IFRS 5 restatement of Fortum's income statement and cash flow for 2014 – Distribution segment treated as discontinued operations

FORTUM CORPORATION STOCK EXCHANGE RELEASE 15 APRIL 2015 at 09:30 EEST

Fortum signed a binding agreement to sell its Swedish distribution business on 13 March 2015, which concludes Fortum’s divestment of its electricity distribution business. The divestment is expected to be completed during the second quarter of 2015.

After the divestment of the Swedish distribution business Fortum will not have any distribution operations, and therefore the Distribution segment will be treated in the first quarter 2015 interim financial statements as discontinued operations according to IFRS 5 "Non-current assets held for sale and Discontinued operations". The IFRS standard requires restatement of the 2014 comparative period information for the income statement and cash flow. The restatement is done to the income statement including other comprehensive income, cash flow statement and certain key ratios. In the segment information, the Distribution segment is reclassified as discontinued operations.

Reclassification of discontinued operations does not impact the balance sheet. The Swedish distribution business’ assets and liabilities will be classified as assets held for sale in the balance sheet of 31 March 2015.

The 2014 key figures of Fortum in total, continuing operations and discontinued operations (Distribution segment) are as follows: 

 
EUR million
2014
Fortum, total (old)*
2014
Continuing operations
2014
Discontinued operations
Sales
4,751
4,088
662
EBITDA
3,954
1,673
2,281
Comparable EBITDA
1,873
1,457
416
Operating profit
3,428
1,296
2,132
Comparable operating profit
1,351
1,085
266
Profit before taxes
3,360
1,232
2,128
Net cash from operating activities
1,762
1,406
356
Capital expenditure
774
626
147
 

*previously reported information


Earnings per share figures for 2014 of Fortum in total and of the continuing and the discontinued operations are as follows:

EUR
Q1/14
Q1-Q2/14
Q1-Q3/14
2014
Earnings per share total Fortum Group
2.53
2.81
2.91
3.55
Earnings per share continuing operations
0.35
0.57
0.63
1.22
Earnings per share discontinued operations*
2.18
2.24
2.28
2.33

 

* Includes impact from sales gains of the Finnish and Norwegian Distribution businesses amounting to EUR 2.10.

For restated information for the interim periods of 2014, see the attachment.

 

Fortum Corporation

Helena Aatinen

Senior Vice President, Corporate Communications

 

For more information, please contact:

 

Analysts and investors:

Sophie Jolly, Vice President, Investor Relations, tel. +358 10 45 32552

Rauno Tiihonen, Investor Relations Manager , tel. +358 10 45 36150

Marja Mäkinen, Investor Relations (SRI) Manager, tel. +358 10 45 23338

 

Media contacts:

Helena Aatinen, Senior Vice President, Corporate Communications,

tel. +358 10 45 20480,

Fortum Media Desk, tel. +358 40 1982 843

 

Distribution:

Nasdaq Helsinki

Media

www.fortum.com

 

Fortum

Fortum’s purpose is to create energy that improves life for present and future generations. Catering to the versatile needs of our customers, we generate, distribute and sell electricity and heat, and offer related expert services. Our operations focus on the Nordic and Baltic countries, Russia and Poland. In 2014, Fortum’s sales totalled EUR 4.75 billion and comparable operating profit was EUR 1.35 billion. We employ approximately 8,800 people. Fortum’s shares are traded on the Nasdaq Helsinki. www.fortum.com