Stock exchange release

Fortum: Pro forma figures relating to ac

10 May 2004, 10:44 EEST

Fortum Corporation STOCK EXCHANGE RELEASE 1 (2)
10 May 2004

Fortum: Pro forma figures relating to acquiring shares in Hafslund The following pro forma figures state the impact of acquiring Hafslund shares on the income statement and balance sheet during the last twelwe months. Figures are unaudited. Income Statement (Last twelve months ended March 31, 2004) Fortum Group (unaudited) Fortum Hafslund Adjust- Pro Forma Group Group 1) ments (EUR millions except share related data) Net sales 10 622 997 2) - 11 619 Expenses -8 589 -758 3) - -9 347 Depreciation, amortisation and write-downs -526 -120 -21 4) -667 Operating profit 1 507 119 -21 1 605 Financial income and expenses -246 -95 -33 5) -374 Profit before taxes 1 261 24 -54 1 231 Income taxes -365 -12 14 6) -363 Minority interests -76 -1 - -77 Net profit for the period 820 11 -40 791 Earnings per share 0.97 0.94 Fortum Group Balance Sheet Fortum Hafslund Adjust- Pro Forma (as of March 31, 2004) Group Group 1) ments (EUR millions except share related data) ASSETS Intangible and tangible assets 11 602 1 833 533 4) 13 968 Other long-term investments 2 449 187 -271 7) 2 365 Current assets 2 056 385 - 2 441 Cash and cash equivalents 203 31 - 234 Total 16 310 2 436 9) 262 19 008 SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity 6 376 681 -681 7) 6 376 Minority interests 245 42 - 287 Interest-bearing liabilities 5 479 1 453 835 8) 7 767 Interest-free liabilities 4 210 260 108 4) 4 578 Total 16 310 2 436 262 19 008 Interest-bearing net debt, EUR million 5 276 1 422 835 8) 7 533 Gearing, % 80 113 1) Hafslund Group information is based on the Financial Statements presented in the Annual Report 2003 and the First Quarter 2004 report multiplied by the euro exchange rate on May 7, 2004 EUR 1.00 = 8.1367 NOK. Before the assumed transaction Fortum ownership in Hafslund is 34.09%. In the consolidated Financial Statements of Fortum Hafslund Group has been consolidated according to the equity method. The pro forma information has been presented as if the acquisition of the remaining 65.91% had taken place on April 1,2003. 2) Net sales includes the Operating revenues and Other operating revenues according to the Profit and loss account of Hafslund. 3) Expenses includes the Profit from share investments and associated companies which has been included in Total financial items below Operating profit in the Profit and loss account of Hafslund. 4) Highly preliminary allocations of the difference between the acquisition cost and the Group's share of the book value of the assets and liabilities of Hafslund Group, the deferred taxes and the depreciation and amortisation on those allocations. 5) Adjustments reflect the acquisition debt as if it had been incurred on April 1, 2003 and the related increase in interest expense based on the Norwegian Krona interest rates May 7, 2004 and a margin. 6) Tax effect of the increase in interest expense resulting from the incurrence of acquisition debt and the deferred taxes on the depreciation of allocated goodwill. 7) Elimination of the Fortum Group's share of equity according to the acquisition cost method as if the acquisition had taken place April 1, 2003, and the reversal of the effect coming from the consolidation of the 34.09% shareholding of Hafslund Group according to the equity method. 8) Adjustments reflect acquisition debt and costs as if it had been incurred on April 1, 2003. The acquisition debt as if it had been incurred in Norwegian krona and was translated into euro at the exchange rate on May 7, 2004 ( EUR 1.00 = NOK 8.1367). 9) According to the definitions of the key figures of Hafslund, the interest-bearing net debt is calculated net of interest-bearing receivables and liquid funds while according to the Fortum definition the interest-bearing net debt is calculated net of cash and cash equivalents only. Interest-bearing net debt of Hafslund is calculated according to the Fortum principles net of cash and cash equivalents only assuming the change of net interest-bearing debt amounting to NOK 381 million as disclosed in the First Quarter 2004 report of Hafslund. Fortum Corporation Carola Teir-Lehtinen Senior Vice President, Corporate Communications For further information, please contact: Juha Laaksonen, Chief Financial Officer, +358 10 45 24519 Distribution: Helsinki Exchanges Key media