TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS IN 2005

Fortum Corporation STOCK EXCHANGE RELEASE
27 April 2005


TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS IN 2005

Quarterly restatement of 2004 Income statement, Balance sheet and Cash-flow in
accordance with International Financial Reporting Standards

As from 2005, Fortum will apply the International Financial reporting standards
(IFRS) for the annual report as well as for the interim reports. The annual
report as well as the interim reports will include one comparison year, which
will be restated in accordance with IFRS. The date of transition from Finnish
GAAP (FAS) to IFRS is January 1, 2004. The first interim report under IFRS will
be published May 3, 2005.

Fortum published in the press release on February 3, 2005 and in the financial
statements for 2004, audited information of the impacts of IFRS on the income
statement and certain key ratios. The information below is intended to give
further guidance with restated income statements, balance sheets and cash-flows
and segment information on a quarterly and full year basis.

The IFRS financial information presented below may require adjustments before
its inclusion as comparative information in the Fortum's first set of IFRS
financial statements for the year ended December 31, 2005 due to the ongoing
changes in IFRS which might have an effect on the accounts of the companies
applying IFRS from 2005.

Accounting treatment of the dividend distribution and sale of shares in Neste
Oil Corporation and discontinued operations

On March 31, 2005 the annual general meeting of Fortum decided to distribute
approximately 85% of the shares in Neste Oil as dividend. The remaining shares
were sold during April. In the interim report as of March 31, 2005, Neste Oil
will be deconsolidated. The balance sheet will still include the approximately
15% shareholding in Neste Oil. The shareholding will be classified as available
for sale financial assets and valued at fair value. The initial fair value
adjustment will be recorded directly against equity and in the second quarter
2005, after concluding the transaction in April, the fair value adjustment will
be recognised in the income statement and presented as a gain on sales of shares
included in discontinued operations.

The oil related operations in Fortum as of March 31, 2005 will be treated as
discontinued operations according to IFRS 5 Non-current Assets held for Sale and
Discontinued operations. Discontinued operations will be disclosed on one line
net of tax in the income statement. In the cash-flow statement the net cash-
flows attributable to the operating, investing and financing activities of the
discontinued operations will be disclosed separately. The 2004 comparison
information in this document has, in accordance with IFRS 5, been restated and
presented in the same way as the first quarter 2005 income statement and cash-
flow will be presented. The comparison balance sheets for 2004 comparison still
include the oil operations.

Discontinued operations include mainly the oil operations in Fortum, but for
example financial costs incurred by the separation and effects from intra group
items have also been included. The net financial costs allocated to discontinued
operations are based on the fact that the financing activities and risk
management have been centralised on group level and that intra-group funding has
been based on short-term floating rate. This means that the continuing
operations in Fortum are showing relatively high financial costs for 2004. Total
corporate center costs and other overhead costs as previously presented in
Fortum are included in continuing operations and no future cost reductions have
been assumed.

The information given below should not be regarded as guidance for the IFRS
effects for Neste Oil Group. For information on the IFRS effects in Neste Oil
Group see the published press release issued by Fortum on March 14, 2005.

Presentation format in future interim reports

As from the first quarter 2005 Fortum will include the following additional
information compared with previously presented:
Share of profit of associated companies and joint ventures (income statement)
and Investments in associates and joint ventures (balance sheet) by segment.
Fortum´s associates included in Power Generation comprises mainly of nuclear and
hydro production companies and the shareholdings in Hafslund and Lenenergo. In
Heat the major associated company is Gasum and in Distribution the major
associated company is Fingrid.
Net assets by segment will also be presented gross as assets and liabilities.
Reconciliation to total assets and liabilities is included.

Exemptions elected according to IFRS 1 First-Time Adoption of International
Financial Reporting Standards

In the IFRS transition Fortum has elected to apply exemptions allowed in the
First-Time Adoption standard (IFRS 1). The most important exemption elected is
concerning business combinations that have taken place before the date of
transition to IFRS. Fortum will keep the same classification and recognition of
assets and liabilities as in its FAS financial statements. This means that
acquisitions made before January 1, 2004 are not restated. Impairment tests have
been performed continuously and no impairment charges have been recognised in
the IFRS opening balance sheet.

Fortum has chosen to apply IAS 32 Financial Instruments: Disclosure and
Presentation and IAS 39 Financial Instruments: Recognition and Measurement -
standards regarding financial instruments also for the comparison year 2004.

Effects of the transition to IFRS on Fortum with Oil operations disclosed as
discontinued operations

In the Interim report as of March 31, 2005, the income statement will be
disclosed with the Oil operations as discontinued operations. The following
table describes the impact of the transition to IFRS on the continuing
operations.

The impact on the income statement for the continuing operations is mainly due
to the changes in treatment of employee benefits and the one-time change in the
treatment of the Finnish TEL´s disability pension component from defined benefit
plan in the IFRS opening balance 2004 to defined contribution plan in the IFRS
December 31, 2004 balance sheet. Fortum's continuing operations are applying
hedge accounting for most of the derivatives used to hedge future cash-flows
which reduces the volatility in the income statement. The volatility from fair
valuations of the derivatives will be accounted for in the hedging reserve
included in the equity.

In IFRS share of profits of associated companies and joint ventures is not
included in operating profit but presented directly after operating profit.
Depreciations on fair value adjustments made when acquiring the shareholdings
have been reclassified from Other expenses in FAS to share of profit of
associated companies and joint ventures in IFRS.


FORTUM GROUP
JANUARY-DECEMBER 2004

CONSOLIDATED INCOME STATEMENT RESTATED WITH DISCONTINUED OPERATIONS

MEUR FAS Nuclear Finan- Leasi Employ Other Total
IFRS
Dec 31 related cial ng ee IFRS IFRS
Dec
2004 assets Instru Benefi impact impac
31
and m-ents ts s t
2004
provis-
ions
Net sales 3841 0 -6 -6
3835
Other operating 84 6 1 7
91
income
Materials and -1507 0
-1507
services
Employee benefit -470 17 -9 8
-462
costs
Depreciation, -393 2 3 0 5
-388
amortisation and
impairment charges
Other operating -401 5 1 21 27
-374
expenses
Operating profit 1154 7 6 -2 18 12 41
1195
Share of profits of 34 -2 -20 -22
12
associated
companies and joint
ventures
Finance costs - net -232 -8 -10 1 4 0 -13
-245
Profit before taxes 956 -3 -4 -1 22 -8 6
962
Income taxes -254 -5
-259
Profit for the year 702 1
703
Discontinued operations
Profit for the year 556 33
589
from discontinued
operations
Profit for the year 1258 34
1292

Attributable to:
1227 32
1259
Equity holders of 31 2
33
the Company
Minority interest 1258 34
1292

The impact of different IFRS issues on the balance sheet as of December 31,
2004, is shown in a separate table included in this document.


Effects of the transition to IFRS on Fortum as previously presented

The total effect of the transition to IFRS on Fortum´s 2004 comparison financial
information includes the effects on the oil operations. The previously published
descriptions of the effects on Fortum including oil operations are enclosed as
an appendix to this document.

The main impacts will result from the changes in the recognition and measurement
principles of financial instruments, the recognition of assets and provisions in
relation to asset retirement obligations and disposal of spent fuel regarding
the nuclear power plants, differences in the classification of leasing
arrangements compared to FAS and from the changes in the accounting for pension
obligations. The following tables were presented in the financial statement 2004
and showed the impact of IFRS on the income statement and certain key ratios for
Fortum including the Oil operations.


FORTUM GROUP
JANUARY-DECEMBER 2004
Audited

The preliminary impact of the transition to IFRS on the Fortum Group's Income
Statment and key ratios

CONSOLIDATED INCOME STATEMENT

MEUR FAS Nuclea Finan- Leasi Employ Other Total
IFRS
Dec 31 r cial ng ee IFRS IFRS Dec
31
2004 relate Instru Benefi impac impac
2004
d m-ents ts ts t
assets
and
provis-
ions
Net sales 11665 -6 -6
11659
Other operating 121 29 6 1 36
157
income
Materials and -7861 0
-7861
services
Employee benefit -684 23 -12 11
-673
costs
Depreciation, -511 2 -3 -15 -16
-527
amortisation and
impairment charges
Other operating -886 5 9 33 47
-839
expenses
Operating profit 1844 7 29 6 24 6 72
1916
Share of profits 70 -2 -20 -22
48
of associated
companies and
joint ventures
Finance costs - -259 -8 -10 7 4 2 -5
-264
net
Profit before 1655 -3 19 13 28 -12 45
1700
taxes
Income taxes -397 -11
-408
Profit for the 1258 34
1292
year
Attributable to:
1227 32
1259
31 2
33
1258 34
1292

*) Share of profits of associated companies and joint ventures is included in
operating profit in FAS

Earnings per share for profit attributable to the equity holders
of the company during the year (in € per share)

Basic 1,44
1,48
Diluted 1,42
1,46


KEY RATIOS FAS Nuclea Finan- Leasi Employ Other Total
IFRS
Dec 31 r cial ng ee IFRS IFRS
Dec
2003 relate Instrum- Benefi impact impac
31
d ents ts s t
2003
assets
and
provis-
ions
Capital employed, 12704 39 -55 155 7 -35 111
12815
MEUR
Interest-bearing 5626 98 149 -1 246
5872
net debt, MEUR
Total equity 6638 39 -153 6 7 -28 -129
6509
including minority
interest, MEUR
232 1 -101 -12 -112
120


KEY RATIOS FAS Nuclea Finan- Leasi Employ Other Total
IFRS
Dec 31 r cial ng ee IFRS IFRS
Dec
2004 relate Instrum- Benefi impact impac
31
d ents ts s t
2004
assets
and
provis-
ions
Capital employed, 12697 38 35 118 28 -26 193
12890
MEUR
Interest-bearing 4896 96 102 1 199
5095
net debt, MEUR
Total equity 7655 38 -61 16 28 -26 -5
7650
including minority
interest, MEUR
261 1 -100 -12 -111
150

Return on capital 15,6
15,8
employed, %
Return on 17,6
18,2
shareholders'
equity, %
Gearing, % 64
67


The first quarter interim report 2005 for Fortum will be published on May 3,
2005.

Fortum Corporation
Carola Teir-Lehtinen
Senior Vice President, Corporate Communications

Further information:
Mika Paloranta, Vice President, IR, tel. +358 10 452 4138
Susanne Jonsson, Corporate Controller, tel. +358 10 452 4115

Distribution:
Helsinki Stock Exchange
Key Media

Appendix:
Description of the effect of the transition to IFRS on Fortum including the oil
operations



FORTUM GROUP
TRANSITION FROM FINNISH GAAP (FAS) TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS (IFRS)

CONSOLIDATED INCOME STATEMENT

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q1-Q4 Q1-Q3 Q1-Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2 Q1
2004 2004 2004 2004 2004 2004 2004 2004

Sales 3835 2751 1986 1129 3841 2747 1987 1133
Other income 91 80 82 32 84 69 58 43
Materials and services -1507 -1087 -786 -446 -1507 -1089 -788 -449
Employee benefit costs -462 -346 -240 -115 -470 -352 -243 -118
Depreciation, -388 -282 -192 -93 -393 -286 -195 -94
amortisation and
impairment charges
Other expenses -374 -284 -195 -100 -401 -296 -202 -101
Operating profit 1 195 832 655 407 1 154 793 617 414
Share of profit of 12 9 8 4 34 22 16 7
associates and joint
ventures
Finance costs-net -245 -167 -125 -78 -232 -175 -124 -59
Profit before income 962 674 538 333 956 640 509 362
tax
Income tax expense -259 -163 -131 -111 -254 -153 -123 -118
Profit for the year 703 511 407 222 702 487 386 244
from continuing
operations
Discontinued operations
Profit for the year 589 432 295 102 556 405 283 96
from discontinued
operations
Profit for the year 1 292 943 702 324 1 258 892 669 340

Attributable to:
Equity holders of the 1 259 924 680 304 1 227 877 649 321
Company
Minority interest 33 19 22 20 31 15 20 19
1292 943 702 324 1258 892 669 340

Earnings per share for
profit from total
Fortum Group
attributable to the
equity holders of the
company during the year
(in € per share)
Basic 1,48 1,09 0,80 0,36 1,44 1,03 0,76 0,38
Diluted 1,46 1,07 0,78 0,35 1,42 1,01 0,75 0,37

Earnings per share for
profit from continuing
operations attributable
to the equity holders
of the company during
the year (in € per
share)
Basic 0,79 0,58 0,45 0,24 0,79 0,56 0,43 0,27
Diluted 0,78 0,57 0,44 0,23 0,78 0,54 0,42 0,26

Earnings per share for
profit from
discontinued operations
attributable to the
equity holders of the
company during the year
(in € per share)
Basic 0,69 0,51 0,35 0,12 0,65 0,47 0,33 0,11
Diluted 0,68 0,50 0,34 0,12 0,64 0,47 0,33 0,11

CONSOLIDATED BALANCE SHEET

MEUR IFRS IFRS IFRS IFRS IFRS FAS FAS FAS FAS FAS
Dec Sept June Marc Jan Dec Sept June Marc Jan
31 30 30 h 31 1 31 30 30 h 31 1
2004 2004 2004 2004 2004 2004 2004 2004 2004 2004

ASSETS
Non-current
assets
Intangible 116 122 143 160 136 112 112 138 156 146
assets
Property, plant 11925 11783 11661 11583 11787 11824 11681 11550 11446 11632
and equipment
Other long-term 2355 2197 2219 2119 2082 1974 1839 1854 1776 1762
investments
Other long-term 90 103 90 100 91
receivables
Long-term 727 758 731 711 670 688 716 693 673 632
interest bearing
receivables
Total non- 15213 14963 14844 14673 14766 14598 14348 14235 14051 14172
current assets

Current assets
Inventories 654 701 596 578 548 659 705 600 580 551
Trade and other 1555 1348 1281 1527 1519 1301 1216 1209 1476 1400
receivables
Cash and cash 145 219 194 193 433 146 222 196 203 439
equivalents
Total current 2354 2268 2071 2298 2500 2106 2143 2005 2259 2390
assets

Total assets 17567 17231 16915 16971 17266 16704 16491 16240 16310 16562

EQUITY
Capital and
reserves
attributable the
Company's equity
holders
Share capital 2 2 2 2 2 2 2 2 2 2
948 891 889 889 886 948 891 889 889 886
Hedging reserves 126 13 -80 8 60 0 0 0 0 0
Other equity 4 4 3 3 3 4 4 3 3 3
426 058 792 404 443 446 065 820 487 520
Total 7 6 6 6 6 7 6 6 6 6
500 962 601 301 389 394 956 709 376 406
Minority 150 136 140 136 120 261 245 250 245 232
interest
Total equity 7 7 6 6 6 7 7 6 6 6
650 098 741 437 509 655 201 959 621 638

LIABILITIES
Non-current
liabilities
Interest-bearing 4450 4501 4552 4468 5076 4257 4289 4337 4235 4840
liabilities
Deferred tax 1841 1751 1774 1796 1793 1842 1804 1850 1862 1843
liabilities
Provisions 608 586 560 566 562 237 223 200 210 207
Other 507 509 534 535 520 359 359 352 345 346
liabilities
Total non- 7406 7347 7420 7365 7951 6695 6675 6739 6652 7236
current
liabilities

Current
liabilities
Interest-bearing 790 1 1 1 1 785 1 1 1 1
liabilities 163 154 251 230 162 152 245 225
Trade and other 1 1 1 1 1 1 1 1 1 1
payables 1) 721 623 600 918 576 569 453 390 792 463
Total current 2511 2786 2754 3169 2806 2354 2615 2542 3037 2688
liabilities


Total 9 10 10 10 10 9 9 9 9 9
liabilities 917 133 174 534 757 049 290 281 689 924

Total equity and 17 17 16 16 17 16 16 16 16 16
liabilities 567 231 915 971 266 704 491 240 310 562

1) Dividends to Fortum shareholders, EUR 357 million in 2004, were booked as a
liability at the end of the first quarter. The cash-flow impact was shown in the
second quarter.

CONSOLIDATED CASH FLOW STATEMENT

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Dec Sept June March Dec Sept June Marc
31 30 30 31 31 30 30 h 31
2004 2004 2004 2004 2004 2004 2004 2004
Cash flow from
operating activities
Operating profit 1 595 1 123 855 504 1 581 1 101 828 515
before depreciations
continuing operations
Non-cash flow items -49 -51 -54 -1 -15 -6 -8 -2
Financial items and -181 -57 -15 5 -194 -66 -22 3
realised foreign
exchange gains and
losses
Taxes -160 -130 -70 -33 -160 -130 -70 -33
Funds form operations 1 205 885 716 475 1 212 899 728 483
continuing operations
Change in working 27 104 40 -118 22 95 29 -119
capital
Net cash from 1 232 989 756 357 1234 994 757 364
operating activities
continuing operations
Net cash from 526 314 291 96 514 305 286 94
operating activities
discontinued
operations
Total net cash from 1758 1303 1047 453 1748 1299 1043 458
operating activities

Cash flow from
investing activities
Capital expenditures -335 -201 -128 -57 -341 -209 -130 -58
Acquisition of shares -179 -105 -30 -179 -105 -30
Proceeds from sales 60 11 11 6 60 11 11 6
of fixed assets
Proceeds from sales 15 9 9 1 15 9 9 1
of shares
Change in other -20 -88 -139 -45 -19 -86 -140 -46
investments
Net cash used in -459 -374 -277 -95 -464 -380 -280 -97
investing activities
continuing operations
Net cash used in -277 -176 -89 -47 -274 -174 -89 -47
investing activities
discontinued
operations
Total net cash used -736 -550 -366 -142 -738 -554 -369 -144
in investing
activities

Cash flow from
financing activities
Net change in loans -811 -494 -383 -508 -813 -496 -385 -510
Dividends paid to the -357 -357 -357 -359 -359 -359
Company´s equity
holders
Other financing items 94 6 0 -2 96 8 2 -2
Net cash used in -1 074 -845 -740 -510 -1 076 -847 -742 -512
financing activities
continuing operations
Net cash used in -236 -123 -182 -41 -227 -116 -177 -39
financing activities
discontinued
operations 2)
Total net cash used -1 310 -968 -922 -551 -1 303 -963 -919 -551
in financing
activities

Total net increase
(+)/decrease (-) in
cash
and marketable -288 -215 -241 -240 -293 -218 -245 -237
securities

2) The cash flow from financing activities discontinued operations is shown as
used to repay loans since the Treasury operations have been centralised for the
total Fortum Group.

KEY RATIOS 3)
IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Dec Sept June March Dec Sept June March
31 30 30 31 31 30 30 31
2004 2004 2004 2004 2004 2004 2004 2004

Capital employed, 12890 12762 12 447 12 156 12697 12652 12 447 12 101
MEUR
Interest-bearing 5095 5445 5512 5526 4896 5229 5293 5276
net debt, MEUR
Capital 830 501 276 107 833 507 278 108
expenditure and
investments in
shares, MEUR
Return on capital 15,8 15,0 17,0 18,6 15,6 14,5 16,1 18,6
employed, %
Return on 18,2 18,4 20,9 19,9 17,6 17,1 19,4 20,4
shareholders'
equity, %
Interest coverage 8,0 7,8 8,3 7,1 8,0 7,5 7,9 7,6
Funds from 36,4 33,1 38,2 44,4 37,8 34,4 39,9 46,5
operations/interes
t-bearing net
debt, %
Gearing, % 67 77 82 86 64 73 76 80
Equity-to-assets 44 41 40 38 46 44 43 41
ratio, %
Average number of 12859 13112 13097 13023 12859 13112 13097 13023
employees

3) Key ratios are based on Fortum total numbers including continuing and
discontinued operations

SALES BY SEGMENTS
MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q1-Q4 Q1-Q3 Q1-Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2 Q1
2004 2004 2004 2004 2004 2004 2004 2004

Power Generation 2084 1501 1048 560 2088 1505 1052 564
- of which internal 128 73 62 36 128 73 62 36
Heat 1025 709 559 361 1021 701 556 361
- of which internal 49 40 39 36 49 40 39 36
Distribution 707 513 363 206 707 513 363 206
- of which internal 10 7 4 3 10 7 4 3
Markets 1387 1009 722 419 1387 1009 722 419
- of which internal 92 64 47 25 92 64 47 25
Other 90 67 45 20 96 67 45 20
- of which internal 93 65 43 19 93 65 43 19
Eliminations 4) -1458 -1048 -751 -437 -1458 - -751 -437
1048
Sales from 3835 2751 1986 1129 3841 2747 1987 1133
continuing
operations
Sales from 7909 5801 3710 1710 7909 5801 3710 1710
discontinued
operations
Eliminations -85 -68 -48 -21 -85 -58 -44 -20
Total 11659 8484 5648 2818 11665 8490 5653 2823

4) Eliminations include sales and purchases with Nordpool that is 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

OPERATING PROFIT BY SEGMENTS

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q1-Q4 Q1-Q3 Q1-Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2 Q1
2004 2004 2004 2004 2004 2004 2004 2004

Power Generation 763 522 394 222 720 486 365 230
Heat 218 143 131 104 212 134 127 102
Distribution 234 183 138 83 242,6 185 133 82
Markets 34 34 21 16 26 26 15 10
Other -54 -50 -29,3 -18 -47 -38 -23 -10
Operating profit 1195 832 654,7 407 1153,6 793 617 414
from continuing
operations
Operating profit 721 538 373 150 690 506 361 138
from discontinued
operations
Total 1916 1370 1027,7 557 1843,6 1299 978 552

FAS operating profit is not comparable with previously reported. Share of profit
in associated companies and joint ventures is according to IFRS recorded after
operating profit.

DEPRECIATION, AMORTISATION AND IMPAIRMENT CHARGES BY SEGMENTS

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q1-Q4 Q1-Q3 Q1-Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2 Q1
2004 2004 2004 2004 2004 2004 2004 2004

Power Generation 104 74,6 55 27,5 105 76 57 28
Heat 124 88,7 59 28,3 127 91 60 29
Distribution 133 99 66 33 133 99 66 33
Markets 16 12 8 4 16 12 8 4
Other 11 8 4 12 8 4
Depr., amort. and 388 282,3 192 92,8 393 286 195 94
imp. charges from
continuing
operations
Depr., amort. and 139 101 68 32 118 86 57 27
imp. charges from
discontinued
operations
Total 527 383,3 260 124,8 511 372 252 121

SHARE OF PROFITS IN ASSOCIATES AND JOINT VENTURES BY SEGMENTS

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q1-Q4 Q1-Q3 Q1-Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2 Q1
2004 2004 2004 2004 2004 2004 2004 2004

Power Generation 5) -18 -10 -8 -5 5 4 1 -2
Heat 15 9 8 5 14 8 7 5
Distribution 16 11 8 5 16 11 8 5
Markets 0 0 0 0 0 0 0 0
Other -1 -1 0 -1 -1 -1 0 -1
Share of profits 12 9 8 4 34 22 16 7
in ass. from
continuing
operations
Share of profits 36 29 11 3 36 29 11 3
in ass. from
discontinued
operations
Total 48 38 19 7 70 51 27 10

5) The main part of the associated companies in Power Generation are production
companies from which Fortum purchase produced electricity at cost. The share of
profit according to IFRS also includes depreciations on fair value adjustments
made when acquiring the shareholdings (in FAS included in Other expenses)

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES BY SEGMENTS

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q1-Q4 Q1-Q3 Q1-Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2 Q1
2004 2004 2004 2004 2004 2004 2004 2004

Power Generation 1208 1196 1156 1084 1282 1269 1226 1154
Heat 127 92 91 92 115 80 79 80
Distribution 196 193 189 189 196 193 189 189
Markets 8 7 9 10 8 7 9 10
Other 0 1 0 0 0 1 0 0
Investments in 1539 1489 1445 1375 1601 1550 1503 1433
associated from
continuing
operations
Investments in 140 134 123 114 140 134 123 114
associates from
discontinued
operations
Total 1679 1623 1568 1489 1741 1684 1626 1547

CAPITAL EXPENDITURE AND INVESTMENTS IN SHARES BY SEGMENTS

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q1-Q4 Q1-Q3 Q1-Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2 Q1
2004 2004 2004 2004 2004 2004 2004 2004

Power Generation 210 152 60 14 210 155 62 15
Heat 175 75 50 23 181 80 50 23
Distribution 106 65 40 14 106 65 40 14
Markets 6 4 2 2 6 4 2 2
Other 17 10 6 4 17 10 6 4
Investments from 514 306 158 57 520 314 160 58
continuing
operations
Investments from 316 195 118 50 313 193 118 50
discontinued
operations
Total 830 501 276 107 833 507 278 108

NET ASSETS BY SEGMENTS
MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Dec Sept June March Dec Sept June March
31 30 30 31 31 30 30 31

2004 2004 2004 2004 2004 2004 2004 2004
Power Generation 6218 6183 6142 6087 6258 6236 6188 6166
Heat 2440 2362 2323 2373 2502 2424 2393 2445
Distribution 3091 3086 3107 3095 3101 3088 3103 3095
Markets 194 137 177 153 196 139 177 157
Other and -43 25 126 128 -1 48 120 68
Eliminations
Net assets from 11900 11793 11875 11836 12056 11935 11981 11931
continuing
operations
Net assets from 2011 1963 1799 1808 1765 1708 1557 1534
discontinued
operations
Eliminations 2 1 0 14 0 0 0 0
Total 13913 13757 13674 13658 13821 13643 13538 13465

RETURN ON NET ASSETS BY SEGMENTS

% IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Dec Sept June March Dec Sept June March
31 30 30 31 31 30 30 31
2004 2004 2004 2004 2004 2004 2004 2004

Power Generation 12,1 11,0 12,5 14,0 11,6 10,5 11,7 14,5
Heat 9,8 8,6 11,8 18,3 9,2 7,8 11 17,4
Distribution 8,1 8,3 9,4 11,3 8,3 8,4 9,1 11,2
Markets 25,3 37,9 36,8 77,6 18,8 28 25,2 44,4

ASSETS BY SEGMENTS
MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Dec Sept June March Dec Sept June March
31 30 30 31 31 30 30 31
2004 2004 2004 2004 2004 2004 2004 2004

Power Generation 7108 7123 7114 6960 6645 6573 6508 6458
Heat 2742 2589 2560 2644 2769 2607 2574 2668
Distribution 3514 3483 3474 3494 3513 3480 3466 3491
Markets 375 377 452 500 325 282 319 398
Other and -156 -198 -259 -221 -51 -18 62 -50
Eliminations
Assets from 13583 13374 13341 13377 13201 12924 12929 12965
continuing
operations
Assets from 2756 2775 2538 2495 2523 2528 2324 2258
discontinued
operations
Eliminations -32 -37 -31 -24 -23 -26 -24 -14
Assets included in 16307 16112 15848 15848 15701 15426 15229 15209
Net assets
Interest bearing 728 758 731 711 688 716 693 673
receivables
Deferred taxes 106 15 32 21 109 32 30 32
Other 281 127 110 198 60 95 92 193
Cash and cash 145 219 194 193 146 222 196 203
equivalents
Total assets 17567 17231 16915 16971 16704 16491 16240 16310

LIABILITIES BY SEGMENTS
MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Dec Sept June March Dec Sept June March
31 30 30 31 31 30 30 31
2004 2004 2004 2004 2004 2004 2004 2004

Power Generation 890 940 972 873 387 337 320 292
Heat 302 227 237 271 267 183 181 223
Distribution 423 397 367 399 412 392 363 396
Markets 181 240 275 347 129 143 142 241
Other and -113 -223 -385 -349 -50 -66 -58 -118
Eliminations
Liabilities from 1683 1581 1466 1541 1145 989 948 1034
continuing
operations
Liabilities from 745 812 739 687 758 820 767 724
discontinued
operations
Eliminations -34 -38 -31 -38 -23 -26 -24 -14
Liabilities 2394 2355 2174 2190 1880 1783 1691 1744
included in Net
assets
Deferred tax 1841 1751 1774 1796 1842 1804 1850 1862
liabilities
Other 6) 442 363 520 829 285 252 251 603
Total liabilities 4677 4469 4468 4815 4007 3839 3792 4209
included in capital
employed
Interest-bearing 5240 5664 5706 5719 5042 5451 5489 5480
liabilities
Total equity 7650 7098 6741 6437 7655 7201 6959 6621
Total equity and 17567 17231 16915 16971 16704 16491 16240 16310
liabilities

6) Dividends to Fortum shareholders, EUR 357 million in 2004, were booked as a
liability at the end of the first quarter. The cash-flow impact will be shown
in the second quarter.

QUARTERLY NET SALES BY SEGMENTS

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q4/04 Q3/04 Q2/04 Q1/04 Q4/04 Q3/04 Q2/04 Q1/04

Power Generation 583 453 488 560 583 453 488 564
- of which internal 55 11 26 36 55 11 26 36
Heat 317 149 198 361 320 145 195 361
- of which internal 9 1 3 36 9 1 3 36
Distribution 194 150 157 206 194 150 157 206
- of which internal 3 3 1 3 3 3 1 3
Markets 378 287 303 419 378 287 303 419
- of which internal 28 17 22 25 28 17 22 25
Other 23 22 25 20 29 23 24 20
- of which internal 11 7 9 10 11 7 9 10
Eliminations -411 -296 -314 -437 -410 -298 -313 -437
Sales from 1084 765 857 1129 1094 760 854 1133
continuing
operations
Sales from 2108 2091 2000 1710 2108 2091 2000 1710
discontinued
operations
Eliminations -17 -20 -27 -21 -27 -14 -24 -20
Total 3175 2836 2830 2818 3175 2837 2830 2823

QUARTERLY OPERATING PROFIT BY SEGMENTS

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q4/04 Q3/04 Q2/04 Q1/04 Q4/04 Q3/04 Q2/04 Q1/04

Power Generation 241 128 172 222 234 121 135 230
Heat 75 12 27 104 78 7 25 102
Distribution 51 45 55 83 58 52 51 82
Markets 0 13 5 16 0 11 5 10
Other -4 -21 -11 -18 -9 -15 -13 -10
Operating profit 363 177 248 407 362 175 203 414
from continuing
operations
Operating profit 183 165 223 150 184 145 223 138
from discontinued
operations
Total 546 342 471 557 545 321 426 552

FAS operating profit is not comparable with previously reported. Share of
profit in associated companies and joint ventures is according to IFRS
recorded after operating profit.

DISCONTINUED OPERATIONS (including eliminations between Fortum and
discontinued operations)

MEUR IFRS IFRS IFRS IFRS FAS FAS FAS FAS
Q1-Q4 Q1-Q3 Q1-Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2 Q1
2004 2004 2004 2004 2004 2004 2004 2004

Sales 7909 5801 3710 1710 7909 5801 3710 1710
Other income 66 52 31 12 37 29 24 6
Materials and -6439 -4829 -3009 -1444 -6439 -4829 -3009 -
services 1444
Employee benefit -211 -152 -106 -52 -214 -159 -110 -54
costs
Depreciation, -139 -101 -68 -32 -118 -86 -57 -27
amortisation and
impairment charges
Other expenses -465 -233 -185 -44 -485 -250 -197 -53
Operating profit 721 538 373 150 690 506 361 138
Share of profit of 36 29 11 3 36 29 11 3
associates and
joint ventures
Finance costs-net -19 -27 -20 -20 -27 -24 -18 -16
Profit before 738 540 364 133 699 511 354 125
income tax
Income tax expense -149 -108 -69 -31 -143 -106 -71 -29
Profit for the year 589 432 295 102 556 405 283 96
from discontinued
operations

RECONCILIATION OF PROFIT FOR THE PERIOD ATTRIBUTABLE TO THE EQUITY HOLDERS OF
THE COMPANY. FAS TO IFRS
Cumulative Quarterly
Q1-Q4 Q1-Q3 Q1-Q2 Q1 Q4 Q3 Q2
MEUR 2004 2004 2004 2004 2004 2004 2004

Net profit according to 1227 877 649 321 350 228 328
FAS
Nuclear related assets -2 0 1 -1 -2 -1 2
and provisions
IAS 39 Oil 14 -2 6 3 16 -8 3
IAS 39 Electricity 8 16 20 3 -8 -4 17
IAS 39 Treasury -14 19 1 -26 -33 18 27
IAS 39 OTH -1 -1 1 0 -1
Financial instruments 8 32 26 -20 -24 6 46
Leasing 10 1 -2 -1 9 3 -1
Employee Benefits 21 22 15 7 -1 7 8
Other IFRS impacts -5 -8 -9 -2 3 1 -7
Net profit according to 1259 924 680 304 335 244 376
IFRS

RECONCILIATION OF TOTAL EQUITY FAS TO IFRS

MEUR Dec 31 Sept June March Jan 1
2004 30 30 31 2004
2004 2004 2004

Equity according to FAS 7394 6956 6709 6376 6406
Minority FAS 261 245 250 245 232
IFRS effects to -111 -109 -110 -109 -112
minority
reclassification
NYKAB minority to
interest-bearing
liabilities
Nuclear related assets and provisions 37 39 40 38 39
IAS 39 Oil 16 19 8 6 2
IAS 39 Electricity 106 27 -60 -5 23
IAS 39 Treasury -21 -34 -40 -56 -14
IAS 39 OTH -61 -63 -63 -59 -62
Financial instruments 39 -51 -155 -114 -51
Leasing 16 7 4 5 6
Employee Benefits 28 29 22 14 7
Other IFRS impacts -14 -18 -19 -18 -18
Equity according to IFRS 7650 7098 6741 6437 6509

RECONCILIATION OF BALANCE SHEET FAS TO IFRS

MEUR FAS Nuclear Finan- Leasi Employ Other Total IFRS
Dec 31 related cial ng ee IFRS IFRS Dec
2004 assets Instru- Benefi impac impac 31
and ments ts ts t 2004
provisio
ns
ASSETS
Non-current assets
Intangible 112 4 4 116
assets
Property, plant 11824 35 80 -14 101 11925
and equipment
Other long-term 1974 413 -3 -1 48 -76 381 2355
investments
Other long term receivables 90 90 90
Long-term 688 39 39 727
interest bearing
receivables
Total non- 14598 448 87 118 48 -86 615 15213
current assets

Current assets
Inventories 659 -4 -4 655
Trade and other 1301 255 3 -5 253 1554
receivables
Cash and cash 146 -1 -1 145
equivalents
Total current 2106 0 255 3 0 -10 248 2354
assets

Total assets 16704 448 342 121 48 -96 863 17567

EQUITY

Capital and reserves attributable the Company's
equity holders
Share capital 2948 0 2948
Hedging reserves 0 126 126 126
Other equity 4446 37 -87 16 28 -14 -20 4426
Total 7394 37 39 16 28 -14 106 7500
Minority 261 1 -100 0 -12 -111 150
interest
Total equity 7655 38 -61 16 28 -26 -5 7650

LIABILITIES

Non-current liabilities
Interest-bearing 4257 96 97 193 4450
liabilities
Deferred tax 1842 9 33 5 11 -59 -1 1841
liabilities
Provisions 237 401 9 -39 371 608
Other 359 116 32 148 507
liabilities
Total non- 6695 410 245 102 20 -66 711 7406
current
liabilities

Current liabilities
Interest-bearing 785 5 5 790
liabilities
Trade and other 1569 158 -2 -4 152 1721
payables
Total current 2354 0 158 3 0 -4 157 2511
liabilities

Total 9049 410 403 106 20 -71 868 9917
liabilities

Total equity and 16704 448 342 121 48 -96 863 17567
liabilities

Definitions of key figures in IFRS
reporting

Return on = 100 Profit for the
shareholders' x year
equity, %
Total equity
average

Return on = 100 Profit before taxes + interest and other financial
capital x expenses
employed, %
Capital employed average

Return on net = 100 Operating profit + share of profit (loss) in
assets, % x associated companies and joint ventures
Net assets
average

Capital = Total assets - non-interest bearing liabilities -
employed deferred tax liabilities - provisions

Segment's net = Non-interest bearing assets + interest-bearing
assets assets related to the Nuclear Waste Fund
- non-interest bearing liabilities -
provisions
(excluding finance related items, tax and deferred
tax and assets and liabilities from fair valuations
of derivatives where hedge accounting is applied)

Interest- = Interest-bearing liabilities - cash and cash
bearing net equivalents
debt

Gearing, % = 100 Interest-bearing net debt
x
Total equity

Equity-to- = 100 Total equity
assets ratio, x
%
Total assets

Interest = Operating profit
coverage
Net interest expenses

Earnings per = Profit for the
share (EPS) year
Adjusted average number of shares during the period

Appendix

DESCRIPTION OF THE EFFECTS OF THE TRANSITION TO IFRS ON FORTUM INCLUDING THE OIL
OPERATIONS

Assets and liabilities related to decommissioning of nuclear power plants and
the disposal of spent fuel

Fortum owns Loviisa nuclear power plant in Finland. The nuclear liability and
Fortum's share in the Nuclear Waste Fund related to the Loviisa power plant are
under FAS presented in the note Contingent liabilities in the financial
statements. The nuclear liability is calculated according to the Nuclear Energy
Act in Finland. That calculation does not take into account the effect of
discounting the future liability. The paid annual fee to the Nuclear Waste Fund
(due to the change in the nuclear liability, the share of profit of the Nuclear
Waste Fund and incurred costs of taken actions) is recorded in the income
statement. The nuclear liability related to Loviisa nuclear power plant is fully
covered in the Nuclear Waste Fund.

Under IFRS, Fortum's part of the Nuclear Waste Fund and the related nuclear
liability are presented gross as non current interest-bearing assets and
provisions. Fortum's share in the Nuclear Waste Fund has been accounted for
according to IFRIC Draft Interpretation D4 which states that the fund assets are
measured at the lower of fair value or the value of the related liabilities
since Fortum does not have control or joint control over the Nuclear Waste Fund.
Both Fortum's share of Nuclear Fund in assets and the total provisions amount
to EUR 354 million in the opening balance January 1, 2004 and to EUR 401 million
in the closing balance December 31, 2004. The asset and provisions are both
included in the capital employed and the resulting net amount is then equal to
zero (see below for 'Impact on key ratios').

The fair value of the provisions in IFRS is calculated by discounting the future
cash flows, which are based on estimated future costs and actions already taken.
The initial net present value of the provision for decommissioning (at the time
of commissioning the nuclear power plant) has been included in the investment
cost and depreciated over the estimated operating time of the nuclear station.
The provision for spent fuel covers the future disposal costs of fuel used until
the end of the accounting period. Costs for disposal of spent fuel are expensed
during the operating time based on fuel usage.

The timing factor will be taken into consideration by accounting for interest
expense related to discounting the nuclear provisions. The interest on the
Nuclear Waste Fund assets is presented as financial income.

Fortum also has minority shareholdings in the associated nuclear power
production companies Teollisuuden Voima Oy (TVO) in Finland and directly and
indirectly OKG AB and Forsmarks Kraftgrupp AB in Sweden. Similar kinds of
adjustments have been made through accounting of associates.


Financial Instruments

General principles

Derivatives are initially recognised at fair value on the date a derivative
contract is entered into and are subsequently remeasured at their fair value.
The method of recognising the resulting gain or loss depends on whether the
derivative is designated as a hedging instrument, and if so, the nature of the
item being hedged. The Group designates certain derivatives as either: (1)
hedges of highly probable forecast transactions (cash flow hedges); (2) hedges
of the fair value of recognised assets or liabilities or a firm commitment (fair
value hedge); or (3) hedges of net investments in foreign operations.

The effective portion of changes in the fair value of derivatives that are
designated and qualify as cash flow hedges are recognised in equity. The gain or
loss relating to the ineffective portion is recognised immediately in the income
statement. Amounts accumulated in equity are recycled in the income statement in
the periods when the hedged item affects profit or loss, for instance when the
forecast sale that is hedged takes place.

Changes in the fair value of derivatives that are designated and qualify as fair
value hedges are recorded in the income statement, together with any changes in
the fair value of the hedged asset or liability that are attributable to the
hedged risk. If derivatives do not qualify for hedge accounting the change of
fair value is recognised immediately in the income statement.

Electricity commodity derivatives

Electricity derivatives are mainly used to hedge future cash flows of
electricity sales (Power Generation and Heat) to Nord Pool and purchases
(Markets and Distribution) from Nord Pool or other sources. Regarding
electricity commodity derivatives, hedge accounting is applied for most of the
cash flow hedges to decrease the volatility in the income statement however
creating volatility in equity. Forecasted underlying physical electricity
deliveries, i.e. sales or purchases are not recorded until the delivery period.

Total volatility in operating profit caused by electricity derivatives on the
Group level amounted to EUR 12 million in 2004. Some of the contracts for the
years 2004 - 2007 entered into during 2003 and for which hedge accounting was
not applied to caused some volatility, EUR 11 million in 2004, as the changes in
the fair values are recognised in income statement. To a very large extent
contracts entered into during 2004 and onwards will have a hedge accounting
status.

Oil commodity derivatives

Oil derivatives entered into to hedge price risk are economical hedges and they
do not qualify for hedge accounting under IAS 39. All fair value changes, EUR 29
million in 2004, are recognised in the operating profit.

Treasury derivatives (foreign exchange and interest rate derivatives)

Foreign exchange derivatives are used for hedging forecast cash flows of the
sales and purchases, assets and liabilities in the balance sheet and net
investments in foreign operations.

During 2004 hedge accounting was applied to all Oil cash flow hedges and partly
to Power and Heat cash flow hedges (Power Generation and Heat) to decrease the
volatility in operating profit in the income statement. The volatility from
foreign exchange derivatives hedging future cash flows was EUR - 6 million in
operating profit for those hedges for which hedge accounting was not applied
during 2004.

The Group has chosen not to apply hedge accounting for foreign exchange
derivatives hedging balance sheet items. A minor volatility in financial items
is caused by the forward points of these hedges. The cross currency and interest
rate derivatives maturing in 2004-2011 entered into earlier do not qualify for
hedge accounting. A major part of these swaps are maturing during 2005-2006, and
are thus expected to create less volatility in the coming years. However, fair
value hedges of issued bonds in 2003 qualify for hedge accounting. Volatility in
financial items was EUR -10 million during 2004.

Net investments in foreign subsidiaries are hedged according to the approved
Treasury policy. In IFRS, as in FAS, gains and losses on net investment are
recognised in the equity.

Minority preference shares with option agreement

Fortum owns10.1% of the shares in Nybroviken Kraft AB Group (NYKAB) which
represents 52.9% of the votes. NYKAB is consolidated as a subsidiary in Fortum's
consolidated accounts. NYKAB owns hydroelectric power generating assets. Fortum
manages these power assets by agreement and utilises all the power produced.
Fortum is entitled to buy the minority preference shares of NYKAB through option
agreements. According to the option agreements the repurchase may take place in
2007, 2011 or 2015 at a price in accordance with an agreed formula. The minority
interest accounted for in Fortum represents the nominal amount of the minority
preference shares.

According to IAS 32 and 39 the minority interest referring to the preference
shares is classified as an interest-bearing liability and the difference between
the estimated value based on the option formula and the capital amount of the
interest-bearing liability is presented as accrued interest liability. Changes
in the estimated value based on the option formula are accounted for as interest
costs.


Leasing

The classification criteria when considering whether a lease arrangement is an
operating lease or financial lease are different under IFRS than under FAS.

In Fortum this means that some lease arrangements, where Fortum is the lessee
are reclassified to be financial leases. The liabilities of these agreements
that have previously been reported as contingent liabilities are under IFRS
included in the balance sheet. The resulting increase in the interest-bearing
liabilities at year-end 2004 is EUR 102 million. The main part of this amount
relates to Shipping leases.

In some customer contracts in Heat Fortum also acts as a lessor. Fortum has
evaluated customer contracts against the criteria in IFRIC D4 (leasing). A part
of these contracts is classified as financial leases. In the balance sheet the
effect will be seen mainly as a reclassification between interest-bearing
receivables and tangible assets.

Employee benefits

Fortum has various pension plans in accordance with local practices in the
countries where it operates. Under FAS, the Group's pension obligations have
been reported according to local regulations. In IFRS financial statements,
pension obligations are treated in accordance with IAS 19 Employee Benefit and
all accumulated actuarial gains and losses related to defined benefit plans are
recognised in the balance sheet of the transition date as allowed by IFRS 1. The
interest component is included in the pension costs in the income statement.

Major impact from the transition to IFRS is due to the accounting for Finnish
statutory employment pension scheme (TEL), which is in Fortum covered partly in
insurance companies and partly in pension funds.

In the IFRS transition balance sheet January 1, 2004 the impact of the Finnish
pensions covered by pension funds was some EUR 40 million which resulted from
the fact that the fair value of the assets of the Fortum pension funds exceeded
the obligations caused by different pension plans. This has been reported as
other non-current assets. In addition an obligation of some EUR 30 million has
been recognised in the provisions for the future disability pension component
for the plans that are provided by insurance companies.

Due to changes approved by Finnish authorities in December 2004 TEL's disability
pension component is accounted for as a defined contribution plan in the IFRS
balance 31.12.2004 instead of defined benefit plan as in the IFRS transition
balance sheet. This change will have a positive impact of some EUR 20 million
before tax on the period's net profit. The rest of the total change in the
income statement (some EUR 30 million) is due to positive development of the
fair values of pension fund assets.


Other IFRS transition impacts

Other IFRS adjustments include for example:

According to FAS accounting principles costs for major overhauls (mainly in Oil
Refining) are accrued in advance of the shutdown and accounted for as a
provision in the balance sheet. Under IFRS these costs are treated according to
the asset component approach. The costs are capitalised when they occur and
depreciated during the shutdown cycle.

Fortum has elected to keep FAS revaluations net of cumulative depreciations of
certain items of property, plant and equipment as deemed cost of property, plant
and equipment. Adjustments are made retrospectively for depreciations following
the underlying asset.

According to FAS accounting principles connection fees have been recognised as
revenue immediately. In IFRS connection fees regarding cooling will be deferred
and recognised as revenue over the expected customer relationship period.

The difference between the acquisition cost of shares in associated companies
and Fortum 's part of the shareholders’ equity at the time of acquisition, have
been allocated to fixed assets at the time of acquisition to the extent that
their fair value at the time exceeded the book value. In FAS the depreciation of
these fair value adjustments has been presented in Other expenses. According to
IFRS these depreciations, EUR 20 million on an annual basis, have been
reclassified to Share of profit (loss) of associates and joint ventures.

The tax expense reported in the income statement has been affected by a positive
one-time adjustment of EUR 6 million concerning the change in the corporate tax
rate in Finland from 29% to 26% from 2005 onwards.


Impact on certain key ratios

Capital employed

The IFRS adjustments increase the capital employed in Fortum. The changes in
accounting for certain lease agreements are the main reason to the change in the
capital employed being an increase of EUR 111 million in the opening balance and
an increase of EUR 193 million in the closing balance 2004. The provisions for
decommissioning and the provision for spent fuel regarding nuclear power assets
have been included in the capital employed. The financial costs associated with
these provisions have also been included when calculating return on the capital
employed.

Interest-bearing net debt

Net debt increases under IFRS with EUR 246 million in the opening balance and
with EUR 199 million in the closing balance 2004. The increase is mainly due to
the financial leases (oil tankers) which are now included in the balance sheet
and to the reclassification of the minority shareholding in NYKAB to interest-
bearing liability.
According to IFRS the nuclear liabilities and Fortum 's part of the nuclear
waste fund are presented gross in the balance sheet. The fund is fully covered
and the net of Fortum's share of fund assets recorded in the balance sheet and
the related provisions amount to zero so the indebtedness of Fortum is not
effected. Neither the interest-bearing provisions related to the nuclear
obligations nor the interest-bearing non current asset are taken into account
when calculating net debt.

Total equity including minority interest

The net effect of the IFRS adjustments to total equity is is EUR -5 million at
year-end 2004. In the opening balance this effect amounts to EUR -129 million.
The change is mainly due to the changes in fair value of financial instruments
which qualify for hedge accounting.

Key ratios

Return on capital employed and return on equity are slightly improving when
including the 2004 IFRS adjustments to the underlying profit and balance sheet
items. Gearing is increasing from 64% to 67%.