Quarterly summary of events

Announcements during Q3 2023

Strategic review of Circular Solutions businesses initiated

Fortum announced on 4 August that it has decided to assess strategic options, including potential divestments, of its Circular Solutions businesses, as a result of the continuous review of its business portfolio. In March, when Fortum launched its new strategy it was communicated that the Circular Solutions businesses are not in the core of the strategy. In 2022, these business operations employed approximately 1,300 people mainly located in the Nordics (Finland, Sweden and Denmark) and its comparable EBITDA was approximately EUR 70 million. At the end of 2022, the net assets of the Circular Solutions businesses were approximately EUR 700 million. Fortum expects the strategic assessment to take approximately one year. There is no certainty whether the assessment will result in any transactions. Read the whole release:  Fortum initiates strategic review of its Circular Solutions businesses | Fortum

The acquisition of Telge Energi AB completed

Fortum completed the acquisition of the Swedish electricity solutions provider Telge Energi AB from Telge AB on 31 August. The total consideration for the entire shareholding in Telge Energi on a cash and debt-free basis was approximately SEK 450 million (EUR 38 million). The transaction was originally announced on 7 June: Fortum to acquire Telge Energi AB – one of the 10 largest electricity solutions providers in Sweden | Fortum

Telge Energi will be reported in Fortum’s Consumer Solutions segment in the third quarter of 2023. Read the whole release: Fortum completes the acquisition of Telge Energi AB | Fortum

Fortum to modernise historical Untra Hydropower Plant in Sweden

Fortum announced on 29 September that it will invest over SEK 700 million (over EUR 60 million) during 2023-2030 to modernise Untra, one of Sweden's oldest hydropower plants. The investment is part of Fortum’s strategic priorities to deliver reliable clean energy and drive decarbonisation in industries in the Nordics. After the modernisation, the power plant will have an output of 48 MW. The renovation will involve the replacement of three turbine units and a significant restructuring of the powerplant, all aimed to ensuring Untra's ability to contribute to provide flexibility to the power system and to supply fossil-free electricity to Sweden. Thanks to the advanced turbine technology being used the annual electricity production will increase from 270 GWh up to approximately 300 GWh. Of the total investment, about half is classified as growth capital expenditure. Approximately EUR 15 million of the investment is already included in Fortum’s committed growth capital expenditure of EUR 800 million for the years 2023-2025. Read the whole release: Fortum to modernise historical Untra Hydropower Plant in Sweden | Fortum

Fortum Shareholders' Nomination Board 2023

The following members were appointed to Fortum Shareholders' Nomination Board on 1 September 2023:

• Ms. Minna Pajumaa, Senior Ministerial Adviser, Financial Affairs, Prime Minister’s Office, Ownership Steering Department (Chair),
• Mr. Jouko Pölönen, President and CEO, Ilmarinen Mutual Pension Insurance Company,
• Mr. Risto Murto, President and CEO, Varma Mutual Pension Insurance Company, and
• Mr. Mikael Silvennoinen, Chair of Fortum Board of Directors.

Transactions in the comparison period 2022

Comparable operating profit in Q3 2022 included:

• no transactions

Comparable operating profit Q1−Q3 2022 included:

• EUR 5 million tax-exempt sales gain of the second phase of the Rajasthan divestment (Q2 City Solutions)

Operating profit in Q3 2022 included:

• EUR 77 million gain from the sale of the 30% ownership in the public charging point operator for electric vehicles Recharge AS (Q3 Other Operations)
• EUR 61 million gain from the sale of the e-mobility business Plugsurfing (Q3 City solutions)

Operating profit Q1−Q3 2022 included:

• EUR 638 tax-exempt capital gain from the sale of the 50% ownership in the district heating company Fortum Oslo Varme AS (Q2 City Solutions)
• EUR 77 million gain from the sale of the 30% ownership in the public charging point operator for electric vehicles Recharge AS (Q3 Other Operations)
• EUR 61 million gain from the sale of the e-mobility business Plugsurfing (Q3 Other Operations)
• EUR 355 million of impairments in the Russia segment

Financial calendar for 2024