FORTUM CORPORATION STOCK EXCHANGE RELEASE, 5 November 2014, 8:55 EET
“The completed and planned divestments of the electricity distribution business
give Fortum considerable strategic freedom. As a result, Fortum is ready to
take significant development and growth steps,” noted Fortum’s President and
CEO Tapio Kuula at the Capital Markets Day event held for the company’s
analysts and investors today, 5 November 2014, in Helsinki, Finland. Fortum’s
management presentations at the event addressed Fortum’s business, operating
environment and outlook.
Fortum is pursuing growth in hydropower, nuclear power, and combined heat and
power production, both in the EU area and in Russia. Fortum’s key goals are to
be one of the leading companies in electricity and heat production in Europe,
to be among the lowest-emitting companies in the sector, and to grow earnings
Efficiency programme completed
Fortum launched an efficiency programme in 2012 to maintain and strengthen its
strategic flexibility and competitiveness and to ensure that the company
achieves its financial targets also in the future. The efficiency programme was
completed during the fourth quarter of this year.
Fortum’s strong balance sheet and operational cash flow create a solid
foundation in the challenging business environment, enabling future growth and
Even though the efficiency programme is completed, improving operational
efficiency will continue to be part of Fortum’s daily operations through, e.g.,
cost monitoring and working capital optimisation.
Towards a functioning Europe-wide energy market
Fortum believes that the best way to achieve all the energy policy targets set
by the EU is with a uniform and efficiently functioning market. This is also
the way to produce innovative products and services to meet customers’ needs
Solid earnings growth in Russia
Solid earnings growth is one of the cornerstones of Fortum’s strategy. Fortum’s
key competitive advantages in Russia include production plants that are newer
and more efficient than the competition’s, solid financial results, a good
reputation, and reliable, safe and low-emissions production. The target set
back in 2008 when the Russian subsidiary OAO Fortum was acquired – to achieve
an operating profit level of RUB 18.2 billion during 2015 – is unchanged, but
the euro-denominated result level will be volatile mainly due to fluctuations
in currency exchange rates.
Dividend policy: To pay a stable, sustainable and over time increasing dividend
Fortum’s dividend policy is to pay a stable, sustainable and over time
increasing dividend of 50-80% of earnings per share excluding one-off items.
When proposing the dividend, the Board of Directors looks at a range of
factors, including the macro environment, balance sheet strength as well as
future investment plans.
Senior Vice President, Corporate Communications
Sophie Jolly, Vice President, Investor Relations, tel. +358 10 45 32552
NASDAQ OMX Helsinki
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
2013, Fortum’s sales totalled EUR 6.1 billion and comparable operating profit
was EUR 1.6 billion. We employ approximately 8,800 people. Fortum’s shares are
traded on the NASDAQ OMX Helsinki. www.fortum.com