Fortum’s restructuring of Hafslund concluded

FORTUM CORPORATION STOCK EXCHANGE RELEASE 4 AUGUST 2017 15:00 EEST

Fortum has today concluded the restructuring of its ownership in Hafslund

together with the City of Oslo, as originally announced on 26 April 2017.



Fortum has sold its 34.1% stake in Hafslund ASA to the City of Oslo and

acquired 100% of Hafslund’s Markets business area. Hafslund’s Heat business

area and the City of Oslo’s waste-to-energy company Klemetsrudanlegget AS (KEA)

have been combined into one company and Fortum has acquired 50% of the combined

company. In addition, Fortum has acquired 10% of Hafslund’s current Production

business area.



The combined net cash investment of the transactions, including dividend

received in May 2017, is expected to be approximately EUR 230 million. Fortum

expects to book a one-time tax-free sales gain in its third quarter 2017

results totalling approximately EUR 325 million, which corresponds to EUR 0.36

earnings per share.



Transaction costs of approximately EUR 5 million will be included in the result

for the third quarter of 2017.



Hafslund Markets will be a part of the Consumer Solutions division and will be

consolidated into Fortum Group from 1 August 2017. The combined company of

Hafslunds Heat business area and KEA will be consolidated with 50% minority

interest into the results of City Solutions from 1 August 2017. The Hafslund

Production business area will be treated as an associated company and reported

in the Generation segment.





Fortum Corporation



Måns Holmberg, Acting Head of Investor Relations and Financial Communications





Further information:

Investors and analysts: Rauno Tiihonen, Manager, Investor Relations, tel. +358

10 453 6150, and investors@fortum.com

Media: Mari Kalmari, Corporate Press Officer, tel. +358 40 520 1709





Distribution:

Nasdaq Helsinki

Key media

www.fortum.com





Read more:



Stock exchange release 26 April 2017 - Fortum and City of Oslo restructure

ownership in Hafslund and announce partnership for a greener Oslo





Fortum

Fortum is a leading clean-energy company that provides its customers with

electricity, heating and cooling as well as smart solutions to improve resource

efficiency. We want to engage our customers and society to join the change for

a cleaner world. We employ some 8,000 professionals in the Nordic and Baltic

countries, Russia, Poland and India, and 62% of our electricity generation is

CO2 free. In 2016, our sales were EUR 3.6 billion. Fortum’s share is listed on

Nasdaq Helsinki. www.fortum.com