Fortum Corporation: Financial Statements 2007

Fortum Corporation
Financial Statements 2007

A good year
- Fortum's Board proposes a dividend of EUR 1.35

The year in brief
- Comparable operating profit EUR 1,564 (1,437) million, +9%
- Profit before taxes 1,934 (1,421) million, +36%
- Earnings per share EUR 1.74 (1.22), +43%. (EUR 0.46 from nonrecurring gains)
- Strong cash flow from operating activities EUR 1,670 (1,151) million
- 89% (84%) of the generated power was CO2-free
- Proposed total dividend EUR 1.35 per share
- Proposal to authorise the Board of Directors to decide to repurchase the
company's own shares worth up to EUR 300 million


--------------------------------------------------------------------------------
| Key figures                |    IV/07  |    IV/06  |       2007 |       2006 |
--------------------------------------------------------------------------------
| Sales, EUR million         |     1,320 |     1,254 |      4,479 |      4,491 |
--------------------------------------------------------------------------------
| Operating profit, EUR      |       520 |       455 |      1,847 |      1,455 |
| million                    |           |           |            |            |
--------------------------------------------------------------------------------
| Comparable operating       |       516 |       440 |      1,564 |      1,437 |
| profit, EUR million        |           |           |            |            |
--------------------------------------------------------------------------------
| Profit before taxes, EUR   |       501 |       448 |      1,934 |      1,421 |
| million                    |           |           |            |            |
--------------------------------------------------------------------------------
| Earnings per share, EUR    |      0.41 |      0.39 |       1.74 |       1.22 |
--------------------------------------------------------------------------------
| Net cash from operating    |       345 |        92 |      1,670 |      1,151 |
| activities, EUR million    |           |           |            |            |
--------------------------------------------------------------------------------
| Shareholders' equity per   |           |           |       9.43 |       8.91 |
| share, EUR                 |           |           |            |            |
--------------------------------------------------------------------------------
| Interest-bearing net debt  |           |           |      4,466 |      4,345 |
| (at end of period), EUR    |           |           |            |            |
| million                    |           |           |            |            |
--------------------------------------------------------------------------------
| Average number of shares,  |           |           |    889,997 |    881,194 |
| 1,000s                     |           |           |            |            |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| Key financial ratios              |           2007 |       2007 |       2006 |
|                                   |     adjusted*) |            |            |
--------------------------------------------------------------------------------
| Return on capital employed, %     |           14.0 |       16.5 |       13.4 |
--------------------------------------------------------------------------------
| Return on shareholders' equity, % |           15.8 |       19.1 |       14.4 |
--------------------------------------------------------------------------------
| Net debt/EBITDA                   |            2.2 |        1.9 |        2.3 |
--------------------------------------------------------------------------------
*Adjusted for REC and Lenenergo gains

The year 2007 was characterised by high precipitation and mild winter
temperatures. Throughout the year, a strong hydrological situation combined with
low CO2 emission allowance prices led to low Nordic spot prices. Despite the
challenging market conditions, Fortum improved its performance compared to
previous year. The company's financial position remained strong. Net cash from
operating activities improved to EUR 1,670 (1,151) million.

In the first quarter, Fortum booked a gain of EUR 180 million after its
associated company, Hafslund ASA in Norway, had sold shares in Renewable Energy
Corporation (REC). This corresponds to EUR 0.20 per share in Fortum's
first-quarter result. In the third quarter, Fortum sold its stake in the Russian
JSC Lenenergo for EUR 295 million. This resulted in a gain of EUR 232 million
which corresponds to EUR 0.26 per share in Fortum's third-quarter result.


Fortum participated in the share issue of the Russian Territorial Generating
Company 1 (TGC-1) in the third quarter and maintained its 25.7% ownership. The
total value of Fortum's subscription was EUR 243 million.

In 2007, the Power Generation segment's achieved Nordic power price was EUR 39.7
(37.1) per megawatt-hour, up by 7% from previous year and clearly higher than
the average spot price of electricity in Nord Pool, the Nordic power exchange.
This was mainly thanks to Fortum's consistent hedging strategy. The average spot
price of electricity in Nord Pool was EUR 27.9 (48.6) per megawatt-hour (MWh),
approximately 43% lower than the same period previous year.


Financial results

October - December

Group sales were EUR 1,320 (1,254) million.

Group operating profit totalled EUR 520 (455) million. Comparable operating
profit increased to EUR 516 (440) million.


Sales by segment
--------------------------------------------------------------------------------
| EUR million               |    IV/07  |     IV/06  |       2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation          |       685 |        667 |      2,350 |      2,439 |
--------------------------------------------------------------------------------
| Heat                      |       439 |        381 |      1,356 |      1,268 |
--------------------------------------------------------------------------------
| Distribution              |       206 |        210 |        769 |        753 |
--------------------------------------------------------------------------------
| Markets                   |       482 |        529 |      1,683 |      1,912 |
--------------------------------------------------------------------------------
| Other                     |        21 |         19 |         81 |         78 |
--------------------------------------------------------------------------------
| Eliminations              |      -513 |       -552 |     -1,760 |     -1,959 |
--------------------------------------------------------------------------------
| Total                     |     1,320 |      1,254 |      4,479 |      4,491 |
--------------------------------------------------------------------------------

Comparable operating profit by segment
--------------------------------------------------------------------------------
| EUR million               |    IV/07  |     IV/06  |       2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation          |       363 |        289 |      1,093 |        985 |
--------------------------------------------------------------------------------
| Heat                      |       120 |         95 |        290 |        253 |
--------------------------------------------------------------------------------
| Distribution              |        50 |         77 |        231 |        250 |
--------------------------------------------------------------------------------
| Markets                   |        -1 |         -8 |         -1 |         -4 |
--------------------------------------------------------------------------------
| Other                     |       -16 |        -13 |        -49 |        -47 |
--------------------------------------------------------------------------------
| Total                     |       516 |        440 |      1,564 |      1,437 |
--------------------------------------------------------------------------------

Operating profit by segment
--------------------------------------------------------------------------------
| EUR million               |    IV/07  |     IV/06  |       2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation          |       363 |        290 |      1,125 |        980 |
--------------------------------------------------------------------------------
| Heat                      |       121 |        119 |        294 |        264 |
--------------------------------------------------------------------------------
| Distribution              |        51 |         74 |        465 |        252 |
--------------------------------------------------------------------------------
| Markets                   |         2 |        -18 |         12 |         -6 |
--------------------------------------------------------------------------------
| Other                     |       -17 |        -10 |        -49 |        -35 |
--------------------------------------------------------------------------------
| Total                     |       520 |        455 |      1,847 |      1,455 |
--------------------------------------------------------------------------------


January - December

Group sales were EUR 4,479 (4,491) million.

Group operating profit totalled EUR 1,847 (1,455) million. Comparable operating
profit increased by EUR 127 million to EUR 1,564 (1,437) million. The Power
Generation and Heat segments contributed to the increase.

The gain on the sale of Lenenergo shares increased third-quarter operating
profit by EUR 232 million. The gain was booked in the Distribution segment's
operating profit.

Profit before taxes was EUR 1,934 (1,421) million.

The Group's net financial expenses increased to EUR 154 (103) million. The
increase is mainly attributable to a higher average level of debt and a lower,
EUR 7 (30) million, change in the fair value of derivatives.

The share of profit of associates and joint ventures was EUR 241 (69) million.
The biggest contributor was Hafslund ASA in Norway. In the first quarter,
Hafslund announced that it had completed the sale of 35 million shares in
Renewable Energy Corporation (REC) at NOK 138 per share. As a consequence,
Fortum booked a gain of EUR 180 million, corresponding to EUR 0.20 per share, in
its first-quarter result. After this transaction, Hafslund still owns 70.4
million shares in REC. Fortum ownership in Hafslund ASA is 34%.

Hafslund is showing the fair value change in the REC shareholding through the
income statement, while Fortum is showing the fair value change in equity. The
cumulative fair value change booked in Fortum's equity and based on the
remaining number of shares reported by Hafslund was approximately EUR 790
million at the end of December 2007.

Fortum received EUR 145 million in dividends from Hafslund in the second
quarter. EUR 123 million of the dividends was due to the sale of REC shares.

Minority interests accounted for EUR 56 (49) million. The minority interests are
mainly attributable to Fortum Värme Holding, in which the City of Stockholm has
a 50% economic interest.

Taxes for the period totalled EUR 326 (301) million. The tax rate according to
the income statement was 16.9% (21.2%), mainly due to the high share of profit
of associates and the capital gain from the sale of Lenenergo shares. Excluding
the share of profits of associates and Lenenergo sales gain, the tax rate was
22.3% (22.3%).

The profit for the period was EUR 1,608 (1,120) million. Fortum's earnings per
share were EUR 1.74 (1.22). Return on capital employed was 16.5% for the year
(13.4% for 2006), and return on shareholders' equity was 19.1% for the year
(14.4% for 2006). In 2007 return on capital employed and return on shareholders'
equity, excluding the REC and Lenenergo gains, were 14.0% and15.8%,
respectively.


Market conditions

According to preliminary statistics, the Nordic countries consumed 397 (393)
terawatt hours (TWh) of electricity in 2007, an increase of about 1% from
previous year. During the last quarter the consumption was 108 (103) TWh, 5%
more than the year before.

In the beginning of 2007, the Nordic water reservoirs were at the long-term
average level. However, throughout the rest of the year, the reservoirs were
above the long-term average. The fourth quarter started with the Nordic water
reservoirs being 7 TWh above the long-term average. At the end of December, they
were 8 TWh above the long-term average and 11 TWh above the corresponding level
in 2006.

During the fourth quarter, the average spot price for power in Nord Pool was EUR
42.7 (44.6) per megawatt-hour or 4% lower than in the corresponding period in
2006. During 2007, the average spot price for power in Nord Pool was EUR 27.9
(48.6) per megawatt-hour, or 43% lower than in 2006. The low spot price was due
to the strong hydrological situation and low CO2 emission prices for 2007.

During the fourth quarter, the average market price for 2007 CO2 emissions was
EUR 0.07 (9.7) per tonne CO2, or 99% lower than in the corresponding period in
2006. During year 2007, the average market price for CO2 emissions was EUR 0.7
(18.5) per tonne, or 96 % lower than in the previous year.

During the second half of 2007, coal prices increased dramatically. Oil prices
increased during most of the year and reached historically high levels, peaking
close to 100 US dollars per barrel towards the end of the year.

In Germany, the average spot price for the fourth quarter was higher compared to
the Nordic area, resulting in a net export from the Nordic area to Germany.


Total power and heat generation figures

Fortum's total power generation during 2007 was 52.2 (54.4) TWh, of which 51.1
(53.2) TWh was in the Nordic countries, representing 13% (14%) of the total
Nordic electricity consumption.

At year end, Fortum's total power generating capacity was10,920 (10,913) MW, of
which 10,775 (10,768) MW was in the Nordic countries. At year end, Fortum's
total heat production capacity was 11,223 (10,883) MW, of which 9,381 (9,239) MW
was in the Nordic countries.

During the year 2007, approximately 89% (84%) of the generated power was
CO2-free. A preliminary estimate for CO2 emissions from Fortum's own power
plants in 2007 totals 10.4 (11.0) million tonnes, 0.6 million tonnes lower than
in the previous year. The emissions subject to EU's emissions trading scheme
were about 9.8 (10.6) million tonnes. Both figures include Fortum's 308 MW share
of the Meri-Pori power plant that was leased out in January 2007. The average
volume of emission allowances allocated to Fortum's installations in various
countries totalled approximately 8.1 million tonnes per year during 2005-2007.

Fortum's total power and heat generation figures are presented below. In
addition, the segment reviews include the respective figures by segment.

--------------------------------------------------------------------------------
| Fortum's total power and   |    IV/07  |     IV/06  |      2007 |       2006 |
| heat generation, TWh       |           |            |           |            |
--------------------------------------------------------------------------------
| Power generation           |      14.2 |       15.1 |      52.2 |       54.4 |
--------------------------------------------------------------------------------
| Heat generation            |       8.2 |        7.4 |      26.1 |       25.8 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Fortum's own power         |    IV/07  |     IV/06  |      2007 |       2006 |
| generation by source, TWh, |           |            |           |            |
| total in the Nordic        |           |            |           |            |
| countries                  |           |            |           |            |
--------------------------------------------------------------------------------
| Hydropower                 |       4.7 |        5.6 |      20.0 |       19.8 |
--------------------------------------------------------------------------------
| Nuclear power              |       6.7 |        6.4 |      24.9 |       24.4 |
--------------------------------------------------------------------------------
| Thermal power              |       2.5 |        2.8 |       6.2 |        9.0 |
--------------------------------------------------------------------------------
| Total                      |      13.9 |       14.8 |      51.1 |       53.2 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Fortum's own power         |    IV/07  |     IV/06  |      2007 |       2006 |
| generation by source, %,   |           |            |           |            |
| total in the Nordic        |           |            |           |            |
| countries                  |           |            |           |            |
--------------------------------------------------------------------------------
| Hydropower                 |        34 |         38 |        39 |         37 |
--------------------------------------------------------------------------------
| Nuclear power              |        48 |         43 |        49 |         46 |
--------------------------------------------------------------------------------
| Thermal power              |        18 |         19 |        12 |         17 |
--------------------------------------------------------------------------------
| Total                      |       100 |        100 |       100 |        100 |
--------------------------------------------------------------------------------


Total power and heat sales figures

Fortum's total power sales were 59.7 (61.6) TWh, of which 58.5 (60.2) TWh were
in the Nordic countries. This represents approximately 15% (15%) of Nordic
electricity consumption during January-December. Heat sales in the Nordic
countries amounted to 20.4 (20.1) TWh and in other countries to 6.7 (6.7) TWh.


--------------------------------------------------------------------------------
| Fortum's total electricity |    IV/07  |     IV/06  |      2007 |       2006 |
| *) and heat sales, EUR     |           |            |           |            |
| million                    |           |            |           |            |
--------------------------------------------------------------------------------
| Electricity sales          |       697 |        667 |     2,370 |      2,437 |
--------------------------------------------------------------------------------
| Heat sales                 |       352 |        299 |     1,096 |      1,014 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Fortum's total electricity |    IV/07  |     IV/06  |      2007 |       2006 |
| sales *) by area, TWh      |           |            |           |            |
--------------------------------------------------------------------------------
| Sweden                     |       6.9 |        7.9 |      27.6 |       28.5 |
--------------------------------------------------------------------------------
| Finland                    |       8.1 |        8.1 |      29.0 |       29.6 |
--------------------------------------------------------------------------------
| Other countries            |       0.9 |        0.9 |       3.1 |        3.5 |
--------------------------------------------------------------------------------
| Total                      |      15.9 |       16.9 |      59.7 |       61.6 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Fortum's total heat sales  |    IV/07  |     IV/06  |      2007 |       2006 |
| by area, TWh               |           |            |           |            |
--------------------------------------------------------------------------------
| Sweden                     |       3.1 |        2.6 |       9.2 |        9.3 |
--------------------------------------------------------------------------------
| Finland                    |       3.4 |        3.3 |      11.1 |       10.7 |
--------------------------------------------------------------------------------
| Other countries**          |       2.4 |        1.8 |       6.8 |        6.8 |
--------------------------------------------------------------------------------
| Total                      |       8.9 |        7.7 |      27.1 |       26.8 |
--------------------------------------------------------------------------------
*) Nord Pool transactions are calculated as a net amount of hourly sales and
purchases at the Group level.
**) Including the UK, which is reported in the Power Generation segment, other
sales.
SEGMENT REVIEWS

Power Generation

The business area comprises power generation and sales in the Nordic countries
and the provision of operation and maintenance services in the Nordic area and
selected international markets. The Power Generation segment sells its
production to Nord Pool. The segment includes the business units Generation,
Portfolio Management and Trading (PMT), and Service.

--------------------------------------------------------------------------------
| EUR million                  |    IV/07  |    IV/06  |      2007 |      2006 |
--------------------------------------------------------------------------------
| Sales                        |       685 |       667 |     2,350 |     2,439 |
--------------------------------------------------------------------------------
| - power sales                |       586 |       566 |     2,019 |     2,059 |
--------------------------------------------------------------------------------
| - other sales                |        99 |       101 |       331 |       380 |
--------------------------------------------------------------------------------
| Operating profit             |       363 |       290 |     1,125 |       980 |
--------------------------------------------------------------------------------
| Comparable operating profit  |       363 |       289 |     1,093 |       985 |
--------------------------------------------------------------------------------
| Net assets (at period-end)   |           |           |     7,148 |     6,734 |
--------------------------------------------------------------------------------
| Return on net assets, %      |           |           |      19.2 |      16.1 |
--------------------------------------------------------------------------------
| Comparable return on net     |           |           |      17.7 |      16.9 |
| assets, %                    |           |           |           |           |
--------------------------------------------------------------------------------
| Gross Investments            |        84 |       174 |       390 |       240 |
--------------------------------------------------------------------------------
| Average personnel            |           |           |     3,475 |     4,147 |
--------------------------------------------------------------------------------

The segment's power generation during the fourth quarter amounted to 12.2 (13.0)
TWh in the Nordic countries.

In January-December, the segment's power generation in the Nordic countries was
46.1 (48.3) TWh, of which about 20.0 (19.8) TWh or 43% (41%) was
hydropower-based, 24.9 (24.4) TWh or 54% (51%) nuclear power-based, and 1.2
(4.1) TWh or 3% (8%) thermal power-based. Although the availability of the
Swedish nuclear power plants increased slightly compared to 2006, the prolonged
overhauls and unplanned shutdowns had a negative effect of approximately 1.3 TWh
on the nuclear power production. Less thermal power was generated due to the low
spot price. In January-December, approximately 95% (89%) of the segment's power
generation was CO2-free.

At year end, the segment's power generation capacity totalled 9,560 (9,540) MW,
of which 9,420 (9,400) MW was in the Nordic countries and 140 (140) MW in other
countries.

--------------------------------------------------------------------------------
| Power generation by area,  |      IV/07  |    IV/06  |      2007 |      2006 |
| TWh                        |             |           |           |           |
--------------------------------------------------------------------------------
| Sweden                     |         6.5 |       7.4 |      26.0 |      27.1 |
--------------------------------------------------------------------------------
| Finland                    |         5.7 |       5.5 |      20.1 |      21.1 |
--------------------------------------------------------------------------------
| Other countries            |         0.3 |       0.3 |       1.1 |       1.2 |
--------------------------------------------------------------------------------
| Total                      |        12.5 |      13.2 |      47.2 |      49.4 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Nordic sales volume, TWh   |        13.7 |      14.5 |      51.8 |      53.9 |
--------------------------------------------------------------------------------
| of which pass-through      |         1.0 |       1.2 |       5.2 |       4.5 |
| sales                      |             |           |           |           |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Sales price, EUR/MWh       |      IV/07  |    IV/06  |      2007 |      2006 |
--------------------------------------------------------------------------------
| Generation's Nordic power  |        43.0 |      37.7 |      39.7 |      37.1 |
| price*                     |             |           |           |           |
--------------------------------------------------------------------------------
*) For the Power Generation segment in the Nordic countries, excluding
pass-through sales.

Fortum Generation's achieved Nordic power price (excluding pass-through items)
in the fourth quarter was EUR 43.0 per megawatt-hour, up by 14% from a year ago,
thanks to hedging. During 2007, Fortum Generation's achieved Nordic power price
was EUR 39.7 per megawatt-hour, up by 7% from a year ago, while the average spot
price in Nord Pool was EUR 27.9 per megawatt-hour, down by 43% from 2006. The
related sales volume was 12.7 (13.2) TWh in the fourth quarter and 46.6 (49.4)
TWh for the whole year.

In the fourth quarter, the comparable operating profit of the Power Generation
segment was clearly higher than in the corresponding period in the previous
year. The higher achieved Nordic power price and increased nuclear volume
generation contributed positively. This was partly offset by lower thermal and
hydro power generation volumes.

In January-December, the comparable operating profit was higher than previous
year. The segment's achieved Nordic power price was higher due to the higher
hedge prices. Also increased hydropower and nuclear power generation volumes
contributed positively. Poor performance in Fortum Service and the one-time
effect from higher nuclear waste management costs reported in the third quarter
decreased comparable operating profit.

In 2007, Fortum's total CO2 emissions subject to EU's emissions trading scheme
were 9.8 million tons, which exceeded Fortum's CO2 emission allowance allocation
for the year by 1.3 million tons. However, the Power Generation segment
benefited from the insightful timing of CO2 allowance forward sales. Sales
contracts made during or before the first quarter 2006 with a December 2007
delivery date contributed EUR 32 million in the fourth quarter results.

Fortum's legal nuclear waste management liability is calculated according to the
Nuclear Energy Act and will be confirmed by the Ministry of Employment and the
Economy in early 2008. The future costs will increase mainly due to the new
technical solution related to filling material for the tunnels in the final
repository. The legal liability increased by approximately EUR 130 million.
Fortum is obligated to contribute the funds in full to the State Nuclear Waste
Management Fund to cover the legal liability. Fortum was granted periodising of
the payments to the fund over six years. The decision was made by the Council of
State in December 2007. Fortum booked a one-time effect from higher nuclear
waste management costs in its third-quarter results.

In July 2007, the Finnish Government granted new operating licences to Loviisa
nuclear power plant units 1 and 2. The licences were applied for by Fortum Power
and Heat Oy in November 2006. For Loviisa 1, the new licence is valid until the
end of 2027, and for Loviisa 2 until the end of 2030. The current licences,
which were granted in 1998, expire at the end of 2008. Fortum's Loviisa power
plant has produced nuclear power for thirty years.

In 2007, Fortum's Loviisa nuclear power plant exceeded the 8 TWh production
limit for the second time in the history of the plant. Unit 2 reached an
all-time high with over 4 TWh. The combined capacity factor for the two units at
the Loviisa power plant was high, 95.4%.

Fortum is participating in the project to build the fifth Finnish nuclear power
unit (Olkiluoto 3) with a share of approximately 25%. Teollisuuden Voima (TVO),
the company that is building and owns the unit, has been informed by the
supplier (consortium Areva-Siemens) that the unit will start operation in summer
2011.

In June 2007, Fortum submitted to the Finnish Ministry of Trade and Industry the
Environmental Impact Assessment (EIA) programme regarding a new nuclear power
plant possibly to be built at Hästholmen island in Loviisa. The Ministry gave
its statement about the programme in October. Fortum compiles the actual EIA
report based on this programme and the statements received about it. The EIA
report will be submitted to the Ministry by summer 2008.


Heat

The business area comprises heat generation and sales in the Nordic countries
and other parts of the Baltic Rim. Fortum is a leading heat producer in the
Nordic region. The segment also generates power in combined heat and power
plants (CHP) and sells it to end-customers mainly by long-term contracts, as
well as to Nord Pool. The segment includes the business units Värme, operating
in Sweden, and Heat, operating in other markets.

--------------------------------------------------------------------------------
| EUR million                  |   IV/07  |    IV/06  |       2007 |      2006 |
--------------------------------------------------------------------------------
| Sales                        |      439 |       381 |      1,356 |     1,268 |
--------------------------------------------------------------------------------
| - heat sales                 |      341 |       288 |      1,053 |       976 |
--------------------------------------------------------------------------------
| - power sales                |       69 |        68 |        202 |       198 |
--------------------------------------------------------------------------------
| - other sales                |       29 |        25 |        101 |        94 |
--------------------------------------------------------------------------------
| Operating profit             |      121 |       119 |        294 |       264 |
--------------------------------------------------------------------------------
| Comparable operating profit  |      120 |        95 |        290 |       253 |
--------------------------------------------------------------------------------
| Net assets (at period-end)   |          |           |      3,507 |     3,407 |
--------------------------------------------------------------------------------
| Return on net assets, %      |          |           |        9.3 |       9.6 |
--------------------------------------------------------------------------------
| Comparable return on net     |          |           |        9.2 |       9.2 |
| assets, %                    |          |           |            |           |
--------------------------------------------------------------------------------
| Gross Investments            |      121 |        77 |        327 |       773 |
--------------------------------------------------------------------------------
| Average personnel            |          |           |      2,302 |     2,345 |
--------------------------------------------------------------------------------

The segment's heat sales during the fourth quarter amounted to 8.3 (7.2) TWh,
most of which was generated in the Nordic countries. In January-December, heat
sales totalled 25.1 (24.7) TWh. During the same periods, power sales at combined
heat and power plants (CHP) totalled 1.7 (1.7) TWh and 5.0 (5.0) TWh,
respectively.

The Heat segment's comparable operating profit during the fourth quarter was EUR
25 million higher than previous year. The weather was colder than previous year
but the temperature was still above the long-term average. Colder weather and
organic growth resulted in higher sales volumes. Also efficiency improvements in
Poland improved the results.

The comparable operating profit of the Heat segment in the year 2007 was EUR 37
million higher than previous year. An efficient fuel mix had a positive impact
on the results in Sweden. Also the acquisition of Fortum Espoo (E.ON Finland)
and efficiency improvements in Poland improved the results.


--------------------------------------------------------------------------------
| Heat sales by area, TWh   |      IV/07  |    IV/06  |       2007 |      2006 |
--------------------------------------------------------------------------------
| Sweden                    |         3.0 |       2.5 |        9.2 |       9.3 |
--------------------------------------------------------------------------------
| Finland                   |         3.4 |       3.3 |       11.1 |      10.7 |
--------------------------------------------------------------------------------
| Other countries           |         1.9 |       1.4 |        4.8 |       4.7 |
--------------------------------------------------------------------------------
| Total                     |         8.3 |       7.2 |       25.1 |      24.7 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| Power sales, TWh          |      IV/07  |    IV/06  |       2007 |      2006 |
--------------------------------------------------------------------------------
| Total                     |         1.7 |       1.7 |        5.0 |       5.0 |
--------------------------------------------------------------------------------

The number of district heating customers increased in 2007, thanks to successful
new sales in all markets.


Distribution

Fortum owns and operates distribution and regional networks and distributes
electricity to a total of 1.6 million customers in Sweden, Finland, Norway and
Estonia.

--------------------------------------------------------------------------------
| EUR million                  |   IV/07  |    IV/06  |       2007 |      2006 |
--------------------------------------------------------------------------------
| Sales                        |      206 |       210 |        769 |       753 |
--------------------------------------------------------------------------------
| - distribution network       |      173 |       179 |        648 |       636 |
| transmission                 |          |           |            |           |
--------------------------------------------------------------------------------
| - regional network           |       21 |        20 |         81 |        80 |
| transmission                 |          |           |            |           |
--------------------------------------------------------------------------------
| - other sales                |       12 |        11 |         40 |        37 |
--------------------------------------------------------------------------------
| Operating profit             |       51 |        74 |        465 |       252 |
--------------------------------------------------------------------------------
| Comparable operating profit  |       50 |        77 |        231 |       250 |
--------------------------------------------------------------------------------
| Net assets (at period-end)   |          |           |      3,243 |     3,412 |
--------------------------------------------------------------------------------
| Return on net assets, %      |          |           |       14.5 |       8.4 |
--------------------------------------------------------------------------------
| Comparable return on net     |          |           |        7.5 |       8.3 |
| assets, %                    |          |           |            |           |
--------------------------------------------------------------------------------
| Gross Investments            |      118 |        76 |        237 |       313 |
--------------------------------------------------------------------------------
| Average personnel            |          |           |      1,060 |       983 |
--------------------------------------------------------------------------------

In 2007, the volume of distribution and regional network transmissions totalled
26.0 (24.6) TWh and 18.1 (18.1) TWh, respectively.

Electricity transmissions via the regional distribution network totalled 14.9
(15.0) TWh in Sweden and 3.2 (3.1) TWh in Finland.

The comparable operating profit of the Distribution segment was EUR 50 million
in the fourth quarter, EUR 27 million lower than previous year. The decrease is
mainly due to costs for automatic meter installations in Sweden, and also due to
the one-time price adjustment during the last quarter in Finland in order to
reduce the difference to the regulated income level for the period 2005-2007.
Fortum Distribution refrained from charging around 400,000 Finnish distribution
customers the fixed monthly fee during December 2007.

The comparable operating profit of the segment was 231 million EUR for the whole
year, EUR 19 million lower than previous year. The main reason for the decrease
in 2007 compared to previous year was the EUR 13 million costs caused by the
storms in the first half of the year. The new customer and billing system in
Sweden continued to cause extra costs in 2007. Also automatic meter
installations in Sweden and the one-time price adjustment during the last
quarter in Finland decreased operating profit. The acquisition of Fortum Espoo
(E.ON Finland) contributed positively to the segment.

The after-tax gain of EUR 232 million from selling the holding in JSC Lenenergo
has been booked in Distribution segment's third-quarter operating profit.


--------------------------------------------------------------------------------
| Volume of distributed        |   IV/07  |     IV/06 |      2007 |       2006 |
| electricity in distribution  |          |           |           |            |
| network, TWh                 |          |           |           |            |
--------------------------------------------------------------------------------
| Sweden                       |      4.1 |       3.8 |      14.3 |       14.4 |
--------------------------------------------------------------------------------
| Finland                      |      2.6 |       2.5 |       9.2 |        7.7 |
--------------------------------------------------------------------------------
| Norway                       |      0.8 |       0.6 |       2.3 |        2.3 |
--------------------------------------------------------------------------------
| Estonia                      |      0.1 |       0.1 |       0.2 |        0.2 |
--------------------------------------------------------------------------------
| Total                        |      7.6 |       7.0 |      26.0 |       24.6 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Number of electricity distribution  |      31 Dec 2007 |         31 Dec 2006 |
| customers by area, thousands        |                  |                     |
--------------------------------------------------------------------------------
| Sweden                              |              871 |                 865 |
--------------------------------------------------------------------------------
| Finland                             |              591 |                 580 |
--------------------------------------------------------------------------------
| Other countries                     |              122 |                 120 |
--------------------------------------------------------------------------------
| Total                               |            1,584 |               1,565 |
--------------------------------------------------------------------------------


Markets

Markets is responsible for retail sales of electricity to a total of 1.3 million
private and business customers as well as to other electricity retailers in
Sweden, Finland and Norway. Markets buys its electricity through Nord Pool.

--------------------------------------------------------------------------------
| EUR million                   |   IV/07  |    IV/06  |       2007 |     2006 |
--------------------------------------------------------------------------------
| Sales                         |      482 |       529 |      1,683 |    1,912 |
--------------------------------------------------------------------------------
| Operating profit              |        2 |       -18 |         12 |       -6 |
--------------------------------------------------------------------------------
| Comparable operating profit   |       -1 |        -8 |         -1 |       -4 |
--------------------------------------------------------------------------------
| Net assets (at period-end)    |          |           |        247 |      176 |
--------------------------------------------------------------------------------
| Return on net assets, %       |          |           |        6.9 |     -1.6 |
--------------------------------------------------------------------------------
| Comparable return on net      |          |           |       -0.6 |     -0.8 |
| assets, %                     |          |           |            |          |
--------------------------------------------------------------------------------
| Gross Investments             |        1 |         0 |          3 |       14 |
--------------------------------------------------------------------------------
| Average personnel             |          |           |        936 |      825 |
--------------------------------------------------------------------------------


During the fourth-quarter, Markets' electricity sales totalled 10.5 (11.5) TWh
with sales for the whole year amounting to 39.6 (42.1) TWh.

The Markets segment's fourth quarter comparable operating profit was slightly
negative, but improved from previous year. The improved year-on-year performance
is mainly explained by lower electricity procurement costs. However, procurement
costs increased from the third quarter driven by increasing Nord Pool wholesale
power prices, leading to a sequentially deteriorating sales margin.

In 2007, the segment was unable to achieve a positive comparable operating
profit. This was partly due to retail sales in Finland where consumer prices
lagged behind Markets' procurement prices (Nord Pool wholesale power prices).

The new customer and billing system in Sweden continued to cause extra costs in
2007.

Despite the tight price competition, Fortum's customer net flow in Finland was
clearly positive in 2007, mainly due to increasing sales of environmentally
labelled electricity products. Fortum is the market leader on the Nordic market
in selling environmentally labelled electricity. Markets' Nordic customer net
flow in 2007 was slightly negative due to tightened competition especially in
Sweden.

The SKI (Svensk Kvalitetsindex) customer satisfaction survey in Sweden and EPSI
(Extended Performance Satisfaction Index) in Finland showed that the customer
satisfaction among Fortum's customers improved clearly in 2007.


Capital expenditures, divestments and investments in shares

Capital expenditures and investments in shares in January-December totalled EUR
972 (1,395) million. Investments, excluding acquisitions, were EUR 655 (485)
million.

POWER GENERATION

In September, Fortum participated in the share issue of the Russian TGC-1,
subscribing to new shares in the company. The total value of Fortum's
subscription was approximately EUR 243 million. With this subscription, Fortum
maintained its 25.7% stake in TGC-1 and its position as the second largest
shareholder of the company.

HEAT

In July 2007, Fortum acquired the district heating company EC Wojkowice in
Poland. The annual heat sales of the company total some 64 GWh and electricity
sales 320 MWh. The company has 34 employees.

The CHP projects in Suomenoja, Finland, in Czestochowa, Poland, and in Tartu,
Estonia, are proceeding. The preparations are continuing for the CHP plants in
Värtan and Brista in Sweden and in Järvenpää, Finland.

The ownership of Vattenfall's heat operations in Pärnu, Estonia and Riga,
Latvia, were transferred to Fortum in January and February, respectively.

In November, Fortum Värme received environmental permit for the biofuel-based
CHP plant in Värtan. The environmental permit also covers the installation of
flue gas condensers in the existing units at the Värtan plant and this work is
already on-going.

DISTRIBUTION

Fortum sold its slightly over 1/3 stake in JSC Lenenergo for approximately EUR
295 million. The decision to sell the Lenenergo shares is in line with Fortum's
strategy in Russia to invest primarily in generation assets. The current
business of Lenenergo is electricity distribution in the city of St. Petersburg
and the Leningrad region.

The investments in automatic meters in Sweden amounted to EUR 64 million in
2007.


Financing

During the fourth quarter, Fortum's net debt increased by EUR 10 million. At
year end, the interest-bearing net debt stood at EUR 4,466 (4,345) million,
resulting in a total increase in net debt of EUR 121 million for the year. The
increase in net debt is primarily linked to capital returns and ongoing
investment programme. In April Fortum paid dividends amounting to EUR 1,122
million. Net debt to EBITDA, excluding the nonrecurring gains, was 2.2 at the
end of the quarter.

The Group's net financial expenses for the fourth quarter were EUR 37 (25)
million and for the full year 2007 EUR 154 (103) million. The increase is mainly
attributable to higher average net debt and somewhat higher average interest
rates in 2007. However, net financial expenses include fair value gains on
financial instruments of EUR 3 (6) million for the quarter and EUR 7 (30)
million for the full year.

The average interest rate of Fortum's interest-bearing gross debt (including
derivatives) in 2007 was 4.3% (4.1%).

Group liquidity remained good. Year-end cash and marketable securities totaled
EUR 427 (157) million. In addition, the Group had a total of EUR 1.4 (1.3)
billion available for drawings under committed credit facilities, including the
EUR 1.2 billion syndicated revolving credit facility due in 2011 and bilateral
overdraft facilities which are renewed on an annual basis.

During the year Fortum raised approx. EUR 850 million in new long-term financing
to finance capital returns, maturing loans and the ongoing investment programme.
The tenors of these financing arrangements varied between 5 and 10 years and
consisted of a SEK 6.1 billion (approx. EUR 660 million) bond issue as well as
bilateral loan contracts of SEK 1.75 billion (approx. EUR 190 million).

Fortum Corporation's long-term credit rating from Moody's and Standard and
Poor's was A2 (stable) and A- (stable), respectively.


Shares and share capital

During 2007, a total of 787.4 (830.8) million Fortum Corporation shares
totalling EUR 18,562 million were traded. Fortum's market capitalisation,
calculated using the closing quotation of the last trading day of the year, was
EUR 27,319 million. The highest quotation of Fortum Corporation shares on the
Helsinki Stock Exchange in 2007 was EUR 31.44, the lowest EUR 20.01, and the
volume weighted average quotation EUR 23.73. The closing quotation on the last
trading day of the year was EUR 30.81 (21.56).

Relating to the 2002B share option scheme, a total of 3.0 million options for a
total of EUR 58.9 million were traded during 2007.

A total of 5,199,412 (13,759,621) shares subscribed on the basis of share option
schemes were entered into the trade register in 2007. The Board of Directors of
Fortum Corporation has cancelled a total of 5,910,000 repurchased Fortum shares
according to the authorisation given to the Board of Directors in the Annual
General Meeting of Shareholders on 28 March 2007. The average price for the
repurchased own shares was EUR 29.69, the lowest price EUR 28.60 and the highest
price EUR 30.63. At the end of 2007, Fortum Corporation did not own its own
shares.

After registrations and the cancellation, Fortum Corporation's share capital is
EUR 3,040,460,397.20 and the total number of registered shares is 886,683,058
(887,393,646) at the end of 2007. The share capital of Fortum Corporation
increased by a total of EUR 17,678,000.80 (46,782,711).

At year end the amount of shares that can still be registered for under the
share option schemes is a maximum of 0.2% (1,683,987 shares) of Fortum's 2007
year-end share capital and voting rights.

At year end, the Finnish state's holding in Fortum was 50.9%. The proportion of
nominee registrations and direct foreign shareholders was 35.8%.

Currently, the Board of Directors has no unused authorisations from the Annual
General Meeting of Shareholders to issue convertible loans or bonds with
warrants or to issue new shares. The Board of Directors has an authorisation
from the Annual General Meeting of Shareholders on 28 March 2007 to buy Fortum
Corporation's own shares. The authorisation, amounting to EUR 300 million or 20
million shares, is valid until the next Annual General Meeting. In 2007, Fortum
used this authorisation by repurchasing 5.91 million of its own shares at a
total price of approximately EUR 175 million. These shares have been cancelled.


Group personnel

The average number of employees in the Group during the period from January to
December was 8,304 (8,910). The number of employees at the end of the period was
8,303 (8,134).


Russia

Fortum's main holdings in Russia stem from its past ownership in JSC Lenenergo,
an integrated power and heat company in the St. Petersburg region. In late 2005,
the company's generation assets were spun-off and a regional generation company,
TGC-1, was formed. JSC Lenenergo continued as a regional distribution company.
In the third quarter 2007, Fortum sold its holding in JSC Lenenergo. The sale
was in line with Fortum's strategy in Russia of focusing on power generation.
Fortum maintained its 25.7% ownership in the regional generation company TGC-1.

Fortum is evaluating opportunities to participate in share issues and ownership
restructurings in the Russian power generation sector in order to further
strengthen its position in the Russian wholesale power market.

In October, Fortum sold its approximately 0.7% holding in the Russian Wholesale
Generating Company 5 (WGC-5) for EUR 28 million.


Events after the period under review

The Norwegian Renewable Energy Corporation (REC) is partly owned by Fortum's
associated company Hafslund ASA. Fortum shows the fair value changes of REC in
equity. At year end, the cumulative fair value change booked in Fortum's equity
was approximately EUR 790 million. REC's share price has decreased since the
year end. Based on REC's closing price on 29 January, the cumulative fair value
change in Fortum's equity would have been approximately EUR 400 million.



Outlook

The key market driver influencing Fortum's business performance is the Nordic
wholesale price of electricity. Key drivers behind the wholesale price
development are the Nordic hydrological situation and supply-demand balance, CO2
emissions allowance prices and fuel prices. The Swedish krona exchange rate also
affects Fortum's reported results, as results generated by Fortum in Sweden are
translated into euros.

Fortum's financial results are exposed to a number of strategic, financial and
operational risks. For further details on Fortum's risks and risk management,
see Fortum's Operating and Financial Review and Financial Statements.

According to general market information, electricity consumption in the Nordic
countries is predicted to increase by about 1% a year over the next few years.

In mid-January 2008, the Nordic water reservoirs were about 9 TWh above the
long-term average and 6 TWh above the corresponding level of 2007. In
late-January, the market price for emissions allowances for 2008 was about EUR
20-21 per tonne of CO2. At the same time, the electricity forward price for the
rest of 2008 was around EUR 44-45 per MWh and for 2009 around EUR 49-51 per MWh.

The first and last quarters of the year are usually the strongest quarters for
the power and heat businesses.

Fortum Power Generation's achieved Nordic power price typically depends on e.g.
the hedge ratio, hedge price, spot price, utilisation and optimisation of
Fortum's flexible production portfolio - even on an hourly basis - and currency
fluctuations. If Fortum would not hedge any of its production volumes, a 1
EUR/MWh change in the spot price would result in approximately a EUR 50 million
change in Fortum's annual operating profit.

At the beginning of January 2008, Fortum had hedged approximately 70% of the
Power Generation segment's estimated Nordic electricity sales volume for the
year 2008 at approximately EUR 44 per MWh. For the calendar year 2009,
approximately 25% of the Power Generation segment's estimated Nordic electricity
sales volume was hedged at approximately EUR 46 per MWh. These hedge ratios may
vary significantly depending on Fortum's actions on the electricity derivatives
markets. Hedge prices are also influenced by changes in the SEK/EUR exchange
rates, as part of the hedges are conducted in SEK.

The Swedish government has increased nuclear capacity and hydro property tax
rates. It has also introduced changes in the Swedish CO2-tax. Fortum estimates
that the additional cost from the tax rate increases and changes will be just
under EUR 30 million in 2008.

Fortum's results in 2007 were good, despite challenging market conditions and
low Nord Pool spot prices. The Group's financial position is strong. With its
flexible and climate-benign production portfolio, Fortum continues to be well
positioned for the future.

Dividend distribution proposal

The parent company's distributable equity as of 31 December 2007 amounted to EUR
3,119 million. After the end of the financial period there have been no material
changes in the financial position of the Company.

The Board of Directors proposes to the Annual General Meeting that Fortum
Corporation pay a cash dividend of EUR 1.35 per share for 2007, totalling EUR 1
197 million based on the number of registered shares as of 30 January 2008. Of
this total dividend, EUR 0.77 per share is to be paid from Fortum's recurring
earnings. An additional dividend of EUR 0.58 per share is proposed in order to
steer Fortum's capital structure towards the target.


Proposal of the Board of Directors to authorise the Board of Directors to decide
to repurchase the company's own shares

The Board of Directors of Fortum Corporation proposes that the Annual General
Meeting of Shareholders on 1 April 2008 will authorise the Board of Directors to
decide to repurchase the company's own shares by using non-restricted equity.
The authorisation is proposed to be valid until the next Annual General Meeting.

The shares will be repurchased in order to steer Fortum's capital structure
towards the target.

The maximum amount of shares to be repurchased is 15 million shares. In
addition, the amount of funds used for the repurchases may not exceed EUR 300
million.

The shares will be repurchased through public trading of the securities on the
Helsinki Stock Exchange, which means that they will not be purchased in
proportion to the holdings of the shareholders. The repurchase price of the
shares will be based on the public trading price of Fortum shares.

Shares repurchased by the company shall be cancelled by a separate decision of
the Board of Directors.


The Annual General Meeting will be held on 1 April 2008 at 1:00 pm at the
Finlandia Hall in Helsinki.


Espoo, 30 January 2008
Fortum Corporation
Board of Directors

Further information:
Mikael Lilius, President and CEO, tel. +358 10 452 9100
Juha Laaksonen, CFO,
tel. +358 10 452 4519

The Board of Directors has approved Fortum's 2007 financial statements and
Fortum's auditors have issued their audit report on 2007 on 30 January 2008. The
financial statements have been prepared in accordance with International
Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU.

Publication of results in 2008:
Interim Report January-March will be published on 24 April 2008
Interim Report January-June will be published on 17 July 2008
Interim Report January-December will be published on 22 October 2008

Distribution:
Helsinki Stock Exchange
Key media
www.fortum.com

Information on the financial statements release, including detailed quarterly
information, is available on Fortum's website at: www.fortum.com/investors


--------------------------------------------------------------------------------
| FORTUM GROUP                                                                 |
--------------------------------------------------------------------------------
| JANUARY-DECEMBER 2007                                                        |
--------------------------------------------------------------------------------
| Financial Statements are audited                                             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT                                                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR            |      | Note |   Q4 2007 |   Q4 2006 |     2007 |      2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales           |      |    4 |     1 320 |     1 254 |    4 479 |     4 491 |
--------------------------------------------------------------------------------
| Other income    |      |      |        84 |        56 |      393 |        80 |
--------------------------------------------------------------------------------
| Materials and   |      |      |      -483 |      -453 |   -1 572 |    -1 673 |
| services        |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Employee        |      |      |      -136 |      -133 |     -495 |      -508 |
| benefit costs   |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Depreciation,          |   4, |      -115 |      -118 |     -451 |      -429 |
| amortisation and       |   12 |           |           |          |           |
| impairment charges     |      |           |           |          |           |
--------------------------------------------------------------------------------
| Other expenses  |      |      |      -150 |      -151 |     -507 |      -506 |
--------------------------------------------------------------------------------
| Operating       |      |      |       520 |       455 |    1 847 |     1 455 |
| profit          |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Share of profit |      |   4, |        18 |        18 |      241 |        69 |
| of associates   |      |   13 |           |           |          |           |
| and joint       |      |      |           |           |          |           |
| ventures        |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Interest        |      |      |       -64 |       -46 |     -220 |      -176 |
| expense         |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Interest income |      |      |        27 |        12 |       76 |        50 |
--------------------------------------------------------------------------------
| Fair value gains and   |      |         3 |         6 |        7 |        30 |
| losses on financial    |      |           |           |          |           |
| instruments            |      |           |           |          |           |
--------------------------------------------------------------------------------
| Other financial |      |      |        -3 |         3 |      -17 |        -7 |
| expenses - net  |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Finance costs - |      |      |       -37 |       -25 |     -154 |      -103 |
| net             |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Profit before   |      |      |       501 |       448 |    1 934 |     1 421 |
| income tax      |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Income tax      |      |    9 |      -108 |       -87 |     -326 |      -301 |
| expense         |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Profit for the  |      |      |       393 |       361 |    1 608 |     1 120 |
| period          |      |      |           |           |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable    |      |      |           |           |          |           |
| to:             |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Equity holders  |      |      |       368 |       338 |    1 552 |     1 071 |
| of the Company  |      |      |           |           |          |           |
--------------------------------------------------------------------------------
| Minority        |      |      |        25 |        23 |       56 |        49 |
| interest        |      |      |           |           |          |           |
--------------------------------------------------------------------------------
|                 |      |      |       393 |       361 |    1 608 |     1 120 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share for |      |           |           |          |           |
| profit attributable to |      |           |           |          |           |
| the equity             |      |           |           |          |           |
--------------------------------------------------------------------------------
| holders of the company |   10 |           |           |          |           |
| during the year (in €  |      |           |           |          |           |
| per share)             |      |           |           |          |           |
--------------------------------------------------------------------------------
| Basic           |      |      |      0.41 |      0.39 |     1.74 |      1.22 |
--------------------------------------------------------------------------------
| Diluted         |      |      |      0.41 |      0.38 |     1.74 |      1.21 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET  |            |                  |                |
--------------------------------------------------------------------------------
| MEUR                        |       Note |           Dec 31 |        Dec 31  |
|                             |            |             2007 |           2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS                      |            |                  |                |
--------------------------------------------------------------------------------
| Non-current assets          |            |                  |                |
--------------------------------------------------------------------------------
| Intangible assets           |         12 |               85 |             96 |
--------------------------------------------------------------------------------
| Property, plant and         |         12 |           11 343 |         11 471 |
| equipment                   |            |                  |                |
--------------------------------------------------------------------------------
| Investments in associates   |      4, 13 |            2 853 |          2 197 |
| and joint ventures          |            |                  |                |
--------------------------------------------------------------------------------
| Share in State Nuclear      |         16 |              516 |            450 |
| Waste Management Fund       |            |                  |                |
--------------------------------------------------------------------------------
| Other long-term investments |            |               99 |            101 |
--------------------------------------------------------------------------------
| Deferred tax assets         |            |                3 |              5 |
--------------------------------------------------------------------------------
| Derivative financial        |          6 |              153 |            103 |
| instruments                 |            |                  |                |
--------------------------------------------------------------------------------
| Long-term interest bearing  |            |              736 |            680 |
| receivables                 |            |                  |                |
--------------------------------------------------------------------------------
| Total non-current assets    |            |           15 788 |         15 103 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets              |            |                  |                |
--------------------------------------------------------------------------------
| Inventories                 |            |              285 |            329 |
--------------------------------------------------------------------------------
| Derivative financial        |          6 |              140 |            198 |
| instruments                 |            |                  |                |
--------------------------------------------------------------------------------
| Trade and other receivables |            |            1 034 |          1 052 |
--------------------------------------------------------------------------------
| Cash and cash equivalents   |            |              427 |            157 |
--------------------------------------------------------------------------------
| Total current assets        |            |            1 886 |          1 736 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets                |            |           17 674 |         16 839 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY                      |            |                  |                |
--------------------------------------------------------------------------------
| Capital and reserves        |            |                  |                |
| attributable to the         |            |                  |                |
--------------------------------------------------------------------------------
| Company's equity holders    |            |                  |                |
--------------------------------------------------------------------------------
| Share capital               |         14 |            3 040 |          3 023 |
--------------------------------------------------------------------------------
| Other restricted funds      |            |               78 |             74 |
--------------------------------------------------------------------------------
| Fair value and other        |            |              715 |            511 |
| reserves                    |            |                  |                |
--------------------------------------------------------------------------------
| Retained earnings           |            |            4 526 |          4 300 |
--------------------------------------------------------------------------------
| Total                       |            |            8 359 |          7 908 |
--------------------------------------------------------------------------------
| Minority interest           |            |              292 |            253 |
--------------------------------------------------------------------------------
| Total equity                |            |            8 651 |          8 161 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES                 |            |                  |                |
--------------------------------------------------------------------------------
| Non-current liabilities     |            |                  |                |
--------------------------------------------------------------------------------
| Interest-bearing            |         15 |            4 288 |          4 060 |
| liabilities                 |            |                  |                |
--------------------------------------------------------------------------------
| Derivative financial        |          6 |              139 |            134 |
| instruments                 |            |                  |                |
--------------------------------------------------------------------------------
| Deferred tax liabilities    |            |            1 687 |          1 795 |
--------------------------------------------------------------------------------
| Nuclear provisions          |         16 |              516 |            450 |
--------------------------------------------------------------------------------
| Pension and other           |            |              144 |            186 |
| provisions                  |            |                  |                |
--------------------------------------------------------------------------------
| Other liabilities           |            |              486 |            485 |
--------------------------------------------------------------------------------
| Total non-current           |            |            7 260 |          7 110 |
| liabilities                 |            |                  |                |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities         |            |                  |                |
--------------------------------------------------------------------------------
| Interest-bearing            |         15 |              605 |            442 |
| liabilities                 |            |                  |                |
--------------------------------------------------------------------------------
| Derivative financial        |          6 |              260 |            198 |
| instruments                 |            |                  |                |
--------------------------------------------------------------------------------
| Trade and other payables    |            |              898 |            928 |
--------------------------------------------------------------------------------
| Total current liabilities   |            |            1 763 |          1 568 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities           |            |            9 023 |          8 678 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and            |            |           17 674 |         16 839 |
| liabilities                 |            |                  |                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY                            |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR         |   | Shar | Othe | Fair | Tre | Retai | Attrib | Minor | Total |
|              |   |    e |    r | valu | asu |   ned | utable |   ity |       |
|              |   | capi | rest |   e  |  ry | earni | to the |       |       |
|              |   |  tal | rict |  and | sha |   ngs | equity |       |       |
|              |   |      |   ed | othe | res |       | holder |       |       |
|              |   |      | fund |   r  |     |       |      s |       |       |
|              |   |      |    s | rese |     |       |        |       |       |
|              |   |      |      | rves |     |       |        |       |       |
--------------------------------------------------------------------------------
| Total equity |   |    3 |   74 |  511 |   - | 4 300 |  7 908 |   253 | 8 161 |
| at           |   |  023 |      |      |     |       |        |       |       |
| 31.12.2006   |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Translation  |   |      |      |      |     |   -25 |    -25 |   -11 |   -36 |
| and other    |   |      |      |      |     |       |        |       |       |
| differences  |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Cash flow    |   |      |      | -168 |     |       |   -168 |    -2 |  -170 |
| hedges       |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Other fair   |   |      |      |  372 |     |       |    372 |       |   372 |
| value        |   |      |      |      |     |       |        |       |       |
| adjustments  |   |      |      |      |     |       |        |       |       |
| 1)           |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Total gains and  |    - |    - |  204 |   - |   -25 |    179 |   -13 |   166 |
| losses not       |      |      |      |     |       |        |       |       |
| recognised in    |      |      |      |     |       |        |       |       |
| Income statement |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Net profit   |   |      |      |      |     | 1 552 |  1 552 |    56 | 1 608 |
| for the      |   |      |      |      |     |       |        |       |       |
| period       |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Total        |   |    - |    - |  204 |   - | 1 527 |  1 731 |    43 | 1 774 |
| recognised   |   |      |      |      |     |       |        |       |       |
| income for   |   |      |      |      |     |       |        |       |       |
| the period   |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Stock        |   |   17 |      |      |     |       |     17 |       |    17 |
| options      |   |      |      |      |     |       |        |       |       |
| exercised    |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Cash         |   |      |      |      |     |    -1 | -1 122 |       |    -1 |
| dividend 2)  |   |      |      |      |     |   122 |        |       |   122 |
--------------------------------------------------------------------------------
| Repurchase   |   |      |      |      | -17 |       |   -175 |       |  -175 |
| of own       |   |      |      |      |   5 |       |        |       |       |
| shares       |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Cancellation |   |      |      |      | 175 |  -175 |      0 |       |     0 |
| of own       |   |      |      |      |     |       |        |       |       |
| shares       |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Changes      |   |      |    4 |      |     |    -4 |      0 |       |     0 |
| between      |   |      |      |      |     |       |        |       |       |
| restricted   |   |      |      |      |     |       |        |       |       |
| and          |   |      |      |      |     |       |        |       |       |
| unrestricted |   |      |      |      |     |       |        |       |       |
| equity       |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Changes in   |   |      |      |      |     |       |      0 |    -4 |    -4 |
| minority     |   |      |      |      |     |       |        |       |       |
| through      |   |      |      |      |     |       |        |       |       |
| business     |   |      |      |      |     |       |        |       |       |
| combinations |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Total equity |   |    3 |   78 |  715 |   - | 4 526 |  8 359 |   292 | 8 651 |
| at           |   |  040 |      |      |     |       |        |       |       |
| 31.12.2007   |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity |   |    2 |   72 | -117 |   - | 4 220 |  7 151 |   260 | 7 411 |
| at           |   |  976 |      |      |     |       |        |       |       |
| 31.12.2005   |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Translation  |   |      |      |      |     |    38 |     38 |     6 |    44 |
| and other    |   |      |      |      |     |       |        |       |       |
| differences  |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Cash flow    |   |      |      |  198 |     |       |    198 |    -1 |   197 |
| hedges       |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Other fair   |   |      |      |  442 |     |       |    442 |       |   442 |
| value        |   |      |      |      |     |       |        |       |       |
| adjustments  |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Total gains and  |    - |    - |  640 |   - |    38 |    678 |     5 |   683 |
| losses not       |      |      |      |     |       |        |       |       |
| recognised in    |      |      |      |     |       |        |       |       |
| Income statement |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Net profit   |   |      |      |      |     | 1 071 |  1 071 |    49 | 1 120 |
| for the      |   |      |      |      |     |       |        |       |       |
| period       |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Total        |   |    - |    - |  640 |   - | 1 109 |  1 749 |    54 | 1 803 |
| recognised   |   |      |      |      |     |       |        |       |       |
| income for   |   |      |      |      |     |       |        |       |       |
| the period   |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Stock        |   |   47 |    2 |      |     |       |     49 |       |    49 |
| options      |   |      |      |      |     |       |        |       |       |
| exercised    |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Cash         |   |      |      |      |     |  -987 |   -987 |       |  -987 |
| dividend 2)  |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Repurchase   |   |      |      |      | -30 |       |    -30 |       |   -30 |
| of own       |   |      |      |      |     |       |        |       |       |
| shares       |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Cancellation |   |      |      |      |  30 |   -30 |      0 |       |     0 |
| of own       |   |      |      |      |     |       |        |       |       |
| shares       |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Change in the    |      |      |  -12 |     |   -12 |    -24 |       |   -24 |
| recognition of   |      |      |      |     |       |        |       |       |
| share            |      |      |      |     |       |        |       |       |
| performance      |      |      |      |     |       |        |       |       |
| arrangement      |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Changes in   |   |      |      |      |     |       |      0 |   -61 |   -61 |
| minority     |   |      |      |      |     |       |        |       |       |
| through      |   |      |      |      |     |       |        |       |       |
| business     |   |      |      |      |     |       |        |       |       |
| combinations |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------
| Total equity |   |    3 |   74 |  511 |   0 | 4 300 |  7 908 |   253 | 8 161 |
| at           |   |  023 |      |      |     |       |        |       |       |
| 31.12.2006   |   |      |      |      |     |       |        |       |       |
--------------------------------------------------------------------------------

1) Includes the fair value change of Renewable Energy Corporation (REC)
shareholding in Hafslund and the effect of Hafslund's sale of REC shares.
See Note 13 Changes in investments in associates and joint ventures.
2) See Note 11 Dividends.

--------------------------------------------------------------------------------
| CONDENSED CONSOLIDATED CASH FLOW STATEMENT                                   |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                |   |   | Note |  Q4 2007 | Q4 2006 |    2007 |     2006 |
--------------------------------------------------------------------------------
| Cash flow from      |   |   |      |          |         |         |          |
| operating           |   |   |      |          |         |         |          |
| activities          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Operating profit    |   |   |      |      635 |     573 |   2 298 |    1 884 |
| before              |   |   |      |          |         |         |          |
| depreciations       |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Non-cash flow items |   |   |      |      -18 |     -71 |    -286 |      -92 |
| and divesting       |   |   |      |          |         |         |          |
| activities          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Financial items and         |      |      -99 |    -116 |     -10 |      -89 |
| realised foreign exchange   |      |          |         |         |          |
| gains and losses            |      |          |         |         |          |
--------------------------------------------------------------------------------
| Taxes               |   |   |      |      -63 |    -114 |    -383 |     -374 |
--------------------------------------------------------------------------------
| Funds from          |   |   |      |      455 |     272 |   1 619 |    1 329 |
| operations          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Change in working   |   |   |      |     -110 |    -180 |      51 |     -178 |
| capital             |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Total net cash from |   |   |      |      345 |      92 |   1 670 |    1 151 |
| operating           |   |   |      |          |         |         |          |
| activities          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from      |   |   |      |          |         |         |          |
| investing           |   |   |      |          |         |         |          |
| activities          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Capital             |   |   |   4, |     -251 |    -188 |    -592 |     -485 |
| expenditures 1)     |   |   |   12 |          |         |         |          |
--------------------------------------------------------------------------------
| Acquisition of      |   |   |    7 |        0 |      -2 |     -10 |     -754 |
| subsidiaries, net   |   |   |      |          |         |         |          |
| of cash acquired    |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Acquisition of      |   |   |   13 |      -26 |    -123 |    -271 |     -124 |
| associates 2)       |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Acquisition of      |   |   |      |       -2 |     -19 |      -4 |      -21 |
| other long-term     |   |   |      |          |         |         |          |
| investments         |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Proceeds from sales |   |   |      |        2 |      73 |      14 |       83 |
| of fixed assets     |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Proceeds from sales of  |   |    7 |        0 |      10 |       0 |       11 |
| subsidiaries, net of    |   |      |          |         |         |          |
| cash disposed           |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Proceeds from sales |   |   |   13 |        2 |       1 |     304 |       30 |
| of associates       |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Proceeds from sales of  |   |      |       29 |       - |      29 |        1 |
| other long-term         |   |      |          |         |         |          |
| investments             |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Change in           |   |   |      |      -23 |      -6 |     -79 |      -47 |
| interest-bearing    |   |   |      |          |         |         |          |
| receivables         |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Total net cash used |   |   |      |     -269 |    -254 |    -609 |   -1 306 |
| in investing        |   |   |      |          |         |         |          |
| activities          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before    |   |   |      |       76 |    -162 |   1 061 |     -155 |
| financing           |   |   |      |          |         |         |          |
| activities          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from      |   |   |      |          |         |         |          |
| financing           |   |   |      |          |         |         |          |
| activities          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Net change in loans |   |   |      |     -291 |    -505 |     488 |      492 |
--------------------------------------------------------------------------------
| Dividends paid to   |   |   |      |        0 |       0 |  -1 122 |     -987 |
| the Company's       |   |   |      |          |         |         |          |
| equity holders      |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Repurchase of own   |   |   |      |     -175 |       0 |    -175 |      -30 |
| shares              |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Other financing     |   |   |      |        2 |      21 |      18 |       49 |
| items               |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Total net cash used |   |   |      |     -464 |    -484 |    -791 |     -476 |
| in financing        |   |   |      |          |         |         |          |
| activities          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| Total net increase  |   |   |      |          |         |         |          |
| (+)/decrease (-) in |   |   |      |          |         |         |          |
| cash                |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------
| and marketable      |   |   |      |     -388 |    -646 |     270 |     -631 |
| securities          |   |   |      |          |         |         |          |
--------------------------------------------------------------------------------

1) Capital expenditures in cash-flow do not include not yet paid investments.
Capitalised borrowing costs are included in interest costs paid.
2) Acquisition of associates include share issues.
--------------------------------------------------------------------------------
| KEY     |   |      |       |       |       |       |       |        |        |
| RATIOS  |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| MEUR    |   |  Dec |  Sept |  June | March |   Dec |  Sept |   June |  March |
|         |   |   31 |    30 |    30 |    31 |    31 |    30 |     30 |     31 |
|         |   | 2007 |  2007 |  2007 |  2007 |  2006 |  2006 |   2006 |   2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA, |   |    2 | 1 663 | 1 040 |   602 | 1 884 | 1 311 |    979 |    570 |
| MEUR    |   |  298 |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earning |   | 1.74 |  1.33 |  0.85 |  0.59 |  1.22 |  0.83 |   0.64 |   0.39 |
| s per   |   |      |       |       |       |       |       |        |        |
| share   |   |      |       |       |       |       |       |        |        |
| (basic) |   |      |       |       |       |       |       |        |        |
| , EUR   |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital |   |   13 |    13 |    13 |    12 |    12 |    12 | 12 121 | 10 605 |
| employe |   |  544 |   764 |   503 |   593 |   663 |   216 |        |        |
| d, MEUR |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Interes |   |    4 | 4 456 | 4 610 | 3 932 | 4 345 | 4 159 |  4 308 |  3 900 |
| t-beari |   |  466 |       |       |       |       |       |        |        |
| ng net  |   |      |       |       |       |       |       |        |        |
| debt,   |   |      |       |       |       |       |       |        |        |
| MEUR    |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital     |  972 |   646 |   253 |   115 | 1 395 | 1 063 |    935 |    114 |
| expenditure |      |       |       |       |       |       |        |        |
| and gross   |      |       |       |       |       |       |        |        |
| investments |      |       |       |       |       |       |        |        |
| in shares,  |      |       |       |       |       |       |        |        |
| MEUR        |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Capital |   |  655 |   382 |   236 |   100 |   485 |   297 |    174 |     71 |
| expendi |   |      |       |       |       |       |       |        |        |
| ture,   |   |      |       |       |       |       |       |        |        |
| MEUR    |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return  |   | 16.5 |  15.1 |  14.8 |  18.0 |  13.4 |  12.5 |   14.6 |   19.4 |
| on      |   |      |       |       |       |       |       |        |        |
| capital |   |      |       |       |       |       |       |        |        |
| employe |   |      |       |       |       |       |       |        |        |
| d, % 1) |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Return  |   | 19.1 |  17.8 |  17.2 |  21.1 |  14.4 |  13.7 |   16.3 |   21.4 |
| on      |   |      |       |       |       |       |       |        |        |
| shareho |   |      |       |       |       |       |       |        |        |
| lders'  |   |      |       |       |       |       |       |        |        |
| equity, |   |      |       |       |       |       |       |        |        |
| % 1)    |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Net     |   |  1.9 |   2.1 |   2.2 |   1.6 |   2.3 |   2.4 |    2.2 |    1.7 |
| debt /  |   |      |       |       |       |       |       |        |        |
| EBITDA  |   |      |       |       |       |       |       |        |        |
| 1)      |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Adjuste |   |  2.2 |   2.3 |       |       |       |       |        |        |
| d Net   |   |      |       |       |       |       |       |        |        |
| debt /  |   |      |       |       |       |       |       |        |        |
| EBITDA  |   |      |       |       |       |       |       |        |        |
| 2)      |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interes |   | 12.8 |  12.4 |  11.5 |  15.3 |  11.5 |  10.9 |   13.7 |   16.9 |
| t       |   |      |       |       |       |       |       |        |        |
| coverag |   |      |       |       |       |       |       |        |        |
| e       |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Funds   |   | 36.3 |  33.9 |  36.1 |  45.5 |  30.6 |  33.9 |   36.5 |   49.6 |
| from    |   |      |       |       |       |       |       |        |        |
| operati |   |      |       |       |       |       |       |        |        |
| ons/int |   |      |       |       |       |       |       |        |        |
| erest-b |   |      |       |       |       |       |       |        |        |
| earing  |   |      |       |       |       |       |       |        |        |
| net     |   |      |       |       |       |       |       |        |        |
| debt, % |   |      |       |       |       |       |       |        |        |
|  1)     |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing |   |   52 |    52 |    58 |    52 |    53 |    57 |     60 |     60 |
| , %     |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Equity  |   | 9.43 |  9.21 |  8.68 |  8.22 |  8.91 |  7.97 |   7.83 |   7.11 |
| per     |   |      |       |       |       |       |       |        |        |
| share,  |   |      |       |       |       |       |       |        |        |
| EUR     |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Equity- |   |   49 |    48 |    46 |    43 |    48 |    43 |     43 |     44 |
| to-asse |   |      |       |       |       |       |       |        |        |
| ts      |   |      |       |       |       |       |       |        |        |
| ratio,  |   |      |       |       |       |       |       |        |        |
| %       |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average |   |    8 | 8 305 | 8 257 | 8 165 | 8 910 | 9 085 |  9 024 |  8 886 |
| number  |   |  304 |       |       |       |       |       |        |        |
| of      |   |      |       |       |       |       |       |        |        |
| employe |   |      |       |       |       |       |       |        |        |
| es      |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Average |   |  889 |   890 |   890 |   890 |   881 |   880 |    880 |    880 |
| number  |   |  997 |   984 |   770 |   263 |   194 |   695 |    508 |    725 |
| of      |   |      |       |       |       |       |       |        |        |
| shares, |   |      |       |       |       |       |       |        |        |
| 1 000   |   |      |       |       |       |       |       |        |        |
| shares  |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Diluted |   |  891 |   892 |   893 |   893 |   886 |   891 |    891 |    892 |
| adjuste |   |  395 |   815 |   140 |   252 |   929 |   217 |    451 |    406 |
| d       |   |      |       |       |       |       |       |        |        |
| average |   |      |       |       |       |       |       |        |        |
| number  |   |      |       |       |       |       |       |        |        |
| of      |   |      |       |       |       |       |       |        |        |
| shares, |   |      |       |       |       |       |       |        |        |
| 1 000   |   |      |       |       |       |       |       |        |        |
| shares  |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Number  |   |  886 |   892 |   891 |   890 |   887 |   883 |    882 |    881 |
| of      |   |  683 |   119 |   472 |   685 |   394 |   274 |    708 |    546 |
| registe |   |      |       |       |       |       |       |        |        |
| red     |   |      |       |       |       |       |       |        |        |
| shares, |   |      |       |       |       |       |       |        |        |
| 1 000   |   |      |       |       |       |       |       |        |        |
| shares  |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Number  |   |  N/A |   N/A |   N/A |   N/A |   N/A |   881 |    881 |    N/A |
| of      |   |      |       |       |       |       |   614 |    048 |        |
| shares  |   |      |       |       |       |       |       |        |        |
| excludi |   |      |       |       |       |       |       |        |        |
| ng      |   |      |       |       |       |       |       |        |        |
| treasur |   |      |       |       |       |       |       |        |        |
| y       |   |      |       |       |       |       |       |        |        |
| shares, |   |      |       |       |       |       |       |        |        |
| 1000    |   |      |       |       |       |       |       |        |        |
| shares  |   |      |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
1) Quarterly figures are annualised.
2) Based on EBITDA excluding capital gain from the sale of Fortum's holding in
Lenenergo amounting to EUR 232 million. For definitions, see Note 23.

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

The 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
annual financial statements for the year ended 31 December 2006.

2. ACCOUNTING POLICIES

The accounting policies adopted are consistent with those of the Group's annual
financial statements for the year ended 31 December 2006, except for
changes listed below.

The following new standards, amendments to standards and interpretations that
have been considered to be relevant for the Group have been adopted by the Group
as of 1 January 2007.
- IFRS 7 Financial instruments: Disclosures and a complementary amendment to
IAS 1, Presentation of Financial statements - Capital disclosures.
IFRS 7 introduces new disclosure requirements relating to financial instruments.
The standard does not have any impact on the classification or valuation of the
Group's financial instruments as such.
- IFRIC 9 Reassessment of Embedded derivatives. The interpretation requires the
determination of whether the arrangement contains embedded derivatives, which
have to be reported separately as derivative instruments.
- IFRIC 10 Interim Financial Reporting and Impairment: IFRIC 10 denies to
reverse the impairment charge reported in interim report at later closing dates
of the financial year.

These newly adopted standards and interpretations have not had any effect on the
reported income statement, balance sheet or disclosures.

The following interpretations are mandatory for the financial year ending 31
December 2007, but not relevant for the Group.
- IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in
Hyperinflatory Economies.
- IFRIC 8 Scope of IFRS 2.

For further information on accounting of associates, see Note 13 below.

3. 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. Annual results may differ from these
estimates.

In preparing these interim financial statements, the 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 annual
financial statements as at and for the year ended 31 December 2006.

--------------------------------------------------------------------------------
| 4. PRIMARY SEGMENT INFORMATION                                               |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| SALES BY SEGMENT          |            |            |           |            |
--------------------------------------------------------------------------------
| MEUR                      |    Q4 2007 |    Q4 2006 |      2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation          |        685 |        667 |     2 350 |      2 439 |
--------------------------------------------------------------------------------
| - of which internal       |          5 |         36 |       323 |       -133 |
--------------------------------------------------------------------------------
| Heat                      |        439 |        381 |     1 356 |      1 268 |
--------------------------------------------------------------------------------
| - of which internal       |         -1 |         -5 |        38 |        -32 |
--------------------------------------------------------------------------------
| Distribution              |        206 |        210 |       769 |        753 |
--------------------------------------------------------------------------------
| - of which internal       |          3 |          2 |         9 |          8 |
--------------------------------------------------------------------------------
| Markets                   |        482 |        529 |     1 683 |      1 912 |
--------------------------------------------------------------------------------
| - of which internal       |         49 |         43 |       155 |        149 |
--------------------------------------------------------------------------------
| Other                     |         21 |         19 |        81 |         78 |
--------------------------------------------------------------------------------
| - of which internal       |         20 |         16 |        72 |         62 |
--------------------------------------------------------------------------------
| Eliminations 1)           |       -513 |       -552 |    -1 760 |     -1 959 |
--------------------------------------------------------------------------------
| Total                     |      1 320 |      1 254 |     4 479 |      4 491 |
--------------------------------------------------------------------------------

1) 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                    |      Q4 2007 |    Q4 2006 |      2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation        |          363 |        290 |     1 125 |        980 |
--------------------------------------------------------------------------------
| Heat                    |          121 |        119 |       294 |        264 |
--------------------------------------------------------------------------------
| Distribution            |           51 |         74 |       465 |        252 |
--------------------------------------------------------------------------------
| Markets                 |            2 |        -18 |        12 |         -6 |
--------------------------------------------------------------------------------
| Other                   |          -17 |        -10 |       -49 |        -35 |
--------------------------------------------------------------------------------
| Total                   |          520 |        455 |     1 847 |      1 455 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| COMPARABLE OPERATING PROFIT BY SEGMENTS                                      |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                    |      Q4 2007 |    Q4 2006 |      2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation        |          363 |        289 |     1 093 |        985 |
--------------------------------------------------------------------------------
| Heat                    |          120 |         95 |       290 |        253 |
--------------------------------------------------------------------------------
| Distribution            |           50 |         77 |       231 |        250 |
--------------------------------------------------------------------------------
| Markets                 |           -1 |         -8 |        -1 |         -4 |
--------------------------------------------------------------------------------
| Other                   |          -16 |        -13 |       -49 |        -47 |
--------------------------------------------------------------------------------
| Comparable operating    |          516 |        440 |     1 564 |      1 437 |
| profit                  |              |            |           |            |
--------------------------------------------------------------------------------
| Non-recurring items     |           13 |         38 |       250 |         61 |
--------------------------------------------------------------------------------
| Other items effecting   |           -9 |        -23 |        33 |        -43 |
| comparability           |              |            |           |            |
--------------------------------------------------------------------------------
| Operating profit        |          520 |        455 |     1 847 |      1 455 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| NON-RECURRING ITEMS BY SEGMENTS                                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                    |      Q4 2007 |    Q4 2006 |      2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation        |           12 |         22 |        14 |         29 |
--------------------------------------------------------------------------------
| Heat                    |            1 |         16 |         2 |         20 |
--------------------------------------------------------------------------------
| Distribution            |            0 |         -1 |       232 |          2 |
--------------------------------------------------------------------------------
| Markets                 |           -1 |          0 |         0 |          0 |
--------------------------------------------------------------------------------
| Other                   |            1 |          1 |         2 |         10 |
--------------------------------------------------------------------------------
| Total                   |           13 |         38 |       250 |         61 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| OTHER ITEMS EFFECTING COMPARABILITY BY SEGMENTS                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                   |        Q4 2007 |   Q4 2006 |      2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation 1)    |            -12 |       -21 |        18 |        -34 |
--------------------------------------------------------------------------------
| Heat                   |              0 |         8 |         2 |         -9 |
--------------------------------------------------------------------------------
| Distribution           |              1 |        -2 |         2 |          0 |
--------------------------------------------------------------------------------
| Markets                |              4 |       -10 |        13 |         -2 |
--------------------------------------------------------------------------------
| Other                  |             -2 |         2 |        -2 |          2 |
--------------------------------------------------------------------------------
| Total                  |             -9 |       -23 |        33 |        -43 |
--------------------------------------------------------------------------------
| 1) Including effects from |          -7 |        -4 |        17 |          0 |
| the accounting of         |             |           |           |            |
| Fortum's part of the      |             |           |           |            |
| Finnish State Nuclear     |             |           |           |            |
| Waste Management Fund     |             |           |           |            |
| with (EUR million):       |             |           |           |            |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| DEPRECIATION, AMORTISATION AND IMPAIRMENT CHARGES BY SEGMENTS                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                    |     Q4 2007 |    Q4 2006 |       2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation        |          24 |         27 |        102 |        108 |
--------------------------------------------------------------------------------
| Heat                    |          43 |         43 |        163 |        144 |
--------------------------------------------------------------------------------
| Distribution            |          43 |         39 |        162 |        147 |
--------------------------------------------------------------------------------
| Markets                 |           2 |          5 |         11 |         19 |
--------------------------------------------------------------------------------
| Other                   |           3 |          4 |         13 |         11 |
--------------------------------------------------------------------------------
| Total                   |         115 |        118 |        451 |        429 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| SHARE OF PROFITS IN ASSOCIATES AND JOINT VENTURES BY SEGMENTS                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                    |     Q4 2007 |    Q4 2006 |       2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation 1)     |           2 |         12 |        196 |         30 |
--------------------------------------------------------------------------------
| Heat                    |           8 |          7 |         24 |         23 |
--------------------------------------------------------------------------------
| Distribution            |           5 |          0 |         18 |         15 |
--------------------------------------------------------------------------------
| Markets                 |           3 |          0 |          3 |          1 |
--------------------------------------------------------------------------------
| Other                   |           0 |         -1 |          0 |          0 |
--------------------------------------------------------------------------------
| Total                   |          18 |         18 |        241 |         69 |
--------------------------------------------------------------------------------

1) The main part of the associated companies in Power Generation are power
production companies from which Fortum purchases produced electricity at
production
costs including interest costs and income taxes.

--------------------------------------------------------------------------------
| INVESTMENTS IN ASSOCIATES AND JOINT VENTURES BY SEGMENTS                     |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                             |          Dec 31  |                Dec 31  |
|                                  |             2007 |                   2006 |
--------------------------------------------------------------------------------
| Power Generation                 |            2 455 |                  1 752 |
--------------------------------------------------------------------------------
| Heat                             |              158 |                    150 |
--------------------------------------------------------------------------------
| Distribution                     |              232 |                    287 |
--------------------------------------------------------------------------------
| Markets                          |                8 |                      8 |
--------------------------------------------------------------------------------
| Other                            |                0 |                      0 |
--------------------------------------------------------------------------------
| Total                            |            2 853 |                  2 197 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CAPITAL EXPENDITURE BY SEGMENTS                                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                    |    Q4 2007 |     Q4 2006 |       2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation        |         32 |          33 |         93 |         95 |
--------------------------------------------------------------------------------
| Heat                    |        120 |          74 |        309 |        184 |
--------------------------------------------------------------------------------
| Distribution            |        117 |          76 |        236 |        183 |
--------------------------------------------------------------------------------
| Markets                 |          1 |           0 |          3 |          8 |
--------------------------------------------------------------------------------
| Other                   |          3 |           5 |         14 |         15 |
--------------------------------------------------------------------------------
| Total                   |        273 |         188 |        655 |        485 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| GROSS INVESTMENTS IN SHARES BY SEGMENTS                                      |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                    |     Q4 2007 |    Q4 2006 |       2007 |       2006 |
--------------------------------------------------------------------------------
| Power Generation        |          52 |        141 |        297 |        145 |
--------------------------------------------------------------------------------
| Heat                    |           1 |          3 |         18 |        589 |
--------------------------------------------------------------------------------
| Distribution            |           1 |          0 |          1 |        130 |
--------------------------------------------------------------------------------
| Markets                 |           0 |          0 |          0 |          6 |
--------------------------------------------------------------------------------
| Other                   |          -1 |          0 |          1 |         40 |
--------------------------------------------------------------------------------
| Total                   |          53 |        144 |        317 |        910 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| NET ASSETS BY SEGMENTS                |                  |                   |
--------------------------------------------------------------------------------
| MEUR                                  |           Dec 31 |            Dec 31 |
|                                       |             2007 |              2006 |
--------------------------------------------------------------------------------
| Power Generation                      |            7 148 |             6 734 |
--------------------------------------------------------------------------------
| Heat                                  |            3 507 |             3 407 |
--------------------------------------------------------------------------------
| Distribution                          |            3 243 |             3 412 |
--------------------------------------------------------------------------------
| Markets                               |              247 |               176 |
--------------------------------------------------------------------------------
| Other and Eliminations                |              140 |                85 |
--------------------------------------------------------------------------------
| Total                                 |           14 285 |            13 814 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RETURN ON NET ASSETS BY SEGMENTS     |                  |                   |
--------------------------------------------------------------------------------
| %                                     |           Dec 31 |            Dec 31 |
|                                       |             2007 |              2006 |
--------------------------------------------------------------------------------
| Power Generation                      |             19.2 |              16.1 |
--------------------------------------------------------------------------------
| Heat                                  |              9.3 |               9.6 |
--------------------------------------------------------------------------------
| Distribution                          |             14.5 |               8.4 |
--------------------------------------------------------------------------------
| Markets                               |              6.9 |              -1.6 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| COMPARABLE RETURN ON NET ASSETS BY SEGMENTS                                 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| %                                     |           Dec 31 |            Dec 31 |
|                                       |             2007 |              2006 |
--------------------------------------------------------------------------------
| Power Generation 1)                   |             17.7 |              16.9 |
--------------------------------------------------------------------------------
| Heat                                  |              9.2 |               9.2 |
--------------------------------------------------------------------------------
| Distribution                          |              7.5 |               8.3 |
--------------------------------------------------------------------------------
| Markets                               |             -0.6 |              -0.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

1) Excluding approximately EUR 180 million gain in relation to Hafslund's
divestment of REC-shares included in the share of profits of associates and
joint ventures. From Q4 the REC-shares have been excluded from the net assets as
well. 2006 have been restated accordingly.

Return on net assets is calculated by dividing the sum of operating profit and
share of profit of associated companies and joint ventures with average net
assets. Average net assets are calculated using the opening balance and end of
each quarter values.

--------------------------------------------------------------------------------
| ASSETS BY SEGMENTS                    |                  |                   |
--------------------------------------------------------------------------------
| MEUR                                  |           Dec 31 |            Dec 31 |
|                                       |             2007 |              2007 |
--------------------------------------------------------------------------------
| Power Generation                      |            7 724 |             7 131 |
--------------------------------------------------------------------------------
| Heat                                  |            3 928 |             3 870 |
--------------------------------------------------------------------------------
| Distribution                          |            3 782 |             3 911 |
--------------------------------------------------------------------------------
| Markets                               |              630 |               618 |
--------------------------------------------------------------------------------
| Other and Eliminations                |              274 |               255 |
--------------------------------------------------------------------------------
| Assets included in Net assets         |           16 338 |            15 785 |
--------------------------------------------------------------------------------
| Interest-bearing receivables          |              747 |               693 |
--------------------------------------------------------------------------------
| Deferred taxes                        |                3 |                 5 |
--------------------------------------------------------------------------------
| Other assets                          |              159 |               199 |
--------------------------------------------------------------------------------
| Cash and cash equivalents             |              427 |               157 |
--------------------------------------------------------------------------------
| Total assets                          |           17 674 |            16 839 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES BY SEGMENTS               |                  |                   |
--------------------------------------------------------------------------------
| MEUR                                  |           Dec 31 |            Dec 31 |
|                                       |             2007 |              2006 |
--------------------------------------------------------------------------------
| Power Generation                      |              576 |               397 |
--------------------------------------------------------------------------------
| Heat                                  |              421 |               463 |
--------------------------------------------------------------------------------
| Distribution                          |              539 |               499 |
--------------------------------------------------------------------------------
| Markets                               |              383 |               442 |
--------------------------------------------------------------------------------
| Other and Eliminations                |              134 |               170 |
--------------------------------------------------------------------------------
| Liabilities included in Net assets    |            2 053 |             1 971 |
--------------------------------------------------------------------------------
| Deferred tax liabilities              |            1 687 |             1 795 |
--------------------------------------------------------------------------------
| Other                                 |              390 |               410 |
--------------------------------------------------------------------------------
| Total liabilities included in Capital |            4 130 |             4 176 |
| employed                              |                  |                   |
--------------------------------------------------------------------------------
| Interest-bearing liabilities          |            4 893 |             4 502 |
--------------------------------------------------------------------------------
| Total equity                          |            8 651 |             8 161 |
--------------------------------------------------------------------------------
| Total equity and liabilities          |           17 674 |            16 839 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AVERAGE NUMBER OF PERSONNEL           |             2007 |              2006 |
--------------------------------------------------------------------------------
| Power Generation                      |            3 475 |             4 147 |
--------------------------------------------------------------------------------
| Heat                                  |            2 302 |             2 345 |
--------------------------------------------------------------------------------
| Distribution                          |            1 060 |               983 |
--------------------------------------------------------------------------------
| Markets                               |              936 |               825 |
--------------------------------------------------------------------------------
| Other                                 |              531 |               610 |
--------------------------------------------------------------------------------
| Total                                 |            8 304 |             8 910 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 5. QUARTERLY PRIMARY SEGMENT INFORMATION                                     |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Extended quarterly information is available on Fortum's website              |
| www.fortum.com/investors/financial information.                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERLY    |       |       |       |       |       |       |       |       |
| SALES BY     |       |       |       |       |       |       |       |       |
| SEGMENTS     |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| MEUR         |    Q4 |    Q3 |    Q2 |    Q1 |    Q4 |    Q3 |    Q2 |    Q1 |
|              |  2007 |  2007 |  2007 |  2007 |  2006 |  2006 |  2006 |  2006 |
--------------------------------------------------------------------------------
| Power        |   685 |   502 |   522 |   641 |   667 |   569 |   560 |   643 |
| Generation   |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| - of which   |     5 |    70 |    92 |   156 |    36 |  -102 |   -17 |   -50 |
| internal     |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Heat         |   439 |   186 |   252 |   479 |   381 |   178 |   229 |   480 |
--------------------------------------------------------------------------------
| - of which   |    -1 |     4 |    11 |    24 |    -5 |   -12 |    -7 |    -8 |
| internal     |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Distribution |   206 |   166 |   172 |   225 |   210 |   162 |   162 |   219 |
--------------------------------------------------------------------------------
| - of which   |     3 |     2 |     2 |     2 |     2 |     2 |     2 |     2 |
| internal     |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Markets      |   482 |   331 |   351 |   519 |   529 |   436 |   400 |   547 |
--------------------------------------------------------------------------------
| - of which   |    49 |    30 |    32 |    44 |    43 |    30 |    35 |    41 |
| internal     |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Other        |    21 |    19 |    22 |    19 |    19 |    19 |    20 |    20 |
--------------------------------------------------------------------------------
| - of which   |    20 |    17 |    19 |    16 |    16 |    16 |    15 |    15 |
| internal     |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Eliminations |  -513 |  -344 |  -360 |  -543 |  -552 |  -418 |  -423 |  -566 |
--------------------------------------------------------------------------------
| Total        | 1 320 |   860 |   959 | 1 340 | 1 254 |   946 |   948 | 1 343 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERLY OPERATING PROFIT BY SEGMENTS                                       |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR         |    Q4 |    Q3 |    Q2 |    Q1 |    Q4 |    Q3 |    Q2 |    Q1 |
|              |  2007 |  2007 |  2007 |  2007 |  2006 |  2006 |  2006 |  2006 |
--------------------------------------------------------------------------------
| Power        |   363 |   220 |   244 |   298 |   290 |   184 |   222 |   284 |
| Generation   |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Heat         |   121 |    -2 |    33 |   142 |   119 |   -15 |    41 |   119 |
--------------------------------------------------------------------------------
| Distribution |    51 |   282 |    53 |    79 |    74 |    42 |    55 |    81 |
--------------------------------------------------------------------------------
| Markets      |     2 |    15 |     7 |   -12 |   -18 |     6 |     3 |     3 |
--------------------------------------------------------------------------------
| Other        |   -17 |    -5 |   -10 |   -17 |   -10 |    -1 |    -9 |   -15 |
--------------------------------------------------------------------------------
| Total        |   520 |   510 |   327 |   490 |   455 |   216 |   312 |   472 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERLY COMPARABLE OPERATING PROFIT BY SEGMENTS                            |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR         |    Q4 |    Q3 |    Q2 |    Q1 |    Q4 |    Q3 |    Q2 |    Q1 |
|              |  2007 |  2007 |  2007 |  2007 |  2006 |  2006 |  2006 |  2006 |
--------------------------------------------------------------------------------
| Power        |   363 |   184 |   218 |   328 |   289 |   195 |   208 |   293 |
| Generation   |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Heat         |   120 |    -3 |    36 |   137 |    95 |    -3 |    35 |   126 |
--------------------------------------------------------------------------------
| Distribution |    50 |    50 |    53 |    78 |    77 |    39 |    53 |    81 |
--------------------------------------------------------------------------------
| Markets      |    -1 |    11 |     3 |   -14 |    -8 |     2 |     2 |     0 |
--------------------------------------------------------------------------------
| Other        |   -16 |    -4 |   -12 |   -17 |   -13 |    -8 |   -12 |   -14 |
--------------------------------------------------------------------------------
| Total        |   516 |   238 |   298 |   512 |   440 |   225 |   286 |   486 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERLY NON-RECURRING ITEMS BY SEGMENTS                                    |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR         |    Q4 |    Q3 |    Q2 |    Q1 |    Q4 |    Q3 |    Q2 |    Q1 |
|              |  2007 |  2007 |  2007 |  2007 |  2006 |  2006 |  2006 |  2006 |
--------------------------------------------------------------------------------
| Power        |    12 |     0 |     2 |     0 |    22 |     1 |     6 |     0 |
| Generation   |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Heat         |     1 |     0 |     1 |     0 |    16 |    -1 |     4 |     1 |
--------------------------------------------------------------------------------
| Distribution |     0 |   232 |    -1 |     1 |    -1 |     1 |     2 |     0 |
--------------------------------------------------------------------------------
| Markets      |    -1 |     1 |     0 |     0 |     0 |     0 |     0 |     0 |
--------------------------------------------------------------------------------
| Other        |     1 |    -1 |     2 |     0 |     1 |     7 |     3 |    -1 |
--------------------------------------------------------------------------------
| Total        |    13 |   232 |     4 |     1 |    38 |     8 |    15 |     0 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERLY OTHER ITEMS EFFECTING COMPARABILITY                                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR         |    Q4 |    Q3 |    Q2 |    Q1 |    Q4 |    Q3 |    Q2 |    Q1 |
|              |  2007 |  2007 |  2007 |  2007 |  2006 |  2006 |  2006 |  2006 |
--------------------------------------------------------------------------------
| Power        |   -12 |    36 |    24 |   -30 |   -21 |   -12 |     8 |    -9 |
| Generation   |       |       |       |       |       |       |       |       |
| 1)           |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Heat         |     0 |     1 |    -4 |     5 |     8 |   -11 |     2 |    -8 |
--------------------------------------------------------------------------------
| Distribution |     1 |     0 |     1 |     0 |    -2 |     2 |     0 |     0 |
--------------------------------------------------------------------------------
| Markets      |     4 |     3 |     4 |     2 |   -10 |     4 |     1 |     3 |
--------------------------------------------------------------------------------
| Other        |    -2 |     0 |     0 |     0 |     2 |     0 |     0 |     0 |
--------------------------------------------------------------------------------
| Total        |    -9 |    40 |    25 |   -23 |   -23 |   -17 |    11 |   -14 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 1) Including effects |       |       |       |       |       |       |       |
| from the accounting  |       |       |       |       |       |       |       |
| of Fortum's part of  |       |       |       |       |       |       |       |
| the Finnish          |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| State        |    -7 |    33 |    -4 |    -5 |    -4 |    -3 |    11 |    -4 |
| Nuclear      |       |       |       |       |       |       |       |       |
| Waste        |       |       |       |       |       |       |       |       |
| Management   |       |       |       |       |       |       |       |       |
| Fund with    |       |       |       |       |       |       |       |       |
| (EUR         |       |       |       |       |       |       |       |       |
| million):    |       |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------

6. FINANCIAL RISK MANAGEMENT

The Group has not made any significant change in policies regarding risk
management during the period. Aspects of the Group's financial risk management
objectives and policies are consistent with that disclosed in the consolidated
financial statements as at and for the year ended 31 December 2006.

The tables below disclose the notional values or volumes and net fair values for
the Group's derivatives used in different areas mainly for hedging purposes.

--------------------------------------------------------------------------------
| DERIVATIVES            |           |             |             |             |
--------------------------------------------------------------------------------
| MEUR                   |           |     Dec 31  |             |     Dec 31  |
|                        |           |        2007 |             |        2006 |
--------------------------------------------------------------------------------
| Interest and currency  |  Notional |   Net fair  |    Notional |   Net fair  |
| derivatives            |     value |       value |       value |       value |
--------------------------------------------------------------------------------
| Interest rate swaps    |     3 500 |         -16 |       3 021 |           3 |
--------------------------------------------------------------------------------
| Forward foreign        |     4 452 |          30 |       5 256 |         -61 |
| exchange contracts     |           |             |             |             |
--------------------------------------------------------------------------------
| Forward rate           |       741 |           0 |           - |           - |
| agreements             |           |             |             |             |
--------------------------------------------------------------------------------
| Interest rate and      |     3 293 |          66 |       2 575 |         -76 |
| currency swaps         |           |             |             |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Electricity            |    Volume |   Net fair  |      Volume |   Net fair  |
| derivatives            |           |       value |             |       value |
--------------------------------------------------------------------------------
|                        |       TWh |        MEUR |         TWh |        MEUR |
--------------------------------------------------------------------------------
| Sales swaps            |       119 |        -651 |         134 |         515 |
--------------------------------------------------------------------------------
| Purchase swaps         |        88 |         461 |         101 |        -426 |
--------------------------------------------------------------------------------
| Purchased options      |         0 |           0 |           0 |           0 |
--------------------------------------------------------------------------------
| Written options        |         2 |          -1 |           3 |           3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Oil derivatives        |    Volume |   Net fair  |      Volume |   Net fair  |
|                        |           |       value |             |       value |
--------------------------------------------------------------------------------
|                        |  1000 bbl |        MEUR |    1000 bbl |        MEUR |
--------------------------------------------------------------------------------
| Sales swaps and        |       460 |          -4 |         180 |           0 |
| futures                |           |             |             |             |
--------------------------------------------------------------------------------
| Purchase swaps and     |       795 |           9 |         897 |           0 |
| futures                |           |             |             |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Coal derivatives       |    Volume |   Net fair  |      Volume |   Net fair  |
|                        |           |       value |             |       value |
--------------------------------------------------------------------------------
|                        |        kt |        MEUR |          kt |        MEUR |
--------------------------------------------------------------------------------
| Sold                   |       150 |          -1 |           - |           - |
--------------------------------------------------------------------------------
| Bought                 |       375 |           1 |           - |           - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CO2 emission allowance |    Volume |   Net fair  |      Volume |   Net fair  |
| derivatives            |           |       value |             |       value |
--------------------------------------------------------------------------------
|                        |     ktCO2 |        MEUR |       ktCO2 |        MEUR |
--------------------------------------------------------------------------------
| Sold                   |     3 101 |         -13 |         405 |           0 |
--------------------------------------------------------------------------------
| Bought                 |     3 121 |          13 |         418 |           0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share derivatives      |  Notional |   Net fair  |    Notional |   Net fair  |
|                        |     value |       value |       value |       value |
--------------------------------------------------------------------------------
|                        |      MEUR |        MEUR |        MEUR |        MEUR |
--------------------------------------------------------------------------------
| Share forwards 1)      |        36 |          66 |          24 |          37 |
--------------------------------------------------------------------------------
1) Cash-settled share forwards are used as a hedging instrument for Fortum
Group's performance share arrangement.

7. ACQUISITIONS AND DISPOSALS

No acquisitions or disposals of shares in subsidiaries which have a material
effect on Fortum's income statement and balance sheet has been made during 2007.
Gross investment in subsidiary shares (see definition of key figures) amounted
to EUR 18 million.

Fortum acquired in the beginning of July 100% of the shares in EC Wojkowice. The
acquired company in Poland concentrates on district heating production and
sales in three cities. The company also sells electricity. The annual heat sales
are around 64 GWh and electricity sales 320 MWh. The number of employees is 34.

Fortum acquired in January 2007 100% of the shares in Vattenfall Estonia AS and
Vattenfall Latvia SIA from Vattenfall. The acquired company in Estonia provides
district heat and natural gas in the city of Pärnu. Its district heat network
are the fourth biggest in Estonia. The annual heat sales is 190 GWh, sales EUR
5.4 million and number of employees 58. The district heat business in Pärnu has
been integrated to the current countrywide heat operations of Fortum Termest AS
during the last quarter.

The acquired company in Latvia provides heat to Riga airport. The annual heat
sales are around 12 GWh and sales around EUR 0.5 million. The acquisition
provides a platform for Fortum to Latvian heat market.

Fortum has also acquired additional shares in its subsidiaries in Poland, Fortum
Czestochowa SA 11.11% (total ownership 98.71%), Fortum Wroclaw 0.92% (total
ownership of 99.17%), Fortum Plock SA 0.91% (total ownership of 98.66%) and
Fortum DZT SA 0.63 % (total ownership 99.92%).


8. EXCHANGE RATES

The balance sheet date rate is based on exchange rate published by the European
Central Bank for the closing date. The average exchange rate is calculated as an
average of each months ending rate from the European Central Bank during the
year and ending rate previous year.

Key exchange rates for Fortum Group applied in the accounts:

--------------------------------------------------------------------------------
| Avera | Dec 31 |   Sept |  June | March | Dec 31 |   Sept | June 30 |  March |
| ge    |   2007 |     30 |    30 |    31 |   2006 |     30 |    2006 |     31 |
| rate  |        |   2007 |  2007 |  2007 |        |   2006 |         |   2006 |
--------------------------------------------------------------------------------
| Swede | 9.2475 | 9.2185 | 9.202 | 9.178 | 9.2637 | 9.3110 |  9.3329 | 9.3798 |
| n     |        |        |     0 |     7 |        |        |         |        |
| (SEK) |        |        |       |       |        |        |         |        |
--------------------------------------------------------------------------------
| Norwa | 8.0253 | 8.0466 | 8.120 | 8.156 | 8.0376 | 7.9753 |  7.9396 | 8.0171 |
| y     |        |        |     5 |     3 |        |        |         |        |
| (NOK) |        |        |       |       |        |        |         |        |
--------------------------------------------------------------------------------
| Polan | 3.7792 | 3.8285 | 3.843 | 3.885 | 3.8965 | 3.9139 |  3.8991 | 3.8569 |
| d     |        |        |     9 |     8 |        |        |         |        |
| (PLN) |        |        |       |       |        |        |         |        |
--------------------------------------------------------------------------------
| Russi | 35.075 | 34.832 | 34.69 | 34.56 | 34.147 | 34.053 | 34.0044 | 33.730 |
| a     |      9 |      0 |    97 |    33 |      5 |      3 |         |      5 |
| (RUB) |        |        |       |       |        |        |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balan | Dec 31 |   Sept |  June | March | Dec 31 |   Sept | June 30 |  March |
| ce    |   2007 |     30 |    30 |    31 |   2006 |     30 |    2006 |     31 |
| sheet |        |   2007 |  2007 |  2007 |        |   2006 |         |   2006 |
| date  |        |        |       |       |        |        |         |        |
| rate  |        |        |       |       |        |        |         |        |
--------------------------------------------------------------------------------
| Swede | 9.4415 | 9.2147 | 9.252 | 9.346 | 9.0404 | 9.2797 |  9.2385 | 9.4315 |
| n     |        |        |     5 |     2 |        |        |         |        |
| (SEK) |        |        |       |       |        |        |         |        |
--------------------------------------------------------------------------------
| Norwa | 7.9580 | 7.7185 | 7.972 | 8.119 | 8.2380 | 8.2350 |  7.9360 | 7.9675 |
| y     |        |        |     5 |     0 |        |        |         |        |
| (NOK) |        |        |       |       |        |        |         |        |
--------------------------------------------------------------------------------
| Polan | 3.5935 | 3.7730 | 3.767 | 3.866 | 3.8310 | 3.9713 |  4.0546 | 3.9425 |
| d     |        |        |     7 |     8 |        |        |         |        |
| (PLN) |        |        |       |       |        |        |         |        |
--------------------------------------------------------------------------------
| Russi | 35.986 | 35.349 | 34.80 | 34.65 | 34.680 | 33.942 | 34.2400 | 33.546 |
| a     |      0 |      0 |    70 |    80 |      0 |      0 |         |      0 |
| (RUB) |        |        |       |       |        |        |         |        |
--------------------------------------------------------------------------------

9. INCOME TAX EXPENSE

Tax rate according to the income statement for the period January to December
2007 was 16.9% (21.2%). The tax rate for the period is low mainly due to the
impact of Hafslund´s sale of REC shares in March 2007 which impacted the share
of profits from associates for the period with approximately EUR 180 million and
the capital gain, EUR 232 million, from sale of JSC Lenenergo shares in August
2007. The tax rate used in the income statement is always impacted by the fact
that share of profits of associates and joint ventures is recorded based on
Fortum's share of profits after tax. The tax rate calculated excluding the share
of profits from associates and joint ventures and excluding the sales gain for
the sale of the Lenenergo shares was 22.3% (22.3%).


--------------------------------------------------------------------------------
| 10. EARNINGS PER SHARE                                                       |
--------------------------------------------------------------------------------
The calculation of basic and diluted earnings per share is based on the
following data:

--------------------------------------------------------------------------------
|                                 |       |            2007 |             2006 |
--------------------------------------------------------------------------------
| Earnings (MEUR):                |       |                 |                  |
--------------------------------------------------------------------------------
| Profit attributable to the equity       |           1 552 |            1 071 |
| holders of the Company (EUR million)    |                 |                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares (thousands):   |       |                 |                  |
--------------------------------------------------------------------------------
| Weighted average number of      |       |                 |                  |
| shares for the purpose of       |       |                 |                  |
--------------------------------------------------------------------------------
| basic earnings per share        |       |         889 997 |          881 194 |
--------------------------------------------------------------------------------
| Effect of dilutive share        |       |           1 398 |            5 735 |
| options                         |       |                 |                  |
--------------------------------------------------------------------------------
| Weighted average number of      |       |                 |                  |
| shares for the purpose of       |       |                 |                  |
--------------------------------------------------------------------------------
| diluted earnings per share      |       |         891 395 |          886 929 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 11. DIVIDEND PER SHARE          |       |                 |                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------


A dividend in respect of 2007 of EUR 1.35 per share, amounting to a total
dividend of EUR 1,197 million based on the number of shares registered as of 30
January 2008, is to be proposed at the Annual General Meeting on 1 April 2008.
Of this total dividend, EUR 0.77 per share is to be paid from Fortum's recurring
earnings. An additional dividend of EUR 0.58 per share is proposed in order to
steer Fortum's capital structure. These financial statements do not reflect this
dividend.

The Annual General Meeting on 28 March 2007 decided to distribute a dividend of
EUR 1.26 per share to the shareholders of which EUR 0.73 per share is in
accordance with the Group´s dividend policy. An additional dividend of EUR 0.53
per share was decided to steer Fortum´s capital structure towards agreed target.
The total dividend amounts to EUR 1,122 million based on the amount of shares
registered as of 2 April 2007. The dividend was paid on 11 April 2007.

In 2006 the total dividend amounted to EUR 1.12 per share of which EUR 0.54 per
share was attributable to the profit from discontinued operations. The total
dividend amounted to EUR 987 million and the dividend was paid on 28 March 2006

--------------------------------------------------------------------------------
| 12. CHANGES IN INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT           |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                                    |          Dec 31 |           Dec 31 |
|                                         |            2007 |             2006 |
--------------------------------------------------------------------------------
| Opening balance                         |          11 567 |           10 256 |
--------------------------------------------------------------------------------
| Acquisition of subsidiary companies     |              16 |            1 008 |
--------------------------------------------------------------------------------
| Capital expenditures                    |             655 |              485 |
--------------------------------------------------------------------------------
| Changes of nuclear asset retirement     |              25 |               14 |
| cost                                    |                 |                  |
--------------------------------------------------------------------------------
| Changes of emission rights              |              -9 |                9 |
--------------------------------------------------------------------------------
| Disposals                               |             -11 |              -78 |
--------------------------------------------------------------------------------
| Depreciation, amortisation and          |            -451 |             -429 |
| impairment                              |                 |                  |
--------------------------------------------------------------------------------
| Translation differences                 |            -364 |              302 |
--------------------------------------------------------------------------------
| Closing balance                         |          11 428 |           11 567 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 13. CHANGES IN INVESTMENTS IN ASSOCIATES AND JOINT VENTURES                  |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                                    |          Dec 31 |           Dec 31 |
|                                         |            2007 |             2006 |
--------------------------------------------------------------------------------
| Opening balance                         |           2 197 |            1 610 |
--------------------------------------------------------------------------------
| Share of profits of associates and      |             241 |               69 |
| joint ventures                          |                 |                  |
--------------------------------------------------------------------------------
| Investments                             |               1 |              124 |
--------------------------------------------------------------------------------
| New share issues and shareholders'      |             294 |                0 |
| contributions                           |                 |                  |
--------------------------------------------------------------------------------
| Divestments                             |             -68 |               -5 |
--------------------------------------------------------------------------------
| Dividend income received                |            -178 |              -39 |
--------------------------------------------------------------------------------
| Fair value and other changes in equity  |             366 |              438 |
--------------------------------------------------------------------------------
| Closing balance                         |           2 853 |            2 197 |
--------------------------------------------------------------------------------

Accounting for the share of profits from Hafslund ASA

According to Fortum Group accounting policies the share of profits from Hafslund
has been included in Fortum Group figures based on the previous quarter
information since Hafslund's interim reports are published later than Fortum's
interim reports. Hafslund will publish January-December 2007 results on 8
February 2008.

When calculating the share of profits in Hafslund, Fortum has in accordance with
Fortum's accounting policies reclassified Hafslund's accounting treatment for
the shareholding in Renewable Energy Corporation (REC). Hafslund has classified
the shareholding in REC as financial assets at fair value through profit and
loss while Fortum has classified the REC shareholding as available for sale
financial assets with fair value changes recorded directly through equity, only
when Hafslund divests shares in REC, the cumulative fair value change effects
Fortum's income statement.

Since REC has been listed on the Oslo stock exchange as of 9 May 2006, Fortum is
accounting for the fair value change in REC based on the closing price on the
Oslo stock exchange at each closing date. The amount of shares is based on the
amount published by Hafslund in the previous quarter if other information is not
available.

Hafslund sold 35 million shares in REC in March 2007. In accordance with the
accounting policy Fortum recognised approximately EUR 180 million in relation
to Hafslund's divestment of REC shares as a part of the share of profits from
associates and joint ventures in Q1 2007. The cumulative fair value change in
Fortum's equity based on the remaining number of shares reported by Hafslund was
approximately EUR 790 million at 31 December 2007.

Share issues

In September Fortum participated in the share issue of Russian Territorial
Generating Company 1 (TGC-1) subscribing to 243,691,499,640 new shares in the
company.

At 0.035 rubles per share, the total value of Fortum's subscription was
approximately 8.5 billion rubles or EUR 243 million. With this subscription,
Fortum maintained its 25.7% stake in TGC-1 and its position as the second
largest shareholder of the company.

Fortum also participated in the share issue of Teollisuuden Voima Oy (TVO) with
a total amount of EUR 49 million. Olkiluoto 3, the nuclear power plant being
built by TVO, is funded through share issues and shareholder loans according to
shareholder agreements between the owners of TVO.

Dividends received

Fortum has received a total of EUR 179 million in dividend income from
associated companies, of which the dividend from Hafslund represents EUR 145
million.

Divestment of JSC Lenenergo

In August Fortum sold its slightly over 1/3 stake in JSC Lenenergo for
approximately EUR 295 million. The buyers were VTB Bank, I.D.E. Electricity
Distribution Investments 1 Ltd and the Russian energy company RAO UES. As a
consequence, Fortum has booked an after tax gain of EUR 232 million. The sales
gain is presented in Other income.

--------------------------------------------------------------------------------
| 14. SHARE CAPITAL       |      |       |                   |                 |
--------------------------------------------------------------------------------
| MEUR                    |      |       |  Number of shares |   Share capital |
--------------------------------------------------------------------------------
| Registered shares at 1  |      |       |       887 393 646 |           3 023 |
| January 2007            |      |       |                   |                 |
--------------------------------------------------------------------------------
| Shares subscribed with options and     |         5 199 412 |              17 |
| registered by 31 Dec 2007              |                   |                 |
--------------------------------------------------------------------------------
| Cancellation of own     |      |       |        -5 910 000 |                 |
| shares                  |      |       |                   |                 |
--------------------------------------------------------------------------------
| Registered shares at 31 |      |       |       886 683 058 |           3 040 |
| Dec 2007                |      |       |                   |                 |
--------------------------------------------------------------------------------
| Unregistered shares     |      |       |            50 000 |                 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR                    |      |       |  Number of shares |   Share capital |
--------------------------------------------------------------------------------
| Registered shares at 1  |      |       |       875 294 025 |           2 976 |
| January 2006            |      |       |                   |                 |
--------------------------------------------------------------------------------
| Shares subscribed with options |       |        13 759 621 |              47 |
| and registered by 31 Dec 2006  |       |                   |                 |
--------------------------------------------------------------------------------
| Cancellation of own     |      |       |        -1 660 000 |                 |
| shares                  |      |       |                   |                 |
--------------------------------------------------------------------------------
| Registered shares at 31 |      |       |       887 393 646 |           3 023 |
| Dec 2006                |      |       |                   |                 |
--------------------------------------------------------------------------------
| Unregistered shares     |      |       |            74 700 |                 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 15. INTEREST-BEARING LIABILITIES                                             |
--------------------------------------------------------------------------------

During the year Fortum raised SEK 7,850 million (EUR 831 million) of new
long-term financing which was used partly to refinance maturing SEK and EUR
denominated loans of EUR 441 million. The maturities of the new financing
arrangements varied between 5 and 10 years and consisted of two in total SEK
6,100 million (EUR 646 million) bonds issued under Fortum's Euro Medium Term
Note programme, as well as two bilateral loan arrangements of in total SEK 1,750
million (EUR 185 million). The reported interest-bearing debt increased by EUR
391 million to EUR 4,893 (4,502) million at year end.

During the fourth quarter 2007, overdraft facilities amounting to EUR 150
million, SEK 500 million and NOK 100 million was established replacing overdraft
facilities of EUR 325 million and SEK 1,000 million (EUR 106 million). The new
overdraft agreement runs for one year. As per year end none of the overdraft
facilities were drawn.

The Nybroviken Kraft AB (Nykab) financing arrangement of Swedish hydropower
assets originally established in 1990, consisting of loans (SEK 2,000 million)
and preference shares (SEK 890 million classified as interest-bearing liability
according to IAS 32 and IAS 39), was terminated on 31 October 2007, by Fortum
Generation AB exercising it's call option to purchase all outstanding loans and
preference shares under the agreement. The termination of the financing
arrangement had a negative cash-flow effect on the quarter and the full year as
accrued interest gradually accumulating since the start of the agreement
amounting to EUR 58 million (SEK 543 million) was settled and paid. The assets
that were pledged as a security for the loans, have been released.

--------------------------------------------------------------------------------
| 16. NUCLEAR RELATED ASSETS  |       |          |              |              |
| AND LIABILITIES             |       |          |              |              |
--------------------------------------------------------------------------------
| MEUR                        |       |          |      Dec 31  |      Dec 31  |
|                             |       |          |         2007 |         2006 |
--------------------------------------------------------------------------------
| Carrying values in the      |       |          |              |              |
| balance sheet:              |       |          |              |              |
--------------------------------------------------------------------------------
| Nuclear provisions          |       |          |          516 |          450 |
--------------------------------------------------------------------------------
| Share in the State Nuclear  |       |          |          516 |          450 |
| Waste Management Fund       |       |          |              |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Legal liability and actual share of the State  |              |              |
| Nuclear Waste Management Fund:                 |              |              |
--------------------------------------------------------------------------------
| Liability for nuclear waste management     |              816 |          685 |
| according to the Nuclear Energy Act        |                  |              |
| (without proposed change, see below)       |                  |              |
--------------------------------------------------------------------------------
| Funding obligation target   |       |          |          698 |          649 |
| for current year            |       |          |              |              |
--------------------------------------------------------------------------------
| Fortum's share of the State Nuclear |          |          673 |          636 |
| Waste Management Fund               |          |              |              |
--------------------------------------------------------------------------------

Fortum submitted the yearly proposal for the nuclear waste management liability
regarding the Loviisa nuclear power plant to the Ministry of Employment and the
Economy (previously the Ministry of Trade and Industry) in September. The
liability is calculated according to the Nuclear Energy Act and is decided by
the Ministry of Employment and the Economy in January every year. The proposal
is based on an updated cost estimate, which is done every year, and on a new
technical plan, which is made every third year. Based on the new plan, the
future costs are estimated to increase mainly due to the new technical solution
related to filling material for the tunnels in the final repository.

According to the Nuclear Energy Act, Fortum is obligated to contribute the funds
in full to the State Nuclear Waste Management Fund to cover the legal liability.
Fortum applied for periodising of the payments to the Fund, due to the proposed
increase in the legal liability, over six years based on the law. The
application was approved by Council of State in December 2007.

The legal liability at the end of 2007, based on the decision by the Ministry of
Employment and the Economy and calculated according to the Nuclear Energy Act in
Finland, is EUR 816 million. The carrying value of the nuclear provision in the
balance sheet, calculated according to IAS 37, have increased with EUR 66
million compared to 31 December 2006, totalling EUR 516 million as of 31
December 2007. The increase of the provision has caused a negative one-time
effect of EUR 13 million in comparable operating profit in Q3 2007 due to
higher nuclear waste management costs related to already spent fuel. The main
reason for the difference between the carrying value of the provision and the
legal liability is the fact that the legal liability is not discounted to net
present value.

The proposal to the Council of State for periodisation of the payments to the
State Nuclear Waste Management Fund has an impact on cash-flow, but also on
operating profit since the carrying value of the Fund cannot exceed the carrying
value of the nuclear provision according to IFRIC Interpretation 5. The Fund is
from an IFRS perspective overfunded with EUR 157 million, since Fortum's share
of the Fund as of 31 December 2007 is EUR 673 million and the carrying value in
the balance sheet is EUR 516 million.

Operating profit for 2007 includes a positive cumulative adjustment of EUR 17
(0) million, due to the increase of the carrying value of the Fund in the
balance sheet as a result of the increased provision. The positive effect on Q3
2007 was EUR 33 (-2) million. In Q4 the adjustment is negative, EUR -7 (-4)
million, since the value of the Fund has increased more than the carrying value
of the provision. These adjustments are included in "Other items effecting
comparability" in the Power Generation segment, see Note 4 Primary segment
information, and are not included in comparable operating profit. As long as the
Fund stays overfunded from an IFRS perspective, positive accounting effects to
Operating profit will always occur when the nuclear provision is increasing more
than the net payments to the Fund. Negative accounting effects will occur when
the net payments to the Fund are higher than the increase of the provision.

The funding obligation target for the current year is decided by the Ministry of
Employment and the Economy in January when the legal liability has been decided.

The difference between the funding obligation target for Fortum and Fortum's
share of the State Nuclear Waste Fund is payed in Q1. The funding obligation
target
corresponding to the new legal liability and the new decision for periodisation
of payments to the Fund, amounts to EUR 698 (649) million.

The difference between the legal liability at year end 2007 and the
corresponding funding obligation target for 2007, EUR 25 (13) million, is
covered by a security which has been given in the end of June 2007.

--------------------------------------------------------------------------------
| 17. PLEDGED ASSETS                        |               |                  |
--------------------------------------------------------------------------------
| MEUR                                      |       Dec 31  |          Dec 31  |
|                                           |          2007 |             2006 |
--------------------------------------------------------------------------------
| On own behalf                             |               |                  |
--------------------------------------------------------------------------------
| For debt                                  |               |                  |
--------------------------------------------------------------------------------
| Pledges                                   |           170 |              176 |
--------------------------------------------------------------------------------
| Real estate mortgages                     |           138 |               49 |
--------------------------------------------------------------------------------
| For other commitments                     |               |                  |
--------------------------------------------------------------------------------
| Real estate mortgages                     |           103 |               56 |
--------------------------------------------------------------------------------
| On behalf of associated companies and     |               |                  |
| joint ventures                            |               |                  |
--------------------------------------------------------------------------------
| Pledges and real estate mortgages         |             3 |                3 |
--------------------------------------------------------------------------------

Pledged assets for debt

In Q4 2007, Fortum terminated the financing agreement with AP-fonden relating to
it's Swedish subsidiary, Nybroviken Kraft AB. Shares in subsidiaries and
associated companies to Nybroviken Kraft AB amounting to EUR 51 million as of 31
december 2006, that had been pledged as security for the loan, were hereby
released.

Finnish participants in the State Nuclear Waste Management Fund are allowed to
borrow from the Fund. In Q1 2007 Fortum increased the reborrowing from the Fund
and therefore pledged additional Kemijoki shares as a security. The total amount
of shares pledged have a carrying value of EUR 145 million (102 million) as of
31 December 2007 (and 31 December 2006 respectively).

In Q3 2007 Fortum Tartu in Estonia (60% owned by Fortum) has given real estate
mortages for a value of EUR 95 million as a security for an external loan.

Pledged assets for other commitments

In Q2 2007 Fortum increased the real estate mortgages in Naantali and Inkoo
power plants in Finland, total value of EUR 102 million (56 million) as of 31
December 2007, given as a security to the State Nuclear Waste Management Fund
for the uncovered part of the legal liability, uncertainties and unexpected
events. See also Note 16.

--------------------------------------------------------------------------------
| 18. COMMITMENTS                             |               |                |
--------------------------------------------------------------------------------
| MEUR                                        |       Dec 31  |        Dec 31  |
|                                             |          2007 |           2006 |
--------------------------------------------------------------------------------
| Operating lease commitments                 |               |                |
--------------------------------------------------------------------------------
| Due within a year                           |            21 |             20 |
--------------------------------------------------------------------------------
| Due after one year and within five years    |            31 |             38 |
--------------------------------------------------------------------------------
| Due after five years                        |            69 |             78 |
--------------------------------------------------------------------------------
| Total                                       |           121 |            136 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Capital commitments for the purchase of property, plant and equipment and    |
| intangible assets amounts to EUR 436 million as at 31 December 2007 (EUR 266 |
| million at year end 2006).                                                   |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 19. CONTINGENT LIABILITIES                  |               |                |
--------------------------------------------------------------------------------
| MEUR                                        |       Dec 31  |        Dec 31  |
|                                             |          2007 |           2006 |
--------------------------------------------------------------------------------
| On own behalf                               |               |                |
--------------------------------------------------------------------------------
| Other contingent liabilities                |           224 |            144 |
--------------------------------------------------------------------------------
| On behalf of associated companies and joint |               |                |
| ventures                                    |               |                |
--------------------------------------------------------------------------------
| Guarantees                                  |           235 |            213 |
--------------------------------------------------------------------------------
| Other contingent liabilities                |           125 |            125 |
--------------------------------------------------------------------------------
| On behalf of others                         |               |                |
--------------------------------------------------------------------------------
| Guarantees                                  |            10 |             12 |
--------------------------------------------------------------------------------
| Other contingent liabilities                |             1 |              1 |
--------------------------------------------------------------------------------

Other contingent liabilities on own behalf, EUR 224 million, have increased with
EUR 80 million since 31 December 2006. The main reason for the increase is
guarantees given to suppliers for the new CHP plant being built in Czestochowa
in Poland.

20. LEGAL ACTIONS AND OFFICIAL PROCEEDINGS

The Swedish Energy Market Authority, Energimyndigheten, has given decisions
concerning pricing at three electricity distribution areas of Fortum in 2003
According to the decisions Fortum would have to return about EUR 25 million of
the collected distribution charges. Fortum has appealed against the decision to
the County Administrative Court, because the theoretical grid model the
authority applies as its basis does not correspond to the actual circumstances.
All the other distribution companies that got similar decisions have also
appealed. The decisions will not be efficient until the appeal processes have
been finished. No provision or contingent liability in relation to this decision
has been recognised.

21. RELATED PARTY TRANSACTIONS

Related party transactions are described in the annual financial statements as
of the year ended 31 December 2006. No material changes have occurred during
the period.

The Finnish State owned 50.82% of the shares in Fortum 31 December 2006. After
the changes in amount of shares during 2007, increase in amount of shares due to
the share subscriptions under the option schemes and decrease due to
cancellation of repurchased own shares, the Finnish state owned 50.86% of the
Company's shares at the end of the year.

--------------------------------------------------------------------------------
| ASSOCIATED COMPANY TRANSACTIONS                                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                                     |        Dec 31  |          Dec 31  |
|                                          |           2007 |             2006 |
--------------------------------------------------------------------------------
| Sales to associated companies            |            129 |              101 |
--------------------------------------------------------------------------------
| Interest on associated company loan      |             26 |               20 |
| receivables                              |                |                  |
--------------------------------------------------------------------------------
| Purchases from associated companies      |            519 |              487 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSOCIATED COMPANY BALANCES              |                |                  |
--------------------------------------------------------------------------------
| MEUR                                     |        Dec 31  |          Dec 31  |
|                                          |           2007 |             2006 |
--------------------------------------------------------------------------------
| Long-term interest-bearing loan          |            636 |              575 |
| receivables                              |                |                  |
--------------------------------------------------------------------------------
| Trade receivables                        |             17 |               28 |
--------------------------------------------------------------------------------
| Other receivables                        |              7 |                7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term loan payables                  |            171 |              164 |
--------------------------------------------------------------------------------
| Trade payables                           |             25 |               12 |
--------------------------------------------------------------------------------
| Other payables                           |             53 |               23 |
--------------------------------------------------------------------------------

TRANSACTIONS AND BALANCES WITH JOINT VENTURES

Transactions and balances with joint ventures as at and for the period ended 31
December 2007 are not material for the Group.

22. EVENTS AFTER THE BALANCE SHEET DATE

Norwegian Renewable Energy Corporation (REC) is partly owned by Fortum's
associated company Hafslund ASA. Fortum shows the fair value changes of REC in
equity. At year end, the cumulative fair value change booked in Fortum's equity
was approximately EUR 790 million. REC's share price has decreased since the
year end. Based on REC's closing price on 29 January, the cumulative fair value
change in Fortum's equity would have been approximately EUR 400 million.

--------------------------------------------------------------------------------
| 23. DEFINITION OF KEY FIGURES                                                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| EBITDA          |     |  =  | Operating profit +      |       |       |      |
| (Earnings       |     |     | Depreciation,           |       |       |      |
| before          |     |     | amortisation            |       |       |      |
| interest,       |     |     |                         |       |       |      |
| taxes,          |     |     |                         |       |       |      |
| depreciation    |     |     |                         |       |       |      |
--------------------------------------------------------------------------------
| and             |     |     | and impairment  |       |       |       |      |
| amortisation)   |     |     | charges         |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comparable      |     |  =  | Operating profit - non-recurring items  |      |
| operating       |     |     | - other items effecting comparability   |      |
| profit          |     |     |                                         |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-recurring   |     |  =  | Mainly capital  |       |       |       |      |
| items           |     |     | gains and       |       |       |       |      |
|                 |     |     | losses          |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other items     |     |  =  | Includes effects from financial         |      |
| effecting       |     |     | derivatives hedging future cash-flows   |      |
| comparability   |     |     | where                                   |      |
--------------------------------------------------------------------------------
|                 |     |     | hedge accounting is not applied         |      |
|                 |     |     | according to IAS 39 and effects from    |      |
--------------------------------------------------------------------------------
|                 |     |     | the accounting of Fortum´s part of the  |      |
|                 |     |     | Finnish Nuclear Waste Fund              |      |
--------------------------------------------------------------------------------
|                 |     |     | where the asset in the balance sheet    |      |
|                 |     |     | cannot exceed the related liabilities   |      |
--------------------------------------------------------------------------------
|                 |     |     | according to IFRIC      |       |       |      |
|                 |     |     | interpretation 5.       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Funds from      |     |  =  | Net cash from operating activities      |      |
| operations      |     |     | before change in working capital        |      |
| (FFO)           |     |     |                                         |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital         |     |  =  | Capitalised investments in property,    |      |
| expenditure     |     |     | plant and equipment and intangible      |      |
|                 |     |     | assets                                  |      |
--------------------------------------------------------------------------------
|                 |     |     | including maintenance,          |       |      |
|                 |     |     | productivity, growth and        |       |      |
|                 |     |     | investments required            |       |      |
--------------------------------------------------------------------------------
|                 |     |     | by legislation including        |       |      |
|                 |     |     | borrowing costs capitalised     |       |      |
|                 |     |     | during construction             |       |      |
--------------------------------------------------------------------------------
|                 |     |     | period. Maintenance investments |       |      |
|                 |     |     | expand lifetime of an existing  |       |      |
|                 |     |     | asset,                          |       |      |
--------------------------------------------------------------------------------
|                 |     |     | maintain useage/availability    |       |      |
|                 |     |     | and/or maintains reliability.   |       |      |
|                 |     |     | Productivity                    |       |      |
--------------------------------------------------------------------------------
|                 |     |     | improves productivity 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     |     |       |       |       |      |
|                 |     |     | requireme |     |       |       |       |      |
|                 |     |     | nts.      |     |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross           |     |  =  | Investments in subsidiary shares, shares in    |
| investments in  |     |     | associated companies and other shares in       |
| shares          |     |     |                                                |
--------------------------------------------------------------------------------
|                 |     |     | available for sale financial assets.    |      |
|                 |     |     | Investments in subsidiary shares are    |      |
|                 |     |     | net                                     |      |
--------------------------------------------------------------------------------
|                 |     |     | of cash and grossed with                |      |
|                 |     |     | interest-bearing liabilities in the     |      |
|                 |     |     | acquired company.                       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on       |     |  =  | Profit    |     |       |       |       |  x   |
| shareholders'   |     |     | for the   |     |       |       |       | 100  |
| equity, %       |     |     | year      |     |       |       |       |      |
--------------------------------------------------------------------------------
|                 |     |     | Total     |     |       |       |       |      |
|                 |     |     | equity    |     |       |       |       |      |
|                 |     |     | average   |     |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on       |     |  =  | Profit before taxes + interest  |       |  x   |
| capital         |     |     | and other financial expenses    |       | 100  |
| employed, %     |     |     |                                 |       |      |
--------------------------------------------------------------------------------
|                 |     |     | Capital         |       |       |       |      |
|                 |     |     | employed        |       |       |       |      |
|                 |     |     | average         |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on net   |     |  =  | Operating profit + Share of profit      |  x   |
| assets, %       |     |     | (loss) in associated companies and      | 100  |
|                 |     |     | joint                                   |      |
|                 |     |     | ventures                                |      |
--------------------------------------------------------------------------------
|                 |     |     | Net       |     |       |       |       |      |
|                 |     |     | assets    |     |       |       |       |      |
|                 |     |     | average   |     |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comparable      |     |  =  | Comparable operating profit + Share of  |  x   |
| return on net   |     |     | profit (loss) in associated companies   | 100  |
| assets, %       |     |     |                                         |      |
--------------------------------------------------------------------------------
|                 |     |     | and joint ventures (adjusted for IAS 39 |      |
|                 |     |     | effects and major sales gains or        |      |
|                 |     |     | losses)                                 |      |
--------------------------------------------------------------------------------
|                 |     |     | Comparable net  |       |       |       |      |
|                 |     |     | assets average  |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital         |     |  =  | Total assets - non-interest bearing     |      |
| employed        |     |     | liabilities - deferred tax liabilities  |      |
--------------------------------------------------------------------------------
|                 |     |     |         - |     |       |       |       |      |
|                 |     |     | provision |     |       |       |       |      |
|                 |     |     |         s |     |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets      |     |  =  | Non-interest bearing assets +           |      |
|                 |     |     | interest-bearing assets related to the  |      |
|                 |     |     | Nuclear                                 |      |
--------------------------------------------------------------------------------
|                 |     |     | Waste Fund - non-interest       |       |      |
|                 |     |     | bearing liabilities -           |       |      |
|                 |     |     | provisions                      |       |      |
--------------------------------------------------------------------------------
|                 |     |     | (non-interest bearing assets and        |      |
|                 |     |     | liabilities do not include finance      |      |
|                 |     |     | related items,                          |      |
--------------------------------------------------------------------------------
|                 |     |     | tax and deferred tax and assets and     |      |
|                 |     |     | liabilities from fair valuations of     |      |
--------------------------------------------------------------------------------
|                 |     |     | derivatives where hedge |       |       |      |
|                 |     |     | accounting is applied)  |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comparable net  |     |  =  | Net assets adjusted for         |       |      |
| assets          |     |     | non-interest bearing assets and |       |      |
|                 |     |     | liabilities                     |       |      |
--------------------------------------------------------------------------------
|                 |     |     | arising from financial derivatives      |      |
|                 |     |     | hedging future cash-flows where hedge   |      |
--------------------------------------------------------------------------------
|                 |     |     | accounting is not       |       |       |      |
|                 |     |     | applied according to    |       |       |      |
|                 |     |     | IAS 39                  |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearin |     |  =  | Interest-bearing liabilities -  |       |      |
| g net debt      |     |     | cash and cash equivalents       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing, %      |     |  =  | Interest-bearin |       |       |       |  x   |
|                 |     |     | g net debt      |       |       |       | 100  |
--------------------------------------------------------------------------------
|                 |     |     | Total     |     |       |       |       |      |
|                 |     |     | equity    |     |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity-to-asset |     |  =  | Total equity including  |       |       |  x   |
| s ratio, %      |     |     | minority interest       |       |       | 100  |
--------------------------------------------------------------------------------
|                 |     |     |     Total |     |       |       |       |      |
|                 |     |     |    assets |     |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net debt /      |     |  =  | Interest-bearin |       |       |       |      |
| EBITDA          |     |     | g net debt      |       |       |       |      |
--------------------------------------------------------------------------------
|                 |     |     | Operating profit + Depreciation,        |      |
|                 |     |     | amortisation and impairment charges     |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest        |     |  =  | Operating |     |       |       |       |      |
| coverage        |     |     | profit    |     |       |       |       |      |
--------------------------------------------------------------------------------
|                 |     |     | Net       |     |       |       |       |      |
|                 |     |     | interest  |     |       |       |       |      |
|                 |     |     | expenses  |     |       |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per    |     |  =  | Profit for the period - |       |       |      |
| share (EPS)     |     |     | minority interest       |       |       |      |
--------------------------------------------------------------------------------
|                 |     |     | Average number of       |       |       |      |
|                 |     |     | shares during the       |       |       |      |
|                 |     |     | period                  |       |       |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per      |     |  =  | Sharehold |     |       |       |       |      |
| share, EUR      |     |     | er's      |     |       |       |       |      |
|                 |     |     | equity    |     |       |       |       |      |
--------------------------------------------------------------------------------
|                 |     |     | Number of shares excluding treasury     |      |
|                 |     |     | shares at the end of the period         |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Last twelve     |     |  =  | Twelve months preceding |       |       |      |
| months          |     |     | the reporting date      |       |       |      |
--------------------------------------------------------------------------------