Fortum's segment reporting is based on business operations combined with one segment based on geographical area. Fortum's reportable segments under IFRS are Generation, Russia, City Solutions, and Consumer Solutions. Other Operations includes corporate functions, R&D and technology development projects. As announced on 21 September 2022, Fortum has agreed to fully divest Uniper to the German State. As a consequence of the agreement, Fortum deconsolidated Uniper and reported it as discontinued operations in the third quarter 2022 interim report. Fortum’s financials for the continuing operations will not include any impacts from Uniper’s operations.
Generation is responsible for Nordic power generation. The segment comprises CO2-free nuclear, hydro, and wind power generation, as well as power portfolio optimisation, trading, market intelligence, thermal power, and global nuclear services. Due to the deconsolidation of Uniper, OKG is reported as an associated company instead of the earlier proportionate consolidation.
City Solutions is responsible for sustainable solutions for urban areas. The segment comprises heating, cooling, waste-to-energy, and other circular economy solutions, as well as solar power generation, services, and development of new biomass-based businesses. The business operations are located in the Nordics, Poland, and India.
Consumer Solutions is responsible for the electricity and gas retail businesses in the Nordics, Poland and Spain, including related customer service and invoicing businesses. Fortum is the largest electricity retail business in the Nordics, with approximately 2.2 million customers across different brands in Finland, Sweden, Norway, Poland and Spain. The business provides electricity, as well as related value-added and digital services, mainly to retail customers.
The Russia segment comprises power and heat generation and sales in Russia. The segment includes Fortum’s fully owned power plants, its joint ventures for renewable power generation and the joint ventures for power and heat sales, as well as Fortum’s more than 29% holding in TGC‑1. These joint ventures and the associated company are accounted for using the equity method.