Fortum completes divestment of its Swedish electricity distribution business


Fortum has today completed the divestment of its Swedish electricity
distribution business, which was announced on 13 March 2015. The transaction
has all the necessary regulatory approvals and the customary closing conditions
have been met.

The total consideration from the divestment is SEK 60.6 billion on a debt- and
cash-free basis (corresponding to approximately EUR 6.5 billion). Fortum will
book a one-time sales gain of approximately EUR 4.3 billion corresponding to
close to EUR 5 per share. The final sales gain will be reported as part of the
second quarter 2015 results of the discontinued operations. Distribution
segment has been presented as discontinued operations since the first quarter
of 2015.

The new owner of the Swedish distribution business is a consortium comprising
Swedish national pension funds Första AP-Fonden (AP 1) (12.5%), Tredje
AP-Fonden (AP 3) (20.0%), Swedish mutual insurance and pension savings company
Folksam (17.5%) and the international infrastructure investor, Borealis
Infrastructure Management Inc. (50%). A total of approximately 400 employees
will continue their work in the sold business. The electricity distribution to
the approximately 908,000 customers will also continue without disruption upon

Upon the closing of the transaction, Fortum completes the divestment process of
its distribution businesses in Sweden, Norway and Finland. The divestment
process started in December 2013, when Fortum concluded a strategic assessment
of the future alternatives for the distribution business. After the
distribution divestment, Fortum will focus in line with its strategy on
CO2-free hydro and nuclear power production and efficient combined heat and
power generations as well as electricity sales and the development of related
services to its customers.

Fortum Corporation
Helena Aatinen
Senior Vice President, Corporate Communications

Nasdaq Helsinki
Key media

Further information:
Helena Aatinen
Senior Vice President, Corporate Communications, tel. +358 10 45 20480

Communications contact also:
Fortum Media Desk, tel. +358 40 198 2843

Analysts and investors:
Sophie Jolly, Vice President, Investor Relations, tel. +358 10 45 32552

Fortum’s purpose is to create energy that improves life for present and future
generations. Fortum’s expertise is in CO2-free and efficient electricity and
heat production. The company also offers energy-related products and expert
services to private and industrial customers and energy producers. Fortum’s
main areas of operation are the Nordic and the Baltic countries, Russia and
Poland. In 2014, the annual sales (excluding the divested electricity
distribution business) totalled EUR 4.1 billion, and comparable operating
profit was EUR 1.1 billion. The company employs approximately 8,400 people.
Fortum’s share is listed on Nasdaq Helsinki.