CORRECTION: Corrected key figures, Fortum sells its electricity distribution business in Finland to Suomi Power Networks


The key figures table has been corrected below.

Fortum has agreed to sell its electricity distribution business in Finland to Suomi Power Networks Oy, which is owned by a consortium of Finnish pension funds Keva (12.5%) and LocalTapiola Pension (7.5%) together with international infrastructure investors First State Investments (40%) and Borealis Infrastructure (40%).

The total consideration is EUR 2.55 billion on a debt- and cash-free basis. Fortum expects to complete the divestment process during the first quarter of 2014 subject to the necessary regulatory approvals as well as customary closing conditions. Fortum expects to book a
one-time sales gain of EUR 1.8-1.9 billion corresponding to approximately EUR 2.0 per share in its Electricity Distribution and Sales Division's first quarter 2014 results. A total of 320 employees will transfer with the business at closing with existing terms of employment.

Fortum's decision to divest its electricity distribution business has no effect as such on its approximately 640,000 distribution customers. Upon closing, the customers will transfer with the business with existing terms.

The decision to divest Fortum's electricity distribution business in Finland is linked to the strategic assessment of the company's electricity distribution business' future alternatives. Fortum has published a stock exchange release on the completion of the assessment today, 12 December 2013. Fortum also prepares for a possible sale of the Swedish and Norwegian electricity distribution businesses. The decision to complete the process is dependent on market development and development of national regulation in both countries, among others.

Fortum's electricity distribution business in Finland includes two jointly managed grid companies: Fortum Espoo Distribution Oy, with grids in the city of Espoo and surrounding communities and the city of Joensuu, as well as Fortum Sähkönsiirto Oy, with several grid areas located mainly in southern and western Finland, but also in the north-western part of the country. The combined network length of the companies is 79,000 kilometres delivering approximately 12.6 terawatt-hours of electricity to customers. Fortum's market share of the local electricity distribution in Finland is approximately 20%.

Fortum's Finnish distribution companies' key figures are:

EUR million
Comparable operating profit
Comparable EBITDA
Net assets (at period-end)
Gross investments

*The last 12 months ending at the end of the third quarter 2013.

"Our electricity distribution business is in very good shape and deserves to be developed further as a core business from its own standpoint. We are pleased to have found a buyer, who has a deep understanding of the social importance of infrastructure assets and is committed to develop reliable networks and services for the customers. This transaction also clearly shows that Finland is an attractive country for investors with a long-term perspective," says Fortum's President and CEO Tapio Kuula.

"We at Fortum can create the best value for our customers, shareholders and the society as a whole in our competed businesses. Our ambition is to grow in accordance with our strategy in low-carbon power generation, energy-efficient combined heat and power (CHP) production and sales as well as in innovative customer offerings," Tapio Kuula summarises.

The consortium team members have more than 40 years combined experience in the acquisition and management of electricity networks. Through their extensive experience, all members share a deep understanding of the social importance of infrastructure assets and are committed to good cooperation with the stakeholders of their investment targets.

Fortum Corporation
Helena Aatinen
Senior Vice President, Corporate Communications


Further information:
Tapio Kuula, President and CEO, tel. +358 10 45 24112
Corporate Communications: Helena Aatinen, Senior Vice President, +358 10 45 20480,
Fortum Media Desk +358 40 1982 843
Investor Relations: Sophie Jolly, Vice President, tel. +358 10 45 32552

A press conference (in Finnish) will be held today, 12 December 2013 at 11.00 EET in the auditorium of Fortum’s head
office, Keilaniementie 1, Espoo, Finland. The press conference will be webcasted on Fortum’s Finnish website (

An international teleconference conducted in English for analysts and investors will be held today, 12 December 2013 at 14.30 EET. The dial-in numbers:
European callers: +44 (0)20 3427 0503
US callers: +1 212 444 0481
Finnish callers: +358 (0)9 2310 1621
Confirmation code: 3501655

There will be a replay facility available for one week after the teleconference:
European callers: +44 (0)20 3427 0589
US callers: + 1 347 366 9565
Finnish callers: +358 (0)9 2310 1650
Confirmation code: 3501655

A live audio webcast of the call will be available together with the slide presentation on Fortum’s website at

Further information on Suomi Power Networks’ owners:
Keva is responsible for funding the earnings-related pension cover of municipal sector employees in Finland serving 1.3 million insured persons and pension recipients. Keva´s contribution income in 2012 amounted to approximately €4.8bn and Keva paid out approximately €3.8bn in municipal sector pensions in 2012. Keva is a long-term investor where investments are targeted to support a stable level of pension contributions. On 31 December 2012, Keva's investments' market value was €34.4bn.

LocalTapiola Pension is the third largest provider of earnings-related pension insurance in Finland with the number of insured approximately 260,000. LocalTapiola Pension’s investment assets amounted to €9.9bn as of 31 December 2012. LocalTapiola Pension and Pension Fennia have decided to merge and the merger will come into effect on 1 January 2014. The new business name of the merged companies is Elo Mutual Pension Insurance Company, and it will have close to €20bn of investment assets.

First State Investments is the consolidated asset management division of Commonwealth Bank of Australia, the largest financial institution in Australia and currently manages approximately €124 billion of investments globally. First State is a leading manager of, and investor in, infrastructure assets. With nineteen years’ experience in infrastructure investment, it is one of the longest established managers of infrastructure assets on behalf of institutional investors and currently manages in excess of €2.4 billion of equity invested across assets in the utility, transport and social infrastructure sectors in Australasia and Europe.

Borealis Infrastructure Management Inc. Borealis has 15 years of experience originating, structuring and actively managing infrastructure investments on behalf of the Ontario Municipal Employees Retirement System (“OMERS”). OMERS, which was established in 1962, is a large defined benefit Canadian pension plan with 429,000 members, net assets of more than CAD $60bn and an AAA credit rating from Standard & Poor’s. OMERS was one of the first large Canadian pension plans to invest in private markets, including infrastructure and has earmarked more than 20% of its portfolio to be allocated to infrastructure investments. Borealis has sourced and currently manages over 20 infrastructure investments in Canada, the United States and Europe, representing over C$10 billion of OMERS’ invested equity.

Further information on Fortum:

Fortum’s purpose is to create energy that improves life for present and future generations. We provide sustainable solutions that fulfill the needs for low emissions, resource efficiency and energy security, and deliver excellent value to our shareholders.

Fortum is the leading electricity distribution company in the Nordic countries with over 1.6 million network customers: ~903,000 in Sweden; 640,000 in Finland and ~102,000 in Norway. Electricity distribution is a nationally regulated business. At Fortum, the Distribution business area is part of the company’s Electricity Solutions and Distribution Division that is also responsible for retail sales of electricity.

Fortum is the second largest electricity retail company in the Nordic countries with approximately 1.2 million customers in Finland, Sweden and Norway. Electricity sales is a competed business and there are altogether 350 electricity retailers in the Nordic countries.

Fortum’s largest division, Power, consists of Fortum’s power generation, power trading and power capacity development as well as expert services for power producers. Fortum’s Heat Division consists of combined heat and power (CHP) generation, district heating activities and business-to-business heating solutions in the Nordic countries and other parts of the Baltic Rim. The Russia Division consists of power and heat generation and sales in Russia.

In 2012, Fortum’s sales totaled EUR 6.2 billion and comparable operating profit was EUR 1.7 billion. We employ approximately 10,400 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki.

Further information: