comparable EBITDA Russia 411 -
Comparable EBITDA (as presented in the consolidated financial statements 2022) 2,436 -
Financial net debt/comparable EBITDA, excl. Russia 0.6 0.5

Financial net debt/comparable EBITDA (as presented in the consolidated financial statements 2022) 0.4 -
75
Reconciliations of alternative performance measures excluding Russia

Financial net debt/comparable EBITDA excl. Russia
EUR million 2022

Financial net debt 1,084
- Interest-bearing liabilities, Russia 204
+ Liquid funds, Russia 247
Financial net debt excl. Russia 1,127
Comparable EBITDA from continuing operations excl. Russia 2,025
Financial net debt/comparable EBITDA excl. Russia 0.6
Interest-bearing liabilities excl. Russia

Interest-bearing liabilities 7,785
- Interest-bearing liabilities, Russia 204
Interest-bearing liabilities excl. Russia 7,581
Liquid funds excl. Russia

Liquid funds 3,919
- Liquid funds, Russia 247
Liquid funds excl. Russia 3,672
76
Fortum Corporation Market conditions and achieved power prices
Market conditions and achieved power prices
Power consumption
TWh IV/2023 IV/2022 2023 2022

Nordic countries 113 103 386 386
Average prices
IV/2023 IV/2022 2023 2022

Spot price for power in Nord Pool power exchange, EUR/MWh 57.6 135.6 56.4 135.9
Spot price for power in Finland, EUR/MWh 61.1 184.8 56.5 154.0
Spot price for power in Sweden, SE3, Stockholm EUR/MWh 56.5 146.7 51.7 129.2
Spot price for power in Sweden, SE2, Sundsvall EUR/MWh 44.0 115.7 40.0 61.9
Spot price for power in Germany, EUR/MWh 82.3 192.8 95.2 235.4
CO2, (ETS EUA next Dec), EUR/tonne CO2 77 78 85 81
Coal (ICE Rotterdam front month), USD/tonne 119 234 125 279
Oil (Brent front month), USD/bbl 83 89 82 99
Gas (TTF front month), EUR/MWh 43 124 41 133
Hydro reservoir
TWh 31 Dec 2023 31 Dec 2022

Nordic hydro reservoir level 77 79
Nordic hydro reservoir level, long-term average 84 84
Export/import
TWh (+ = import to, - = export from Nordic area) IV/2023 IV/2022 2023 2022
Export / import between Nordic area and Continental Europe + Baltics -6 -8 -41 -35
Export / import between Nordic area and Russia 0 0 0 4
Export / import Nordic area, Total -6 -8 -41 -31
Achieved power prices
EUR/MWh IV/2023 IV/2022 2023 2022

Generation segment's Nordic achieved power price 58.1 80.5 63.1 59.9
77
Fortum Corporation Production and sales volumes
Fortum's production and sales volumes

Power generation
TWh IV/2023 IV/2022 2023 2022

Nordic countries 13.1 11.5 46.4 43.5
Other European countries 0.2 0.2 0.6 0.8
Total continuing operations 13.3 11.7 47.0 44.2
Heat production
TWh IV/2023 IV/2022 2023 2022

Nordic countries 1.1 1.0 3.2 4.1
Other European countries 0.4 0.4 1.1 1.2
Power generation capacity by segment
31 Dec 2022
MW 31 Dec 2023 restated
Generation 9,223 8,551
Other Operations 25 25
Total continuing operations 9,248 8,576
Heat production capacity by segment
31 Dec 2022
MW 31 Dec 2023 restated
Generation 2,022 1,964
Other Operations 171 171
Total continuing operations 2,193 2,135
Power generation by source in the Nordic area
TWh IV/2023 IV/2022 2023 2022

Hydropower 6.0 4.8 20.9 19.1
Nuclear power 6.9 6.1 24.8 23.4
Wind power 0.1 - 0.1 -
CHP and condensing power 0.1 0.6 0.5 0.9
Power generation by source in the Nordic area
% IV/2023 IV/2022 2023 2022

Hydropower 46 42 45 44
Nuclear power 53 53 54 54
Wind power 1 - 0 -
CHP and condensing power 1 5 1 2
Total continuing operations 100 100 100 100
78
Fortum Corporation Production and sales volumes
Power generation by source in other European countries
TWh IV/2023 IV/2022 2023 2022

CHP 0.2 0.2 0.6 0.8
Power sales
EUR million IV/2023 IV/2022 2023 2022

Nordic countries 1,209 1,800 4,311 5,444
Other European countries 206 167 879 643
Other countries 1 1 2 3
Total continuing operations 1,415 1,968 5,193 6,090
Heat sales
EUR million IV/2023 IV/2022 2023 2022

Nordic countries 72 68 208 325
Other European countries 103 66 304 202
Total continuing operations 175 134 512 527
Power sales by area
TWh IV/2023 IV/2022 2023 2022

Finland 6.6 5.6 23.6 21.5
Sweden 8.1 6.8 27.1 27.3
Norway 3.8 3.2 12.8 11.3
Other countries 1.5 1.1 6.0 4.5
Nord Pool transactions are calculated as a net amount of hourly sales and purchases at the Group level.
Heat sales by area
TWh IV/2023 IV/2022 2023 2022

Finland 0.9 0.9 2.6 2.8
Norway - - - 0.8
Poland 1.2 1.2 3.4 3.5
Other countries 0.1 0.1 0.4 0.4
79

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Fortum Corporation

January−December 2023 Financial Statements Bulletin

Tables to the Financial Statements Bulletin

A year of transformation and stabilising business

January–December 2023, continuing operations

Key figures, continuing operations

Key figures, total of continuing and discontinued operations

Fortum’s President and CEO Markus Rauramo:

Changes in the reporting structure

The financial and environmental targets were as follows:

• Dividend policy with a payout ratio of 60–90% of comparable EPS.

Comparable EBITDA by segment

Comparable operating profit by segment

Operating profit by segment

Comparable earnings per share were EUR 0.35 (0.42).

For further details, see ‘Segment reviews’.

Financial position and cash flow

Liquid funds increased by EUR 503 (decrease 1,148) million.

For further details, see the ‘Financing’ section below.

Power generation by source

Achieved power price

EUR/MWh IV/2023 IV/2022 2023 2022

EUR million IV/2023 IV/2022 2023 2022

EUR million IV/2023 IV/2022 2023 2022

TWh IV/2023 IV/2022 2023 2022

Thousands* 31 Dec 2023 31 Dec 2022

Discontinued operations (Russia and Uniper)

For further details, see Notes 1, 2, 6 and 11.

Capital expenditures, divestments and investments in

Operating and regulatory environment

European commodity markets

Agreement reached on the decarbonised gas market package

Nature restoration regulation trilogues finalised

Swedish nuclear waste fund fees to be recalculated

Swedish roadmap for new nuclear investments published

Key drivers and risks

Business operating environment

Nordic power price exposure and related risks

Emission reduction targets and performance for continuing operations

Fortum’s safety targets for 2023 are:

Group sustainability performance for continuing operations

Climate and resources

Fortum’s direct CO2 emissions (million tonnes, Mt,

Personnel and society

Shares and share capital

January–December No. of shares Total value High Low Average Last

31 December 2023 31 December 2022

Changes in Group management

Fortum Leadership Team as per 31 March 2023:

• Markus Rauramo, President and CEO

• Mikael Rönnblad, Executive Vice President, Consumer Solutions

Remuneration and share-based incentive plan for

Authorisations of the Board

Annual General Meeting 2023

• for the Chair EUR 88,800 per year,

Other major events during the fourth quarter of 2023

Events after the balance sheet date

The financial and environmental targets are as follows:

Please see a separate Stock Exchange Release published on 7 February 2024.