1

19 July 2011

Fortum Corporation Interim ReportJanuary-June 2011

2

Disclaimer

This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

3

Highlights in Q2bull Good result development continued

bull Timing of planned nuclear outages weakened Power results compared to Q22010

bull Overall Swedish nuclear availability back at 80-85

bull Nuclear stress tests ready in Finland

bull In Russia efficiency improvement of EUR 100 million achieved

bull Fortums CO2 emissions in Europe at 73 gkWh (five- year average) ndash within the EU the industry average close to 350 gkWh

bull Increased uncertainty in the market

4

Increased uncertainty in macro environment

GLOBAL

- Increased global economic uncertainty- Europersquos sovereign-debt crisis- Incident in Fukushima in Japan Finland

- No new decisions-in-principle on nuclear power in four years- The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

Germany

- Announced plans to abandon nuclear energy by 2022- Total reversal of previous policy- To be replaced by renewable energy

5

Q2 Market conditions

bull Nordic water reservoirs reached normal levels by the end of Q2

bull CO2 prices decreased at the end of the quarter

bull Nordic forward prices decreased

bull In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

6

Nordic water reservoirs

Source Nord Pool Spot

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

Q1 Q2 Q3 Q4

2003 2008 2009 20112010 reference level

7

Price development in the Nordic region and Russia

Includes capacity income

Spot price for power in NordPool power exchange

448 459

662

523621

0

12

24

36

48

60

72

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Powers Nordic power price

447 469 488 479 474

0

10

20

30

40

50

60

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Spot price for power (market price) Urals hub

770

935817

950 954

0

200

400

600

800

1 000

1 200

Q22010 Q32010 Q42010 Q12011 Q22011

RUBMWh

Achieved power price for OAO Fortum

256288 305 292 290

0

6

12

18

24

30

36

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

+17

+6

+24

+13

8

Q2 Good development continued

bull Comparable operating profit EUR 348 (339) million

bull Earnings per share EUR 053 (030)

bull Net cash from operating activities 410 (422) million

bull Strong financial position

9

Q2 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

-6730-14 3483390

-8

PowerQ22010 Heat Russia Distribution ElectricitySales

Other Q22011

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

2

Disclaimer

This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

3

Highlights in Q2bull Good result development continued

bull Timing of planned nuclear outages weakened Power results compared to Q22010

bull Overall Swedish nuclear availability back at 80-85

bull Nuclear stress tests ready in Finland

bull In Russia efficiency improvement of EUR 100 million achieved

bull Fortums CO2 emissions in Europe at 73 gkWh (five- year average) ndash within the EU the industry average close to 350 gkWh

bull Increased uncertainty in the market

4

Increased uncertainty in macro environment

GLOBAL

- Increased global economic uncertainty- Europersquos sovereign-debt crisis- Incident in Fukushima in Japan Finland

- No new decisions-in-principle on nuclear power in four years- The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

Germany

- Announced plans to abandon nuclear energy by 2022- Total reversal of previous policy- To be replaced by renewable energy

5

Q2 Market conditions

bull Nordic water reservoirs reached normal levels by the end of Q2

bull CO2 prices decreased at the end of the quarter

bull Nordic forward prices decreased

bull In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

6

Nordic water reservoirs

Source Nord Pool Spot

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

Q1 Q2 Q3 Q4

2003 2008 2009 20112010 reference level

7

Price development in the Nordic region and Russia

Includes capacity income

Spot price for power in NordPool power exchange

448 459

662

523621

0

12

24

36

48

60

72

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Powers Nordic power price

447 469 488 479 474

0

10

20

30

40

50

60

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Spot price for power (market price) Urals hub

770

935817

950 954

0

200

400

600

800

1 000

1 200

Q22010 Q32010 Q42010 Q12011 Q22011

RUBMWh

Achieved power price for OAO Fortum

256288 305 292 290

0

6

12

18

24

30

36

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

+17

+6

+24

+13

8

Q2 Good development continued

bull Comparable operating profit EUR 348 (339) million

bull Earnings per share EUR 053 (030)

bull Net cash from operating activities 410 (422) million

bull Strong financial position

9

Q2 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

-6730-14 3483390

-8

PowerQ22010 Heat Russia Distribution ElectricitySales

Other Q22011

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

3

Highlights in Q2bull Good result development continued

bull Timing of planned nuclear outages weakened Power results compared to Q22010

bull Overall Swedish nuclear availability back at 80-85

bull Nuclear stress tests ready in Finland

bull In Russia efficiency improvement of EUR 100 million achieved

bull Fortums CO2 emissions in Europe at 73 gkWh (five- year average) ndash within the EU the industry average close to 350 gkWh

bull Increased uncertainty in the market

4

Increased uncertainty in macro environment

GLOBAL

- Increased global economic uncertainty- Europersquos sovereign-debt crisis- Incident in Fukushima in Japan Finland

- No new decisions-in-principle on nuclear power in four years- The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

Germany

- Announced plans to abandon nuclear energy by 2022- Total reversal of previous policy- To be replaced by renewable energy

5

Q2 Market conditions

bull Nordic water reservoirs reached normal levels by the end of Q2

bull CO2 prices decreased at the end of the quarter

bull Nordic forward prices decreased

bull In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

6

Nordic water reservoirs

Source Nord Pool Spot

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

Q1 Q2 Q3 Q4

2003 2008 2009 20112010 reference level

7

Price development in the Nordic region and Russia

Includes capacity income

Spot price for power in NordPool power exchange

448 459

662

523621

0

12

24

36

48

60

72

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Powers Nordic power price

447 469 488 479 474

0

10

20

30

40

50

60

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Spot price for power (market price) Urals hub

770

935817

950 954

0

200

400

600

800

1 000

1 200

Q22010 Q32010 Q42010 Q12011 Q22011

RUBMWh

Achieved power price for OAO Fortum

256288 305 292 290

0

6

12

18

24

30

36

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

+17

+6

+24

+13

8

Q2 Good development continued

bull Comparable operating profit EUR 348 (339) million

bull Earnings per share EUR 053 (030)

bull Net cash from operating activities 410 (422) million

bull Strong financial position

9

Q2 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

-6730-14 3483390

-8

PowerQ22010 Heat Russia Distribution ElectricitySales

Other Q22011

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

4

Increased uncertainty in macro environment

GLOBAL

- Increased global economic uncertainty- Europersquos sovereign-debt crisis- Incident in Fukushima in Japan Finland

- No new decisions-in-principle on nuclear power in four years- The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

Germany

- Announced plans to abandon nuclear energy by 2022- Total reversal of previous policy- To be replaced by renewable energy

5

Q2 Market conditions

bull Nordic water reservoirs reached normal levels by the end of Q2

bull CO2 prices decreased at the end of the quarter

bull Nordic forward prices decreased

bull In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

6

Nordic water reservoirs

Source Nord Pool Spot

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

Q1 Q2 Q3 Q4

2003 2008 2009 20112010 reference level

7

Price development in the Nordic region and Russia

Includes capacity income

Spot price for power in NordPool power exchange

448 459

662

523621

0

12

24

36

48

60

72

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Powers Nordic power price

447 469 488 479 474

0

10

20

30

40

50

60

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Spot price for power (market price) Urals hub

770

935817

950 954

0

200

400

600

800

1 000

1 200

Q22010 Q32010 Q42010 Q12011 Q22011

RUBMWh

Achieved power price for OAO Fortum

256288 305 292 290

0

6

12

18

24

30

36

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

+17

+6

+24

+13

8

Q2 Good development continued

bull Comparable operating profit EUR 348 (339) million

bull Earnings per share EUR 053 (030)

bull Net cash from operating activities 410 (422) million

bull Strong financial position

9

Q2 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

-6730-14 3483390

-8

PowerQ22010 Heat Russia Distribution ElectricitySales

Other Q22011

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

5

Q2 Market conditions

bull Nordic water reservoirs reached normal levels by the end of Q2

bull CO2 prices decreased at the end of the quarter

bull Nordic forward prices decreased

bull In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

6

Nordic water reservoirs

Source Nord Pool Spot

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

Q1 Q2 Q3 Q4

2003 2008 2009 20112010 reference level

7

Price development in the Nordic region and Russia

Includes capacity income

Spot price for power in NordPool power exchange

448 459

662

523621

0

12

24

36

48

60

72

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Powers Nordic power price

447 469 488 479 474

0

10

20

30

40

50

60

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Spot price for power (market price) Urals hub

770

935817

950 954

0

200

400

600

800

1 000

1 200

Q22010 Q32010 Q42010 Q12011 Q22011

RUBMWh

Achieved power price for OAO Fortum

256288 305 292 290

0

6

12

18

24

30

36

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

+17

+6

+24

+13

8

Q2 Good development continued

bull Comparable operating profit EUR 348 (339) million

bull Earnings per share EUR 053 (030)

bull Net cash from operating activities 410 (422) million

bull Strong financial position

9

Q2 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

-6730-14 3483390

-8

PowerQ22010 Heat Russia Distribution ElectricitySales

Other Q22011

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

6

Nordic water reservoirs

Source Nord Pool Spot

rese

rvoi

r con

tent

(TW

h)

0

20

40

60

80

100

120

Q1 Q2 Q3 Q4

2003 2008 2009 20112010 reference level

7

Price development in the Nordic region and Russia

Includes capacity income

Spot price for power in NordPool power exchange

448 459

662

523621

0

12

24

36

48

60

72

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Powers Nordic power price

447 469 488 479 474

0

10

20

30

40

50

60

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Spot price for power (market price) Urals hub

770

935817

950 954

0

200

400

600

800

1 000

1 200

Q22010 Q32010 Q42010 Q12011 Q22011

RUBMWh

Achieved power price for OAO Fortum

256288 305 292 290

0

6

12

18

24

30

36

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

+17

+6

+24

+13

8

Q2 Good development continued

bull Comparable operating profit EUR 348 (339) million

bull Earnings per share EUR 053 (030)

bull Net cash from operating activities 410 (422) million

bull Strong financial position

9

Q2 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

-6730-14 3483390

-8

PowerQ22010 Heat Russia Distribution ElectricitySales

Other Q22011

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

7

Price development in the Nordic region and Russia

Includes capacity income

Spot price for power in NordPool power exchange

448 459

662

523621

0

12

24

36

48

60

72

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Powers Nordic power price

447 469 488 479 474

0

10

20

30

40

50

60

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

Spot price for power (market price) Urals hub

770

935817

950 954

0

200

400

600

800

1 000

1 200

Q22010 Q32010 Q42010 Q12011 Q22011

RUBMWh

Achieved power price for OAO Fortum

256288 305 292 290

0

6

12

18

24

30

36

Q22010 Q32010 Q42010 Q12011 Q22011

eurMWh

+17

+6

+24

+13

8

Q2 Good development continued

bull Comparable operating profit EUR 348 (339) million

bull Earnings per share EUR 053 (030)

bull Net cash from operating activities 410 (422) million

bull Strong financial position

9

Q2 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

-6730-14 3483390

-8

PowerQ22010 Heat Russia Distribution ElectricitySales

Other Q22011

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

8

Q2 Good development continued

bull Comparable operating profit EUR 348 (339) million

bull Earnings per share EUR 053 (030)

bull Net cash from operating activities 410 (422) million

bull Strong financial position

9

Q2 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

-6730-14 3483390

-8

PowerQ22010 Heat Russia Distribution ElectricitySales

Other Q22011

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

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1200

DE

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41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

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600

800

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1200

DE

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411550

200

400

600

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41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

9

Q2 Comparable profit at last yearrsquos level

Comparable operating profit EUR million

-6730-14 3483390

-8

PowerQ22010 Heat Russia Distribution ElectricitySales

Other Q22011

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

10

January-June Comparable profit at last yearrsquos level

Comparable operating profit EUR million

31

24990 997-11348

29 -12

PowerH12010 Heat Russia Distribution ElectricitySales

Other H12011

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

11

bull Dow Jones Sustainability Index Worldndash Fortum is the only Nordic power and heat company listed in the index

bull SAM Sustainability Yearbook 2010 and 2011bull oekombull OMX GES Sustainability Finland Indexbull Storebrand SRI

ndash Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globallybull Carbon Disclosure Project

1111

Fortum a forerunner in sustainabilityg CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

g CO2kWh electricity 2009

Average 346 gkWh

0

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

411550

200

400

600

800

1000

1200

DE

I

Dra

x

RW

E

CEZ

SS

E

ED

P

Ene

l

Vat

tenf

all

EO

N

Don

g

Uni

on F

enos

a

GD

F S

UE

Z E

urop

e

Iber

drol

a

Fortu

m to

tal

ED

F

PV

O

Ver

bund

Fortu

m E

U

Sta

tkra

ft

41155

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

12

Financials

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

13

Comparable and reported operating profit

MEURII2011 II2010 II2011 II2010 I-II2011 I-II2010 I-II2011 I-II2010

Power 257 271 271 280 582 695 760 747Heat 25 33 25 35 196 165 290 194Russia 21 -9 21 -9 55 7 55 23Distribution 60 53 252 53 184 155 377 166Electricity Sales 10 10 23 23 21 -3 3 -6Other -25 -19 17 -31 -41 -29 24 -49Total 348 339 609 351 997 990 1 509 1 075

Comparable operating profit

Reported operating profit

Comparable operating profit

Reported operating profit

bull IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

14

Power

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 574 597 1 267 1 366 2 603

Comparable operating profit 257 271 582 695 1 185

Net Assets 5 998 5 726

Comparable RONA 198

Gross Investments 36 22 69 55 136

Q2 Power

bull Comparable operating profit decreasedndash Swedish nuclear availability back at 80-85ndash Lower hydro and nuclear volumesndash Water reservoirs improved significantly towards the

end of the quarter

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

15

Nuclear output in Q2

Q2 2011

Q2 2010

Nuclear Outage effect

TWh

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

16

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257-3-40271 3-10

Volumeamp priceQ22010 Stronger

SEKRussianimport

Propertytaxes Other Q22011

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

17

Heat

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 322 301 1 047 952 1 865

Comparable operating profit 25 33 196 165 306

Net Assets 3 911 3 884

Comparable RONA 82

Gross Investments 72 59 130 121 314

Q2 Heat

bull Comparable operating profit decreasedndash Lower heat volumes in Sweden caused by

divestment during first quarterndash Integration cost provisions in Poland

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

18

Russiabull Comparable operating profit improved

ndash Commissioning of the new unit ndash Higher electricity market prices ndash Efficiency improvementsndash Reversal of CSA provisions related to the newly

commissioned units

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 195 169 490 413 881

Comparable operating profit 21 -9 55 7 56

Net Assets 3 051 2 690

Comparable RONA 34

Gross Investments 192 167 267 258 608

Q2 Russia

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

19

Distribution

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 215 200 526 480 1 009

Comparable operating profit 60 53 184 155 336

Net Assets 3 487 3 482

Comparable RONA 99

Gross Investments 62 47 96 76 233

Q2 Distribution

bull Comparable operating profit increasedndash Lower transmission costsndash Stronger SEK

bull Smart metering rollout to network customers in Finland continued

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

20

Markets

MEUR II2011 II2010 I-II2011 I-II2010 LTM

Sales 183 327 556 964 1 390

Comparable operating profit 10 10 21 -3 35

Net Assets 77 59

Comparable RONA 341

Gross Investments 1 0 4 0 4

Q2 Electricity Sales

bull Comparable operating profit at last yearrsquos levelndash Tough competitionndash Restructuring of the Business Market segment

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

21

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Sales 1 316 1 295 3 350 3 242 6 296 6 404Expenses -968 -956 -2 353 -2 252 -4 463 -4 564

Comparable operating profit 348 339 997 990 1 833 1 840

Other items affecting comparability 261 12 512 85 -125 302

Operating profit 609 351 1 509 1 075 1 708 2 142Share of profit of associates and jvs 15 15 74 31 62 105Financial expenses net -72 -34 -127 -61 -155 -221

Profit before taxes 552 332 1 456 1 045 1 615 2 026Income tax expense -74 -61 -232 -191 -261 -302

Net profit for the period 478 271 1 224 854 1 354 1 724Non-controlling interests 6 8 74 32 54 96

EPS basic (EUR) 053 030 129 093 146 183EPS diluted (EUR) 053 030 129 093 146 183

Q2 Income statement

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

22

Q2 Cash flow statement

MEUR II2011 II2010 I-II2011 I-II2010 2010 LTM

Operating profit before depreciations 764 490 1 813 1 351 2 271 2 733

Non-cash flow items and divesting activities -299 -6 -569 -73 124 -372

Financial items and fx gainslosses 12 -146 -290 -323 -641 -608

Taxes -144 -73 -258 -155 -355 -458

Funds from operations (FFO) 333 265 696 800 1 399 1 295

Change in working capital 77 157 168 143 38 63

Total net cash from operating activities 410 422 864 943 1 437 1 358

Paid capital expenditures -297 -263 -503 -486 -1 134 -1 151

Acquisition of shares -1 -1 -20 -1 -28 -47

Other investing activities 331 -16 541 72 60 529

Cash flow before financing activities 443 142 882 528 335 689

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

23

MEUR LTM 2010 2009EBITDA 2 733 2 271 2 292Comparable EBITDA 2 431 2 396 2 398Interest-bearing net debt 6 783 6 826 5 969Net debtEBITDA 25 30 26Comparable Net debtEBITDA 28 28 25

Return on capital employed () 138 116 121Return on shareholders equity () 191 157 160

) as of 30 June 2011

Key ratios

Q2 lsquo11

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

24

Debt maturity profile

0

250

500

750

1000

1250

1500

1750

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

2011 231

2012 668

2013 639

2014 1223

2015 1051

2016 879

2017 270

2018 190

2019 840

2020 73

2021+ 1530

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards) 44 35Portion of floating fixed debt 47 53 49 51

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

25

Strong financial position

Return on capital employed12

Return on shareholders equity14

Net debtEBITDAaround 30

138

191

28

Fortumrsquos financial targets LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

26

Outlook

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

27

Q2 Summary

bull Solid performance continued - seasonalitybull Power

ndash Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume

ndash Swedish nuclear back at 80-85 in availabilityndash Lower hydro volumes ndash water reservoirs improved at the end of the quarterndash SEK burdenedndash Results year-end weighted compared to 2010

bull Russiandash Commissioning of new units contributed to result improvementndash The return for the new capacity is guaranteed ndash EUR 100 million efficiency improvement reached

bull Nordic countriesndash Water reservoirs improved to long-term average

bull Overall strong financial position

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

28

Outlook

bull Key drivers and risksndash Wholesale price of electricity

bull Demandbull Fuelsbull CO2 emissions pricesbull Water reservoirsbull Nuclear availability

bull Nordic marketsndash Market continues to recover ndash 2008 level to be reached by 2012-2014ndash Electricity continues to gain share of total energy consumption

bull Russiandash Wholesale market liberalisedndash Profits from Russia build up in pace with the capacity increases

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

29

Outlook

bull Capex (excluding potential acquisitions)ndash 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian

investment programme)ndash 2013-2014 around EUR 11 to 14 billion annuallyndash Disclosed divestments totalled approximately EUR 05 billion

bull Hedgingndash 2011 approximately 70 hedge ratio at approximately EUR 45MWh(Q1 70 at EUR 44MWh)ndash 2012 approximately 50 hedge ratio at approximately EUR 46MWh(Q1 45 at EUR 45MWh)

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

30

Wholesale prices for electricity

Source

EURMWh

German

Nordic

15 July 2011

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90

100

110Spot prices Forward prices

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

3131

CO2 -free and energy-efficient solutions important

Create solid earnings growth in Russia

Leverage the strong Nordic core

Build platform for future growth

Competence in CO2 -free hydro nuclear and energy efficient CHP production and operating in competitive energy markets

Fortumrsquos Strategy

Work continues -Fortumrsquos strategy remains intact

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

32

• Slide Number 1
• Disclaimer
• Highlights in Q2
• Increased uncertainty in macro environment
• Q2 Market conditions
• Nordic water reservoirs
• Price development in the Nordic region and Russia
• Q2 Good development continued
• Q2 Comparable profit at last yearrsquos level
• January-June Comparable profit at last yearrsquos level
• Slide Number 11
• Financials
• Comparable and reported operating profit
• Power
• Nuclear output in Q2
• Q2 Power result declined due to several reasons
• Heat
• Russia
• Distribution
• Markets
• Q2 Income statement
• Q2 Cash flow statement
• Key ratios
• Debt maturity profile
• Strong financial position
• Outlook
• Q2 Summary
• Outlook
• Outlook
• Wholesale prices for electricity
• CO2-free and energy-efficient solutions important
• Slide Number 32

• 19 July 2011

  Fortum Corporation
  Interim Report

  January-June 2011

  Disclaimer

  This presentation does not constitute an invitation to underwrite subscribe for or otherwise acquire or dispose of any Fortum shares

  Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser

  Highlights in Q2

  • Good result development continued
  • Timing of planned nuclear outages weakened Power results compared to Q22010
  • Overall Swedish nuclear availability back at 80-85
  • Nuclear stress tests ready in Finland
  • In Russia efficiency improvement of EUR 100 million achieved
  • Fortums CO2 emissions in Europe at 73 gkWh (five-year average) ndash within the EU the industry average close to 350 gkWh
  • Increased uncertainty in the market

  • Increased uncertainty in macro environment

    GLOBAL

    • Increased global economic uncertainty
    • Europersquos sovereign-debt crisis

    • - Incident in Fukushima in Japan

      Finland

      - No new decisions-in-principle on nuclear power in four years

      - The new Governmentrsquos policy framework includes a possible implementation of a windfall tax and a uranium tax

      Germany

      • Announced plans to abandon nuclear energy by 2022
      • Total reversal of previous policy

      • - To be replaced by renewable energy

        Q2 Market conditions

        • Nordic water reservoirs reached normal levels by the end of Q2
        • CO2 prices decreased at the end of the quarter
        • Nordic forward prices decreased
        • In the First price zone (European and Urals part of Russia) power consumption was up by 4 from Q2 2010

        • Nordic water reservoirs

          Source Nord Pool Spot

          Q1

          Q2

          Q3

          Q4

          2003

          2008

          2009

          2011

          2010

          reference level

          reservoir content (TWh)

          0

          20

          40

          60

          80

          100

          120

          Price development in the Nordic region and Russia

          Includes capacity income

          +17

          +6

          +24

          +13

          Q2 Good development continued

          • Comparable operating profit EUR 348 (339) million
          • Earnings per share EUR 053 (030)
          • • Net cash from operating activities 410 (422) million
            • Strong financial position

            • Q2 Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              -6

              7

              30

              -14

              348

              339

              0

              -8

              Power

              Q22010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              Q22011

              January-June Comparable profit at last yearrsquos level

              Comparable operating profit EUR million

              31

              24

              990

              997

              -113

              48

              29

              -12

              Power

              H12010

              Heat

              Russia

              Distribution

              Electricity

              Sales

              Other

              H12011

              • Dow Jones Sustainability Index World
              • Fortum is the only Nordic power and heat company listed in the index
              • SAM Sustainability Yearbook 2010 and 2011
              • oekom
              • OMX GES Sustainability Finland Index
              • Storebrand SRI
              • Based on the assessments conducted in 2006 and 2009 Fortum was the most responsible electricity company globally
              • Carbon Disclosure Project

              • Fortum a forerunner in sustainability

                Financials

                Comparable and reported operating profit

                • IFRS accounting treatment (IAS 39) of derivatives had a positive impact on the reported operating profit EUR 76 (-15) million or earnings per share EUR 007 (-001) in the second quarter and EUR 249 (21) million or earnings per share EUR 021 (002) for January-June 2011

                • New English

                  New Finnish

                  English

                  Finnish

                  Swedish

                  Power

                  • Comparable operating profit decreased
                  • Swedish nuclear availability back at 80-85
                  • Lower hydro and nuclear volumes
                  • Water reservoirs improved significantly towards the end of the quarter

                  • Q2 Power

                    Sheet1

                    Sheet2

                    Sheet3

                    Nuclear output in Q2

                    Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

                    (In 2010 no outages in Q2)

                    If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

                    Improved availability in Sweden

                    Q2 2011

                    Q2 2010

                    Nuclear

                    Outage effect

                    TWh

                    Q2 Power result declined due to several reasons

                    Comparable operating profit EUR million

                    257

                    -3

                    -4

                    0

                    271

                    3

                    -10

                    Volume

                    amp price

                    Q22010

                    Stronger

                    SEK

                    Russian

                    import

                    Property

                    taxes

                    Other

                    Q22011

                    Heat

                    • Comparable operating profit decreased
                    • Lower heat volumes in Sweden caused by divestment during first quarter
                    • Integration cost provisions in Poland

                    • Q2 Heat

                      Sheet1

                      Sheet2

                      Sheet3

                      Russia

                      • Comparable operating profit improved
                      • Commissioning of the new unit
                      • Higher electricity market prices
                      • Efficiency improvements
                      • Reversal of CSA provisions related to the newly commissioned units

                      • Q2 Russia

                        Sheet1

                        Sheet2

                        Sheet3

                        Distribution

                        • Comparable operating profit increased
                        • Lower transmission costs
                        • Stronger SEK
                        • Smart metering rollout to network customers in Finland continued

                        • Q2 Distribution

                          Sheet1

                          Sheet2

                          Sheet3

                          Markets

                          • Comparable operating profit at last yearrsquos level
                          • Tough competition
                          • Restructuring of the Business Market segment

                          • Q2 Electricity Sales

                            Sheet1

                            Sheet2

                            Sheet3

                            Q2 Income statement

                            Sheet1

                            ampA

                            Page ampP

                            Q2 Cash flow statement

                            Sheet1

                            ampA

                            Page ampP

                            Key ratios

                            Q2 lsquo11

                            Sheet1

                            Sheet2

                            Sheet3

                            Debt maturity profile

                            per 30 June 2011 per 31 Dec 2010

                            Average interest rate (incl swaps and forwards)4435

                            Portion of floating fixed debt 47 53 49 51

                            Strong financial position

                            Return on capital employed

                            12

                            Return on shareholders equity

                            14

                            Net debtEBITDA

                            around 30

                            138

                            191

                            28

                            Fortumrsquos financial targets

                            LTM in Q22011

                            Good liquidity ndash committed credit lines total EUR 27 billion

                            Comparable net debtEBITDA

                            Outlook

                            Q2 Summary

                            • Solid performance continued - seasonality
                            • Power
                            • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
                            • Swedish nuclear back at 80-85 in availability
                            • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
                            • SEK burdened
                            • Results year-end weighted compared to 2010
                            • Russia
                            • Commissioning of new units contributed to result improvement
                            • The return for the new capacity is guaranteed
                            • EUR 100 million efficiency improvement reached
                            • Nordic countries
                            • Water reservoirs improved to long-term average
                            • Overall strong financial position

                            • Outlook

                              • Key drivers and risks
                              • Wholesale price of electricity
                              • Demand
                              • Fuels
                              • CO2 emissions prices
                              • Water reservoirs
                              • Nuclear availability
                              • Nordic markets
                              • Market continues to recover ndash 2008 level to be reached by 2012-2014
                              • Electricity continues to gain share of total energy consumption
                              • Russia
                              • Wholesale market liberalised
                              • Profits from Russia build up in pace with the capacity increases

                              • Outlook

                                • Capex (excluding potential acquisitions)
                                • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
                                • 2013-2014 around EUR 11 to 14 billion annually
                                • Disclosed divestments totalled approximately EUR 05 billion
                                • Hedging
                                • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

                                • (Q1 70 at EUR 44MWh)

                                  • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                                  • (Q1 45 at EUR 45MWh)

                                    Wholesale prices for electricity

                                    Source

                                    EURMWh

                                    German

                                    Nordic

                                    15 July 2011

                                    2007

                                    2008

                                    2009

                                    2010

                                    2011

                                    2012

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    70

                                    80

                                    90

                                    100

                                    110

                                    Spot prices

                                    Forward prices

                                    CO2-free and energy-efficient solutions important

                                    Create solid earnings
                                    growth in Russia

                                    Leverage the strong
                                    Nordic core

                                    Build platform for
                                    future growth

                                    Competence in CO2-free hydro nuclear and energy efficient CHP production

                                    and operating in competitive energy markets

                                    Fortumrsquos Strategy

                                    Work continues -

                                    Fortumrsquos strategy remains intact

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales1833275569641 390

                                    Comparable operating profit101021-335

                                    Net Assets7759

                                    Comparable RONA 341

                                    Gross Investments10404

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales2152005264801 009

                                    Comparable operating profit6053184155336

                                    Net Assets3 4873 482

                                    Comparable RONA 99

                                    Gross Investments62479676233

                                    0

                                    250

                                    500

                                    750

                                    1000

                                    1250

                                    1500

                                    1750

                                    20112012201320142015201620172018201920202021+

                                    BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales195169490413881

                                    Comparable operating profit21-955756

                                    Net Assets3 0512 690

                                    Comparable RONA 34

                                    Gross Investments192167267258608

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales5745971 2671 3662 603

                                    Comparable operating profit2572715826951 185

                                    Net Assets5 9985 726

                                    Comparable RONA 198

                                    Gross Investments36226955136

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Sales1 316

                                    1 2953 3503 2426 296

                                    6 404

                                    Expenses-968-956-2 353-2 252-4 463-4 564

                                    Comparable operating profit3483399979901 8331 840

                                    Other items affecting comparability2611251285-125302

                                    Operating profit6093511 5091 0751 7082 142

                                    Share of profit of associates and jvs1515743162105

                                    Financial expenses net-72-34-127-61-155-221

                                    Profit before taxes5523321 4561 0451 6152 026

                                    Income tax expense-74-61-232-191-261-302

                                    Net profit for the period4782711 2248541 3541 724

                                    Non-controlling interests6874325496

                                    EPS basic (EUR)053030129093146183

                                    EPS diluted (EUR)053030129093146183

                                    Spot price for power in NordPool power exchange

                                    448

                                    459

                                    662

                                    523

                                    621

                                    0

                                    12

                                    24

                                    36

                                    48

                                    60

                                    72

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    Powers Nordic power price

                                    447

                                    469

                                    488

                                    479

                                    474

                                    0

                                    10

                                    20

                                    30

                                    40

                                    50

                                    60

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    MEURII2011II2010I-II2011I-II20102010LTM

                                    Operating profit before depreciations7644901 8131 3512 2712 733

                                    Non-cash flow items and divesting activities

                                    -299-6-569-73124-372

                                    Financial items and fx gainslosses

                                    12-146-290-323-641-608

                                    Taxes

                                    -144-73-258-155-355-458

                                    Funds from operations (FFO)

                                    3332656968001 3991 295

                                    Change in working capital

                                    771571681433863

                                    Total net cash from operating activities4104228649431 4371 358

                                    Paid capital expenditures-297-263-503-486-1 134-1 151

                                    Acquisition of shares-1-1-20-1-28-47

                                    Other investing activities331-165417260529

                                    Cash flow before financing activities443142882528335689

                                    MEURII2011II2010I-II2011I-II2010LTM

                                    Sales3223011 0479521 865

                                    Comparable operating profit2533196165306

                                    Net Assets3 9113 884

                                    Comparable RONA 82

                                    Gross Investments7259130121314

                                    MEUR

                                    II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                                    Power257271271280582695760747

                                    Heat25332535196165290194

                                    Russia21-921-95575523

                                    Distribution605325253184155377166

                                    Electricity Sales1010232321-33-6

                                    Other-25-1917-31-41-2924-49

                                    Total3483396093519979901 5091 075

                                    Comparable operating profit

                                    Reported operating profit

                                    Comparable operating profit

                                    Reported operating profit

                                    Spot price for power (market price) Urals hub

                                    770

                                    935

                                    817

                                    950

                                    954

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1 000

                                    1 200

                                    Q22010Q32010Q42010Q12011Q22011

                                    RUBMWh

                                    Achieved power price for OAO Fortum

                                    256

                                    288

                                    305

                                    292

                                    290

                                    0

                                    6

                                    12

                                    18

                                    24

                                    30

                                    36

                                    Q22010Q32010Q42010Q12011Q22011

                                    eurMWh

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    g CO

                                    2

                                    kWh electricity 2009

                                    Average346 gkWh

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    0

                                    200

                                    400

                                    600

                                    800

                                    1000

                                    1200

                                    DEI

                                    Drax

                                    RWE

                                    CEZ

                                    SSE

                                    EDP

                                    Enel

                                    Vattenfall

                                    EON

                                    Dong

                                    Union

                                    Fenosa

                                    GDF SUEZ Europe

                                    Iberdrola

                                    Fortum total

                                    EDF

                                    PVO

                                    Verbund

                                    Fortum EU

                                    Statkraft

                                    41155

                                    MEURLTM20102009

                                    EBITDA2 7332 2712 292

                                    Comparable EBITDA2 4312 3962 398

                                    Interest-bearing net debt6 7836 8265 969

                                    Net debtEBITDA253026

                                    Comparable Net debtEBITDA282825

                                    Return on capital employed ()138116121

                                    Return on shareholders equity ()191157160

                                    ) as of 30 June 2011

                            MEUR
                            2011		231
                            2012		668
                            2013		639
                            2014		1223
                            2015		1051
                            2016		879
                            2017		270
                            2018		190
                            2019		840
                            2020		73
                            2021+		1530

                            MEUR		LTM		2010		2009		2008		2006		2005
                            EBITDA		2733		2271		2292		2478		1884
                            Comparable EBITDA		2431		2396		2398			1151		1271
                            Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
                            Net debtEBITDA		25		30		26		25		8161
                            Comparable Net debtEBITDA		28		28		25			16839		15130
                            					23		18
                            Return on capital employed ()		138		116		121		150		134		135
                            Return on shareholders equity ()		191		157		160		187		144		135
                            ) as of 30 June 2011

                            MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
                            Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
                            Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
                            Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
                            Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
                            Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
                            Change in working capital		77		157		168		143		38		63		-102		161		5		0
                            Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
                            Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
                            Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
                            Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
                            Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

                            MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
                            Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
                            	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
                            Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
                            	Other items affecting comparability						261		12		512		85		-125		302
                            Operating profit							609		351		1509		1075		1708		2142
                            	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
                            	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
                            Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
                            	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
                            Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
                            	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
                            EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
                            EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
                            																	069

                            	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                            	Sales		183		327		556		964		1390
                            	Comparable operating profit		10		10		21		-3		35
                            	Net Assets				77		59
                            	Comparable RONA						341
                            	Gross Investments		1		0		4		0		4

                          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                          	Sales		215		200		526		480		1009
                          	Comparable operating profit		60		53		184		155		336
                          	Net Assets				3487		3482
                          	Comparable RONA						99
                          	Gross Investments		62		47		96		76		233

                        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                        	Sales		195		169		490		413		881
                        	Comparable operating profit		21		-9		55		7		56
                        	Net Assets				3051		2690
                        	Comparable RONA						34
                        	Gross Investments		192		167		267		258		608

                      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                      	Sales		322		301		1047		952		1865
                      	Comparable operating profit		25		33		196		165		306
                      	Net Assets				3911		3884
                      	Comparable RONA						82
                      	Gross Investments		72		59		130		121		314

                    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
                    	Sales		574		597		1267		1366		2603
                    	Comparable operating profit		257		271		582		695		1185
                    	Net Assets				5998		5726
                    	Comparable RONA						198
                    	Gross Investments		36		22		69		55		136

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
                  										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Kraftproduktion		271		280		340		307		695		747		755		739
                  									Vaumlrme		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Markets		10		23		6		20		-3		-6		4		-1
                  									Ryssland		-9		-9		-14		-15		7		23		-8		-9
                  									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
                  									Summa		339		351		400		375		990		1075		1002		974

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
                  										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Muut		-19		-31		-12		-30		-29		-49		-24		-44
                  									Yhteensauml		339		351		400		375		990		1075		1002		974
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
                  										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
                  									Power		271		280		340		307		695		747		755		739
                  									Heat		33		35		26		39		165		194		140		154
                  									Distribution		53		53		54		54		155		166		135		135
                  									Electricity Sales		10		23		6		20		-3		-6		4		-1
                  									Russia		-9		-9		-14		-15		7		23		-8		-9
                  									Other		-19		-31		-12		-30		-29		-49		-24		-44
                  									Total		339		351		400		375		990		1075		1002		974
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

                  		Liikevoitto 2007				Liikevoitto 2006
                  		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
                  	Laumlmpouml		0		0		0		0		0		0			0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
                  	Markets		0		0		0		0		0		0			0		0
                  	Muu		0		0		0		0		0		0			0		0
                  	Yhteensauml		0		0		0		0		0		0			0		0		0
                  		Liikevoitto I2008				Liikevoitto I2007
                  		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
                  	Saumlhkoumlntuotanto		0		0		0		0		0		0
                  	Laumlmpouml		0		0		0		0		0		0
                  	Saumlhkoumlnsiirto		0		0		0		0		0		0
                  	Markets		0		0		0		0		0		0
                  	Venaumljauml		0		0			0		0
                  	Muu		0		0		0		0		0		0
                  	Yhteensauml		0		0		0		0		0		0
                  										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
                  										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Distribution		21		-9		21		-9		55		7		55		23
                  									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
                  									Russia		10		10		23		23		21		-3		3		-6
                  									Muut		-25		-19		17		-31		-41		-29		24		-49
                  									Yhteensauml		348		339		609		351		997		990		1509		1075
                  										I-III2009
                  										SEK		Muut		Yhteensauml
                  									Saumlhkoumlntuotanto		-67		-3		-70
                  									Laumlmpouml		-10		-2		-12
                  									Saumlhkoumlnsiirto		-13		-1		-14
                  									Markets		-1		-1		-2
                  									Venaumljauml		0		6		6
                  									Muu		0		1		1
                  									Yhteensauml		-91		0		-91

                  									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
                  										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
                  									Power		257		271		271		280		582		695		760		747
                  									Heat		25		33		25		35		196		165		290		194
                  									Russia		21		-9		21		-9		55		7		55		23
                  									Distribution		60		53		252		53		184		155		377		166
                  									Electricity Sales		10		10		23		23		21		-3		3		-6
                  									Other		-25		-19		17		-31		-41		-29		24		-49
                  									Total		348		339		609		351		997		990		1509		1075
                  	Currency translation effects on comparable operating profit
                  		I2009									I-III2009
                  		SEK		Other		Total							SEK		Other		Total
                  	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
                  	Heat		-12		-3		-15						Heat		-10		-2		-12
                  	Distribution		-11		-1		-12						Distribution		-13		-1		-14
                  	Markets		-1		0		-1						Markets		-1		-1		-2
                  	Russia		0		1		1						Russia		0		6		6
                  	Other		1		0		1						Other		0		1		1
                  	Total		-78		-6		-84						Total		-91		0		-91

New English

New Finnish

English

Finnish

Swedish

Power

• Comparable operating profit decreased
• Swedish nuclear availability back at 80-85
• Lower hydro and nuclear volumes
• Water reservoirs improved significantly towards the end of the quarter

• Q2 Power

  Sheet1

  Sheet2

  Sheet3

  Nuclear output in Q2

  Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

  (In 2010 no outages in Q2)

  If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

  Improved availability in Sweden

  Q2 2011

  Q2 2010

  Nuclear

  Outage effect

  TWh

  Q2 Power result declined due to several reasons

  Comparable operating profit EUR million

  257

  -3

  -4

  0

  271

  3

  -10

  Volume

  amp price

  Q22010

  Stronger

  SEK

  Russian

  import

  Property

  taxes

  Other

  Q22011

  Heat

  • Comparable operating profit decreased
  • Lower heat volumes in Sweden caused by divestment during first quarter
  • Integration cost provisions in Poland

  • Q2 Heat

    Sheet1

    Sheet2

    Sheet3

    Russia

    • Comparable operating profit improved
    • Commissioning of the new unit
    • Higher electricity market prices
    • Efficiency improvements
    • Reversal of CSA provisions related to the newly commissioned units

    • Q2 Russia

      Sheet1

      Sheet2

      Sheet3

      Distribution

      • Comparable operating profit increased
      • Lower transmission costs
      • Stronger SEK
      • Smart metering rollout to network customers in Finland continued

      • Q2 Distribution

        Sheet1

        Sheet2

        Sheet3

        Markets

        • Comparable operating profit at last yearrsquos level
        • Tough competition
        • Restructuring of the Business Market segment

        • Q2 Electricity Sales

          Sheet1

          Sheet2

          Sheet3

          Q2 Income statement

          Sheet1

          ampA

          Page ampP

          Q2 Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Q2 lsquo11

          Sheet1

          Sheet2

          Sheet3

          Debt maturity profile

          per 30 June 2011 per 31 Dec 2010

          Average interest rate (incl swaps and forwards)4435

          Portion of floating fixed debt 47 53 49 51

          Strong financial position

          Return on capital employed

          12

          Return on shareholders equity

          14

          Net debtEBITDA

          around 30

          138

          191

          28

          Fortumrsquos financial targets

          LTM in Q22011

          Good liquidity ndash committed credit lines total EUR 27 billion

          Comparable net debtEBITDA

          Outlook

          Q2 Summary

          • Solid performance continued - seasonality
          • Power
          • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
          • Swedish nuclear back at 80-85 in availability
          • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
          • SEK burdened
          • Results year-end weighted compared to 2010
          • Russia
          • Commissioning of new units contributed to result improvement
          • The return for the new capacity is guaranteed
          • EUR 100 million efficiency improvement reached
          • Nordic countries
          • Water reservoirs improved to long-term average
          • Overall strong financial position

          • Outlook

            • Key drivers and risks
            • Wholesale price of electricity
            • Demand
            • Fuels
            • CO2 emissions prices
            • Water reservoirs
            • Nuclear availability
            • Nordic markets
            • Market continues to recover ndash 2008 level to be reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market liberalised
            • Profits from Russia build up in pace with the capacity increases

            • Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion annually
              • Disclosed divestments totalled approximately EUR 05 billion
              • Hedging
              • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

              • (Q1 70 at EUR 44MWh)

                • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                • (Q1 45 at EUR 45MWh)

                  Wholesale prices for electricity

                  Source

                  EURMWh

                  German

                  Nordic

                  15 July 2011

                  2007

                  2008

                  2009

                  2010

                  2011

                  2012

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  70

                  80

                  90

                  100

                  110

                  Spot prices

                  Forward prices

                  CO2-free and energy-efficient solutions important

                  Create solid earnings
                  growth in Russia

                  Leverage the strong
                  Nordic core

                  Build platform for
                  future growth

                  Competence in CO2-free hydro nuclear and energy efficient CHP production

                  and operating in competitive energy markets

                  Fortumrsquos Strategy

                  Work continues -

                  Fortumrsquos strategy remains intact

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales1833275569641 390

                  Comparable operating profit101021-335

                  Net Assets7759

                  Comparable RONA 341

                  Gross Investments10404

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales2152005264801 009

                  Comparable operating profit6053184155336

                  Net Assets3 4873 482

                  Comparable RONA 99

                  Gross Investments62479676233

                  0

                  250

                  500

                  750

                  1000

                  1250

                  1500

                  1750

                  20112012201320142015201620172018201920202021+

                  BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales195169490413881

                  Comparable operating profit21-955756

                  Net Assets3 0512 690

                  Comparable RONA 34

                  Gross Investments192167267258608

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales5745971 2671 3662 603

                  Comparable operating profit2572715826951 185

                  Net Assets5 9985 726

                  Comparable RONA 198

                  Gross Investments36226955136

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Sales1 316

                  1 2953 3503 2426 296

                  6 404

                  Expenses-968-956-2 353-2 252-4 463-4 564

                  Comparable operating profit3483399979901 8331 840

                  Other items affecting comparability2611251285-125302

                  Operating profit6093511 5091 0751 7082 142

                  Share of profit of associates and jvs1515743162105

                  Financial expenses net-72-34-127-61-155-221

                  Profit before taxes5523321 4561 0451 6152 026

                  Income tax expense-74-61-232-191-261-302

                  Net profit for the period4782711 2248541 3541 724

                  Non-controlling interests6874325496

                  EPS basic (EUR)053030129093146183

                  EPS diluted (EUR)053030129093146183

                  Spot price for power in NordPool power exchange

                  448

                  459

                  662

                  523

                  621

                  0

                  12

                  24

                  36

                  48

                  60

                  72

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  Powers Nordic power price

                  447

                  469

                  488

                  479

                  474

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Operating profit before depreciations7644901 8131 3512 2712 733

                  Non-cash flow items and divesting activities

                  -299-6-569-73124-372

                  Financial items and fx gainslosses

                  12-146-290-323-641-608

                  Taxes

                  -144-73-258-155-355-458

                  Funds from operations (FFO)

                  3332656968001 3991 295

                  Change in working capital

                  771571681433863

                  Total net cash from operating activities4104228649431 4371 358

                  Paid capital expenditures-297-263-503-486-1 134-1 151

                  Acquisition of shares-1-1-20-1-28-47

                  Other investing activities331-165417260529

                  Cash flow before financing activities443142882528335689

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales3223011 0479521 865

                  Comparable operating profit2533196165306

                  Net Assets3 9113 884

                  Comparable RONA 82

                  Gross Investments7259130121314

                  MEUR

                  II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                  Power257271271280582695760747

                  Heat25332535196165290194

                  Russia21-921-95575523

                  Distribution605325253184155377166

                  Electricity Sales1010232321-33-6

                  Other-25-1917-31-41-2924-49

                  Total3483396093519979901 5091 075

                  Comparable operating profit

                  Reported operating profit

                  Comparable operating profit

                  Reported operating profit

                  Spot price for power (market price) Urals hub

                  770

                  935

                  817

                  950

                  954

                  0

                  200

                  400

                  600

                  800

                  1 000

                  1 200

                  Q22010Q32010Q42010Q12011Q22011

                  RUBMWh

                  Achieved power price for OAO Fortum

                  256

                  288

                  305

                  292

                  290

                  0

                  6

                  12

                  18

                  24

                  30

                  36

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  MEURLTM20102009

                  EBITDA2 7332 2712 292

                  Comparable EBITDA2 4312 3962 398

                  Interest-bearing net debt6 7836 8265 969

                  Net debtEBITDA253026

                  Comparable Net debtEBITDA282825

                  Return on capital employed ()138116121

                  Return on shareholders equity ()191157160

                  ) as of 30 June 2011

          MEUR
          2011		231
          2012		668
          2013		639
          2014		1223
          2015		1051
          2016		879
          2017		270
          2018		190
          2019		840
          2020		73
          2021+		1530

          MEUR		LTM		2010		2009		2008		2006		2005
          EBITDA		2733		2271		2292		2478		1884
          Comparable EBITDA		2431		2396		2398			1151		1271
          Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
          Net debtEBITDA		25		30		26		25		8161
          Comparable Net debtEBITDA		28		28		25			16839		15130
          					23		18
          Return on capital employed ()		138		116		121		150		134		135
          Return on shareholders equity ()		191		157		160		187		144		135
          ) as of 30 June 2011

          MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
          Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
          Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
          Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
          Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
          Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
          Change in working capital		77		157		168		143		38		63		-102		161		5		0
          Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
          Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
          Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
          Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
          Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

          MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
          Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
          	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
          Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
          	Other items affecting comparability						261		12		512		85		-125		302
          Operating profit							609		351		1509		1075		1708		2142
          	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
          	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
          Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
          	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
          Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
          	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
          EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
          EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
          																	069

          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
          	Sales		183		327		556		964		1390
          	Comparable operating profit		10		10		21		-3		35
          	Net Assets				77		59
          	Comparable RONA						341
          	Gross Investments		1		0		4		0		4

        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
        	Sales		215		200		526		480		1009
        	Comparable operating profit		60		53		184		155		336
        	Net Assets				3487		3482
        	Comparable RONA						99
        	Gross Investments		62		47		96		76		233

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		195		169		490		413		881
      	Comparable operating profit		21		-9		55		7		56
      	Net Assets				3051		2690
      	Comparable RONA						34
      	Gross Investments		192		167		267		258		608

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		322		301		1047		952		1865
    	Comparable operating profit		25		33		196		165		306
    	Net Assets				3911		3884
    	Comparable RONA						82
    	Gross Investments		72		59		130		121		314

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		574		597		1267		1366		2603
  	Comparable operating profit		257		271		582		695		1185
  	Net Assets				5998		5726
  	Comparable RONA						198
  	Gross Investments		36		22		69		55		136

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
									Kraftproduktion		271		280		340		307		695		747		755		739
									Vaumlrme		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Markets		10		23		6		20		-3		-6		4		-1
									Ryssland		-9		-9		-14		-15		7		23		-8		-9
									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
									Summa		339		351		400		375		990		1075		1002		974

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
									Power		271		280		340		307		695		747		755		739
									Heat		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
									Russia		-9		-9		-14		-15		7		23		-8		-9
									Muut		-19		-31		-12		-30		-29		-49		-24		-44
									Yhteensauml		339		351		400		375		990		1075		1002		974
										I-III2009
										SEK		Muut		Yhteensauml
									Saumlhkoumlntuotanto		-67		-3		-70
									Laumlmpouml		-10		-2		-12
									Saumlhkoumlnsiirto		-13		-1		-14
									Markets		-1		-1		-2
									Venaumljauml		0		6		6
									Muu		0		1		1
									Yhteensauml		-91		0		-91

										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
									Power		271		280		340		307		695		747		755		739
									Heat		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Electricity Sales		10		23		6		20		-3		-6		4		-1
									Russia		-9		-9		-14		-15		7		23		-8		-9
									Other		-19		-31		-12		-30		-29		-49		-24		-44
									Total		339		351		400		375		990		1075		1002		974
	Currency translation effects on comparable operating profit
		I2009									I-III2009
		SEK		Other		Total							SEK		Other		Total
	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
	Heat		-12		-3		-15						Heat		-10		-2		-12
	Distribution		-11		-1		-12						Distribution		-13		-1		-14
	Markets		-1		0		-1						Markets		-1		-1		-2
	Russia		0		1		1						Russia		0		6		6
	Other		1		0		1						Other		0		1		1
	Total		-78		-6		-84						Total		-91		0		-91

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
									Power		257		271		271		280		582		695		760		747
									Heat		25		33		25		35		196		165		290		194
									Distribution		21		-9		21		-9		55		7		55		23
									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
									Russia		10		10		23		23		21		-3		3		-6
									Muut		-25		-19		17		-31		-41		-29		24		-49
									Yhteensauml		348		339		609		351		997		990		1509		1075
										I-III2009
										SEK		Muut		Yhteensauml
									Saumlhkoumlntuotanto		-67		-3		-70
									Laumlmpouml		-10		-2		-12
									Saumlhkoumlnsiirto		-13		-1		-14
									Markets		-1		-1		-2
									Venaumljauml		0		6		6
									Muu		0		1		1
									Yhteensauml		-91		0		-91

									MEUR		Comparable operating profit			Reported operating profit			Comparable operating profit			Reported operating profit
										II2011		II2010		II2011		II2010		I-II2011		I-II2010		I-II2011		I-II2010
									Power		257		271		271		280		582		695		760		747
									Heat		25		33		25		35		196		165		290		194
									Russia		21		-9		21		-9		55		7		55		23
									Distribution		60		53		252		53		184		155		377		166
									Electricity Sales		10		10		23		23		21		-3		3		-6
									Other		-25		-19		17		-31		-41		-29		24		-49
									Total		348		339		609		351		997		990		1509		1075
	Currency translation effects on comparable operating profit
		I2009									I-III2009
		SEK		Other		Total							SEK		Other		Total
	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
	Heat		-12		-3		-15						Heat		-10		-2		-12
	Distribution		-11		-1		-12						Distribution		-13		-1		-14
	Markets		-1		0		-1						Markets		-1		-1		-2
	Russia		0		1		1						Russia		0		6		6
	Other		1		0		1						Other		0		1		1
	Total		-78		-6		-84						Total		-91		0		-91

New Finnish

English

Finnish

Swedish

Power

• Comparable operating profit decreased
• Swedish nuclear availability back at 80-85
• Lower hydro and nuclear volumes
• Water reservoirs improved significantly towards the end of the quarter

• Q2 Power

  Sheet1

  Sheet2

  Sheet3

  Nuclear output in Q2

  Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

  (In 2010 no outages in Q2)

  If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

  Improved availability in Sweden

  Q2 2011

  Q2 2010

  Nuclear

  Outage effect

  TWh

  Q2 Power result declined due to several reasons

  Comparable operating profit EUR million

  257

  -3

  -4

  0

  271

  3

  -10

  Volume

  amp price

  Q22010

  Stronger

  SEK

  Russian

  import

  Property

  taxes

  Other

  Q22011

  Heat

  • Comparable operating profit decreased
  • Lower heat volumes in Sweden caused by divestment during first quarter
  • Integration cost provisions in Poland

  • Q2 Heat

    Sheet1

    Sheet2

    Sheet3

    Russia

    • Comparable operating profit improved
    • Commissioning of the new unit
    • Higher electricity market prices
    • Efficiency improvements
    • Reversal of CSA provisions related to the newly commissioned units

    • Q2 Russia

      Sheet1

      Sheet2

      Sheet3

      Distribution

      • Comparable operating profit increased
      • Lower transmission costs
      • Stronger SEK
      • Smart metering rollout to network customers in Finland continued

      • Q2 Distribution

        Sheet1

        Sheet2

        Sheet3

        Markets

        • Comparable operating profit at last yearrsquos level
        • Tough competition
        • Restructuring of the Business Market segment

        • Q2 Electricity Sales

          Sheet1

          Sheet2

          Sheet3

          Q2 Income statement

          Sheet1

          ampA

          Page ampP

          Q2 Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Q2 lsquo11

          Sheet1

          Sheet2

          Sheet3

          Debt maturity profile

          per 30 June 2011 per 31 Dec 2010

          Average interest rate (incl swaps and forwards)4435

          Portion of floating fixed debt 47 53 49 51

          Strong financial position

          Return on capital employed

          12

          Return on shareholders equity

          14

          Net debtEBITDA

          around 30

          138

          191

          28

          Fortumrsquos financial targets

          LTM in Q22011

          Good liquidity ndash committed credit lines total EUR 27 billion

          Comparable net debtEBITDA

          Outlook

          Q2 Summary

          • Solid performance continued - seasonality
          • Power
          • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
          • Swedish nuclear back at 80-85 in availability
          • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
          • SEK burdened
          • Results year-end weighted compared to 2010
          • Russia
          • Commissioning of new units contributed to result improvement
          • The return for the new capacity is guaranteed
          • EUR 100 million efficiency improvement reached
          • Nordic countries
          • Water reservoirs improved to long-term average
          • Overall strong financial position

          • Outlook

            • Key drivers and risks
            • Wholesale price of electricity
            • Demand
            • Fuels
            • CO2 emissions prices
            • Water reservoirs
            • Nuclear availability
            • Nordic markets
            • Market continues to recover ndash 2008 level to be reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market liberalised
            • Profits from Russia build up in pace with the capacity increases

            • Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion annually
              • Disclosed divestments totalled approximately EUR 05 billion
              • Hedging
              • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

              • (Q1 70 at EUR 44MWh)

                • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                • (Q1 45 at EUR 45MWh)

                  Wholesale prices for electricity

                  Source

                  EURMWh

                  German

                  Nordic

                  15 July 2011

                  2007

                  2008

                  2009

                  2010

                  2011

                  2012

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  70

                  80

                  90

                  100

                  110

                  Spot prices

                  Forward prices

                  CO2-free and energy-efficient solutions important

                  Create solid earnings
                  growth in Russia

                  Leverage the strong
                  Nordic core

                  Build platform for
                  future growth

                  Competence in CO2-free hydro nuclear and energy efficient CHP production

                  and operating in competitive energy markets

                  Fortumrsquos Strategy

                  Work continues -

                  Fortumrsquos strategy remains intact

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales1833275569641 390

                  Comparable operating profit101021-335

                  Net Assets7759

                  Comparable RONA 341

                  Gross Investments10404

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales2152005264801 009

                  Comparable operating profit6053184155336

                  Net Assets3 4873 482

                  Comparable RONA 99

                  Gross Investments62479676233

                  0

                  250

                  500

                  750

                  1000

                  1250

                  1500

                  1750

                  20112012201320142015201620172018201920202021+

                  BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales195169490413881

                  Comparable operating profit21-955756

                  Net Assets3 0512 690

                  Comparable RONA 34

                  Gross Investments192167267258608

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales5745971 2671 3662 603

                  Comparable operating profit2572715826951 185

                  Net Assets5 9985 726

                  Comparable RONA 198

                  Gross Investments36226955136

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Sales1 316

                  1 2953 3503 2426 296

                  6 404

                  Expenses-968-956-2 353-2 252-4 463-4 564

                  Comparable operating profit3483399979901 8331 840

                  Other items affecting comparability2611251285-125302

                  Operating profit6093511 5091 0751 7082 142

                  Share of profit of associates and jvs1515743162105

                  Financial expenses net-72-34-127-61-155-221

                  Profit before taxes5523321 4561 0451 6152 026

                  Income tax expense-74-61-232-191-261-302

                  Net profit for the period4782711 2248541 3541 724

                  Non-controlling interests6874325496

                  EPS basic (EUR)053030129093146183

                  EPS diluted (EUR)053030129093146183

                  Spot price for power in NordPool power exchange

                  448

                  459

                  662

                  523

                  621

                  0

                  12

                  24

                  36

                  48

                  60

                  72

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  Powers Nordic power price

                  447

                  469

                  488

                  479

                  474

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Operating profit before depreciations7644901 8131 3512 2712 733

                  Non-cash flow items and divesting activities

                  -299-6-569-73124-372

                  Financial items and fx gainslosses

                  12-146-290-323-641-608

                  Taxes

                  -144-73-258-155-355-458

                  Funds from operations (FFO)

                  3332656968001 3991 295

                  Change in working capital

                  771571681433863

                  Total net cash from operating activities4104228649431 4371 358

                  Paid capital expenditures-297-263-503-486-1 134-1 151

                  Acquisition of shares-1-1-20-1-28-47

                  Other investing activities331-165417260529

                  Cash flow before financing activities443142882528335689

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales3223011 0479521 865

                  Comparable operating profit2533196165306

                  Net Assets3 9113 884

                  Comparable RONA 82

                  Gross Investments7259130121314

                  MEUR

                  II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                  Power257271271280582695760747

                  Heat25332535196165290194

                  Russia21-921-95575523

                  Distribution605325253184155377166

                  Electricity Sales1010232321-33-6

                  Other-25-1917-31-41-2924-49

                  Total3483396093519979901 5091 075

                  Comparable operating profit

                  Reported operating profit

                  Comparable operating profit

                  Reported operating profit

                  Spot price for power (market price) Urals hub

                  770

                  935

                  817

                  950

                  954

                  0

                  200

                  400

                  600

                  800

                  1 000

                  1 200

                  Q22010Q32010Q42010Q12011Q22011

                  RUBMWh

                  Achieved power price for OAO Fortum

                  256

                  288

                  305

                  292

                  290

                  0

                  6

                  12

                  18

                  24

                  30

                  36

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  MEURLTM20102009

                  EBITDA2 7332 2712 292

                  Comparable EBITDA2 4312 3962 398

                  Interest-bearing net debt6 7836 8265 969

                  Net debtEBITDA253026

                  Comparable Net debtEBITDA282825

                  Return on capital employed ()138116121

                  Return on shareholders equity ()191157160

                  ) as of 30 June 2011

          MEUR
          2011		231
          2012		668
          2013		639
          2014		1223
          2015		1051
          2016		879
          2017		270
          2018		190
          2019		840
          2020		73
          2021+		1530

          MEUR		LTM		2010		2009		2008		2006		2005
          EBITDA		2733		2271		2292		2478		1884
          Comparable EBITDA		2431		2396		2398			1151		1271
          Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
          Net debtEBITDA		25		30		26		25		8161
          Comparable Net debtEBITDA		28		28		25			16839		15130
          					23		18
          Return on capital employed ()		138		116		121		150		134		135
          Return on shareholders equity ()		191		157		160		187		144		135
          ) as of 30 June 2011

          MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
          Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
          Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
          Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
          Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
          Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
          Change in working capital		77		157		168		143		38		63		-102		161		5		0
          Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
          Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
          Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
          Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
          Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

          MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
          Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
          	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
          Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
          	Other items affecting comparability						261		12		512		85		-125		302
          Operating profit							609		351		1509		1075		1708		2142
          	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
          	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
          Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
          	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
          Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
          	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
          EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
          EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
          																	069

          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
          	Sales		183		327		556		964		1390
          	Comparable operating profit		10		10		21		-3		35
          	Net Assets				77		59
          	Comparable RONA						341
          	Gross Investments		1		0		4		0		4

        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
        	Sales		215		200		526		480		1009
        	Comparable operating profit		60		53		184		155		336
        	Net Assets				3487		3482
        	Comparable RONA						99
        	Gross Investments		62		47		96		76		233

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		195		169		490		413		881
      	Comparable operating profit		21		-9		55		7		56
      	Net Assets				3051		2690
      	Comparable RONA						34
      	Gross Investments		192		167		267		258		608

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		322		301		1047		952		1865
    	Comparable operating profit		25		33		196		165		306
    	Net Assets				3911		3884
    	Comparable RONA						82
    	Gross Investments		72		59		130		121		314

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		574		597		1267		1366		2603
  	Comparable operating profit		257		271		582		695		1185
  	Net Assets				5998		5726
  	Comparable RONA						198
  	Gross Investments		36		22		69		55		136

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
									Kraftproduktion		271		280		340		307		695		747		755		739
									Vaumlrme		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Markets		10		23		6		20		-3		-6		4		-1
									Ryssland		-9		-9		-14		-15		7		23		-8		-9
									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
									Summa		339		351		400		375		990		1075		1002		974

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
									Power		271		280		340		307		695		747		755		739
									Heat		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
									Russia		-9		-9		-14		-15		7		23		-8		-9
									Muut		-19		-31		-12		-30		-29		-49		-24		-44
									Yhteensauml		339		351		400		375		990		1075		1002		974
										I-III2009
										SEK		Muut		Yhteensauml
									Saumlhkoumlntuotanto		-67		-3		-70
									Laumlmpouml		-10		-2		-12
									Saumlhkoumlnsiirto		-13		-1		-14
									Markets		-1		-1		-2
									Venaumljauml		0		6		6
									Muu		0		1		1
									Yhteensauml		-91		0		-91

										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
									Power		271		280		340		307		695		747		755		739
									Heat		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Electricity Sales		10		23		6		20		-3		-6		4		-1
									Russia		-9		-9		-14		-15		7		23		-8		-9
									Other		-19		-31		-12		-30		-29		-49		-24		-44
									Total		339		351		400		375		990		1075		1002		974
	Currency translation effects on comparable operating profit
		I2009									I-III2009
		SEK		Other		Total							SEK		Other		Total
	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
	Heat		-12		-3		-15						Heat		-10		-2		-12
	Distribution		-11		-1		-12						Distribution		-13		-1		-14
	Markets		-1		0		-1						Markets		-1		-1		-2
	Russia		0		1		1						Russia		0		6		6
	Other		1		0		1						Other		0		1		1
	Total		-78		-6		-84						Total		-91		0		-91

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Vertkelpliikevoitto			Raportoitu liikevoitto			Vertkelpliikevoitto			Raportoitu liikevoitto
										II2010		II2009		II2010		II2009		I-II2010		I-II2009		I-II2010		I-II2009
									Power		257		271		271		280		582		695		760		747
									Heat		25		33		25		35		196		165		290		194
									Distribution		21		-9		21		-9		55		7		55		23
									Saumlhkoumlnmyynti		60		53		252		53		184		155		377		166
									Russia		10		10		23		23		21		-3		3		-6
									Muut		-25		-19		17		-31		-41		-29		24		-49
									Yhteensauml		348		339		609		351		997		990		1509		1075
										I-III2009
										SEK		Muut		Yhteensauml
									Saumlhkoumlntuotanto		-67		-3		-70
									Laumlmpouml		-10		-2		-12
									Saumlhkoumlnsiirto		-13		-1		-14
									Markets		-1		-1		-2
									Venaumljauml		0		6		6
									Muu		0		1		1
									Yhteensauml		-91		0		-91

English

Finnish

Swedish

Power

• Comparable operating profit decreased
• Swedish nuclear availability back at 80-85
• Lower hydro and nuclear volumes
• Water reservoirs improved significantly towards the end of the quarter

• Q2 Power

  Sheet1

  Sheet2

  Sheet3

  Nuclear output in Q2

  Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

  (In 2010 no outages in Q2)

  If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

  Improved availability in Sweden

  Q2 2011

  Q2 2010

  Nuclear

  Outage effect

  TWh

  Q2 Power result declined due to several reasons

  Comparable operating profit EUR million

  257

  -3

  -4

  0

  271

  3

  -10

  Volume

  amp price

  Q22010

  Stronger

  SEK

  Russian

  import

  Property

  taxes

  Other

  Q22011

  Heat

  • Comparable operating profit decreased
  • Lower heat volumes in Sweden caused by divestment during first quarter
  • Integration cost provisions in Poland

  • Q2 Heat

    Sheet1

    Sheet2

    Sheet3

    Russia

    • Comparable operating profit improved
    • Commissioning of the new unit
    • Higher electricity market prices
    • Efficiency improvements
    • Reversal of CSA provisions related to the newly commissioned units

    • Q2 Russia

      Sheet1

      Sheet2

      Sheet3

      Distribution

      • Comparable operating profit increased
      • Lower transmission costs
      • Stronger SEK
      • Smart metering rollout to network customers in Finland continued

      • Q2 Distribution

        Sheet1

        Sheet2

        Sheet3

        Markets

        • Comparable operating profit at last yearrsquos level
        • Tough competition
        • Restructuring of the Business Market segment

        • Q2 Electricity Sales

          Sheet1

          Sheet2

          Sheet3

          Q2 Income statement

          Sheet1

          ampA

          Page ampP

          Q2 Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Q2 lsquo11

          Sheet1

          Sheet2

          Sheet3

          Debt maturity profile

          per 30 June 2011 per 31 Dec 2010

          Average interest rate (incl swaps and forwards)4435

          Portion of floating fixed debt 47 53 49 51

          Strong financial position

          Return on capital employed

          12

          Return on shareholders equity

          14

          Net debtEBITDA

          around 30

          138

          191

          28

          Fortumrsquos financial targets

          LTM in Q22011

          Good liquidity ndash committed credit lines total EUR 27 billion

          Comparable net debtEBITDA

          Outlook

          Q2 Summary

          • Solid performance continued - seasonality
          • Power
          • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
          • Swedish nuclear back at 80-85 in availability
          • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
          • SEK burdened
          • Results year-end weighted compared to 2010
          • Russia
          • Commissioning of new units contributed to result improvement
          • The return for the new capacity is guaranteed
          • EUR 100 million efficiency improvement reached
          • Nordic countries
          • Water reservoirs improved to long-term average
          • Overall strong financial position

          • Outlook

            • Key drivers and risks
            • Wholesale price of electricity
            • Demand
            • Fuels
            • CO2 emissions prices
            • Water reservoirs
            • Nuclear availability
            • Nordic markets
            • Market continues to recover ndash 2008 level to be reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market liberalised
            • Profits from Russia build up in pace with the capacity increases

            • Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion annually
              • Disclosed divestments totalled approximately EUR 05 billion
              • Hedging
              • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

              • (Q1 70 at EUR 44MWh)

                • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                • (Q1 45 at EUR 45MWh)

                  Wholesale prices for electricity

                  Source

                  EURMWh

                  German

                  Nordic

                  15 July 2011

                  2007

                  2008

                  2009

                  2010

                  2011

                  2012

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  70

                  80

                  90

                  100

                  110

                  Spot prices

                  Forward prices

                  CO2-free and energy-efficient solutions important

                  Create solid earnings
                  growth in Russia

                  Leverage the strong
                  Nordic core

                  Build platform for
                  future growth

                  Competence in CO2-free hydro nuclear and energy efficient CHP production

                  and operating in competitive energy markets

                  Fortumrsquos Strategy

                  Work continues -

                  Fortumrsquos strategy remains intact

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales1833275569641 390

                  Comparable operating profit101021-335

                  Net Assets7759

                  Comparable RONA 341

                  Gross Investments10404

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales2152005264801 009

                  Comparable operating profit6053184155336

                  Net Assets3 4873 482

                  Comparable RONA 99

                  Gross Investments62479676233

                  0

                  250

                  500

                  750

                  1000

                  1250

                  1500

                  1750

                  20112012201320142015201620172018201920202021+

                  BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales195169490413881

                  Comparable operating profit21-955756

                  Net Assets3 0512 690

                  Comparable RONA 34

                  Gross Investments192167267258608

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales5745971 2671 3662 603

                  Comparable operating profit2572715826951 185

                  Net Assets5 9985 726

                  Comparable RONA 198

                  Gross Investments36226955136

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Sales1 316

                  1 2953 3503 2426 296

                  6 404

                  Expenses-968-956-2 353-2 252-4 463-4 564

                  Comparable operating profit3483399979901 8331 840

                  Other items affecting comparability2611251285-125302

                  Operating profit6093511 5091 0751 7082 142

                  Share of profit of associates and jvs1515743162105

                  Financial expenses net-72-34-127-61-155-221

                  Profit before taxes5523321 4561 0451 6152 026

                  Income tax expense-74-61-232-191-261-302

                  Net profit for the period4782711 2248541 3541 724

                  Non-controlling interests6874325496

                  EPS basic (EUR)053030129093146183

                  EPS diluted (EUR)053030129093146183

                  Spot price for power in NordPool power exchange

                  448

                  459

                  662

                  523

                  621

                  0

                  12

                  24

                  36

                  48

                  60

                  72

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  Powers Nordic power price

                  447

                  469

                  488

                  479

                  474

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Operating profit before depreciations7644901 8131 3512 2712 733

                  Non-cash flow items and divesting activities

                  -299-6-569-73124-372

                  Financial items and fx gainslosses

                  12-146-290-323-641-608

                  Taxes

                  -144-73-258-155-355-458

                  Funds from operations (FFO)

                  3332656968001 3991 295

                  Change in working capital

                  771571681433863

                  Total net cash from operating activities4104228649431 4371 358

                  Paid capital expenditures-297-263-503-486-1 134-1 151

                  Acquisition of shares-1-1-20-1-28-47

                  Other investing activities331-165417260529

                  Cash flow before financing activities443142882528335689

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales3223011 0479521 865

                  Comparable operating profit2533196165306

                  Net Assets3 9113 884

                  Comparable RONA 82

                  Gross Investments7259130121314

                  MEUR

                  II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                  Power257271271280582695760747

                  Heat25332535196165290194

                  Russia21-921-95575523

                  Distribution605325253184155377166

                  Electricity Sales1010232321-33-6

                  Other-25-1917-31-41-2924-49

                  Total3483396093519979901 5091 075

                  Comparable operating profit

                  Reported operating profit

                  Comparable operating profit

                  Reported operating profit

                  Spot price for power (market price) Urals hub

                  770

                  935

                  817

                  950

                  954

                  0

                  200

                  400

                  600

                  800

                  1 000

                  1 200

                  Q22010Q32010Q42010Q12011Q22011

                  RUBMWh

                  Achieved power price for OAO Fortum

                  256

                  288

                  305

                  292

                  290

                  0

                  6

                  12

                  18

                  24

                  30

                  36

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  MEURLTM20102009

                  EBITDA2 7332 2712 292

                  Comparable EBITDA2 4312 3962 398

                  Interest-bearing net debt6 7836 8265 969

                  Net debtEBITDA253026

                  Comparable Net debtEBITDA282825

                  Return on capital employed ()138116121

                  Return on shareholders equity ()191157160

                  ) as of 30 June 2011

          MEUR
          2011		231
          2012		668
          2013		639
          2014		1223
          2015		1051
          2016		879
          2017		270
          2018		190
          2019		840
          2020		73
          2021+		1530

          MEUR		LTM		2010		2009		2008		2006		2005
          EBITDA		2733		2271		2292		2478		1884
          Comparable EBITDA		2431		2396		2398			1151		1271
          Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
          Net debtEBITDA		25		30		26		25		8161
          Comparable Net debtEBITDA		28		28		25			16839		15130
          					23		18
          Return on capital employed ()		138		116		121		150		134		135
          Return on shareholders equity ()		191		157		160		187		144		135
          ) as of 30 June 2011

          MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
          Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
          Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
          Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
          Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
          Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
          Change in working capital		77		157		168		143		38		63		-102		161		5		0
          Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
          Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
          Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
          Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
          Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

          MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
          Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
          	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
          Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
          	Other items affecting comparability						261		12		512		85		-125		302
          Operating profit							609		351		1509		1075		1708		2142
          	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
          	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
          Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
          	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
          Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
          	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
          EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
          EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
          																	069

          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
          	Sales		183		327		556		964		1390
          	Comparable operating profit		10		10		21		-3		35
          	Net Assets				77		59
          	Comparable RONA						341
          	Gross Investments		1		0		4		0		4

        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
        	Sales		215		200		526		480		1009
        	Comparable operating profit		60		53		184		155		336
        	Net Assets				3487		3482
        	Comparable RONA						99
        	Gross Investments		62		47		96		76		233

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		195		169		490		413		881
      	Comparable operating profit		21		-9		55		7		56
      	Net Assets				3051		2690
      	Comparable RONA						34
      	Gross Investments		192		167		267		258		608

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		322		301		1047		952		1865
    	Comparable operating profit		25		33		196		165		306
    	Net Assets				3911		3884
    	Comparable RONA						82
    	Gross Investments		72		59		130		121		314

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		574		597		1267		1366		2603
  	Comparable operating profit		257		271		582		695		1185
  	Net Assets				5998		5726
  	Comparable RONA						198
  	Gross Investments		36		22		69		55		136

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
									Kraftproduktion		271		280		340		307		695		747		755		739
									Vaumlrme		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Markets		10		23		6		20		-3		-6		4		-1
									Ryssland		-9		-9		-14		-15		7		23		-8		-9
									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
									Summa		339		351		400		375		990		1075		1002		974

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
									Power		271		280		340		307		695		747		755		739
									Heat		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
									Russia		-9		-9		-14		-15		7		23		-8		-9
									Muut		-19		-31		-12		-30		-29		-49		-24		-44
									Yhteensauml		339		351		400		375		990		1075		1002		974
										I-III2009
										SEK		Muut		Yhteensauml
									Saumlhkoumlntuotanto		-67		-3		-70
									Laumlmpouml		-10		-2		-12
									Saumlhkoumlnsiirto		-13		-1		-14
									Markets		-1		-1		-2
									Venaumljauml		0		6		6
									Muu		0		1		1
									Yhteensauml		-91		0		-91

										Operating profit II2010			Operating profit II2009			Operating profit I-II2010			Operating profit I-2009
										Comparable		Reported		Comparable		Reported		Comparable		Reported		Comparable		Reported
									Power		271		280		340		307		695		747		755		739
									Heat		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Electricity Sales		10		23		6		20		-3		-6		4		-1
									Russia		-9		-9		-14		-15		7		23		-8		-9
									Other		-19		-31		-12		-30		-29		-49		-24		-44
									Total		339		351		400		375		990		1075		1002		974
	Currency translation effects on comparable operating profit
		I2009									I-III2009
		SEK		Other		Total							SEK		Other		Total
	Power Generation		-55		-3		-58						Power Generation		-67		-3		-70
	Heat		-12		-3		-15						Heat		-10		-2		-12
	Distribution		-11		-1		-12						Distribution		-13		-1		-14
	Markets		-1		0		-1						Markets		-1		-1		-2
	Russia		0		1		1						Russia		0		6		6
	Other		1		0		1						Other		0		1		1
	Total		-78		-6		-84						Total		-91		0		-91

Finnish

Swedish

Power

• Comparable operating profit decreased
• Swedish nuclear availability back at 80-85
• Lower hydro and nuclear volumes
• Water reservoirs improved significantly towards the end of the quarter

• Q2 Power

  Sheet1

  Sheet2

  Sheet3

  Nuclear output in Q2

  Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

  (In 2010 no outages in Q2)

  If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

  Improved availability in Sweden

  Q2 2011

  Q2 2010

  Nuclear

  Outage effect

  TWh

  Q2 Power result declined due to several reasons

  Comparable operating profit EUR million

  257

  -3

  -4

  0

  271

  3

  -10

  Volume

  amp price

  Q22010

  Stronger

  SEK

  Russian

  import

  Property

  taxes

  Other

  Q22011

  Heat

  • Comparable operating profit decreased
  • Lower heat volumes in Sweden caused by divestment during first quarter
  • Integration cost provisions in Poland

  • Q2 Heat

    Sheet1

    Sheet2

    Sheet3

    Russia

    • Comparable operating profit improved
    • Commissioning of the new unit
    • Higher electricity market prices
    • Efficiency improvements
    • Reversal of CSA provisions related to the newly commissioned units

    • Q2 Russia

      Sheet1

      Sheet2

      Sheet3

      Distribution

      • Comparable operating profit increased
      • Lower transmission costs
      • Stronger SEK
      • Smart metering rollout to network customers in Finland continued

      • Q2 Distribution

        Sheet1

        Sheet2

        Sheet3

        Markets

        • Comparable operating profit at last yearrsquos level
        • Tough competition
        • Restructuring of the Business Market segment

        • Q2 Electricity Sales

          Sheet1

          Sheet2

          Sheet3

          Q2 Income statement

          Sheet1

          ampA

          Page ampP

          Q2 Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Q2 lsquo11

          Sheet1

          Sheet2

          Sheet3

          Debt maturity profile

          per 30 June 2011 per 31 Dec 2010

          Average interest rate (incl swaps and forwards)4435

          Portion of floating fixed debt 47 53 49 51

          Strong financial position

          Return on capital employed

          12

          Return on shareholders equity

          14

          Net debtEBITDA

          around 30

          138

          191

          28

          Fortumrsquos financial targets

          LTM in Q22011

          Good liquidity ndash committed credit lines total EUR 27 billion

          Comparable net debtEBITDA

          Outlook

          Q2 Summary

          • Solid performance continued - seasonality
          • Power
          • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
          • Swedish nuclear back at 80-85 in availability
          • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
          • SEK burdened
          • Results year-end weighted compared to 2010
          • Russia
          • Commissioning of new units contributed to result improvement
          • The return for the new capacity is guaranteed
          • EUR 100 million efficiency improvement reached
          • Nordic countries
          • Water reservoirs improved to long-term average
          • Overall strong financial position

          • Outlook

            • Key drivers and risks
            • Wholesale price of electricity
            • Demand
            • Fuels
            • CO2 emissions prices
            • Water reservoirs
            • Nuclear availability
            • Nordic markets
            • Market continues to recover ndash 2008 level to be reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market liberalised
            • Profits from Russia build up in pace with the capacity increases

            • Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion annually
              • Disclosed divestments totalled approximately EUR 05 billion
              • Hedging
              • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

              • (Q1 70 at EUR 44MWh)

                • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                • (Q1 45 at EUR 45MWh)

                  Wholesale prices for electricity

                  Source

                  EURMWh

                  German

                  Nordic

                  15 July 2011

                  2007

                  2008

                  2009

                  2010

                  2011

                  2012

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  70

                  80

                  90

                  100

                  110

                  Spot prices

                  Forward prices

                  CO2-free and energy-efficient solutions important

                  Create solid earnings
                  growth in Russia

                  Leverage the strong
                  Nordic core

                  Build platform for
                  future growth

                  Competence in CO2-free hydro nuclear and energy efficient CHP production

                  and operating in competitive energy markets

                  Fortumrsquos Strategy

                  Work continues -

                  Fortumrsquos strategy remains intact

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales1833275569641 390

                  Comparable operating profit101021-335

                  Net Assets7759

                  Comparable RONA 341

                  Gross Investments10404

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales2152005264801 009

                  Comparable operating profit6053184155336

                  Net Assets3 4873 482

                  Comparable RONA 99

                  Gross Investments62479676233

                  0

                  250

                  500

                  750

                  1000

                  1250

                  1500

                  1750

                  20112012201320142015201620172018201920202021+

                  BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales195169490413881

                  Comparable operating profit21-955756

                  Net Assets3 0512 690

                  Comparable RONA 34

                  Gross Investments192167267258608

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales5745971 2671 3662 603

                  Comparable operating profit2572715826951 185

                  Net Assets5 9985 726

                  Comparable RONA 198

                  Gross Investments36226955136

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Sales1 316

                  1 2953 3503 2426 296

                  6 404

                  Expenses-968-956-2 353-2 252-4 463-4 564

                  Comparable operating profit3483399979901 8331 840

                  Other items affecting comparability2611251285-125302

                  Operating profit6093511 5091 0751 7082 142

                  Share of profit of associates and jvs1515743162105

                  Financial expenses net-72-34-127-61-155-221

                  Profit before taxes5523321 4561 0451 6152 026

                  Income tax expense-74-61-232-191-261-302

                  Net profit for the period4782711 2248541 3541 724

                  Non-controlling interests6874325496

                  EPS basic (EUR)053030129093146183

                  EPS diluted (EUR)053030129093146183

                  Spot price for power in NordPool power exchange

                  448

                  459

                  662

                  523

                  621

                  0

                  12

                  24

                  36

                  48

                  60

                  72

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  Powers Nordic power price

                  447

                  469

                  488

                  479

                  474

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Operating profit before depreciations7644901 8131 3512 2712 733

                  Non-cash flow items and divesting activities

                  -299-6-569-73124-372

                  Financial items and fx gainslosses

                  12-146-290-323-641-608

                  Taxes

                  -144-73-258-155-355-458

                  Funds from operations (FFO)

                  3332656968001 3991 295

                  Change in working capital

                  771571681433863

                  Total net cash from operating activities4104228649431 4371 358

                  Paid capital expenditures-297-263-503-486-1 134-1 151

                  Acquisition of shares-1-1-20-1-28-47

                  Other investing activities331-165417260529

                  Cash flow before financing activities443142882528335689

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales3223011 0479521 865

                  Comparable operating profit2533196165306

                  Net Assets3 9113 884

                  Comparable RONA 82

                  Gross Investments7259130121314

                  MEUR

                  II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                  Power257271271280582695760747

                  Heat25332535196165290194

                  Russia21-921-95575523

                  Distribution605325253184155377166

                  Electricity Sales1010232321-33-6

                  Other-25-1917-31-41-2924-49

                  Total3483396093519979901 5091 075

                  Comparable operating profit

                  Reported operating profit

                  Comparable operating profit

                  Reported operating profit

                  Spot price for power (market price) Urals hub

                  770

                  935

                  817

                  950

                  954

                  0

                  200

                  400

                  600

                  800

                  1 000

                  1 200

                  Q22010Q32010Q42010Q12011Q22011

                  RUBMWh

                  Achieved power price for OAO Fortum

                  256

                  288

                  305

                  292

                  290

                  0

                  6

                  12

                  18

                  24

                  30

                  36

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  MEURLTM20102009

                  EBITDA2 7332 2712 292

                  Comparable EBITDA2 4312 3962 398

                  Interest-bearing net debt6 7836 8265 969

                  Net debtEBITDA253026

                  Comparable Net debtEBITDA282825

                  Return on capital employed ()138116121

                  Return on shareholders equity ()191157160

                  ) as of 30 June 2011

          MEUR
          2011		231
          2012		668
          2013		639
          2014		1223
          2015		1051
          2016		879
          2017		270
          2018		190
          2019		840
          2020		73
          2021+		1530

          MEUR		LTM		2010		2009		2008		2006		2005
          EBITDA		2733		2271		2292		2478		1884
          Comparable EBITDA		2431		2396		2398			1151		1271
          Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
          Net debtEBITDA		25		30		26		25		8161
          Comparable Net debtEBITDA		28		28		25			16839		15130
          					23		18
          Return on capital employed ()		138		116		121		150		134		135
          Return on shareholders equity ()		191		157		160		187		144		135
          ) as of 30 June 2011

          MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
          Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
          Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
          Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
          Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
          Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
          Change in working capital		77		157		168		143		38		63		-102		161		5		0
          Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
          Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
          Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
          Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
          Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

          MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
          Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
          	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
          Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
          	Other items affecting comparability						261		12		512		85		-125		302
          Operating profit							609		351		1509		1075		1708		2142
          	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
          	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
          Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
          	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
          Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
          	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
          EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
          EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
          																	069

          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
          	Sales		183		327		556		964		1390
          	Comparable operating profit		10		10		21		-3		35
          	Net Assets				77		59
          	Comparable RONA						341
          	Gross Investments		1		0		4		0		4

        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
        	Sales		215		200		526		480		1009
        	Comparable operating profit		60		53		184		155		336
        	Net Assets				3487		3482
        	Comparable RONA						99
        	Gross Investments		62		47		96		76		233

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		195		169		490		413		881
      	Comparable operating profit		21		-9		55		7		56
      	Net Assets				3051		2690
      	Comparable RONA						34
      	Gross Investments		192		167		267		258		608

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		322		301		1047		952		1865
    	Comparable operating profit		25		33		196		165		306
    	Net Assets				3911		3884
    	Comparable RONA						82
    	Gross Investments		72		59		130		121		314

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		574		597		1267		1366		2603
  	Comparable operating profit		257		271		582		695		1185
  	Net Assets				5998		5726
  	Comparable RONA						198
  	Gross Investments		36		22		69		55		136

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
									Kraftproduktion		271		280		340		307		695		747		755		739
									Vaumlrme		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Markets		10		23		6		20		-3		-6		4		-1
									Ryssland		-9		-9		-14		-15		7		23		-8		-9
									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
									Summa		339		351		400		375		990		1075		1002		974

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Liikevoitto II2010			Liikevoitto II2009			Liikevoitto I-II2010			Liikevoitto I-II2009
										Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu		Vertkelp		Raportoitu
									Power		271		280		340		307		695		747		755		739
									Heat		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Saumlhkoumlnmyynti		10		23		6		20		-3		-6		4		-1
									Russia		-9		-9		-14		-15		7		23		-8		-9
									Muut		-19		-31		-12		-30		-29		-49		-24		-44
									Yhteensauml		339		351		400		375		990		1075		1002		974
										I-III2009
										SEK		Muut		Yhteensauml
									Saumlhkoumlntuotanto		-67		-3		-70
									Laumlmpouml		-10		-2		-12
									Saumlhkoumlnsiirto		-13		-1		-14
									Markets		-1		-1		-2
									Venaumljauml		0		6		6
									Muu		0		1		1
									Yhteensauml		-91		0		-91

Swedish

Power

• Comparable operating profit decreased
• Swedish nuclear availability back at 80-85
• Lower hydro and nuclear volumes
• Water reservoirs improved significantly towards the end of the quarter

• Q2 Power

  Sheet1

  Sheet2

  Sheet3

  Nuclear output in Q2

  Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

  (In 2010 no outages in Q2)

  If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

  Improved availability in Sweden

  Q2 2011

  Q2 2010

  Nuclear

  Outage effect

  TWh

  Q2 Power result declined due to several reasons

  Comparable operating profit EUR million

  257

  -3

  -4

  0

  271

  3

  -10

  Volume

  amp price

  Q22010

  Stronger

  SEK

  Russian

  import

  Property

  taxes

  Other

  Q22011

  Heat

  • Comparable operating profit decreased
  • Lower heat volumes in Sweden caused by divestment during first quarter
  • Integration cost provisions in Poland

  • Q2 Heat

    Sheet1

    Sheet2

    Sheet3

    Russia

    • Comparable operating profit improved
    • Commissioning of the new unit
    • Higher electricity market prices
    • Efficiency improvements
    • Reversal of CSA provisions related to the newly commissioned units

    • Q2 Russia

      Sheet1

      Sheet2

      Sheet3

      Distribution

      • Comparable operating profit increased
      • Lower transmission costs
      • Stronger SEK
      • Smart metering rollout to network customers in Finland continued

      • Q2 Distribution

        Sheet1

        Sheet2

        Sheet3

        Markets

        • Comparable operating profit at last yearrsquos level
        • Tough competition
        • Restructuring of the Business Market segment

        • Q2 Electricity Sales

          Sheet1

          Sheet2

          Sheet3

          Q2 Income statement

          Sheet1

          ampA

          Page ampP

          Q2 Cash flow statement

          Sheet1

          ampA

          Page ampP

          Key ratios

          Q2 lsquo11

          Sheet1

          Sheet2

          Sheet3

          Debt maturity profile

          per 30 June 2011 per 31 Dec 2010

          Average interest rate (incl swaps and forwards)4435

          Portion of floating fixed debt 47 53 49 51

          Strong financial position

          Return on capital employed

          12

          Return on shareholders equity

          14

          Net debtEBITDA

          around 30

          138

          191

          28

          Fortumrsquos financial targets

          LTM in Q22011

          Good liquidity ndash committed credit lines total EUR 27 billion

          Comparable net debtEBITDA

          Outlook

          Q2 Summary

          • Solid performance continued - seasonality
          • Power
          • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
          • Swedish nuclear back at 80-85 in availability
          • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
          • SEK burdened
          • Results year-end weighted compared to 2010
          • Russia
          • Commissioning of new units contributed to result improvement
          • The return for the new capacity is guaranteed
          • EUR 100 million efficiency improvement reached
          • Nordic countries
          • Water reservoirs improved to long-term average
          • Overall strong financial position

          • Outlook

            • Key drivers and risks
            • Wholesale price of electricity
            • Demand
            • Fuels
            • CO2 emissions prices
            • Water reservoirs
            • Nuclear availability
            • Nordic markets
            • Market continues to recover ndash 2008 level to be reached by 2012-2014
            • Electricity continues to gain share of total energy consumption
            • Russia
            • Wholesale market liberalised
            • Profits from Russia build up in pace with the capacity increases

            • Outlook

              • Capex (excluding potential acquisitions)
              • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
              • 2013-2014 around EUR 11 to 14 billion annually
              • Disclosed divestments totalled approximately EUR 05 billion
              • Hedging
              • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

              • (Q1 70 at EUR 44MWh)

                • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

                • (Q1 45 at EUR 45MWh)

                  Wholesale prices for electricity

                  Source

                  EURMWh

                  German

                  Nordic

                  15 July 2011

                  2007

                  2008

                  2009

                  2010

                  2011

                  2012

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  70

                  80

                  90

                  100

                  110

                  Spot prices

                  Forward prices

                  CO2-free and energy-efficient solutions important

                  Create solid earnings
                  growth in Russia

                  Leverage the strong
                  Nordic core

                  Build platform for
                  future growth

                  Competence in CO2-free hydro nuclear and energy efficient CHP production

                  and operating in competitive energy markets

                  Fortumrsquos Strategy

                  Work continues -

                  Fortumrsquos strategy remains intact

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales1833275569641 390

                  Comparable operating profit101021-335

                  Net Assets7759

                  Comparable RONA 341

                  Gross Investments10404

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales2152005264801 009

                  Comparable operating profit6053184155336

                  Net Assets3 4873 482

                  Comparable RONA 99

                  Gross Investments62479676233

                  0

                  250

                  500

                  750

                  1000

                  1250

                  1500

                  1750

                  20112012201320142015201620172018201920202021+

                  BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales195169490413881

                  Comparable operating profit21-955756

                  Net Assets3 0512 690

                  Comparable RONA 34

                  Gross Investments192167267258608

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales5745971 2671 3662 603

                  Comparable operating profit2572715826951 185

                  Net Assets5 9985 726

                  Comparable RONA 198

                  Gross Investments36226955136

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Sales1 316

                  1 2953 3503 2426 296

                  6 404

                  Expenses-968-956-2 353-2 252-4 463-4 564

                  Comparable operating profit3483399979901 8331 840

                  Other items affecting comparability2611251285-125302

                  Operating profit6093511 5091 0751 7082 142

                  Share of profit of associates and jvs1515743162105

                  Financial expenses net-72-34-127-61-155-221

                  Profit before taxes5523321 4561 0451 6152 026

                  Income tax expense-74-61-232-191-261-302

                  Net profit for the period4782711 2248541 3541 724

                  Non-controlling interests6874325496

                  EPS basic (EUR)053030129093146183

                  EPS diluted (EUR)053030129093146183

                  Spot price for power in NordPool power exchange

                  448

                  459

                  662

                  523

                  621

                  0

                  12

                  24

                  36

                  48

                  60

                  72

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  Powers Nordic power price

                  447

                  469

                  488

                  479

                  474

                  0

                  10

                  20

                  30

                  40

                  50

                  60

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  MEURII2011II2010I-II2011I-II20102010LTM

                  Operating profit before depreciations7644901 8131 3512 2712 733

                  Non-cash flow items and divesting activities

                  -299-6-569-73124-372

                  Financial items and fx gainslosses

                  12-146-290-323-641-608

                  Taxes

                  -144-73-258-155-355-458

                  Funds from operations (FFO)

                  3332656968001 3991 295

                  Change in working capital

                  771571681433863

                  Total net cash from operating activities4104228649431 4371 358

                  Paid capital expenditures-297-263-503-486-1 134-1 151

                  Acquisition of shares-1-1-20-1-28-47

                  Other investing activities331-165417260529

                  Cash flow before financing activities443142882528335689

                  MEURII2011II2010I-II2011I-II2010LTM

                  Sales3223011 0479521 865

                  Comparable operating profit2533196165306

                  Net Assets3 9113 884

                  Comparable RONA 82

                  Gross Investments7259130121314

                  MEUR

                  II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                  Power257271271280582695760747

                  Heat25332535196165290194

                  Russia21-921-95575523

                  Distribution605325253184155377166

                  Electricity Sales1010232321-33-6

                  Other-25-1917-31-41-2924-49

                  Total3483396093519979901 5091 075

                  Comparable operating profit

                  Reported operating profit

                  Comparable operating profit

                  Reported operating profit

                  Spot price for power (market price) Urals hub

                  770

                  935

                  817

                  950

                  954

                  0

                  200

                  400

                  600

                  800

                  1 000

                  1 200

                  Q22010Q32010Q42010Q12011Q22011

                  RUBMWh

                  Achieved power price for OAO Fortum

                  256

                  288

                  305

                  292

                  290

                  0

                  6

                  12

                  18

                  24

                  30

                  36

                  Q22010Q32010Q42010Q12011Q22011

                  eurMWh

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  g CO

                  2

                  kWh electricity 2009

                  Average346 gkWh

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  0

                  200

                  400

                  600

                  800

                  1000

                  1200

                  DEI

                  Drax

                  RWE

                  CEZ

                  SSE

                  EDP

                  Enel

                  Vattenfall

                  EON

                  Dong

                  Union

                  Fenosa

                  GDF SUEZ Europe

                  Iberdrola

                  Fortum total

                  EDF

                  PVO

                  Verbund

                  Fortum EU

                  Statkraft

                  41155

                  MEURLTM20102009

                  EBITDA2 7332 2712 292

                  Comparable EBITDA2 4312 3962 398

                  Interest-bearing net debt6 7836 8265 969

                  Net debtEBITDA253026

                  Comparable Net debtEBITDA282825

                  Return on capital employed ()138116121

                  Return on shareholders equity ()191157160

                  ) as of 30 June 2011

          MEUR
          2011		231
          2012		668
          2013		639
          2014		1223
          2015		1051
          2016		879
          2017		270
          2018		190
          2019		840
          2020		73
          2021+		1530

          MEUR		LTM		2010		2009		2008		2006		2005
          EBITDA		2733		2271		2292		2478		1884
          Comparable EBITDA		2431		2396		2398			1151		1271
          Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
          Net debtEBITDA		25		30		26		25		8161
          Comparable Net debtEBITDA		28		28		25			16839		15130
          					23		18
          Return on capital employed ()		138		116		121		150		134		135
          Return on shareholders equity ()		191		157		160		187		144		135
          ) as of 30 June 2011

          MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
          Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
          Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
          Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
          Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
          Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
          Change in working capital		77		157		168		143		38		63		-102		161		5		0
          Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
          Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
          Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
          Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
          Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

          MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
          Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
          	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
          Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
          	Other items affecting comparability						261		12		512		85		-125		302
          Operating profit							609		351		1509		1075		1708		2142
          	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
          	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
          Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
          	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
          Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
          	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
          EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
          EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
          																	069

          	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
          	Sales		183		327		556		964		1390
          	Comparable operating profit		10		10		21		-3		35
          	Net Assets				77		59
          	Comparable RONA						341
          	Gross Investments		1		0		4		0		4

        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
        	Sales		215		200		526		480		1009
        	Comparable operating profit		60		53		184		155		336
        	Net Assets				3487		3482
        	Comparable RONA						99
        	Gross Investments		62		47		96		76		233

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		195		169		490		413		881
      	Comparable operating profit		21		-9		55		7		56
      	Net Assets				3051		2690
      	Comparable RONA						34
      	Gross Investments		192		167		267		258		608

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		322		301		1047		952		1865
    	Comparable operating profit		25		33		196		165		306
    	Net Assets				3911		3884
    	Comparable RONA						82
    	Gross Investments		72		59		130		121		314

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		574		597		1267		1366		2603
  	Comparable operating profit		257		271		582		695		1185
  	Net Assets				5998		5726
  	Comparable RONA						198
  	Gross Investments		36		22		69		55		136

		Liikevoitto 2007				Liikevoitto 2006
		Vertkelp		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero			comp		op
	Saumlhkoumlntuotanto		0		0		0		0		0		0			0		0
	Laumlmpouml		0		0		0		0		0		0			0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0			0		0
	Markets		0		0		0		0		0		0			0		0
	Muu		0		0		0		0		0		0			0		0
	Yhteensauml		0		0		0		0		0		0			0		0		0
		Liikevoitto I2008				Liikevoitto I2007
		Vertkelpoinen		Raportoitu		Ero		Vertkelpoinen		Raportoitu		Ero
	Saumlhkoumlntuotanto		0		0		0		0		0		0
	Laumlmpouml		0		0		0		0		0		0
	Saumlhkoumlnsiirto		0		0		0		0		0		0
	Markets		0		0		0		0		0		0
	Venaumljauml		0		0			0		0
	Muu		0		0		0		0		0		0
	Yhteensauml		0		0		0		0		0		0
										Roumlrelseresultat II2009			Roumlrelseresultat II2008			Liikevoitto 2008			Liikevoitto 2007
										Jaumlmfoumlrbart		Rapporterat		Jaumlmfoumlrbart		Rapporterat		Vertkelp		Raportoitu		Vertkelp		Raportoitu
									Kraftproduktion		271		280		340		307		695		747		755		739
									Vaumlrme		33		35		26		39		165		194		140		154
									Distribution		53		53		54		54		155		166		135		135
									Markets		10		23		6		20		-3		-6		4		-1
									Ryssland		-9		-9		-14		-15		7		23		-8		-9
									Oumlvrigt		-19		-31		-12		-30		-29		-49		-24		-44
									Summa		339		351		400		375		990		1075		1002		974

Sheet1

Sheet2

Sheet3

Nuclear output in Q2

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

Q2 2011

Q2 2010

Nuclear

Outage effect

TWh

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257

-3

-4

0

271

3

-10

Volume

amp price

Q22010

Stronger

SEK

Russian

import

Property

taxes

Other

Q22011

Heat

• Comparable operating profit decreased
• Lower heat volumes in Sweden caused by divestment during first quarter
• Integration cost provisions in Poland

• Q2 Heat

  Sheet1

  Sheet2

  Sheet3

  Russia

  • Comparable operating profit improved
  • Commissioning of the new unit
  • Higher electricity market prices
  • Efficiency improvements
  • Reversal of CSA provisions related to the newly commissioned units

  • Q2 Russia

    Sheet1

    Sheet2

    Sheet3

    Distribution

    • Comparable operating profit increased
    • Lower transmission costs
    • Stronger SEK
    • Smart metering rollout to network customers in Finland continued

    • Q2 Distribution

      Sheet1

      Sheet2

      Sheet3

      Markets

      • Comparable operating profit at last yearrsquos level
      • Tough competition
      • Restructuring of the Business Market segment

      • Q2 Electricity Sales

        Sheet1

        Sheet2

        Sheet3

        Q2 Income statement

        Sheet1

        ampA

        Page ampP

        Q2 Cash flow statement

        Sheet1

        ampA

        Page ampP

        Key ratios

        Q2 lsquo11

        Sheet1

        Sheet2

        Sheet3

        Debt maturity profile

        per 30 June 2011 per 31 Dec 2010

        Average interest rate (incl swaps and forwards)4435

        Portion of floating fixed debt 47 53 49 51

        Strong financial position

        Return on capital employed

        12

        Return on shareholders equity

        14

        Net debtEBITDA

        around 30

        138

        191

        28

        Fortumrsquos financial targets

        LTM in Q22011

        Good liquidity ndash committed credit lines total EUR 27 billion

        Comparable net debtEBITDA

        Outlook

        Q2 Summary

        • Solid performance continued - seasonality
        • Power
        • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
        • Swedish nuclear back at 80-85 in availability
        • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
        • SEK burdened
        • Results year-end weighted compared to 2010
        • Russia
        • Commissioning of new units contributed to result improvement
        • The return for the new capacity is guaranteed
        • EUR 100 million efficiency improvement reached
        • Nordic countries
        • Water reservoirs improved to long-term average
        • Overall strong financial position

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Demand
          • Fuels
          • CO2 emissions prices
          • Water reservoirs
          • Nuclear availability
          • Nordic markets
          • Market continues to recover ndash 2008 level to be reached by 2012-2014
          • Electricity continues to gain share of total energy consumption
          • Russia
          • Wholesale market liberalised
          • Profits from Russia build up in pace with the capacity increases

          • Outlook

            • Capex (excluding potential acquisitions)
            • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
            • 2013-2014 around EUR 11 to 14 billion annually
            • Disclosed divestments totalled approximately EUR 05 billion
            • Hedging
            • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

            • (Q1 70 at EUR 44MWh)

              • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

              • (Q1 45 at EUR 45MWh)

                Wholesale prices for electricity

                Source

                EURMWh

                German

                Nordic

                15 July 2011

                2007

                2008

                2009

                2010

                2011

                2012

                0

                10

                20

                30

                40

                50

                60

                70

                80

                90

                100

                110

                Spot prices

                Forward prices

                CO2-free and energy-efficient solutions important

                Create solid earnings
                growth in Russia

                Leverage the strong
                Nordic core

                Build platform for
                future growth

                Competence in CO2-free hydro nuclear and energy efficient CHP production

                and operating in competitive energy markets

                Fortumrsquos Strategy

                Work continues -

                Fortumrsquos strategy remains intact

                MEURII2011II2010I-II2011I-II2010LTM

                Sales1833275569641 390

                Comparable operating profit101021-335

                Net Assets7759

                Comparable RONA 341

                Gross Investments10404

                MEURII2011II2010I-II2011I-II2010LTM

                Sales2152005264801 009

                Comparable operating profit6053184155336

                Net Assets3 4873 482

                Comparable RONA 99

                Gross Investments62479676233

                0

                250

                500

                750

                1000

                1250

                1500

                1750

                20112012201320142015201620172018201920202021+

                BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                MEURII2011II2010I-II2011I-II2010LTM

                Sales195169490413881

                Comparable operating profit21-955756

                Net Assets3 0512 690

                Comparable RONA 34

                Gross Investments192167267258608

                MEURII2011II2010I-II2011I-II2010LTM

                Sales5745971 2671 3662 603

                Comparable operating profit2572715826951 185

                Net Assets5 9985 726

                Comparable RONA 198

                Gross Investments36226955136

                MEURII2011II2010I-II2011I-II20102010LTM

                Sales1 316

                1 2953 3503 2426 296

                6 404

                Expenses-968-956-2 353-2 252-4 463-4 564

                Comparable operating profit3483399979901 8331 840

                Other items affecting comparability2611251285-125302

                Operating profit6093511 5091 0751 7082 142

                Share of profit of associates and jvs1515743162105

                Financial expenses net-72-34-127-61-155-221

                Profit before taxes5523321 4561 0451 6152 026

                Income tax expense-74-61-232-191-261-302

                Net profit for the period4782711 2248541 3541 724

                Non-controlling interests6874325496

                EPS basic (EUR)053030129093146183

                EPS diluted (EUR)053030129093146183

                Spot price for power in NordPool power exchange

                448

                459

                662

                523

                621

                0

                12

                24

                36

                48

                60

                72

                Q22010Q32010Q42010Q12011Q22011

                eurMWh

                Powers Nordic power price

                447

                469

                488

                479

                474

                0

                10

                20

                30

                40

                50

                60

                Q22010Q32010Q42010Q12011Q22011

                eurMWh

                MEURII2011II2010I-II2011I-II20102010LTM

                Operating profit before depreciations7644901 8131 3512 2712 733

                Non-cash flow items and divesting activities

                -299-6-569-73124-372

                Financial items and fx gainslosses

                12-146-290-323-641-608

                Taxes

                -144-73-258-155-355-458

                Funds from operations (FFO)

                3332656968001 3991 295

                Change in working capital

                771571681433863

                Total net cash from operating activities4104228649431 4371 358

                Paid capital expenditures-297-263-503-486-1 134-1 151

                Acquisition of shares-1-1-20-1-28-47

                Other investing activities331-165417260529

                Cash flow before financing activities443142882528335689

                MEURII2011II2010I-II2011I-II2010LTM

                Sales3223011 0479521 865

                Comparable operating profit2533196165306

                Net Assets3 9113 884

                Comparable RONA 82

                Gross Investments7259130121314

                MEUR

                II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                Power257271271280582695760747

                Heat25332535196165290194

                Russia21-921-95575523

                Distribution605325253184155377166

                Electricity Sales1010232321-33-6

                Other-25-1917-31-41-2924-49

                Total3483396093519979901 5091 075

                Comparable operating profit

                Reported operating profit

                Comparable operating profit

                Reported operating profit

                Spot price for power (market price) Urals hub

                770

                935

                817

                950

                954

                0

                200

                400

                600

                800

                1 000

                1 200

                Q22010Q32010Q42010Q12011Q22011

                RUBMWh

                Achieved power price for OAO Fortum

                256

                288

                305

                292

                290

                0

                6

                12

                18

                24

                30

                36

                Q22010Q32010Q42010Q12011Q22011

                eurMWh

                g CO

                2

                kWh electricity 2009

                Average346 gkWh

                0

                200

                400

                600

                800

                1000

                1200

                DEI

                Drax

                RWE

                CEZ

                SSE

                EDP

                Enel

                Vattenfall

                EON

                Dong

                Union

                Fenosa

                GDF SUEZ Europe

                Iberdrola

                Fortum total

                EDF

                PVO

                Verbund

                Fortum EU

                Statkraft

                41155

                g CO

                2

                kWh electricity 2009

                Average346 gkWh

                0

                200

                400

                600

                800

                1000

                1200

                DEI

                Drax

                RWE

                CEZ

                SSE

                EDP

                Enel

                Vattenfall

                EON

                Dong

                Union

                Fenosa

                GDF SUEZ Europe

                Iberdrola

                Fortum total

                EDF

                PVO

                Verbund

                Fortum EU

                Statkraft

                41155

                0

                200

                400

                600

                800

                1000

                1200

                DEI

                Drax

                RWE

                CEZ

                SSE

                EDP

                Enel

                Vattenfall

                EON

                Dong

                Union

                Fenosa

                GDF SUEZ Europe

                Iberdrola

                Fortum total

                EDF

                PVO

                Verbund

                Fortum EU

                Statkraft

                41155

                MEURLTM20102009

                EBITDA2 7332 2712 292

                Comparable EBITDA2 4312 3962 398

                Interest-bearing net debt6 7836 8265 969

                Net debtEBITDA253026

                Comparable Net debtEBITDA282825

                Return on capital employed ()138116121

                Return on shareholders equity ()191157160

                ) as of 30 June 2011

        MEUR
        2011		231
        2012		668
        2013		639
        2014		1223
        2015		1051
        2016		879
        2017		270
        2018		190
        2019		840
        2020		73
        2021+		1530

        MEUR		LTM		2010		2009		2008		2006		2005
        EBITDA		2733		2271		2292		2478		1884
        Comparable EBITDA		2431		2396		2398			1151		1271
        Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
        Net debtEBITDA		25		30		26		25		8161
        Comparable Net debtEBITDA		28		28		25			16839		15130
        					23		18
        Return on capital employed ()		138		116		121		150		134		135
        Return on shareholders equity ()		191		157		160		187		144		135
        ) as of 30 June 2011

        MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
        Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
        Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
        Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
        Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
        Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
        Change in working capital		77		157		168		143		38		63		-102		161		5		0
        Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
        Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
        Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
        Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
        Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

        MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
        Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
        	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
        Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
        	Other items affecting comparability						261		12		512		85		-125		302
        Operating profit							609		351		1509		1075		1708		2142
        	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
        	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
        Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
        	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
        Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
        	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
        EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
        EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
        																	069

        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
        	Sales		183		327		556		964		1390
        	Comparable operating profit		10		10		21		-3		35
        	Net Assets				77		59
        	Comparable RONA						341
        	Gross Investments		1		0		4		0		4

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		215		200		526		480		1009
      	Comparable operating profit		60		53		184		155		336
      	Net Assets				3487		3482
      	Comparable RONA						99
      	Gross Investments		62		47		96		76		233

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		195		169		490		413		881
    	Comparable operating profit		21		-9		55		7		56
    	Net Assets				3051		2690
    	Comparable RONA						34
    	Gross Investments		192		167		267		258		608

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		322		301		1047		952		1865
  	Comparable operating profit		25		33		196		165		306
  	Net Assets				3911		3884
  	Comparable RONA						82
  	Gross Investments		72		59		130		121		314

	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
	Sales		574		597		1267		1366		2603
	Comparable operating profit		257		271		582		695		1185
	Net Assets				5998		5726
	Comparable RONA						198
	Gross Investments		36		22		69		55		136

Sheet2

Sheet3

Nuclear output in Q2

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

Q2 2011

Q2 2010

Nuclear

Outage effect

TWh

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257

-3

-4

0

271

3

-10

Volume

amp price

Q22010

Stronger

SEK

Russian

import

Property

taxes

Other

Q22011

Heat

• Comparable operating profit decreased
• Lower heat volumes in Sweden caused by divestment during first quarter
• Integration cost provisions in Poland

• Q2 Heat

  Sheet1

  Sheet2

  Sheet3

  Russia

  • Comparable operating profit improved
  • Commissioning of the new unit
  • Higher electricity market prices
  • Efficiency improvements
  • Reversal of CSA provisions related to the newly commissioned units

  • Q2 Russia

    Sheet1

    Sheet2

    Sheet3

    Distribution

    • Comparable operating profit increased
    • Lower transmission costs
    • Stronger SEK
    • Smart metering rollout to network customers in Finland continued

    • Q2 Distribution

      Sheet1

      Sheet2

      Sheet3

      Markets

      • Comparable operating profit at last yearrsquos level
      • Tough competition
      • Restructuring of the Business Market segment

      • Q2 Electricity Sales

        Sheet1

        Sheet2

        Sheet3

        Q2 Income statement

        Sheet1

        ampA

        Page ampP

        Q2 Cash flow statement

        Sheet1

        ampA

        Page ampP

        Key ratios

        Q2 lsquo11

        Sheet1

        Sheet2

        Sheet3

        Debt maturity profile

        per 30 June 2011 per 31 Dec 2010

        Average interest rate (incl swaps and forwards)4435

        Portion of floating fixed debt 47 53 49 51

        Strong financial position

        Return on capital employed

        12

        Return on shareholders equity

        14

        Net debtEBITDA

        around 30

        138

        191

        28

        Fortumrsquos financial targets

        LTM in Q22011

        Good liquidity ndash committed credit lines total EUR 27 billion

        Comparable net debtEBITDA

        Outlook

        Q2 Summary

        • Solid performance continued - seasonality
        • Power
        • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
        • Swedish nuclear back at 80-85 in availability
        • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
        • SEK burdened
        • Results year-end weighted compared to 2010
        • Russia
        • Commissioning of new units contributed to result improvement
        • The return for the new capacity is guaranteed
        • EUR 100 million efficiency improvement reached
        • Nordic countries
        • Water reservoirs improved to long-term average
        • Overall strong financial position

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Demand
          • Fuels
          • CO2 emissions prices
          • Water reservoirs
          • Nuclear availability
          • Nordic markets
          • Market continues to recover ndash 2008 level to be reached by 2012-2014
          • Electricity continues to gain share of total energy consumption
          • Russia
          • Wholesale market liberalised
          • Profits from Russia build up in pace with the capacity increases

          • Outlook

            • Capex (excluding potential acquisitions)
            • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
            • 2013-2014 around EUR 11 to 14 billion annually
            • Disclosed divestments totalled approximately EUR 05 billion
            • Hedging
            • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

            • (Q1 70 at EUR 44MWh)

              • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

              • (Q1 45 at EUR 45MWh)

                Wholesale prices for electricity

                Source

                EURMWh

                German

                Nordic

                15 July 2011

                2007

                2008

                2009

                2010

                2011

                2012

                0

                10

                20

                30

                40

                50

                60

                70

                80

                90

                100

                110

                Spot prices

                Forward prices

                CO2-free and energy-efficient solutions important

                Create solid earnings
                growth in Russia

                Leverage the strong
                Nordic core

                Build platform for
                future growth

                Competence in CO2-free hydro nuclear and energy efficient CHP production

                and operating in competitive energy markets

                Fortumrsquos Strategy

                Work continues -

                Fortumrsquos strategy remains intact

                MEURII2011II2010I-II2011I-II2010LTM

                Sales1833275569641 390

                Comparable operating profit101021-335

                Net Assets7759

                Comparable RONA 341

                Gross Investments10404

                MEURII2011II2010I-II2011I-II2010LTM

                Sales2152005264801 009

                Comparable operating profit6053184155336

                Net Assets3 4873 482

                Comparable RONA 99

                Gross Investments62479676233

                0

                250

                500

                750

                1000

                1250

                1500

                1750

                20112012201320142015201620172018201920202021+

                BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                MEURII2011II2010I-II2011I-II2010LTM

                Sales195169490413881

                Comparable operating profit21-955756

                Net Assets3 0512 690

                Comparable RONA 34

                Gross Investments192167267258608

                MEURII2011II2010I-II2011I-II2010LTM

                Sales5745971 2671 3662 603

                Comparable operating profit2572715826951 185

                Net Assets5 9985 726

                Comparable RONA 198

                Gross Investments36226955136

                MEURII2011II2010I-II2011I-II20102010LTM

                Sales1 316

                1 2953 3503 2426 296

                6 404

                Expenses-968-956-2 353-2 252-4 463-4 564

                Comparable operating profit3483399979901 8331 840

                Other items affecting comparability2611251285-125302

                Operating profit6093511 5091 0751 7082 142

                Share of profit of associates and jvs1515743162105

                Financial expenses net-72-34-127-61-155-221

                Profit before taxes5523321 4561 0451 6152 026

                Income tax expense-74-61-232-191-261-302

                Net profit for the period4782711 2248541 3541 724

                Non-controlling interests6874325496

                EPS basic (EUR)053030129093146183

                EPS diluted (EUR)053030129093146183

                Spot price for power in NordPool power exchange

                448

                459

                662

                523

                621

                0

                12

                24

                36

                48

                60

                72

                Q22010Q32010Q42010Q12011Q22011

                eurMWh

                Powers Nordic power price

                447

                469

                488

                479

                474

                0

                10

                20

                30

                40

                50

                60

                Q22010Q32010Q42010Q12011Q22011

                eurMWh

                MEURII2011II2010I-II2011I-II20102010LTM

                Operating profit before depreciations7644901 8131 3512 2712 733

                Non-cash flow items and divesting activities

                -299-6-569-73124-372

                Financial items and fx gainslosses

                12-146-290-323-641-608

                Taxes

                -144-73-258-155-355-458

                Funds from operations (FFO)

                3332656968001 3991 295

                Change in working capital

                771571681433863

                Total net cash from operating activities4104228649431 4371 358

                Paid capital expenditures-297-263-503-486-1 134-1 151

                Acquisition of shares-1-1-20-1-28-47

                Other investing activities331-165417260529

                Cash flow before financing activities443142882528335689

                MEURII2011II2010I-II2011I-II2010LTM

                Sales3223011 0479521 865

                Comparable operating profit2533196165306

                Net Assets3 9113 884

                Comparable RONA 82

                Gross Investments7259130121314

                MEUR

                II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                Power257271271280582695760747

                Heat25332535196165290194

                Russia21-921-95575523

                Distribution605325253184155377166

                Electricity Sales1010232321-33-6

                Other-25-1917-31-41-2924-49

                Total3483396093519979901 5091 075

                Comparable operating profit

                Reported operating profit

                Comparable operating profit

                Reported operating profit

                Spot price for power (market price) Urals hub

                770

                935

                817

                950

                954

                0

                200

                400

                600

                800

                1 000

                1 200

                Q22010Q32010Q42010Q12011Q22011

                RUBMWh

                Achieved power price for OAO Fortum

                256

                288

                305

                292

                290

                0

                6

                12

                18

                24

                30

                36

                Q22010Q32010Q42010Q12011Q22011

                eurMWh

                g CO

                2

                kWh electricity 2009

                Average346 gkWh

                0

                200

                400

                600

                800

                1000

                1200

                DEI

                Drax

                RWE

                CEZ

                SSE

                EDP

                Enel

                Vattenfall

                EON

                Dong

                Union

                Fenosa

                GDF SUEZ Europe

                Iberdrola

                Fortum total

                EDF

                PVO

                Verbund

                Fortum EU

                Statkraft

                41155

                g CO

                2

                kWh electricity 2009

                Average346 gkWh

                0

                200

                400

                600

                800

                1000

                1200

                DEI

                Drax

                RWE

                CEZ

                SSE

                EDP

                Enel

                Vattenfall

                EON

                Dong

                Union

                Fenosa

                GDF SUEZ Europe

                Iberdrola

                Fortum total

                EDF

                PVO

                Verbund

                Fortum EU

                Statkraft

                41155

                0

                200

                400

                600

                800

                1000

                1200

                DEI

                Drax

                RWE

                CEZ

                SSE

                EDP

                Enel

                Vattenfall

                EON

                Dong

                Union

                Fenosa

                GDF SUEZ Europe

                Iberdrola

                Fortum total

                EDF

                PVO

                Verbund

                Fortum EU

                Statkraft

                41155

                MEURLTM20102009

                EBITDA2 7332 2712 292

                Comparable EBITDA2 4312 3962 398

                Interest-bearing net debt6 7836 8265 969

                Net debtEBITDA253026

                Comparable Net debtEBITDA282825

                Return on capital employed ()138116121

                Return on shareholders equity ()191157160

                ) as of 30 June 2011

        MEUR
        2011		231
        2012		668
        2013		639
        2014		1223
        2015		1051
        2016		879
        2017		270
        2018		190
        2019		840
        2020		73
        2021+		1530

        MEUR		LTM		2010		2009		2008		2006		2005
        EBITDA		2733		2271		2292		2478		1884
        Comparable EBITDA		2431		2396		2398			1151		1271
        Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
        Net debtEBITDA		25		30		26		25		8161
        Comparable Net debtEBITDA		28		28		25			16839		15130
        					23		18
        Return on capital employed ()		138		116		121		150		134		135
        Return on shareholders equity ()		191		157		160		187		144		135
        ) as of 30 June 2011

        MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
        Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
        Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
        Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
        Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
        Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
        Change in working capital		77		157		168		143		38		63		-102		161		5		0
        Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
        Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
        Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
        Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
        Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

        MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
        Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
        	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
        Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
        	Other items affecting comparability						261		12		512		85		-125		302
        Operating profit							609		351		1509		1075		1708		2142
        	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
        	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
        Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
        	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
        Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
        	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
        EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
        EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
        																	069

        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
        	Sales		183		327		556		964		1390
        	Comparable operating profit		10		10		21		-3		35
        	Net Assets				77		59
        	Comparable RONA						341
        	Gross Investments		1		0		4		0		4

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		215		200		526		480		1009
      	Comparable operating profit		60		53		184		155		336
      	Net Assets				3487		3482
      	Comparable RONA						99
      	Gross Investments		62		47		96		76		233

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		195		169		490		413		881
    	Comparable operating profit		21		-9		55		7		56
    	Net Assets				3051		2690
    	Comparable RONA						34
    	Gross Investments		192		167		267		258		608

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		322		301		1047		952		1865
  	Comparable operating profit		25		33		196		165		306
  	Net Assets				3911		3884
  	Comparable RONA						82
  	Gross Investments		72		59		130		121		314

Sheet3

Nuclear output in Q2

Planned outages in Oskarshamn 1amp3 and Forsmark 1 in Q22011

(In 2010 no outages in Q2)

If timing would have been similar in 2011 compared to 2010 nuclear output would have exceeded 2010 levels during Q2

Improved availability in Sweden

Q2 2011

Q2 2010

Nuclear

Outage effect

TWh

Q2 Power result declined due to several reasons

Comparable operating profit EUR million

257

-3

-4

0

271

3

-10

Volume

amp price

Q22010

Stronger

SEK

Russian

import

Property

taxes

Other

Q22011

Heat

• Comparable operating profit decreased
• Lower heat volumes in Sweden caused by divestment during first quarter
• Integration cost provisions in Poland

• Q2 Heat

  Sheet1

  Sheet2

  Sheet3

  Russia

  • Comparable operating profit improved
  • Commissioning of the new unit
  • Higher electricity market prices
  • Efficiency improvements
  • Reversal of CSA provisions related to the newly commissioned units

  • Q2 Russia

    Sheet1

    Sheet2

    Sheet3

    Distribution

    • Comparable operating profit increased
    • Lower transmission costs
    • Stronger SEK
    • Smart metering rollout to network customers in Finland continued

    • Q2 Distribution

      Sheet1

      Sheet2

      Sheet3

      Markets

      • Comparable operating profit at last yearrsquos level
      • Tough competition
      • Restructuring of the Business Market segment

      • Q2 Electricity Sales

        Sheet1

        Sheet2

        Sheet3

        Q2 Income statement

        Sheet1

        ampA

        Page ampP

        Q2 Cash flow statement

        Sheet1

        ampA

        Page ampP

        Key ratios

        Q2 lsquo11

        Sheet1

        Sheet2

        Sheet3

        Debt maturity profile

        per 30 June 2011 per 31 Dec 2010

        Average interest rate (incl swaps and forwards)4435

        Portion of floating fixed debt 47 53 49 51

        Strong financial position

        Return on capital employed

        12

        Return on shareholders equity

        14

        Net debtEBITDA

        around 30

        138

        191

        28

        Fortumrsquos financial targets

        LTM in Q22011

        Good liquidity ndash committed credit lines total EUR 27 billion

        Comparable net debtEBITDA

        Outlook

        Q2 Summary

        • Solid performance continued - seasonality
        • Power
        • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
        • Swedish nuclear back at 80-85 in availability
        • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
        • SEK burdened
        • Results year-end weighted compared to 2010
        • Russia
        • Commissioning of new units contributed to result improvement
        • The return for the new capacity is guaranteed
        • EUR 100 million efficiency improvement reached
        • Nordic countries
        • Water reservoirs improved to long-term average
        • Overall strong financial position

        • Outlook

          • Key drivers and risks
          • Wholesale price of electricity
          • Demand
          • Fuels
          • CO2 emissions prices
          • Water reservoirs
          • Nuclear availability
          • Nordic markets
          • Market continues to recover ndash 2008 level to be reached by 2012-2014
          • Electricity continues to gain share of total energy consumption
          • Russia
          • Wholesale market liberalised
          • Profits from Russia build up in pace with the capacity increases

          • Outlook

            • Capex (excluding potential acquisitions)
            • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
            • 2013-2014 around EUR 11 to 14 billion annually
            • Disclosed divestments totalled approximately EUR 05 billion
            • Hedging
            • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

            • (Q1 70 at EUR 44MWh)

              • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

              • (Q1 45 at EUR 45MWh)

                Wholesale prices for electricity

                Source

                EURMWh

                German

                Nordic

                15 July 2011

                2007

                2008

                2009

                2010

                2011

                2012

                0

                10

                20

                30

                40

                50

                60

                70

                80

                90

                100

                110

                Spot prices

                Forward prices

                CO2-free and energy-efficient solutions important

                Create solid earnings
                growth in Russia

                Leverage the strong
                Nordic core

                Build platform for
                future growth

                Competence in CO2-free hydro nuclear and energy efficient CHP production

                and operating in competitive energy markets

                Fortumrsquos Strategy

                Work continues -

                Fortumrsquos strategy remains intact

                MEURII2011II2010I-II2011I-II2010LTM

                Sales1833275569641 390

                Comparable operating profit101021-335

                Net Assets7759

                Comparable RONA 341

                Gross Investments10404

                MEURII2011II2010I-II2011I-II2010LTM

                Sales2152005264801 009

                Comparable operating profit6053184155336

                Net Assets3 4873 482

                Comparable RONA 99

                Gross Investments62479676233

                0

                250

                500

                750

                1000

                1250

                1500

                1750

                20112012201320142015201620172018201920202021+

                BondsFinancial institutionsOther long-term debtCPsOther short-term debt

                MEURII2011II2010I-II2011I-II2010LTM

                Sales195169490413881

                Comparable operating profit21-955756

                Net Assets3 0512 690

                Comparable RONA 34

                Gross Investments192167267258608

                MEURII2011II2010I-II2011I-II2010LTM

                Sales5745971 2671 3662 603

                Comparable operating profit2572715826951 185

                Net Assets5 9985 726

                Comparable RONA 198

                Gross Investments36226955136

                MEURII2011II2010I-II2011I-II20102010LTM

                Sales1 316

                1 2953 3503 2426 296

                6 404

                Expenses-968-956-2 353-2 252-4 463-4 564

                Comparable operating profit3483399979901 8331 840

                Other items affecting comparability2611251285-125302

                Operating profit6093511 5091 0751 7082 142

                Share of profit of associates and jvs1515743162105

                Financial expenses net-72-34-127-61-155-221

                Profit before taxes5523321 4561 0451 6152 026

                Income tax expense-74-61-232-191-261-302

                Net profit for the period4782711 2248541 3541 724

                Non-controlling interests6874325496

                EPS basic (EUR)053030129093146183

                EPS diluted (EUR)053030129093146183

                Spot price for power in NordPool power exchange

                448

                459

                662

                523

                621

                0

                12

                24

                36

                48

                60

                72

                Q22010Q32010Q42010Q12011Q22011

                eurMWh

                Powers Nordic power price

                447

                469

                488

                479

                474

                0

                10

                20

                30

                40

                50

                60

                Q22010Q32010Q42010Q12011Q22011

                eurMWh

                MEURII2011II2010I-II2011I-II20102010LTM

                Operating profit before depreciations7644901 8131 3512 2712 733

                Non-cash flow items and divesting activities

                -299-6-569-73124-372

                Financial items and fx gainslosses

                12-146-290-323-641-608

                Taxes

                -144-73-258-155-355-458

                Funds from operations (FFO)

                3332656968001 3991 295

                Change in working capital

                771571681433863

                Total net cash from operating activities4104228649431 4371 358

                Paid capital expenditures-297-263-503-486-1 134-1 151

                Acquisition of shares-1-1-20-1-28-47

                Other investing activities331-165417260529

                Cash flow before financing activities443142882528335689

                MEURII2011II2010I-II2011I-II2010LTM

                Sales3223011 0479521 865

                Comparable operating profit2533196165306

                Net Assets3 9113 884

                Comparable RONA 82

                Gross Investments7259130121314

                MEUR

                II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

                Power257271271280582695760747

                Heat25332535196165290194

                Russia21-921-95575523

                Distribution605325253184155377166

                Electricity Sales1010232321-33-6

                Other-25-1917-31-41-2924-49

                Total3483396093519979901 5091 075

                Comparable operating profit

                Reported operating profit

                Comparable operating profit

                Reported operating profit

                Spot price for power (market price) Urals hub

                770

                935

                817

                950

                954

                0

                200

                400

                600

                800

                1 000

                1 200

                Q22010Q32010Q42010Q12011Q22011

                RUBMWh

                Achieved power price for OAO Fortum

                256

                288

                305

                292

                290

                0

                6

                12

                18

                24

                30

                36

                Q22010Q32010Q42010Q12011Q22011

                eurMWh

                g CO

                2

                kWh electricity 2009

                Average346 gkWh

                0

                200

                400

                600

                800

                1000

                1200

                DEI

                Drax

                RWE

                CEZ

                SSE

                EDP

                Enel

                Vattenfall

                EON

                Dong

                Union

                Fenosa

                GDF SUEZ Europe

                Iberdrola

                Fortum total

                EDF

                PVO

                Verbund

                Fortum EU

                Statkraft

                41155

                g CO

                2

                kWh electricity 2009

                Average346 gkWh

                0

                200

                400

                600

                800

                1000

                1200

                DEI

                Drax

                RWE

                CEZ

                SSE

                EDP

                Enel

                Vattenfall

                EON

                Dong

                Union

                Fenosa

                GDF SUEZ Europe

                Iberdrola

                Fortum total

                EDF

                PVO

                Verbund

                Fortum EU

                Statkraft

                41155

                0

                200

                400

                600

                800

                1000

                1200

                DEI

                Drax

                RWE

                CEZ

                SSE

                EDP

                Enel

                Vattenfall

                EON

                Dong

                Union

                Fenosa

                GDF SUEZ Europe

                Iberdrola

                Fortum total

                EDF

                PVO

                Verbund

                Fortum EU

                Statkraft

                41155

                MEURLTM20102009

                EBITDA2 7332 2712 292

                Comparable EBITDA2 4312 3962 398

                Interest-bearing net debt6 7836 8265 969

                Net debtEBITDA253026

                Comparable Net debtEBITDA282825

                Return on capital employed ()138116121

                Return on shareholders equity ()191157160

                ) as of 30 June 2011

        MEUR
        2011		231
        2012		668
        2013		639
        2014		1223
        2015		1051
        2016		879
        2017		270
        2018		190
        2019		840
        2020		73
        2021+		1530

        MEUR		LTM		2010		2009		2008		2006		2005
        EBITDA		2733		2271		2292		2478		1884
        Comparable EBITDA		2431		2396		2398			1151		1271
        Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
        Net debtEBITDA		25		30		26		25		8161
        Comparable Net debtEBITDA		28		28		25			16839		15130
        					23		18
        Return on capital employed ()		138		116		121		150		134		135
        Return on shareholders equity ()		191		157		160		187		144		135
        ) as of 30 June 2011

        MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
        Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
        Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
        Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
        Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
        Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
        Change in working capital		77		157		168		143		38		63		-102		161		5		0
        Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
        Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
        Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
        Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
        Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

        MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
        Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
        	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
        Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
        	Other items affecting comparability						261		12		512		85		-125		302
        Operating profit							609		351		1509		1075		1708		2142
        	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
        	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
        Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
        	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
        Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
        	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
        EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
        EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
        																	069

        	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
        	Sales		183		327		556		964		1390
        	Comparable operating profit		10		10		21		-3		35
        	Net Assets				77		59
        	Comparable RONA						341
        	Gross Investments		1		0		4		0		4

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		215		200		526		480		1009
      	Comparable operating profit		60		53		184		155		336
      	Net Assets				3487		3482
      	Comparable RONA						99
      	Gross Investments		62		47		96		76		233

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		195		169		490		413		881
    	Comparable operating profit		21		-9		55		7		56
    	Net Assets				3051		2690
    	Comparable RONA						34
    	Gross Investments		192		167		267		258		608

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		322		301		1047		952		1865
  	Comparable operating profit		25		33		196		165		306
  	Net Assets				3911		3884
  	Comparable RONA						82
  	Gross Investments		72		59		130		121		314

Sheet1

Sheet2

Sheet3

Russia

• Comparable operating profit improved
• Commissioning of the new unit
• Higher electricity market prices
• Efficiency improvements
• Reversal of CSA provisions related to the newly commissioned units

• Q2 Russia

  Sheet1

  Sheet2

  Sheet3

  Distribution

  • Comparable operating profit increased
  • Lower transmission costs
  • Stronger SEK
  • Smart metering rollout to network customers in Finland continued

  • Q2 Distribution

    Sheet1

    Sheet2

    Sheet3

    Markets

    • Comparable operating profit at last yearrsquos level
    • Tough competition
    • Restructuring of the Business Market segment

    • Q2 Electricity Sales

      Sheet1

      Sheet2

      Sheet3

      Q2 Income statement

      Sheet1

      ampA

      Page ampP

      Q2 Cash flow statement

      Sheet1

      ampA

      Page ampP

      Key ratios

      Q2 lsquo11

      Sheet1

      Sheet2

      Sheet3

      Debt maturity profile

      per 30 June 2011 per 31 Dec 2010

      Average interest rate (incl swaps and forwards)4435

      Portion of floating fixed debt 47 53 49 51

      Strong financial position

      Return on capital employed

      12

      Return on shareholders equity

      14

      Net debtEBITDA

      around 30

      138

      191

      28

      Fortumrsquos financial targets

      LTM in Q22011

      Good liquidity ndash committed credit lines total EUR 27 billion

      Comparable net debtEBITDA

      Outlook

      Q2 Summary

      • Solid performance continued - seasonality
      • Power
      • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
      • Swedish nuclear back at 80-85 in availability
      • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
      • SEK burdened
      • Results year-end weighted compared to 2010
      • Russia
      • Commissioning of new units contributed to result improvement
      • The return for the new capacity is guaranteed
      • EUR 100 million efficiency improvement reached
      • Nordic countries
      • Water reservoirs improved to long-term average
      • Overall strong financial position

      • Outlook

        • Key drivers and risks
        • Wholesale price of electricity
        • Demand
        • Fuels
        • CO2 emissions prices
        • Water reservoirs
        • Nuclear availability
        • Nordic markets
        • Market continues to recover ndash 2008 level to be reached by 2012-2014
        • Electricity continues to gain share of total energy consumption
        • Russia
        • Wholesale market liberalised
        • Profits from Russia build up in pace with the capacity increases

        • Outlook

          • Capex (excluding potential acquisitions)
          • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
          • 2013-2014 around EUR 11 to 14 billion annually
          • Disclosed divestments totalled approximately EUR 05 billion
          • Hedging
          • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

          • (Q1 70 at EUR 44MWh)

            • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

            • (Q1 45 at EUR 45MWh)

              Wholesale prices for electricity

              Source

              EURMWh

              German

              Nordic

              15 July 2011

              2007

              2008

              2009

              2010

              2011

              2012

              0

              10

              20

              30

              40

              50

              60

              70

              80

              90

              100

              110

              Spot prices

              Forward prices

              CO2-free and energy-efficient solutions important

              Create solid earnings
              growth in Russia

              Leverage the strong
              Nordic core

              Build platform for
              future growth

              Competence in CO2-free hydro nuclear and energy efficient CHP production

              and operating in competitive energy markets

              Fortumrsquos Strategy

              Work continues -

              Fortumrsquos strategy remains intact

              MEURII2011II2010I-II2011I-II2010LTM

              Sales1833275569641 390

              Comparable operating profit101021-335

              Net Assets7759

              Comparable RONA 341

              Gross Investments10404

              MEURII2011II2010I-II2011I-II2010LTM

              Sales2152005264801 009

              Comparable operating profit6053184155336

              Net Assets3 4873 482

              Comparable RONA 99

              Gross Investments62479676233

              0

              250

              500

              750

              1000

              1250

              1500

              1750

              20112012201320142015201620172018201920202021+

              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

              MEURII2011II2010I-II2011I-II2010LTM

              Sales195169490413881

              Comparable operating profit21-955756

              Net Assets3 0512 690

              Comparable RONA 34

              Gross Investments192167267258608

              MEURII2011II2010I-II2011I-II2010LTM

              Sales5745971 2671 3662 603

              Comparable operating profit2572715826951 185

              Net Assets5 9985 726

              Comparable RONA 198

              Gross Investments36226955136

              MEURII2011II2010I-II2011I-II20102010LTM

              Sales1 316

              1 2953 3503 2426 296

              6 404

              Expenses-968-956-2 353-2 252-4 463-4 564

              Comparable operating profit3483399979901 8331 840

              Other items affecting comparability2611251285-125302

              Operating profit6093511 5091 0751 7082 142

              Share of profit of associates and jvs1515743162105

              Financial expenses net-72-34-127-61-155-221

              Profit before taxes5523321 4561 0451 6152 026

              Income tax expense-74-61-232-191-261-302

              Net profit for the period4782711 2248541 3541 724

              Non-controlling interests6874325496

              EPS basic (EUR)053030129093146183

              EPS diluted (EUR)053030129093146183

              Spot price for power in NordPool power exchange

              448

              459

              662

              523

              621

              0

              12

              24

              36

              48

              60

              72

              Q22010Q32010Q42010Q12011Q22011

              eurMWh

              Powers Nordic power price

              447

              469

              488

              479

              474

              0

              10

              20

              30

              40

              50

              60

              Q22010Q32010Q42010Q12011Q22011

              eurMWh

              MEURII2011II2010I-II2011I-II20102010LTM

              Operating profit before depreciations7644901 8131 3512 2712 733

              Non-cash flow items and divesting activities

              -299-6-569-73124-372

              Financial items and fx gainslosses

              12-146-290-323-641-608

              Taxes

              -144-73-258-155-355-458

              Funds from operations (FFO)

              3332656968001 3991 295

              Change in working capital

              771571681433863

              Total net cash from operating activities4104228649431 4371 358

              Paid capital expenditures-297-263-503-486-1 134-1 151

              Acquisition of shares-1-1-20-1-28-47

              Other investing activities331-165417260529

              Cash flow before financing activities443142882528335689

              MEURII2011II2010I-II2011I-II2010LTM

              Sales3223011 0479521 865

              Comparable operating profit2533196165306

              Net Assets3 9113 884

              Comparable RONA 82

              Gross Investments7259130121314

              MEUR

              II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

              Power257271271280582695760747

              Heat25332535196165290194

              Russia21-921-95575523

              Distribution605325253184155377166

              Electricity Sales1010232321-33-6

              Other-25-1917-31-41-2924-49

              Total3483396093519979901 5091 075

              Comparable operating profit

              Reported operating profit

              Comparable operating profit

              Reported operating profit

              Spot price for power (market price) Urals hub

              770

              935

              817

              950

              954

              0

              200

              400

              600

              800

              1 000

              1 200

              Q22010Q32010Q42010Q12011Q22011

              RUBMWh

              Achieved power price for OAO Fortum

              256

              288

              305

              292

              290

              0

              6

              12

              18

              24

              30

              36

              Q22010Q32010Q42010Q12011Q22011

              eurMWh

              g CO

              2

              kWh electricity 2009

              Average346 gkWh

              0

              200

              400

              600

              800

              1000

              1200

              DEI

              Drax

              RWE

              CEZ

              SSE

              EDP

              Enel

              Vattenfall

              EON

              Dong

              Union

              Fenosa

              GDF SUEZ Europe

              Iberdrola

              Fortum total

              EDF

              PVO

              Verbund

              Fortum EU

              Statkraft

              41155

              g CO

              2

              kWh electricity 2009

              Average346 gkWh

              0

              200

              400

              600

              800

              1000

              1200

              DEI

              Drax

              RWE

              CEZ

              SSE

              EDP

              Enel

              Vattenfall

              EON

              Dong

              Union

              Fenosa

              GDF SUEZ Europe

              Iberdrola

              Fortum total

              EDF

              PVO

              Verbund

              Fortum EU

              Statkraft

              41155

              0

              200

              400

              600

              800

              1000

              1200

              DEI

              Drax

              RWE

              CEZ

              SSE

              EDP

              Enel

              Vattenfall

              EON

              Dong

              Union

              Fenosa

              GDF SUEZ Europe

              Iberdrola

              Fortum total

              EDF

              PVO

              Verbund

              Fortum EU

              Statkraft

              41155

              MEURLTM20102009

              EBITDA2 7332 2712 292

              Comparable EBITDA2 4312 3962 398

              Interest-bearing net debt6 7836 8265 969

              Net debtEBITDA253026

              Comparable Net debtEBITDA282825

              Return on capital employed ()138116121

              Return on shareholders equity ()191157160

              ) as of 30 June 2011

      MEUR
      2011		231
      2012		668
      2013		639
      2014		1223
      2015		1051
      2016		879
      2017		270
      2018		190
      2019		840
      2020		73
      2021+		1530

      MEUR		LTM		2010		2009		2008		2006		2005
      EBITDA		2733		2271		2292		2478		1884
      Comparable EBITDA		2431		2396		2398			1151		1271
      Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
      Net debtEBITDA		25		30		26		25		8161
      Comparable Net debtEBITDA		28		28		25			16839		15130
      					23		18
      Return on capital employed ()		138		116		121		150		134		135
      Return on shareholders equity ()		191		157		160		187		144		135
      ) as of 30 June 2011

      MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
      Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
      Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
      Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
      Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
      Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
      Change in working capital		77		157		168		143		38		63		-102		161		5		0
      Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
      Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
      Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
      Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
      Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

      MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
      Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
      	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
      Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
      	Other items affecting comparability						261		12		512		85		-125		302
      Operating profit							609		351		1509		1075		1708		2142
      	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
      	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
      Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
      	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
      Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
      	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
      EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
      EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
      																	069

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		183		327		556		964		1390
      	Comparable operating profit		10		10		21		-3		35
      	Net Assets				77		59
      	Comparable RONA						341
      	Gross Investments		1		0		4		0		4

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		215		200		526		480		1009
    	Comparable operating profit		60		53		184		155		336
    	Net Assets				3487		3482
    	Comparable RONA						99
    	Gross Investments		62		47		96		76		233

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		195		169		490		413		881
  	Comparable operating profit		21		-9		55		7		56
  	Net Assets				3051		2690
  	Comparable RONA						34
  	Gross Investments		192		167		267		258		608

	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
	Sales		322		301		1047		952		1865
	Comparable operating profit		25		33		196		165		306
	Net Assets				3911		3884
	Comparable RONA						82
	Gross Investments		72		59		130		121		314

Sheet2

Sheet3

Russia

• Comparable operating profit improved
• Commissioning of the new unit
• Higher electricity market prices
• Efficiency improvements
• Reversal of CSA provisions related to the newly commissioned units

• Q2 Russia

  Sheet1

  Sheet2

  Sheet3

  Distribution

  • Comparable operating profit increased
  • Lower transmission costs
  • Stronger SEK
  • Smart metering rollout to network customers in Finland continued

  • Q2 Distribution

    Sheet1

    Sheet2

    Sheet3

    Markets

    • Comparable operating profit at last yearrsquos level
    • Tough competition
    • Restructuring of the Business Market segment

    • Q2 Electricity Sales

      Sheet1

      Sheet2

      Sheet3

      Q2 Income statement

      Sheet1

      ampA

      Page ampP

      Q2 Cash flow statement

      Sheet1

      ampA

      Page ampP

      Key ratios

      Q2 lsquo11

      Sheet1

      Sheet2

      Sheet3

      Debt maturity profile

      per 30 June 2011 per 31 Dec 2010

      Average interest rate (incl swaps and forwards)4435

      Portion of floating fixed debt 47 53 49 51

      Strong financial position

      Return on capital employed

      12

      Return on shareholders equity

      14

      Net debtEBITDA

      around 30

      138

      191

      28

      Fortumrsquos financial targets

      LTM in Q22011

      Good liquidity ndash committed credit lines total EUR 27 billion

      Comparable net debtEBITDA

      Outlook

      Q2 Summary

      • Solid performance continued - seasonality
      • Power
      • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
      • Swedish nuclear back at 80-85 in availability
      • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
      • SEK burdened
      • Results year-end weighted compared to 2010
      • Russia
      • Commissioning of new units contributed to result improvement
      • The return for the new capacity is guaranteed
      • EUR 100 million efficiency improvement reached
      • Nordic countries
      • Water reservoirs improved to long-term average
      • Overall strong financial position

      • Outlook

        • Key drivers and risks
        • Wholesale price of electricity
        • Demand
        • Fuels
        • CO2 emissions prices
        • Water reservoirs
        • Nuclear availability
        • Nordic markets
        • Market continues to recover ndash 2008 level to be reached by 2012-2014
        • Electricity continues to gain share of total energy consumption
        • Russia
        • Wholesale market liberalised
        • Profits from Russia build up in pace with the capacity increases

        • Outlook

          • Capex (excluding potential acquisitions)
          • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
          • 2013-2014 around EUR 11 to 14 billion annually
          • Disclosed divestments totalled approximately EUR 05 billion
          • Hedging
          • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

          • (Q1 70 at EUR 44MWh)

            • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

            • (Q1 45 at EUR 45MWh)

              Wholesale prices for electricity

              Source

              EURMWh

              German

              Nordic

              15 July 2011

              2007

              2008

              2009

              2010

              2011

              2012

              0

              10

              20

              30

              40

              50

              60

              70

              80

              90

              100

              110

              Spot prices

              Forward prices

              CO2-free and energy-efficient solutions important

              Create solid earnings
              growth in Russia

              Leverage the strong
              Nordic core

              Build platform for
              future growth

              Competence in CO2-free hydro nuclear and energy efficient CHP production

              and operating in competitive energy markets

              Fortumrsquos Strategy

              Work continues -

              Fortumrsquos strategy remains intact

              MEURII2011II2010I-II2011I-II2010LTM

              Sales1833275569641 390

              Comparable operating profit101021-335

              Net Assets7759

              Comparable RONA 341

              Gross Investments10404

              MEURII2011II2010I-II2011I-II2010LTM

              Sales2152005264801 009

              Comparable operating profit6053184155336

              Net Assets3 4873 482

              Comparable RONA 99

              Gross Investments62479676233

              0

              250

              500

              750

              1000

              1250

              1500

              1750

              20112012201320142015201620172018201920202021+

              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

              MEURII2011II2010I-II2011I-II2010LTM

              Sales195169490413881

              Comparable operating profit21-955756

              Net Assets3 0512 690

              Comparable RONA 34

              Gross Investments192167267258608

              MEURII2011II2010I-II2011I-II2010LTM

              Sales5745971 2671 3662 603

              Comparable operating profit2572715826951 185

              Net Assets5 9985 726

              Comparable RONA 198

              Gross Investments36226955136

              MEURII2011II2010I-II2011I-II20102010LTM

              Sales1 316

              1 2953 3503 2426 296

              6 404

              Expenses-968-956-2 353-2 252-4 463-4 564

              Comparable operating profit3483399979901 8331 840

              Other items affecting comparability2611251285-125302

              Operating profit6093511 5091 0751 7082 142

              Share of profit of associates and jvs1515743162105

              Financial expenses net-72-34-127-61-155-221

              Profit before taxes5523321 4561 0451 6152 026

              Income tax expense-74-61-232-191-261-302

              Net profit for the period4782711 2248541 3541 724

              Non-controlling interests6874325496

              EPS basic (EUR)053030129093146183

              EPS diluted (EUR)053030129093146183

              Spot price for power in NordPool power exchange

              448

              459

              662

              523

              621

              0

              12

              24

              36

              48

              60

              72

              Q22010Q32010Q42010Q12011Q22011

              eurMWh

              Powers Nordic power price

              447

              469

              488

              479

              474

              0

              10

              20

              30

              40

              50

              60

              Q22010Q32010Q42010Q12011Q22011

              eurMWh

              MEURII2011II2010I-II2011I-II20102010LTM

              Operating profit before depreciations7644901 8131 3512 2712 733

              Non-cash flow items and divesting activities

              -299-6-569-73124-372

              Financial items and fx gainslosses

              12-146-290-323-641-608

              Taxes

              -144-73-258-155-355-458

              Funds from operations (FFO)

              3332656968001 3991 295

              Change in working capital

              771571681433863

              Total net cash from operating activities4104228649431 4371 358

              Paid capital expenditures-297-263-503-486-1 134-1 151

              Acquisition of shares-1-1-20-1-28-47

              Other investing activities331-165417260529

              Cash flow before financing activities443142882528335689

              MEURII2011II2010I-II2011I-II2010LTM

              Sales3223011 0479521 865

              Comparable operating profit2533196165306

              Net Assets3 9113 884

              Comparable RONA 82

              Gross Investments7259130121314

              MEUR

              II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

              Power257271271280582695760747

              Heat25332535196165290194

              Russia21-921-95575523

              Distribution605325253184155377166

              Electricity Sales1010232321-33-6

              Other-25-1917-31-41-2924-49

              Total3483396093519979901 5091 075

              Comparable operating profit

              Reported operating profit

              Comparable operating profit

              Reported operating profit

              Spot price for power (market price) Urals hub

              770

              935

              817

              950

              954

              0

              200

              400

              600

              800

              1 000

              1 200

              Q22010Q32010Q42010Q12011Q22011

              RUBMWh

              Achieved power price for OAO Fortum

              256

              288

              305

              292

              290

              0

              6

              12

              18

              24

              30

              36

              Q22010Q32010Q42010Q12011Q22011

              eurMWh

              g CO

              2

              kWh electricity 2009

              Average346 gkWh

              0

              200

              400

              600

              800

              1000

              1200

              DEI

              Drax

              RWE

              CEZ

              SSE

              EDP

              Enel

              Vattenfall

              EON

              Dong

              Union

              Fenosa

              GDF SUEZ Europe

              Iberdrola

              Fortum total

              EDF

              PVO

              Verbund

              Fortum EU

              Statkraft

              41155

              g CO

              2

              kWh electricity 2009

              Average346 gkWh

              0

              200

              400

              600

              800

              1000

              1200

              DEI

              Drax

              RWE

              CEZ

              SSE

              EDP

              Enel

              Vattenfall

              EON

              Dong

              Union

              Fenosa

              GDF SUEZ Europe

              Iberdrola

              Fortum total

              EDF

              PVO

              Verbund

              Fortum EU

              Statkraft

              41155

              0

              200

              400

              600

              800

              1000

              1200

              DEI

              Drax

              RWE

              CEZ

              SSE

              EDP

              Enel

              Vattenfall

              EON

              Dong

              Union

              Fenosa

              GDF SUEZ Europe

              Iberdrola

              Fortum total

              EDF

              PVO

              Verbund

              Fortum EU

              Statkraft

              41155

              MEURLTM20102009

              EBITDA2 7332 2712 292

              Comparable EBITDA2 4312 3962 398

              Interest-bearing net debt6 7836 8265 969

              Net debtEBITDA253026

              Comparable Net debtEBITDA282825

              Return on capital employed ()138116121

              Return on shareholders equity ()191157160

              ) as of 30 June 2011

      MEUR
      2011		231
      2012		668
      2013		639
      2014		1223
      2015		1051
      2016		879
      2017		270
      2018		190
      2019		840
      2020		73
      2021+		1530

      MEUR		LTM		2010		2009		2008		2006		2005
      EBITDA		2733		2271		2292		2478		1884
      Comparable EBITDA		2431		2396		2398			1151		1271
      Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
      Net debtEBITDA		25		30		26		25		8161
      Comparable Net debtEBITDA		28		28		25			16839		15130
      					23		18
      Return on capital employed ()		138		116		121		150		134		135
      Return on shareholders equity ()		191		157		160		187		144		135
      ) as of 30 June 2011

      MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
      Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
      Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
      Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
      Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
      Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
      Change in working capital		77		157		168		143		38		63		-102		161		5		0
      Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
      Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
      Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
      Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
      Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

      MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
      Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
      	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
      Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
      	Other items affecting comparability						261		12		512		85		-125		302
      Operating profit							609		351		1509		1075		1708		2142
      	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
      	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
      Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
      	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
      Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
      	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
      EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
      EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
      																	069

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		183		327		556		964		1390
      	Comparable operating profit		10		10		21		-3		35
      	Net Assets				77		59
      	Comparable RONA						341
      	Gross Investments		1		0		4		0		4

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		215		200		526		480		1009
    	Comparable operating profit		60		53		184		155		336
    	Net Assets				3487		3482
    	Comparable RONA						99
    	Gross Investments		62		47		96		76		233

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		195		169		490		413		881
  	Comparable operating profit		21		-9		55		7		56
  	Net Assets				3051		2690
  	Comparable RONA						34
  	Gross Investments		192		167		267		258		608

Sheet3

Russia

• Comparable operating profit improved
• Commissioning of the new unit
• Higher electricity market prices
• Efficiency improvements
• Reversal of CSA provisions related to the newly commissioned units

• Q2 Russia

  Sheet1

  Sheet2

  Sheet3

  Distribution

  • Comparable operating profit increased
  • Lower transmission costs
  • Stronger SEK
  • Smart metering rollout to network customers in Finland continued

  • Q2 Distribution

    Sheet1

    Sheet2

    Sheet3

    Markets

    • Comparable operating profit at last yearrsquos level
    • Tough competition
    • Restructuring of the Business Market segment

    • Q2 Electricity Sales

      Sheet1

      Sheet2

      Sheet3

      Q2 Income statement

      Sheet1

      ampA

      Page ampP

      Q2 Cash flow statement

      Sheet1

      ampA

      Page ampP

      Key ratios

      Q2 lsquo11

      Sheet1

      Sheet2

      Sheet3

      Debt maturity profile

      per 30 June 2011 per 31 Dec 2010

      Average interest rate (incl swaps and forwards)4435

      Portion of floating fixed debt 47 53 49 51

      Strong financial position

      Return on capital employed

      12

      Return on shareholders equity

      14

      Net debtEBITDA

      around 30

      138

      191

      28

      Fortumrsquos financial targets

      LTM in Q22011

      Good liquidity ndash committed credit lines total EUR 27 billion

      Comparable net debtEBITDA

      Outlook

      Q2 Summary

      • Solid performance continued - seasonality
      • Power
      • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
      • Swedish nuclear back at 80-85 in availability
      • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
      • SEK burdened
      • Results year-end weighted compared to 2010
      • Russia
      • Commissioning of new units contributed to result improvement
      • The return for the new capacity is guaranteed
      • EUR 100 million efficiency improvement reached
      • Nordic countries
      • Water reservoirs improved to long-term average
      • Overall strong financial position

      • Outlook

        • Key drivers and risks
        • Wholesale price of electricity
        • Demand
        • Fuels
        • CO2 emissions prices
        • Water reservoirs
        • Nuclear availability
        • Nordic markets
        • Market continues to recover ndash 2008 level to be reached by 2012-2014
        • Electricity continues to gain share of total energy consumption
        • Russia
        • Wholesale market liberalised
        • Profits from Russia build up in pace with the capacity increases

        • Outlook

          • Capex (excluding potential acquisitions)
          • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
          • 2013-2014 around EUR 11 to 14 billion annually
          • Disclosed divestments totalled approximately EUR 05 billion
          • Hedging
          • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

          • (Q1 70 at EUR 44MWh)

            • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

            • (Q1 45 at EUR 45MWh)

              Wholesale prices for electricity

              Source

              EURMWh

              German

              Nordic

              15 July 2011

              2007

              2008

              2009

              2010

              2011

              2012

              0

              10

              20

              30

              40

              50

              60

              70

              80

              90

              100

              110

              Spot prices

              Forward prices

              CO2-free and energy-efficient solutions important

              Create solid earnings
              growth in Russia

              Leverage the strong
              Nordic core

              Build platform for
              future growth

              Competence in CO2-free hydro nuclear and energy efficient CHP production

              and operating in competitive energy markets

              Fortumrsquos Strategy

              Work continues -

              Fortumrsquos strategy remains intact

              MEURII2011II2010I-II2011I-II2010LTM

              Sales1833275569641 390

              Comparable operating profit101021-335

              Net Assets7759

              Comparable RONA 341

              Gross Investments10404

              MEURII2011II2010I-II2011I-II2010LTM

              Sales2152005264801 009

              Comparable operating profit6053184155336

              Net Assets3 4873 482

              Comparable RONA 99

              Gross Investments62479676233

              0

              250

              500

              750

              1000

              1250

              1500

              1750

              20112012201320142015201620172018201920202021+

              BondsFinancial institutionsOther long-term debtCPsOther short-term debt

              MEURII2011II2010I-II2011I-II2010LTM

              Sales195169490413881

              Comparable operating profit21-955756

              Net Assets3 0512 690

              Comparable RONA 34

              Gross Investments192167267258608

              MEURII2011II2010I-II2011I-II2010LTM

              Sales5745971 2671 3662 603

              Comparable operating profit2572715826951 185

              Net Assets5 9985 726

              Comparable RONA 198

              Gross Investments36226955136

              MEURII2011II2010I-II2011I-II20102010LTM

              Sales1 316

              1 2953 3503 2426 296

              6 404

              Expenses-968-956-2 353-2 252-4 463-4 564

              Comparable operating profit3483399979901 8331 840

              Other items affecting comparability2611251285-125302

              Operating profit6093511 5091 0751 7082 142

              Share of profit of associates and jvs1515743162105

              Financial expenses net-72-34-127-61-155-221

              Profit before taxes5523321 4561 0451 6152 026

              Income tax expense-74-61-232-191-261-302

              Net profit for the period4782711 2248541 3541 724

              Non-controlling interests6874325496

              EPS basic (EUR)053030129093146183

              EPS diluted (EUR)053030129093146183

              Spot price for power in NordPool power exchange

              448

              459

              662

              523

              621

              0

              12

              24

              36

              48

              60

              72

              Q22010Q32010Q42010Q12011Q22011

              eurMWh

              Powers Nordic power price

              447

              469

              488

              479

              474

              0

              10

              20

              30

              40

              50

              60

              Q22010Q32010Q42010Q12011Q22011

              eurMWh

              MEURII2011II2010I-II2011I-II20102010LTM

              Operating profit before depreciations7644901 8131 3512 2712 733

              Non-cash flow items and divesting activities

              -299-6-569-73124-372

              Financial items and fx gainslosses

              12-146-290-323-641-608

              Taxes

              -144-73-258-155-355-458

              Funds from operations (FFO)

              3332656968001 3991 295

              Change in working capital

              771571681433863

              Total net cash from operating activities4104228649431 4371 358

              Paid capital expenditures-297-263-503-486-1 134-1 151

              Acquisition of shares-1-1-20-1-28-47

              Other investing activities331-165417260529

              Cash flow before financing activities443142882528335689

              MEURII2011II2010I-II2011I-II2010LTM

              Sales3223011 0479521 865

              Comparable operating profit2533196165306

              Net Assets3 9113 884

              Comparable RONA 82

              Gross Investments7259130121314

              MEUR

              II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

              Power257271271280582695760747

              Heat25332535196165290194

              Russia21-921-95575523

              Distribution605325253184155377166

              Electricity Sales1010232321-33-6

              Other-25-1917-31-41-2924-49

              Total3483396093519979901 5091 075

              Comparable operating profit

              Reported operating profit

              Comparable operating profit

              Reported operating profit

              Spot price for power (market price) Urals hub

              770

              935

              817

              950

              954

              0

              200

              400

              600

              800

              1 000

              1 200

              Q22010Q32010Q42010Q12011Q22011

              RUBMWh

              Achieved power price for OAO Fortum

              256

              288

              305

              292

              290

              0

              6

              12

              18

              24

              30

              36

              Q22010Q32010Q42010Q12011Q22011

              eurMWh

              g CO

              2

              kWh electricity 2009

              Average346 gkWh

              0

              200

              400

              600

              800

              1000

              1200

              DEI

              Drax

              RWE

              CEZ

              SSE

              EDP

              Enel

              Vattenfall

              EON

              Dong

              Union

              Fenosa

              GDF SUEZ Europe

              Iberdrola

              Fortum total

              EDF

              PVO

              Verbund

              Fortum EU

              Statkraft

              41155

              g CO

              2

              kWh electricity 2009

              Average346 gkWh

              0

              200

              400

              600

              800

              1000

              1200

              DEI

              Drax

              RWE

              CEZ

              SSE

              EDP

              Enel

              Vattenfall

              EON

              Dong

              Union

              Fenosa

              GDF SUEZ Europe

              Iberdrola

              Fortum total

              EDF

              PVO

              Verbund

              Fortum EU

              Statkraft

              41155

              0

              200

              400

              600

              800

              1000

              1200

              DEI

              Drax

              RWE

              CEZ

              SSE

              EDP

              Enel

              Vattenfall

              EON

              Dong

              Union

              Fenosa

              GDF SUEZ Europe

              Iberdrola

              Fortum total

              EDF

              PVO

              Verbund

              Fortum EU

              Statkraft

              41155

              MEURLTM20102009

              EBITDA2 7332 2712 292

              Comparable EBITDA2 4312 3962 398

              Interest-bearing net debt6 7836 8265 969

              Net debtEBITDA253026

              Comparable Net debtEBITDA282825

              Return on capital employed ()138116121

              Return on shareholders equity ()191157160

              ) as of 30 June 2011

      MEUR
      2011		231
      2012		668
      2013		639
      2014		1223
      2015		1051
      2016		879
      2017		270
      2018		190
      2019		840
      2020		73
      2021+		1530

      MEUR		LTM		2010		2009		2008		2006		2005
      EBITDA		2733		2271		2292		2478		1884
      Comparable EBITDA		2431		2396		2398			1151		1271
      Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
      Net debtEBITDA		25		30		26		25		8161
      Comparable Net debtEBITDA		28		28		25			16839		15130
      					23		18
      Return on capital employed ()		138		116		121		150		134		135
      Return on shareholders equity ()		191		157		160		187		144		135
      ) as of 30 June 2011

      MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
      Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
      Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
      Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
      Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
      Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
      Change in working capital		77		157		168		143		38		63		-102		161		5		0
      Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
      Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
      Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
      Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
      Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

      MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
      Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
      	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
      Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
      	Other items affecting comparability						261		12		512		85		-125		302
      Operating profit							609		351		1509		1075		1708		2142
      	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
      	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
      Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
      	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
      Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
      	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
      EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
      EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
      																	069

      	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
      	Sales		183		327		556		964		1390
      	Comparable operating profit		10		10		21		-3		35
      	Net Assets				77		59
      	Comparable RONA						341
      	Gross Investments		1		0		4		0		4

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		215		200		526		480		1009
    	Comparable operating profit		60		53		184		155		336
    	Net Assets				3487		3482
    	Comparable RONA						99
    	Gross Investments		62		47		96		76		233

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		195		169		490		413		881
  	Comparable operating profit		21		-9		55		7		56
  	Net Assets				3051		2690
  	Comparable RONA						34
  	Gross Investments		192		167		267		258		608

Sheet1

Sheet2

Sheet3

Distribution

• Comparable operating profit increased
• Lower transmission costs
• Stronger SEK
• Smart metering rollout to network customers in Finland continued

• Q2 Distribution

  Sheet1

  Sheet2

  Sheet3

  Markets

  • Comparable operating profit at last yearrsquos level
  • Tough competition
  • Restructuring of the Business Market segment

  • Q2 Electricity Sales

    Sheet1

    Sheet2

    Sheet3

    Q2 Income statement

    Sheet1

    ampA

    Page ampP

    Q2 Cash flow statement

    Sheet1

    ampA

    Page ampP

    Key ratios

    Q2 lsquo11

    Sheet1

    Sheet2

    Sheet3

    Debt maturity profile

    per 30 June 2011 per 31 Dec 2010

    Average interest rate (incl swaps and forwards)4435

    Portion of floating fixed debt 47 53 49 51

    Strong financial position

    Return on capital employed

    12

    Return on shareholders equity

    14

    Net debtEBITDA

    around 30

    138

    191

    28

    Fortumrsquos financial targets

    LTM in Q22011

    Good liquidity ndash committed credit lines total EUR 27 billion

    Comparable net debtEBITDA

    Outlook

    Q2 Summary

    • Solid performance continued - seasonality
    • Power
    • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
    • Swedish nuclear back at 80-85 in availability
    • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
    • SEK burdened
    • Results year-end weighted compared to 2010
    • Russia
    • Commissioning of new units contributed to result improvement
    • The return for the new capacity is guaranteed
    • EUR 100 million efficiency improvement reached
    • Nordic countries
    • Water reservoirs improved to long-term average
    • Overall strong financial position

    • Outlook

      • Key drivers and risks
      • Wholesale price of electricity
      • Demand
      • Fuels
      • CO2 emissions prices
      • Water reservoirs
      • Nuclear availability
      • Nordic markets
      • Market continues to recover ndash 2008 level to be reached by 2012-2014
      • Electricity continues to gain share of total energy consumption
      • Russia
      • Wholesale market liberalised
      • Profits from Russia build up in pace with the capacity increases

      • Outlook

        • Capex (excluding potential acquisitions)
        • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
        • 2013-2014 around EUR 11 to 14 billion annually
        • Disclosed divestments totalled approximately EUR 05 billion
        • Hedging
        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

        • (Q1 70 at EUR 44MWh)

          • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

          • (Q1 45 at EUR 45MWh)

            Wholesale prices for electricity

            Source

            EURMWh

            German

            Nordic

            15 July 2011

            2007

            2008

            2009

            2010

            2011

            2012

            0

            10

            20

            30

            40

            50

            60

            70

            80

            90

            100

            110

            Spot prices

            Forward prices

            CO2-free and energy-efficient solutions important

            Create solid earnings
            growth in Russia

            Leverage the strong
            Nordic core

            Build platform for
            future growth

            Competence in CO2-free hydro nuclear and energy efficient CHP production

            and operating in competitive energy markets

            Fortumrsquos Strategy

            Work continues -

            Fortumrsquos strategy remains intact

            MEURII2011II2010I-II2011I-II2010LTM

            Sales1833275569641 390

            Comparable operating profit101021-335

            Net Assets7759

            Comparable RONA 341

            Gross Investments10404

            MEURII2011II2010I-II2011I-II2010LTM

            Sales2152005264801 009

            Comparable operating profit6053184155336

            Net Assets3 4873 482

            Comparable RONA 99

            Gross Investments62479676233

            0

            250

            500

            750

            1000

            1250

            1500

            1750

            20112012201320142015201620172018201920202021+

            BondsFinancial institutionsOther long-term debtCPsOther short-term debt

            MEURII2011II2010I-II2011I-II2010LTM

            Sales195169490413881

            Comparable operating profit21-955756

            Net Assets3 0512 690

            Comparable RONA 34

            Gross Investments192167267258608

            MEURII2011II2010I-II2011I-II2010LTM

            Sales5745971 2671 3662 603

            Comparable operating profit2572715826951 185

            Net Assets5 9985 726

            Comparable RONA 198

            Gross Investments36226955136

            MEURII2011II2010I-II2011I-II20102010LTM

            Sales1 316

            1 2953 3503 2426 296

            6 404

            Expenses-968-956-2 353-2 252-4 463-4 564

            Comparable operating profit3483399979901 8331 840

            Other items affecting comparability2611251285-125302

            Operating profit6093511 5091 0751 7082 142

            Share of profit of associates and jvs1515743162105

            Financial expenses net-72-34-127-61-155-221

            Profit before taxes5523321 4561 0451 6152 026

            Income tax expense-74-61-232-191-261-302

            Net profit for the period4782711 2248541 3541 724

            Non-controlling interests6874325496

            EPS basic (EUR)053030129093146183

            EPS diluted (EUR)053030129093146183

            Spot price for power in NordPool power exchange

            448

            459

            662

            523

            621

            0

            12

            24

            36

            48

            60

            72

            Q22010Q32010Q42010Q12011Q22011

            eurMWh

            Powers Nordic power price

            447

            469

            488

            479

            474

            0

            10

            20

            30

            40

            50

            60

            Q22010Q32010Q42010Q12011Q22011

            eurMWh

            MEURII2011II2010I-II2011I-II20102010LTM

            Operating profit before depreciations7644901 8131 3512 2712 733

            Non-cash flow items and divesting activities

            -299-6-569-73124-372

            Financial items and fx gainslosses

            12-146-290-323-641-608

            Taxes

            -144-73-258-155-355-458

            Funds from operations (FFO)

            3332656968001 3991 295

            Change in working capital

            771571681433863

            Total net cash from operating activities4104228649431 4371 358

            Paid capital expenditures-297-263-503-486-1 134-1 151

            Acquisition of shares-1-1-20-1-28-47

            Other investing activities331-165417260529

            Cash flow before financing activities443142882528335689

            MEURII2011II2010I-II2011I-II2010LTM

            Sales3223011 0479521 865

            Comparable operating profit2533196165306

            Net Assets3 9113 884

            Comparable RONA 82

            Gross Investments7259130121314

            MEUR

            II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

            Power257271271280582695760747

            Heat25332535196165290194

            Russia21-921-95575523

            Distribution605325253184155377166

            Electricity Sales1010232321-33-6

            Other-25-1917-31-41-2924-49

            Total3483396093519979901 5091 075

            Comparable operating profit

            Reported operating profit

            Comparable operating profit

            Reported operating profit

            Spot price for power (market price) Urals hub

            770

            935

            817

            950

            954

            0

            200

            400

            600

            800

            1 000

            1 200

            Q22010Q32010Q42010Q12011Q22011

            RUBMWh

            Achieved power price for OAO Fortum

            256

            288

            305

            292

            290

            0

            6

            12

            18

            24

            30

            36

            Q22010Q32010Q42010Q12011Q22011

            eurMWh

            g CO

            2

            kWh electricity 2009

            Average346 gkWh

            0

            200

            400

            600

            800

            1000

            1200

            DEI

            Drax

            RWE

            CEZ

            SSE

            EDP

            Enel

            Vattenfall

            EON

            Dong

            Union

            Fenosa

            GDF SUEZ Europe

            Iberdrola

            Fortum total

            EDF

            PVO

            Verbund

            Fortum EU

            Statkraft

            41155

            g CO

            2

            kWh electricity 2009

            Average346 gkWh

            0

            200

            400

            600

            800

            1000

            1200

            DEI

            Drax

            RWE

            CEZ

            SSE

            EDP

            Enel

            Vattenfall

            EON

            Dong

            Union

            Fenosa

            GDF SUEZ Europe

            Iberdrola

            Fortum total

            EDF

            PVO

            Verbund

            Fortum EU

            Statkraft

            41155

            0

            200

            400

            600

            800

            1000

            1200

            DEI

            Drax

            RWE

            CEZ

            SSE

            EDP

            Enel

            Vattenfall

            EON

            Dong

            Union

            Fenosa

            GDF SUEZ Europe

            Iberdrola

            Fortum total

            EDF

            PVO

            Verbund

            Fortum EU

            Statkraft

            41155

            MEURLTM20102009

            EBITDA2 7332 2712 292

            Comparable EBITDA2 4312 3962 398

            Interest-bearing net debt6 7836 8265 969

            Net debtEBITDA253026

            Comparable Net debtEBITDA282825

            Return on capital employed ()138116121

            Return on shareholders equity ()191157160

            ) as of 30 June 2011

    MEUR
    2011		231
    2012		668
    2013		639
    2014		1223
    2015		1051
    2016		879
    2017		270
    2018		190
    2019		840
    2020		73
    2021+		1530

    MEUR		LTM		2010		2009		2008		2006		2005
    EBITDA		2733		2271		2292		2478		1884
    Comparable EBITDA		2431		2396		2398			1151		1271
    Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
    Net debtEBITDA		25		30		26		25		8161
    Comparable Net debtEBITDA		28		28		25			16839		15130
    					23		18
    Return on capital employed ()		138		116		121		150		134		135
    Return on shareholders equity ()		191		157		160		187		144		135
    ) as of 30 June 2011

    MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
    Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
    Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
    Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
    Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
    Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
    Change in working capital		77		157		168		143		38		63		-102		161		5		0
    Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
    Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
    Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
    Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
    Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

    MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
    Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
    	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
    Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
    	Other items affecting comparability						261		12		512		85		-125		302
    Operating profit							609		351		1509		1075		1708		2142
    	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
    	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
    Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
    	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
    Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
    	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
    EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
    EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
    																	069

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		183		327		556		964		1390
    	Comparable operating profit		10		10		21		-3		35
    	Net Assets				77		59
    	Comparable RONA						341
    	Gross Investments		1		0		4		0		4

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		215		200		526		480		1009
  	Comparable operating profit		60		53		184		155		336
  	Net Assets				3487		3482
  	Comparable RONA						99
  	Gross Investments		62		47		96		76		233

	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
	Sales		195		169		490		413		881
	Comparable operating profit		21		-9		55		7		56
	Net Assets				3051		2690
	Comparable RONA						34
	Gross Investments		192		167		267		258		608

Sheet2

Sheet3

Distribution

• Comparable operating profit increased
• Lower transmission costs
• Stronger SEK
• Smart metering rollout to network customers in Finland continued

• Q2 Distribution

  Sheet1

  Sheet2

  Sheet3

  Markets

  • Comparable operating profit at last yearrsquos level
  • Tough competition
  • Restructuring of the Business Market segment

  • Q2 Electricity Sales

    Sheet1

    Sheet2

    Sheet3

    Q2 Income statement

    Sheet1

    ampA

    Page ampP

    Q2 Cash flow statement

    Sheet1

    ampA

    Page ampP

    Key ratios

    Q2 lsquo11

    Sheet1

    Sheet2

    Sheet3

    Debt maturity profile

    per 30 June 2011 per 31 Dec 2010

    Average interest rate (incl swaps and forwards)4435

    Portion of floating fixed debt 47 53 49 51

    Strong financial position

    Return on capital employed

    12

    Return on shareholders equity

    14

    Net debtEBITDA

    around 30

    138

    191

    28

    Fortumrsquos financial targets

    LTM in Q22011

    Good liquidity ndash committed credit lines total EUR 27 billion

    Comparable net debtEBITDA

    Outlook

    Q2 Summary

    • Solid performance continued - seasonality
    • Power
    • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
    • Swedish nuclear back at 80-85 in availability
    • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
    • SEK burdened
    • Results year-end weighted compared to 2010
    • Russia
    • Commissioning of new units contributed to result improvement
    • The return for the new capacity is guaranteed
    • EUR 100 million efficiency improvement reached
    • Nordic countries
    • Water reservoirs improved to long-term average
    • Overall strong financial position

    • Outlook

      • Key drivers and risks
      • Wholesale price of electricity
      • Demand
      • Fuels
      • CO2 emissions prices
      • Water reservoirs
      • Nuclear availability
      • Nordic markets
      • Market continues to recover ndash 2008 level to be reached by 2012-2014
      • Electricity continues to gain share of total energy consumption
      • Russia
      • Wholesale market liberalised
      • Profits from Russia build up in pace with the capacity increases

      • Outlook

        • Capex (excluding potential acquisitions)
        • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
        • 2013-2014 around EUR 11 to 14 billion annually
        • Disclosed divestments totalled approximately EUR 05 billion
        • Hedging
        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

        • (Q1 70 at EUR 44MWh)

          • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

          • (Q1 45 at EUR 45MWh)

            Wholesale prices for electricity

            Source

            EURMWh

            German

            Nordic

            15 July 2011

            2007

            2008

            2009

            2010

            2011

            2012

            0

            10

            20

            30

            40

            50

            60

            70

            80

            90

            100

            110

            Spot prices

            Forward prices

            CO2-free and energy-efficient solutions important

            Create solid earnings
            growth in Russia

            Leverage the strong
            Nordic core

            Build platform for
            future growth

            Competence in CO2-free hydro nuclear and energy efficient CHP production

            and operating in competitive energy markets

            Fortumrsquos Strategy

            Work continues -

            Fortumrsquos strategy remains intact

            MEURII2011II2010I-II2011I-II2010LTM

            Sales1833275569641 390

            Comparable operating profit101021-335

            Net Assets7759

            Comparable RONA 341

            Gross Investments10404

            MEURII2011II2010I-II2011I-II2010LTM

            Sales2152005264801 009

            Comparable operating profit6053184155336

            Net Assets3 4873 482

            Comparable RONA 99

            Gross Investments62479676233

            0

            250

            500

            750

            1000

            1250

            1500

            1750

            20112012201320142015201620172018201920202021+

            BondsFinancial institutionsOther long-term debtCPsOther short-term debt

            MEURII2011II2010I-II2011I-II2010LTM

            Sales195169490413881

            Comparable operating profit21-955756

            Net Assets3 0512 690

            Comparable RONA 34

            Gross Investments192167267258608

            MEURII2011II2010I-II2011I-II2010LTM

            Sales5745971 2671 3662 603

            Comparable operating profit2572715826951 185

            Net Assets5 9985 726

            Comparable RONA 198

            Gross Investments36226955136

            MEURII2011II2010I-II2011I-II20102010LTM

            Sales1 316

            1 2953 3503 2426 296

            6 404

            Expenses-968-956-2 353-2 252-4 463-4 564

            Comparable operating profit3483399979901 8331 840

            Other items affecting comparability2611251285-125302

            Operating profit6093511 5091 0751 7082 142

            Share of profit of associates and jvs1515743162105

            Financial expenses net-72-34-127-61-155-221

            Profit before taxes5523321 4561 0451 6152 026

            Income tax expense-74-61-232-191-261-302

            Net profit for the period4782711 2248541 3541 724

            Non-controlling interests6874325496

            EPS basic (EUR)053030129093146183

            EPS diluted (EUR)053030129093146183

            Spot price for power in NordPool power exchange

            448

            459

            662

            523

            621

            0

            12

            24

            36

            48

            60

            72

            Q22010Q32010Q42010Q12011Q22011

            eurMWh

            Powers Nordic power price

            447

            469

            488

            479

            474

            0

            10

            20

            30

            40

            50

            60

            Q22010Q32010Q42010Q12011Q22011

            eurMWh

            MEURII2011II2010I-II2011I-II20102010LTM

            Operating profit before depreciations7644901 8131 3512 2712 733

            Non-cash flow items and divesting activities

            -299-6-569-73124-372

            Financial items and fx gainslosses

            12-146-290-323-641-608

            Taxes

            -144-73-258-155-355-458

            Funds from operations (FFO)

            3332656968001 3991 295

            Change in working capital

            771571681433863

            Total net cash from operating activities4104228649431 4371 358

            Paid capital expenditures-297-263-503-486-1 134-1 151

            Acquisition of shares-1-1-20-1-28-47

            Other investing activities331-165417260529

            Cash flow before financing activities443142882528335689

            MEURII2011II2010I-II2011I-II2010LTM

            Sales3223011 0479521 865

            Comparable operating profit2533196165306

            Net Assets3 9113 884

            Comparable RONA 82

            Gross Investments7259130121314

            MEUR

            II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

            Power257271271280582695760747

            Heat25332535196165290194

            Russia21-921-95575523

            Distribution605325253184155377166

            Electricity Sales1010232321-33-6

            Other-25-1917-31-41-2924-49

            Total3483396093519979901 5091 075

            Comparable operating profit

            Reported operating profit

            Comparable operating profit

            Reported operating profit

            Spot price for power (market price) Urals hub

            770

            935

            817

            950

            954

            0

            200

            400

            600

            800

            1 000

            1 200

            Q22010Q32010Q42010Q12011Q22011

            RUBMWh

            Achieved power price for OAO Fortum

            256

            288

            305

            292

            290

            0

            6

            12

            18

            24

            30

            36

            Q22010Q32010Q42010Q12011Q22011

            eurMWh

            g CO

            2

            kWh electricity 2009

            Average346 gkWh

            0

            200

            400

            600

            800

            1000

            1200

            DEI

            Drax

            RWE

            CEZ

            SSE

            EDP

            Enel

            Vattenfall

            EON

            Dong

            Union

            Fenosa

            GDF SUEZ Europe

            Iberdrola

            Fortum total

            EDF

            PVO

            Verbund

            Fortum EU

            Statkraft

            41155

            g CO

            2

            kWh electricity 2009

            Average346 gkWh

            0

            200

            400

            600

            800

            1000

            1200

            DEI

            Drax

            RWE

            CEZ

            SSE

            EDP

            Enel

            Vattenfall

            EON

            Dong

            Union

            Fenosa

            GDF SUEZ Europe

            Iberdrola

            Fortum total

            EDF

            PVO

            Verbund

            Fortum EU

            Statkraft

            41155

            0

            200

            400

            600

            800

            1000

            1200

            DEI

            Drax

            RWE

            CEZ

            SSE

            EDP

            Enel

            Vattenfall

            EON

            Dong

            Union

            Fenosa

            GDF SUEZ Europe

            Iberdrola

            Fortum total

            EDF

            PVO

            Verbund

            Fortum EU

            Statkraft

            41155

            MEURLTM20102009

            EBITDA2 7332 2712 292

            Comparable EBITDA2 4312 3962 398

            Interest-bearing net debt6 7836 8265 969

            Net debtEBITDA253026

            Comparable Net debtEBITDA282825

            Return on capital employed ()138116121

            Return on shareholders equity ()191157160

            ) as of 30 June 2011

    MEUR
    2011		231
    2012		668
    2013		639
    2014		1223
    2015		1051
    2016		879
    2017		270
    2018		190
    2019		840
    2020		73
    2021+		1530

    MEUR		LTM		2010		2009		2008		2006		2005
    EBITDA		2733		2271		2292		2478		1884
    Comparable EBITDA		2431		2396		2398			1151		1271
    Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
    Net debtEBITDA		25		30		26		25		8161
    Comparable Net debtEBITDA		28		28		25			16839		15130
    					23		18
    Return on capital employed ()		138		116		121		150		134		135
    Return on shareholders equity ()		191		157		160		187		144		135
    ) as of 30 June 2011

    MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
    Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
    Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
    Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
    Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
    Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
    Change in working capital		77		157		168		143		38		63		-102		161		5		0
    Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
    Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
    Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
    Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
    Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

    MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
    Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
    	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
    Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
    	Other items affecting comparability						261		12		512		85		-125		302
    Operating profit							609		351		1509		1075		1708		2142
    	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
    	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
    Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
    	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
    Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
    	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
    EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
    EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
    																	069

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		183		327		556		964		1390
    	Comparable operating profit		10		10		21		-3		35
    	Net Assets				77		59
    	Comparable RONA						341
    	Gross Investments		1		0		4		0		4

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		215		200		526		480		1009
  	Comparable operating profit		60		53		184		155		336
  	Net Assets				3487		3482
  	Comparable RONA						99
  	Gross Investments		62		47		96		76		233

Sheet3

Distribution

• Comparable operating profit increased
• Lower transmission costs
• Stronger SEK
• Smart metering rollout to network customers in Finland continued

• Q2 Distribution

  Sheet1

  Sheet2

  Sheet3

  Markets

  • Comparable operating profit at last yearrsquos level
  • Tough competition
  • Restructuring of the Business Market segment

  • Q2 Electricity Sales

    Sheet1

    Sheet2

    Sheet3

    Q2 Income statement

    Sheet1

    ampA

    Page ampP

    Q2 Cash flow statement

    Sheet1

    ampA

    Page ampP

    Key ratios

    Q2 lsquo11

    Sheet1

    Sheet2

    Sheet3

    Debt maturity profile

    per 30 June 2011 per 31 Dec 2010

    Average interest rate (incl swaps and forwards)4435

    Portion of floating fixed debt 47 53 49 51

    Strong financial position

    Return on capital employed

    12

    Return on shareholders equity

    14

    Net debtEBITDA

    around 30

    138

    191

    28

    Fortumrsquos financial targets

    LTM in Q22011

    Good liquidity ndash committed credit lines total EUR 27 billion

    Comparable net debtEBITDA

    Outlook

    Q2 Summary

    • Solid performance continued - seasonality
    • Power
    • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
    • Swedish nuclear back at 80-85 in availability
    • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
    • SEK burdened
    • Results year-end weighted compared to 2010
    • Russia
    • Commissioning of new units contributed to result improvement
    • The return for the new capacity is guaranteed
    • EUR 100 million efficiency improvement reached
    • Nordic countries
    • Water reservoirs improved to long-term average
    • Overall strong financial position

    • Outlook

      • Key drivers and risks
      • Wholesale price of electricity
      • Demand
      • Fuels
      • CO2 emissions prices
      • Water reservoirs
      • Nuclear availability
      • Nordic markets
      • Market continues to recover ndash 2008 level to be reached by 2012-2014
      • Electricity continues to gain share of total energy consumption
      • Russia
      • Wholesale market liberalised
      • Profits from Russia build up in pace with the capacity increases

      • Outlook

        • Capex (excluding potential acquisitions)
        • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
        • 2013-2014 around EUR 11 to 14 billion annually
        • Disclosed divestments totalled approximately EUR 05 billion
        • Hedging
        • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

        • (Q1 70 at EUR 44MWh)

          • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

          • (Q1 45 at EUR 45MWh)

            Wholesale prices for electricity

            Source

            EURMWh

            German

            Nordic

            15 July 2011

            2007

            2008

            2009

            2010

            2011

            2012

            0

            10

            20

            30

            40

            50

            60

            70

            80

            90

            100

            110

            Spot prices

            Forward prices

            CO2-free and energy-efficient solutions important

            Create solid earnings
            growth in Russia

            Leverage the strong
            Nordic core

            Build platform for
            future growth

            Competence in CO2-free hydro nuclear and energy efficient CHP production

            and operating in competitive energy markets

            Fortumrsquos Strategy

            Work continues -

            Fortumrsquos strategy remains intact

            MEURII2011II2010I-II2011I-II2010LTM

            Sales1833275569641 390

            Comparable operating profit101021-335

            Net Assets7759

            Comparable RONA 341

            Gross Investments10404

            MEURII2011II2010I-II2011I-II2010LTM

            Sales2152005264801 009

            Comparable operating profit6053184155336

            Net Assets3 4873 482

            Comparable RONA 99

            Gross Investments62479676233

            0

            250

            500

            750

            1000

            1250

            1500

            1750

            20112012201320142015201620172018201920202021+

            BondsFinancial institutionsOther long-term debtCPsOther short-term debt

            MEURII2011II2010I-II2011I-II2010LTM

            Sales195169490413881

            Comparable operating profit21-955756

            Net Assets3 0512 690

            Comparable RONA 34

            Gross Investments192167267258608

            MEURII2011II2010I-II2011I-II2010LTM

            Sales5745971 2671 3662 603

            Comparable operating profit2572715826951 185

            Net Assets5 9985 726

            Comparable RONA 198

            Gross Investments36226955136

            MEURII2011II2010I-II2011I-II20102010LTM

            Sales1 316

            1 2953 3503 2426 296

            6 404

            Expenses-968-956-2 353-2 252-4 463-4 564

            Comparable operating profit3483399979901 8331 840

            Other items affecting comparability2611251285-125302

            Operating profit6093511 5091 0751 7082 142

            Share of profit of associates and jvs1515743162105

            Financial expenses net-72-34-127-61-155-221

            Profit before taxes5523321 4561 0451 6152 026

            Income tax expense-74-61-232-191-261-302

            Net profit for the period4782711 2248541 3541 724

            Non-controlling interests6874325496

            EPS basic (EUR)053030129093146183

            EPS diluted (EUR)053030129093146183

            Spot price for power in NordPool power exchange

            448

            459

            662

            523

            621

            0

            12

            24

            36

            48

            60

            72

            Q22010Q32010Q42010Q12011Q22011

            eurMWh

            Powers Nordic power price

            447

            469

            488

            479

            474

            0

            10

            20

            30

            40

            50

            60

            Q22010Q32010Q42010Q12011Q22011

            eurMWh

            MEURII2011II2010I-II2011I-II20102010LTM

            Operating profit before depreciations7644901 8131 3512 2712 733

            Non-cash flow items and divesting activities

            -299-6-569-73124-372

            Financial items and fx gainslosses

            12-146-290-323-641-608

            Taxes

            -144-73-258-155-355-458

            Funds from operations (FFO)

            3332656968001 3991 295

            Change in working capital

            771571681433863

            Total net cash from operating activities4104228649431 4371 358

            Paid capital expenditures-297-263-503-486-1 134-1 151

            Acquisition of shares-1-1-20-1-28-47

            Other investing activities331-165417260529

            Cash flow before financing activities443142882528335689

            MEURII2011II2010I-II2011I-II2010LTM

            Sales3223011 0479521 865

            Comparable operating profit2533196165306

            Net Assets3 9113 884

            Comparable RONA 82

            Gross Investments7259130121314

            MEUR

            II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

            Power257271271280582695760747

            Heat25332535196165290194

            Russia21-921-95575523

            Distribution605325253184155377166

            Electricity Sales1010232321-33-6

            Other-25-1917-31-41-2924-49

            Total3483396093519979901 5091 075

            Comparable operating profit

            Reported operating profit

            Comparable operating profit

            Reported operating profit

            Spot price for power (market price) Urals hub

            770

            935

            817

            950

            954

            0

            200

            400

            600

            800

            1 000

            1 200

            Q22010Q32010Q42010Q12011Q22011

            RUBMWh

            Achieved power price for OAO Fortum

            256

            288

            305

            292

            290

            0

            6

            12

            18

            24

            30

            36

            Q22010Q32010Q42010Q12011Q22011

            eurMWh

            g CO

            2

            kWh electricity 2009

            Average346 gkWh

            0

            200

            400

            600

            800

            1000

            1200

            DEI

            Drax

            RWE

            CEZ

            SSE

            EDP

            Enel

            Vattenfall

            EON

            Dong

            Union

            Fenosa

            GDF SUEZ Europe

            Iberdrola

            Fortum total

            EDF

            PVO

            Verbund

            Fortum EU

            Statkraft

            41155

            g CO

            2

            kWh electricity 2009

            Average346 gkWh

            0

            200

            400

            600

            800

            1000

            1200

            DEI

            Drax

            RWE

            CEZ

            SSE

            EDP

            Enel

            Vattenfall

            EON

            Dong

            Union

            Fenosa

            GDF SUEZ Europe

            Iberdrola

            Fortum total

            EDF

            PVO

            Verbund

            Fortum EU

            Statkraft

            41155

            0

            200

            400

            600

            800

            1000

            1200

            DEI

            Drax

            RWE

            CEZ

            SSE

            EDP

            Enel

            Vattenfall

            EON

            Dong

            Union

            Fenosa

            GDF SUEZ Europe

            Iberdrola

            Fortum total

            EDF

            PVO

            Verbund

            Fortum EU

            Statkraft

            41155

            MEURLTM20102009

            EBITDA2 7332 2712 292

            Comparable EBITDA2 4312 3962 398

            Interest-bearing net debt6 7836 8265 969

            Net debtEBITDA253026

            Comparable Net debtEBITDA282825

            Return on capital employed ()138116121

            Return on shareholders equity ()191157160

            ) as of 30 June 2011

    MEUR
    2011		231
    2012		668
    2013		639
    2014		1223
    2015		1051
    2016		879
    2017		270
    2018		190
    2019		840
    2020		73
    2021+		1530

    MEUR		LTM		2010		2009		2008		2006		2005
    EBITDA		2733		2271		2292		2478		1884
    Comparable EBITDA		2431		2396		2398			1151		1271
    Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
    Net debtEBITDA		25		30		26		25		8161
    Comparable Net debtEBITDA		28		28		25			16839		15130
    					23		18
    Return on capital employed ()		138		116		121		150		134		135
    Return on shareholders equity ()		191		157		160		187		144		135
    ) as of 30 June 2011

    MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
    Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
    Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
    Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
    Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
    Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
    Change in working capital		77		157		168		143		38		63		-102		161		5		0
    Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
    Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
    Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
    Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
    Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

    MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
    Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
    	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
    Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
    	Other items affecting comparability						261		12		512		85		-125		302
    Operating profit							609		351		1509		1075		1708		2142
    	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
    	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
    Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
    	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
    Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
    	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
    EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
    EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
    																	069

    	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
    	Sales		183		327		556		964		1390
    	Comparable operating profit		10		10		21		-3		35
    	Net Assets				77		59
    	Comparable RONA						341
    	Gross Investments		1		0		4		0		4

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		215		200		526		480		1009
  	Comparable operating profit		60		53		184		155		336
  	Net Assets				3487		3482
  	Comparable RONA						99
  	Gross Investments		62		47		96		76		233

Sheet1

Sheet2

Sheet3

Markets

• Comparable operating profit at last yearrsquos level
• Tough competition
• Restructuring of the Business Market segment

• Q2 Electricity Sales

  Sheet1

  Sheet2

  Sheet3

  Q2 Income statement

  Sheet1

  ampA

  Page ampP

  Q2 Cash flow statement

  Sheet1

  ampA

  Page ampP

  Key ratios

  Q2 lsquo11

  Sheet1

  Sheet2

  Sheet3

  Debt maturity profile

  per 30 June 2011 per 31 Dec 2010

  Average interest rate (incl swaps and forwards)4435

  Portion of floating fixed debt 47 53 49 51

  Strong financial position

  Return on capital employed

  12

  Return on shareholders equity

  14

  Net debtEBITDA

  around 30

  138

  191

  28

  Fortumrsquos financial targets

  LTM in Q22011

  Good liquidity ndash committed credit lines total EUR 27 billion

  Comparable net debtEBITDA

  Outlook

  Q2 Summary

  • Solid performance continued - seasonality
  • Power
  • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
  • Swedish nuclear back at 80-85 in availability
  • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
  • SEK burdened
  • Results year-end weighted compared to 2010
  • Russia
  • Commissioning of new units contributed to result improvement
  • The return for the new capacity is guaranteed
  • EUR 100 million efficiency improvement reached
  • Nordic countries
  • Water reservoirs improved to long-term average
  • Overall strong financial position

  • Outlook

    • Key drivers and risks
    • Wholesale price of electricity
    • Demand
    • Fuels
    • CO2 emissions prices
    • Water reservoirs
    • Nuclear availability
    • Nordic markets
    • Market continues to recover ndash 2008 level to be reached by 2012-2014
    • Electricity continues to gain share of total energy consumption
    • Russia
    • Wholesale market liberalised
    • Profits from Russia build up in pace with the capacity increases

    • Outlook

      • Capex (excluding potential acquisitions)
      • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
      • 2013-2014 around EUR 11 to 14 billion annually
      • Disclosed divestments totalled approximately EUR 05 billion
      • Hedging
      • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

      • (Q1 70 at EUR 44MWh)

        • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

        • (Q1 45 at EUR 45MWh)

          Wholesale prices for electricity

          Source

          EURMWh

          German

          Nordic

          15 July 2011

          2007

          2008

          2009

          2010

          2011

          2012

          0

          10

          20

          30

          40

          50

          60

          70

          80

          90

          100

          110

          Spot prices

          Forward prices

          CO2-free and energy-efficient solutions important

          Create solid earnings
          growth in Russia

          Leverage the strong
          Nordic core

          Build platform for
          future growth

          Competence in CO2-free hydro nuclear and energy efficient CHP production

          and operating in competitive energy markets

          Fortumrsquos Strategy

          Work continues -

          Fortumrsquos strategy remains intact

          MEURII2011II2010I-II2011I-II2010LTM

          Sales1833275569641 390

          Comparable operating profit101021-335

          Net Assets7759

          Comparable RONA 341

          Gross Investments10404

          MEURII2011II2010I-II2011I-II2010LTM

          Sales2152005264801 009

          Comparable operating profit6053184155336

          Net Assets3 4873 482

          Comparable RONA 99

          Gross Investments62479676233

          0

          250

          500

          750

          1000

          1250

          1500

          1750

          20112012201320142015201620172018201920202021+

          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

          MEURII2011II2010I-II2011I-II2010LTM

          Sales195169490413881

          Comparable operating profit21-955756

          Net Assets3 0512 690

          Comparable RONA 34

          Gross Investments192167267258608

          MEURII2011II2010I-II2011I-II2010LTM

          Sales5745971 2671 3662 603

          Comparable operating profit2572715826951 185

          Net Assets5 9985 726

          Comparable RONA 198

          Gross Investments36226955136

          MEURII2011II2010I-II2011I-II20102010LTM

          Sales1 316

          1 2953 3503 2426 296

          6 404

          Expenses-968-956-2 353-2 252-4 463-4 564

          Comparable operating profit3483399979901 8331 840

          Other items affecting comparability2611251285-125302

          Operating profit6093511 5091 0751 7082 142

          Share of profit of associates and jvs1515743162105

          Financial expenses net-72-34-127-61-155-221

          Profit before taxes5523321 4561 0451 6152 026

          Income tax expense-74-61-232-191-261-302

          Net profit for the period4782711 2248541 3541 724

          Non-controlling interests6874325496

          EPS basic (EUR)053030129093146183

          EPS diluted (EUR)053030129093146183

          Spot price for power in NordPool power exchange

          448

          459

          662

          523

          621

          0

          12

          24

          36

          48

          60

          72

          Q22010Q32010Q42010Q12011Q22011

          eurMWh

          Powers Nordic power price

          447

          469

          488

          479

          474

          0

          10

          20

          30

          40

          50

          60

          Q22010Q32010Q42010Q12011Q22011

          eurMWh

          MEURII2011II2010I-II2011I-II20102010LTM

          Operating profit before depreciations7644901 8131 3512 2712 733

          Non-cash flow items and divesting activities

          -299-6-569-73124-372

          Financial items and fx gainslosses

          12-146-290-323-641-608

          Taxes

          -144-73-258-155-355-458

          Funds from operations (FFO)

          3332656968001 3991 295

          Change in working capital

          771571681433863

          Total net cash from operating activities4104228649431 4371 358

          Paid capital expenditures-297-263-503-486-1 134-1 151

          Acquisition of shares-1-1-20-1-28-47

          Other investing activities331-165417260529

          Cash flow before financing activities443142882528335689

          MEURII2011II2010I-II2011I-II2010LTM

          Sales3223011 0479521 865

          Comparable operating profit2533196165306

          Net Assets3 9113 884

          Comparable RONA 82

          Gross Investments7259130121314

          MEUR

          II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

          Power257271271280582695760747

          Heat25332535196165290194

          Russia21-921-95575523

          Distribution605325253184155377166

          Electricity Sales1010232321-33-6

          Other-25-1917-31-41-2924-49

          Total3483396093519979901 5091 075

          Comparable operating profit

          Reported operating profit

          Comparable operating profit

          Reported operating profit

          Spot price for power (market price) Urals hub

          770

          935

          817

          950

          954

          0

          200

          400

          600

          800

          1 000

          1 200

          Q22010Q32010Q42010Q12011Q22011

          RUBMWh

          Achieved power price for OAO Fortum

          256

          288

          305

          292

          290

          0

          6

          12

          18

          24

          30

          36

          Q22010Q32010Q42010Q12011Q22011

          eurMWh

          g CO

          2

          kWh electricity 2009

          Average346 gkWh

          0

          200

          400

          600

          800

          1000

          1200

          DEI

          Drax

          RWE

          CEZ

          SSE

          EDP

          Enel

          Vattenfall

          EON

          Dong

          Union

          Fenosa

          GDF SUEZ Europe

          Iberdrola

          Fortum total

          EDF

          PVO

          Verbund

          Fortum EU

          Statkraft

          41155

          g CO

          2

          kWh electricity 2009

          Average346 gkWh

          0

          200

          400

          600

          800

          1000

          1200

          DEI

          Drax

          RWE

          CEZ

          SSE

          EDP

          Enel

          Vattenfall

          EON

          Dong

          Union

          Fenosa

          GDF SUEZ Europe

          Iberdrola

          Fortum total

          EDF

          PVO

          Verbund

          Fortum EU

          Statkraft

          41155

          0

          200

          400

          600

          800

          1000

          1200

          DEI

          Drax

          RWE

          CEZ

          SSE

          EDP

          Enel

          Vattenfall

          EON

          Dong

          Union

          Fenosa

          GDF SUEZ Europe

          Iberdrola

          Fortum total

          EDF

          PVO

          Verbund

          Fortum EU

          Statkraft

          41155

          MEURLTM20102009

          EBITDA2 7332 2712 292

          Comparable EBITDA2 4312 3962 398

          Interest-bearing net debt6 7836 8265 969

          Net debtEBITDA253026

          Comparable Net debtEBITDA282825

          Return on capital employed ()138116121

          Return on shareholders equity ()191157160

          ) as of 30 June 2011

  MEUR
  2011		231
  2012		668
  2013		639
  2014		1223
  2015		1051
  2016		879
  2017		270
  2018		190
  2019		840
  2020		73
  2021+		1530

  MEUR		LTM		2010		2009		2008		2006		2005
  EBITDA		2733		2271		2292		2478		1884
  Comparable EBITDA		2431		2396		2398			1151		1271
  Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
  Net debtEBITDA		25		30		26		25		8161
  Comparable Net debtEBITDA		28		28		25			16839		15130
  					23		18
  Return on capital employed ()		138		116		121		150		134		135
  Return on shareholders equity ()		191		157		160		187		144		135
  ) as of 30 June 2011

  MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
  Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
  Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
  Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
  Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
  Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
  Change in working capital		77		157		168		143		38		63		-102		161		5		0
  Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
  Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
  Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
  Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
  Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

  MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
  Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
  	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
  Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
  	Other items affecting comparability						261		12		512		85		-125		302
  Operating profit							609		351		1509		1075		1708		2142
  	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
  	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
  Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
  	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
  Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
  	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
  EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
  EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
  																	069

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		183		327		556		964		1390
  	Comparable operating profit		10		10		21		-3		35
  	Net Assets				77		59
  	Comparable RONA						341
  	Gross Investments		1		0		4		0		4

	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
	Sales		215		200		526		480		1009
	Comparable operating profit		60		53		184		155		336
	Net Assets				3487		3482
	Comparable RONA						99
	Gross Investments		62		47		96		76		233

Sheet2

Sheet3

Markets

• Comparable operating profit at last yearrsquos level
• Tough competition
• Restructuring of the Business Market segment

• Q2 Electricity Sales

  Sheet1

  Sheet2

  Sheet3

  Q2 Income statement

  Sheet1

  ampA

  Page ampP

  Q2 Cash flow statement

  Sheet1

  ampA

  Page ampP

  Key ratios

  Q2 lsquo11

  Sheet1

  Sheet2

  Sheet3

  Debt maturity profile

  per 30 June 2011 per 31 Dec 2010

  Average interest rate (incl swaps and forwards)4435

  Portion of floating fixed debt 47 53 49 51

  Strong financial position

  Return on capital employed

  12

  Return on shareholders equity

  14

  Net debtEBITDA

  around 30

  138

  191

  28

  Fortumrsquos financial targets

  LTM in Q22011

  Good liquidity ndash committed credit lines total EUR 27 billion

  Comparable net debtEBITDA

  Outlook

  Q2 Summary

  • Solid performance continued - seasonality
  • Power
  • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
  • Swedish nuclear back at 80-85 in availability
  • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
  • SEK burdened
  • Results year-end weighted compared to 2010
  • Russia
  • Commissioning of new units contributed to result improvement
  • The return for the new capacity is guaranteed
  • EUR 100 million efficiency improvement reached
  • Nordic countries
  • Water reservoirs improved to long-term average
  • Overall strong financial position

  • Outlook

    • Key drivers and risks
    • Wholesale price of electricity
    • Demand
    • Fuels
    • CO2 emissions prices
    • Water reservoirs
    • Nuclear availability
    • Nordic markets
    • Market continues to recover ndash 2008 level to be reached by 2012-2014
    • Electricity continues to gain share of total energy consumption
    • Russia
    • Wholesale market liberalised
    • Profits from Russia build up in pace with the capacity increases

    • Outlook

      • Capex (excluding potential acquisitions)
      • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
      • 2013-2014 around EUR 11 to 14 billion annually
      • Disclosed divestments totalled approximately EUR 05 billion
      • Hedging
      • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

      • (Q1 70 at EUR 44MWh)

        • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

        • (Q1 45 at EUR 45MWh)

          Wholesale prices for electricity

          Source

          EURMWh

          German

          Nordic

          15 July 2011

          2007

          2008

          2009

          2010

          2011

          2012

          0

          10

          20

          30

          40

          50

          60

          70

          80

          90

          100

          110

          Spot prices

          Forward prices

          CO2-free and energy-efficient solutions important

          Create solid earnings
          growth in Russia

          Leverage the strong
          Nordic core

          Build platform for
          future growth

          Competence in CO2-free hydro nuclear and energy efficient CHP production

          and operating in competitive energy markets

          Fortumrsquos Strategy

          Work continues -

          Fortumrsquos strategy remains intact

          MEURII2011II2010I-II2011I-II2010LTM

          Sales1833275569641 390

          Comparable operating profit101021-335

          Net Assets7759

          Comparable RONA 341

          Gross Investments10404

          MEURII2011II2010I-II2011I-II2010LTM

          Sales2152005264801 009

          Comparable operating profit6053184155336

          Net Assets3 4873 482

          Comparable RONA 99

          Gross Investments62479676233

          0

          250

          500

          750

          1000

          1250

          1500

          1750

          20112012201320142015201620172018201920202021+

          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

          MEURII2011II2010I-II2011I-II2010LTM

          Sales195169490413881

          Comparable operating profit21-955756

          Net Assets3 0512 690

          Comparable RONA 34

          Gross Investments192167267258608

          MEURII2011II2010I-II2011I-II2010LTM

          Sales5745971 2671 3662 603

          Comparable operating profit2572715826951 185

          Net Assets5 9985 726

          Comparable RONA 198

          Gross Investments36226955136

          MEURII2011II2010I-II2011I-II20102010LTM

          Sales1 316

          1 2953 3503 2426 296

          6 404

          Expenses-968-956-2 353-2 252-4 463-4 564

          Comparable operating profit3483399979901 8331 840

          Other items affecting comparability2611251285-125302

          Operating profit6093511 5091 0751 7082 142

          Share of profit of associates and jvs1515743162105

          Financial expenses net-72-34-127-61-155-221

          Profit before taxes5523321 4561 0451 6152 026

          Income tax expense-74-61-232-191-261-302

          Net profit for the period4782711 2248541 3541 724

          Non-controlling interests6874325496

          EPS basic (EUR)053030129093146183

          EPS diluted (EUR)053030129093146183

          Spot price for power in NordPool power exchange

          448

          459

          662

          523

          621

          0

          12

          24

          36

          48

          60

          72

          Q22010Q32010Q42010Q12011Q22011

          eurMWh

          Powers Nordic power price

          447

          469

          488

          479

          474

          0

          10

          20

          30

          40

          50

          60

          Q22010Q32010Q42010Q12011Q22011

          eurMWh

          MEURII2011II2010I-II2011I-II20102010LTM

          Operating profit before depreciations7644901 8131 3512 2712 733

          Non-cash flow items and divesting activities

          -299-6-569-73124-372

          Financial items and fx gainslosses

          12-146-290-323-641-608

          Taxes

          -144-73-258-155-355-458

          Funds from operations (FFO)

          3332656968001 3991 295

          Change in working capital

          771571681433863

          Total net cash from operating activities4104228649431 4371 358

          Paid capital expenditures-297-263-503-486-1 134-1 151

          Acquisition of shares-1-1-20-1-28-47

          Other investing activities331-165417260529

          Cash flow before financing activities443142882528335689

          MEURII2011II2010I-II2011I-II2010LTM

          Sales3223011 0479521 865

          Comparable operating profit2533196165306

          Net Assets3 9113 884

          Comparable RONA 82

          Gross Investments7259130121314

          MEUR

          II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

          Power257271271280582695760747

          Heat25332535196165290194

          Russia21-921-95575523

          Distribution605325253184155377166

          Electricity Sales1010232321-33-6

          Other-25-1917-31-41-2924-49

          Total3483396093519979901 5091 075

          Comparable operating profit

          Reported operating profit

          Comparable operating profit

          Reported operating profit

          Spot price for power (market price) Urals hub

          770

          935

          817

          950

          954

          0

          200

          400

          600

          800

          1 000

          1 200

          Q22010Q32010Q42010Q12011Q22011

          RUBMWh

          Achieved power price for OAO Fortum

          256

          288

          305

          292

          290

          0

          6

          12

          18

          24

          30

          36

          Q22010Q32010Q42010Q12011Q22011

          eurMWh

          g CO

          2

          kWh electricity 2009

          Average346 gkWh

          0

          200

          400

          600

          800

          1000

          1200

          DEI

          Drax

          RWE

          CEZ

          SSE

          EDP

          Enel

          Vattenfall

          EON

          Dong

          Union

          Fenosa

          GDF SUEZ Europe

          Iberdrola

          Fortum total

          EDF

          PVO

          Verbund

          Fortum EU

          Statkraft

          41155

          g CO

          2

          kWh electricity 2009

          Average346 gkWh

          0

          200

          400

          600

          800

          1000

          1200

          DEI

          Drax

          RWE

          CEZ

          SSE

          EDP

          Enel

          Vattenfall

          EON

          Dong

          Union

          Fenosa

          GDF SUEZ Europe

          Iberdrola

          Fortum total

          EDF

          PVO

          Verbund

          Fortum EU

          Statkraft

          41155

          0

          200

          400

          600

          800

          1000

          1200

          DEI

          Drax

          RWE

          CEZ

          SSE

          EDP

          Enel

          Vattenfall

          EON

          Dong

          Union

          Fenosa

          GDF SUEZ Europe

          Iberdrola

          Fortum total

          EDF

          PVO

          Verbund

          Fortum EU

          Statkraft

          41155

          MEURLTM20102009

          EBITDA2 7332 2712 292

          Comparable EBITDA2 4312 3962 398

          Interest-bearing net debt6 7836 8265 969

          Net debtEBITDA253026

          Comparable Net debtEBITDA282825

          Return on capital employed ()138116121

          Return on shareholders equity ()191157160

          ) as of 30 June 2011

  MEUR
  2011		231
  2012		668
  2013		639
  2014		1223
  2015		1051
  2016		879
  2017		270
  2018		190
  2019		840
  2020		73
  2021+		1530

  MEUR		LTM		2010		2009		2008		2006		2005
  EBITDA		2733		2271		2292		2478		1884
  Comparable EBITDA		2431		2396		2398			1151		1271
  Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
  Net debtEBITDA		25		30		26		25		8161
  Comparable Net debtEBITDA		28		28		25			16839		15130
  					23		18
  Return on capital employed ()		138		116		121		150		134		135
  Return on shareholders equity ()		191		157		160		187		144		135
  ) as of 30 June 2011

  MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
  Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
  Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
  Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
  Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
  Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
  Change in working capital		77		157		168		143		38		63		-102		161		5		0
  Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
  Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
  Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
  Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
  Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

  MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
  Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
  	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
  Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
  	Other items affecting comparability						261		12		512		85		-125		302
  Operating profit							609		351		1509		1075		1708		2142
  	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
  	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
  Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
  	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
  Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
  	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
  EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
  EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
  																	069

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		183		327		556		964		1390
  	Comparable operating profit		10		10		21		-3		35
  	Net Assets				77		59
  	Comparable RONA						341
  	Gross Investments		1		0		4		0		4

Sheet3

Markets

• Comparable operating profit at last yearrsquos level
• Tough competition
• Restructuring of the Business Market segment

• Q2 Electricity Sales

  Sheet1

  Sheet2

  Sheet3

  Q2 Income statement

  Sheet1

  ampA

  Page ampP

  Q2 Cash flow statement

  Sheet1

  ampA

  Page ampP

  Key ratios

  Q2 lsquo11

  Sheet1

  Sheet2

  Sheet3

  Debt maturity profile

  per 30 June 2011 per 31 Dec 2010

  Average interest rate (incl swaps and forwards)4435

  Portion of floating fixed debt 47 53 49 51

  Strong financial position

  Return on capital employed

  12

  Return on shareholders equity

  14

  Net debtEBITDA

  around 30

  138

  191

  28

  Fortumrsquos financial targets

  LTM in Q22011

  Good liquidity ndash committed credit lines total EUR 27 billion

  Comparable net debtEBITDA

  Outlook

  Q2 Summary

  • Solid performance continued - seasonality
  • Power
  • Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
  • Swedish nuclear back at 80-85 in availability
  • Lower hydro volumes ndash water reservoirs improved at the end of the quarter
  • SEK burdened
  • Results year-end weighted compared to 2010
  • Russia
  • Commissioning of new units contributed to result improvement
  • The return for the new capacity is guaranteed
  • EUR 100 million efficiency improvement reached
  • Nordic countries
  • Water reservoirs improved to long-term average
  • Overall strong financial position

  • Outlook

    • Key drivers and risks
    • Wholesale price of electricity
    • Demand
    • Fuels
    • CO2 emissions prices
    • Water reservoirs
    • Nuclear availability
    • Nordic markets
    • Market continues to recover ndash 2008 level to be reached by 2012-2014
    • Electricity continues to gain share of total energy consumption
    • Russia
    • Wholesale market liberalised
    • Profits from Russia build up in pace with the capacity increases

    • Outlook

      • Capex (excluding potential acquisitions)
      • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
      • 2013-2014 around EUR 11 to 14 billion annually
      • Disclosed divestments totalled approximately EUR 05 billion
      • Hedging
      • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

      • (Q1 70 at EUR 44MWh)

        • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

        • (Q1 45 at EUR 45MWh)

          Wholesale prices for electricity

          Source

          EURMWh

          German

          Nordic

          15 July 2011

          2007

          2008

          2009

          2010

          2011

          2012

          0

          10

          20

          30

          40

          50

          60

          70

          80

          90

          100

          110

          Spot prices

          Forward prices

          CO2-free and energy-efficient solutions important

          Create solid earnings
          growth in Russia

          Leverage the strong
          Nordic core

          Build platform for
          future growth

          Competence in CO2-free hydro nuclear and energy efficient CHP production

          and operating in competitive energy markets

          Fortumrsquos Strategy

          Work continues -

          Fortumrsquos strategy remains intact

          MEURII2011II2010I-II2011I-II2010LTM

          Sales1833275569641 390

          Comparable operating profit101021-335

          Net Assets7759

          Comparable RONA 341

          Gross Investments10404

          MEURII2011II2010I-II2011I-II2010LTM

          Sales2152005264801 009

          Comparable operating profit6053184155336

          Net Assets3 4873 482

          Comparable RONA 99

          Gross Investments62479676233

          0

          250

          500

          750

          1000

          1250

          1500

          1750

          20112012201320142015201620172018201920202021+

          BondsFinancial institutionsOther long-term debtCPsOther short-term debt

          MEURII2011II2010I-II2011I-II2010LTM

          Sales195169490413881

          Comparable operating profit21-955756

          Net Assets3 0512 690

          Comparable RONA 34

          Gross Investments192167267258608

          MEURII2011II2010I-II2011I-II2010LTM

          Sales5745971 2671 3662 603

          Comparable operating profit2572715826951 185

          Net Assets5 9985 726

          Comparable RONA 198

          Gross Investments36226955136

          MEURII2011II2010I-II2011I-II20102010LTM

          Sales1 316

          1 2953 3503 2426 296

          6 404

          Expenses-968-956-2 353-2 252-4 463-4 564

          Comparable operating profit3483399979901 8331 840

          Other items affecting comparability2611251285-125302

          Operating profit6093511 5091 0751 7082 142

          Share of profit of associates and jvs1515743162105

          Financial expenses net-72-34-127-61-155-221

          Profit before taxes5523321 4561 0451 6152 026

          Income tax expense-74-61-232-191-261-302

          Net profit for the period4782711 2248541 3541 724

          Non-controlling interests6874325496

          EPS basic (EUR)053030129093146183

          EPS diluted (EUR)053030129093146183

          Spot price for power in NordPool power exchange

          448

          459

          662

          523

          621

          0

          12

          24

          36

          48

          60

          72

          Q22010Q32010Q42010Q12011Q22011

          eurMWh

          Powers Nordic power price

          447

          469

          488

          479

          474

          0

          10

          20

          30

          40

          50

          60

          Q22010Q32010Q42010Q12011Q22011

          eurMWh

          MEURII2011II2010I-II2011I-II20102010LTM

          Operating profit before depreciations7644901 8131 3512 2712 733

          Non-cash flow items and divesting activities

          -299-6-569-73124-372

          Financial items and fx gainslosses

          12-146-290-323-641-608

          Taxes

          -144-73-258-155-355-458

          Funds from operations (FFO)

          3332656968001 3991 295

          Change in working capital

          771571681433863

          Total net cash from operating activities4104228649431 4371 358

          Paid capital expenditures-297-263-503-486-1 134-1 151

          Acquisition of shares-1-1-20-1-28-47

          Other investing activities331-165417260529

          Cash flow before financing activities443142882528335689

          MEURII2011II2010I-II2011I-II2010LTM

          Sales3223011 0479521 865

          Comparable operating profit2533196165306

          Net Assets3 9113 884

          Comparable RONA 82

          Gross Investments7259130121314

          MEUR

          II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

          Power257271271280582695760747

          Heat25332535196165290194

          Russia21-921-95575523

          Distribution605325253184155377166

          Electricity Sales1010232321-33-6

          Other-25-1917-31-41-2924-49

          Total3483396093519979901 5091 075

          Comparable operating profit

          Reported operating profit

          Comparable operating profit

          Reported operating profit

          Spot price for power (market price) Urals hub

          770

          935

          817

          950

          954

          0

          200

          400

          600

          800

          1 000

          1 200

          Q22010Q32010Q42010Q12011Q22011

          RUBMWh

          Achieved power price for OAO Fortum

          256

          288

          305

          292

          290

          0

          6

          12

          18

          24

          30

          36

          Q22010Q32010Q42010Q12011Q22011

          eurMWh

          g CO

          2

          kWh electricity 2009

          Average346 gkWh

          0

          200

          400

          600

          800

          1000

          1200

          DEI

          Drax

          RWE

          CEZ

          SSE

          EDP

          Enel

          Vattenfall

          EON

          Dong

          Union

          Fenosa

          GDF SUEZ Europe

          Iberdrola

          Fortum total

          EDF

          PVO

          Verbund

          Fortum EU

          Statkraft

          41155

          g CO

          2

          kWh electricity 2009

          Average346 gkWh

          0

          200

          400

          600

          800

          1000

          1200

          DEI

          Drax

          RWE

          CEZ

          SSE

          EDP

          Enel

          Vattenfall

          EON

          Dong

          Union

          Fenosa

          GDF SUEZ Europe

          Iberdrola

          Fortum total

          EDF

          PVO

          Verbund

          Fortum EU

          Statkraft

          41155

          0

          200

          400

          600

          800

          1000

          1200

          DEI

          Drax

          RWE

          CEZ

          SSE

          EDP

          Enel

          Vattenfall

          EON

          Dong

          Union

          Fenosa

          GDF SUEZ Europe

          Iberdrola

          Fortum total

          EDF

          PVO

          Verbund

          Fortum EU

          Statkraft

          41155

          MEURLTM20102009

          EBITDA2 7332 2712 292

          Comparable EBITDA2 4312 3962 398

          Interest-bearing net debt6 7836 8265 969

          Net debtEBITDA253026

          Comparable Net debtEBITDA282825

          Return on capital employed ()138116121

          Return on shareholders equity ()191157160

          ) as of 30 June 2011

  MEUR
  2011		231
  2012		668
  2013		639
  2014		1223
  2015		1051
  2016		879
  2017		270
  2018		190
  2019		840
  2020		73
  2021+		1530

  MEUR		LTM		2010		2009		2008		2006		2005
  EBITDA		2733		2271		2292		2478		1884
  Comparable EBITDA		2431		2396		2398			1151		1271
  Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
  Net debtEBITDA		25		30		26		25		8161
  Comparable Net debtEBITDA		28		28		25			16839		15130
  					23		18
  Return on capital employed ()		138		116		121		150		134		135
  Return on shareholders equity ()		191		157		160		187		144		135
  ) as of 30 June 2011

  MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
  Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
  Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
  Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
  Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
  Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
  Change in working capital		77		157		168		143		38		63		-102		161		5		0
  Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
  Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
  Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
  Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
  Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

  MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
  Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
  	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
  Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
  	Other items affecting comparability						261		12		512		85		-125		302
  Operating profit							609		351		1509		1075		1708		2142
  	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
  	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
  Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
  	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
  Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
  	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
  EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
  EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
  																	069

  	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
  	Sales		183		327		556		964		1390
  	Comparable operating profit		10		10		21		-3		35
  	Net Assets				77		59
  	Comparable RONA						341
  	Gross Investments		1		0		4		0		4

Sheet1

Sheet2

Sheet3

Q2 Income statement

Sheet1

ampA

Page ampP

Q2 Cash flow statement

Sheet1

ampA

Page ampP

Key ratios

Q2 lsquo11

Sheet1

Sheet2

Sheet3

Debt maturity profile

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards)4435

Portion of floating fixed debt 47 53 49 51

Strong financial position

Return on capital employed

12

Return on shareholders equity

14

Net debtEBITDA

around 30

138

191

28

Fortumrsquos financial targets

LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

Outlook

Q2 Summary

• Solid performance continued - seasonality
• Power
• Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
• Swedish nuclear back at 80-85 in availability
• Lower hydro volumes ndash water reservoirs improved at the end of the quarter
• SEK burdened
• Results year-end weighted compared to 2010
• Russia
• Commissioning of new units contributed to result improvement
• The return for the new capacity is guaranteed
• EUR 100 million efficiency improvement reached
• Nordic countries
• Water reservoirs improved to long-term average
• Overall strong financial position

• Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Market continues to recover ndash 2008 level to be reached by 2012-2014
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Wholesale market liberalised
  • Profits from Russia build up in pace with the capacity increases

  • Outlook

    • Capex (excluding potential acquisitions)
    • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
    • 2013-2014 around EUR 11 to 14 billion annually
    • Disclosed divestments totalled approximately EUR 05 billion
    • Hedging
    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

    • (Q1 70 at EUR 44MWh)

      • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

      • (Q1 45 at EUR 45MWh)

        Wholesale prices for electricity

        Source

        EURMWh

        German

        Nordic

        15 July 2011

        2007

        2008

        2009

        2010

        2011

        2012

        0

        10

        20

        30

        40

        50

        60

        70

        80

        90

        100

        110

        Spot prices

        Forward prices

        CO2-free and energy-efficient solutions important

        Create solid earnings
        growth in Russia

        Leverage the strong
        Nordic core

        Build platform for
        future growth

        Competence in CO2-free hydro nuclear and energy efficient CHP production

        and operating in competitive energy markets

        Fortumrsquos Strategy

        Work continues -

        Fortumrsquos strategy remains intact

        MEURII2011II2010I-II2011I-II2010LTM

        Sales1833275569641 390

        Comparable operating profit101021-335

        Net Assets7759

        Comparable RONA 341

        Gross Investments10404

        MEURII2011II2010I-II2011I-II2010LTM

        Sales2152005264801 009

        Comparable operating profit6053184155336

        Net Assets3 4873 482

        Comparable RONA 99

        Gross Investments62479676233

        0

        250

        500

        750

        1000

        1250

        1500

        1750

        20112012201320142015201620172018201920202021+

        BondsFinancial institutionsOther long-term debtCPsOther short-term debt

        MEURII2011II2010I-II2011I-II2010LTM

        Sales195169490413881

        Comparable operating profit21-955756

        Net Assets3 0512 690

        Comparable RONA 34

        Gross Investments192167267258608

        MEURII2011II2010I-II2011I-II2010LTM

        Sales5745971 2671 3662 603

        Comparable operating profit2572715826951 185

        Net Assets5 9985 726

        Comparable RONA 198

        Gross Investments36226955136

        MEURII2011II2010I-II2011I-II20102010LTM

        Sales1 316

        1 2953 3503 2426 296

        6 404

        Expenses-968-956-2 353-2 252-4 463-4 564

        Comparable operating profit3483399979901 8331 840

        Other items affecting comparability2611251285-125302

        Operating profit6093511 5091 0751 7082 142

        Share of profit of associates and jvs1515743162105

        Financial expenses net-72-34-127-61-155-221

        Profit before taxes5523321 4561 0451 6152 026

        Income tax expense-74-61-232-191-261-302

        Net profit for the period4782711 2248541 3541 724

        Non-controlling interests6874325496

        EPS basic (EUR)053030129093146183

        EPS diluted (EUR)053030129093146183

        Spot price for power in NordPool power exchange

        448

        459

        662

        523

        621

        0

        12

        24

        36

        48

        60

        72

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        Powers Nordic power price

        447

        469

        488

        479

        474

        0

        10

        20

        30

        40

        50

        60

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        MEURII2011II2010I-II2011I-II20102010LTM

        Operating profit before depreciations7644901 8131 3512 2712 733

        Non-cash flow items and divesting activities

        -299-6-569-73124-372

        Financial items and fx gainslosses

        12-146-290-323-641-608

        Taxes

        -144-73-258-155-355-458

        Funds from operations (FFO)

        3332656968001 3991 295

        Change in working capital

        771571681433863

        Total net cash from operating activities4104228649431 4371 358

        Paid capital expenditures-297-263-503-486-1 134-1 151

        Acquisition of shares-1-1-20-1-28-47

        Other investing activities331-165417260529

        Cash flow before financing activities443142882528335689

        MEURII2011II2010I-II2011I-II2010LTM

        Sales3223011 0479521 865

        Comparable operating profit2533196165306

        Net Assets3 9113 884

        Comparable RONA 82

        Gross Investments7259130121314

        MEUR

        II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

        Power257271271280582695760747

        Heat25332535196165290194

        Russia21-921-95575523

        Distribution605325253184155377166

        Electricity Sales1010232321-33-6

        Other-25-1917-31-41-2924-49

        Total3483396093519979901 5091 075

        Comparable operating profit

        Reported operating profit

        Comparable operating profit

        Reported operating profit

        Spot price for power (market price) Urals hub

        770

        935

        817

        950

        954

        0

        200

        400

        600

        800

        1 000

        1 200

        Q22010Q32010Q42010Q12011Q22011

        RUBMWh

        Achieved power price for OAO Fortum

        256

        288

        305

        292

        290

        0

        6

        12

        18

        24

        30

        36

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        MEURLTM20102009

        EBITDA2 7332 2712 292

        Comparable EBITDA2 4312 3962 398

        Interest-bearing net debt6 7836 8265 969

        Net debtEBITDA253026

        Comparable Net debtEBITDA282825

        Return on capital employed ()138116121

        Return on shareholders equity ()191157160

        ) as of 30 June 2011

MEUR
2011		231
2012		668
2013		639
2014		1223
2015		1051
2016		879
2017		270
2018		190
2019		840
2020		73
2021+		1530

MEUR		LTM		2010		2009		2008		2006		2005
EBITDA		2733		2271		2292		2478		1884
Comparable EBITDA		2431		2396		2398			1151		1271
Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
Net debtEBITDA		25		30		26		25		8161
Comparable Net debtEBITDA		28		28		25			16839		15130
					23		18
Return on capital employed ()		138		116		121		150		134		135
Return on shareholders equity ()		191		157		160		187		144		135
) as of 30 June 2011

MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
Change in working capital		77		157		168		143		38		63		-102		161		5		0
Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
	Other items affecting comparability						261		12		512		85		-125		302
Operating profit							609		351		1509		1075		1708		2142
	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
																	069

	MEUR		II2011		II2010		I-II2011		I-II2010		LTM
	Sales		183		327		556		964		1390
	Comparable operating profit		10		10		21		-3		35
	Net Assets				77		59
	Comparable RONA						341
	Gross Investments		1		0		4		0		4

Sheet2

Sheet3

Q2 Income statement

Sheet1

ampA

Page ampP

Q2 Cash flow statement

Sheet1

ampA

Page ampP

Key ratios

Q2 lsquo11

Sheet1

Sheet2

Sheet3

Debt maturity profile

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards)4435

Portion of floating fixed debt 47 53 49 51

Strong financial position

Return on capital employed

12

Return on shareholders equity

14

Net debtEBITDA

around 30

138

191

28

Fortumrsquos financial targets

LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

Outlook

Q2 Summary

• Solid performance continued - seasonality
• Power
• Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
• Swedish nuclear back at 80-85 in availability
• Lower hydro volumes ndash water reservoirs improved at the end of the quarter
• SEK burdened
• Results year-end weighted compared to 2010
• Russia
• Commissioning of new units contributed to result improvement
• The return for the new capacity is guaranteed
• EUR 100 million efficiency improvement reached
• Nordic countries
• Water reservoirs improved to long-term average
• Overall strong financial position

• Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Market continues to recover ndash 2008 level to be reached by 2012-2014
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Wholesale market liberalised
  • Profits from Russia build up in pace with the capacity increases

  • Outlook

    • Capex (excluding potential acquisitions)
    • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
    • 2013-2014 around EUR 11 to 14 billion annually
    • Disclosed divestments totalled approximately EUR 05 billion
    • Hedging
    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

    • (Q1 70 at EUR 44MWh)

      • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

      • (Q1 45 at EUR 45MWh)

        Wholesale prices for electricity

        Source

        EURMWh

        German

        Nordic

        15 July 2011

        2007

        2008

        2009

        2010

        2011

        2012

        0

        10

        20

        30

        40

        50

        60

        70

        80

        90

        100

        110

        Spot prices

        Forward prices

        CO2-free and energy-efficient solutions important

        Create solid earnings
        growth in Russia

        Leverage the strong
        Nordic core

        Build platform for
        future growth

        Competence in CO2-free hydro nuclear and energy efficient CHP production

        and operating in competitive energy markets

        Fortumrsquos Strategy

        Work continues -

        Fortumrsquos strategy remains intact

        MEURII2011II2010I-II2011I-II2010LTM

        Sales1833275569641 390

        Comparable operating profit101021-335

        Net Assets7759

        Comparable RONA 341

        Gross Investments10404

        MEURII2011II2010I-II2011I-II2010LTM

        Sales2152005264801 009

        Comparable operating profit6053184155336

        Net Assets3 4873 482

        Comparable RONA 99

        Gross Investments62479676233

        0

        250

        500

        750

        1000

        1250

        1500

        1750

        20112012201320142015201620172018201920202021+

        BondsFinancial institutionsOther long-term debtCPsOther short-term debt

        MEURII2011II2010I-II2011I-II2010LTM

        Sales195169490413881

        Comparable operating profit21-955756

        Net Assets3 0512 690

        Comparable RONA 34

        Gross Investments192167267258608

        MEURII2011II2010I-II2011I-II2010LTM

        Sales5745971 2671 3662 603

        Comparable operating profit2572715826951 185

        Net Assets5 9985 726

        Comparable RONA 198

        Gross Investments36226955136

        MEURII2011II2010I-II2011I-II20102010LTM

        Sales1 316

        1 2953 3503 2426 296

        6 404

        Expenses-968-956-2 353-2 252-4 463-4 564

        Comparable operating profit3483399979901 8331 840

        Other items affecting comparability2611251285-125302

        Operating profit6093511 5091 0751 7082 142

        Share of profit of associates and jvs1515743162105

        Financial expenses net-72-34-127-61-155-221

        Profit before taxes5523321 4561 0451 6152 026

        Income tax expense-74-61-232-191-261-302

        Net profit for the period4782711 2248541 3541 724

        Non-controlling interests6874325496

        EPS basic (EUR)053030129093146183

        EPS diluted (EUR)053030129093146183

        Spot price for power in NordPool power exchange

        448

        459

        662

        523

        621

        0

        12

        24

        36

        48

        60

        72

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        Powers Nordic power price

        447

        469

        488

        479

        474

        0

        10

        20

        30

        40

        50

        60

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        MEURII2011II2010I-II2011I-II20102010LTM

        Operating profit before depreciations7644901 8131 3512 2712 733

        Non-cash flow items and divesting activities

        -299-6-569-73124-372

        Financial items and fx gainslosses

        12-146-290-323-641-608

        Taxes

        -144-73-258-155-355-458

        Funds from operations (FFO)

        3332656968001 3991 295

        Change in working capital

        771571681433863

        Total net cash from operating activities4104228649431 4371 358

        Paid capital expenditures-297-263-503-486-1 134-1 151

        Acquisition of shares-1-1-20-1-28-47

        Other investing activities331-165417260529

        Cash flow before financing activities443142882528335689

        MEURII2011II2010I-II2011I-II2010LTM

        Sales3223011 0479521 865

        Comparable operating profit2533196165306

        Net Assets3 9113 884

        Comparable RONA 82

        Gross Investments7259130121314

        MEUR

        II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

        Power257271271280582695760747

        Heat25332535196165290194

        Russia21-921-95575523

        Distribution605325253184155377166

        Electricity Sales1010232321-33-6

        Other-25-1917-31-41-2924-49

        Total3483396093519979901 5091 075

        Comparable operating profit

        Reported operating profit

        Comparable operating profit

        Reported operating profit

        Spot price for power (market price) Urals hub

        770

        935

        817

        950

        954

        0

        200

        400

        600

        800

        1 000

        1 200

        Q22010Q32010Q42010Q12011Q22011

        RUBMWh

        Achieved power price for OAO Fortum

        256

        288

        305

        292

        290

        0

        6

        12

        18

        24

        30

        36

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        MEURLTM20102009

        EBITDA2 7332 2712 292

        Comparable EBITDA2 4312 3962 398

        Interest-bearing net debt6 7836 8265 969

        Net debtEBITDA253026

        Comparable Net debtEBITDA282825

        Return on capital employed ()138116121

        Return on shareholders equity ()191157160

        ) as of 30 June 2011

MEUR
2011		231
2012		668
2013		639
2014		1223
2015		1051
2016		879
2017		270
2018		190
2019		840
2020		73
2021+		1530

MEUR		LTM		2010		2009		2008		2006		2005
EBITDA		2733		2271		2292		2478		1884
Comparable EBITDA		2431		2396		2398			1151		1271
Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
Net debtEBITDA		25		30		26		25		8161
Comparable Net debtEBITDA		28		28		25			16839		15130
					23		18
Return on capital employed ()		138		116		121		150		134		135
Return on shareholders equity ()		191		157		160		187		144		135
) as of 30 June 2011

MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
Change in working capital		77		157		168		143		38		63		-102		161		5		0
Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
	Other items affecting comparability						261		12		512		85		-125		302
Operating profit							609		351		1509		1075		1708		2142
	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
																	069

Sheet3

Q2 Income statement

Sheet1

ampA

Page ampP

Q2 Cash flow statement

Sheet1

ampA

Page ampP

Key ratios

Q2 lsquo11

Sheet1

Sheet2

Sheet3

Debt maturity profile

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards)4435

Portion of floating fixed debt 47 53 49 51

Strong financial position

Return on capital employed

12

Return on shareholders equity

14

Net debtEBITDA

around 30

138

191

28

Fortumrsquos financial targets

LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

Outlook

Q2 Summary

• Solid performance continued - seasonality
• Power
• Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
• Swedish nuclear back at 80-85 in availability
• Lower hydro volumes ndash water reservoirs improved at the end of the quarter
• SEK burdened
• Results year-end weighted compared to 2010
• Russia
• Commissioning of new units contributed to result improvement
• The return for the new capacity is guaranteed
• EUR 100 million efficiency improvement reached
• Nordic countries
• Water reservoirs improved to long-term average
• Overall strong financial position

• Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Market continues to recover ndash 2008 level to be reached by 2012-2014
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Wholesale market liberalised
  • Profits from Russia build up in pace with the capacity increases

  • Outlook

    • Capex (excluding potential acquisitions)
    • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
    • 2013-2014 around EUR 11 to 14 billion annually
    • Disclosed divestments totalled approximately EUR 05 billion
    • Hedging
    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

    • (Q1 70 at EUR 44MWh)

      • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

      • (Q1 45 at EUR 45MWh)

        Wholesale prices for electricity

        Source

        EURMWh

        German

        Nordic

        15 July 2011

        2007

        2008

        2009

        2010

        2011

        2012

        0

        10

        20

        30

        40

        50

        60

        70

        80

        90

        100

        110

        Spot prices

        Forward prices

        CO2-free and energy-efficient solutions important

        Create solid earnings
        growth in Russia

        Leverage the strong
        Nordic core

        Build platform for
        future growth

        Competence in CO2-free hydro nuclear and energy efficient CHP production

        and operating in competitive energy markets

        Fortumrsquos Strategy

        Work continues -

        Fortumrsquos strategy remains intact

        MEURII2011II2010I-II2011I-II2010LTM

        Sales1833275569641 390

        Comparable operating profit101021-335

        Net Assets7759

        Comparable RONA 341

        Gross Investments10404

        MEURII2011II2010I-II2011I-II2010LTM

        Sales2152005264801 009

        Comparable operating profit6053184155336

        Net Assets3 4873 482

        Comparable RONA 99

        Gross Investments62479676233

        0

        250

        500

        750

        1000

        1250

        1500

        1750

        20112012201320142015201620172018201920202021+

        BondsFinancial institutionsOther long-term debtCPsOther short-term debt

        MEURII2011II2010I-II2011I-II2010LTM

        Sales195169490413881

        Comparable operating profit21-955756

        Net Assets3 0512 690

        Comparable RONA 34

        Gross Investments192167267258608

        MEURII2011II2010I-II2011I-II2010LTM

        Sales5745971 2671 3662 603

        Comparable operating profit2572715826951 185

        Net Assets5 9985 726

        Comparable RONA 198

        Gross Investments36226955136

        MEURII2011II2010I-II2011I-II20102010LTM

        Sales1 316

        1 2953 3503 2426 296

        6 404

        Expenses-968-956-2 353-2 252-4 463-4 564

        Comparable operating profit3483399979901 8331 840

        Other items affecting comparability2611251285-125302

        Operating profit6093511 5091 0751 7082 142

        Share of profit of associates and jvs1515743162105

        Financial expenses net-72-34-127-61-155-221

        Profit before taxes5523321 4561 0451 6152 026

        Income tax expense-74-61-232-191-261-302

        Net profit for the period4782711 2248541 3541 724

        Non-controlling interests6874325496

        EPS basic (EUR)053030129093146183

        EPS diluted (EUR)053030129093146183

        Spot price for power in NordPool power exchange

        448

        459

        662

        523

        621

        0

        12

        24

        36

        48

        60

        72

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        Powers Nordic power price

        447

        469

        488

        479

        474

        0

        10

        20

        30

        40

        50

        60

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        MEURII2011II2010I-II2011I-II20102010LTM

        Operating profit before depreciations7644901 8131 3512 2712 733

        Non-cash flow items and divesting activities

        -299-6-569-73124-372

        Financial items and fx gainslosses

        12-146-290-323-641-608

        Taxes

        -144-73-258-155-355-458

        Funds from operations (FFO)

        3332656968001 3991 295

        Change in working capital

        771571681433863

        Total net cash from operating activities4104228649431 4371 358

        Paid capital expenditures-297-263-503-486-1 134-1 151

        Acquisition of shares-1-1-20-1-28-47

        Other investing activities331-165417260529

        Cash flow before financing activities443142882528335689

        MEURII2011II2010I-II2011I-II2010LTM

        Sales3223011 0479521 865

        Comparable operating profit2533196165306

        Net Assets3 9113 884

        Comparable RONA 82

        Gross Investments7259130121314

        MEUR

        II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

        Power257271271280582695760747

        Heat25332535196165290194

        Russia21-921-95575523

        Distribution605325253184155377166

        Electricity Sales1010232321-33-6

        Other-25-1917-31-41-2924-49

        Total3483396093519979901 5091 075

        Comparable operating profit

        Reported operating profit

        Comparable operating profit

        Reported operating profit

        Spot price for power (market price) Urals hub

        770

        935

        817

        950

        954

        0

        200

        400

        600

        800

        1 000

        1 200

        Q22010Q32010Q42010Q12011Q22011

        RUBMWh

        Achieved power price for OAO Fortum

        256

        288

        305

        292

        290

        0

        6

        12

        18

        24

        30

        36

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        MEURLTM20102009

        EBITDA2 7332 2712 292

        Comparable EBITDA2 4312 3962 398

        Interest-bearing net debt6 7836 8265 969

        Net debtEBITDA253026

        Comparable Net debtEBITDA282825

        Return on capital employed ()138116121

        Return on shareholders equity ()191157160

        ) as of 30 June 2011

MEUR
2011		231
2012		668
2013		639
2014		1223
2015		1051
2016		879
2017		270
2018		190
2019		840
2020		73
2021+		1530

MEUR		LTM		2010		2009		2008		2006		2005
EBITDA		2733		2271		2292		2478		1884
Comparable EBITDA		2431		2396		2398			1151		1271
Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
Net debtEBITDA		25		30		26		25		8161
Comparable Net debtEBITDA		28		28		25			16839		15130
					23		18
Return on capital employed ()		138		116		121		150		134		135
Return on shareholders equity ()		191		157		160		187		144		135
) as of 30 June 2011

MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
Change in working capital		77		157		168		143		38		63		-102		161		5		0
Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
	Other items affecting comparability						261		12		512		85		-125		302
Operating profit							609		351		1509		1075		1708		2142
	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
																	069

Sheet1

ampA

Page ampP

Q2 Cash flow statement

Sheet1

ampA

Page ampP

Key ratios

Q2 lsquo11

Sheet1

Sheet2

Sheet3

Debt maturity profile

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards)4435

Portion of floating fixed debt 47 53 49 51

Strong financial position

Return on capital employed

12

Return on shareholders equity

14

Net debtEBITDA

around 30

138

191

28

Fortumrsquos financial targets

LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

Outlook

Q2 Summary

• Solid performance continued - seasonality
• Power
• Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
• Swedish nuclear back at 80-85 in availability
• Lower hydro volumes ndash water reservoirs improved at the end of the quarter
• SEK burdened
• Results year-end weighted compared to 2010
• Russia
• Commissioning of new units contributed to result improvement
• The return for the new capacity is guaranteed
• EUR 100 million efficiency improvement reached
• Nordic countries
• Water reservoirs improved to long-term average
• Overall strong financial position

• Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Market continues to recover ndash 2008 level to be reached by 2012-2014
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Wholesale market liberalised
  • Profits from Russia build up in pace with the capacity increases

  • Outlook

    • Capex (excluding potential acquisitions)
    • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
    • 2013-2014 around EUR 11 to 14 billion annually
    • Disclosed divestments totalled approximately EUR 05 billion
    • Hedging
    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

    • (Q1 70 at EUR 44MWh)

      • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

      • (Q1 45 at EUR 45MWh)

        Wholesale prices for electricity

        Source

        EURMWh

        German

        Nordic

        15 July 2011

        2007

        2008

        2009

        2010

        2011

        2012

        0

        10

        20

        30

        40

        50

        60

        70

        80

        90

        100

        110

        Spot prices

        Forward prices

        CO2-free and energy-efficient solutions important

        Create solid earnings
        growth in Russia

        Leverage the strong
        Nordic core

        Build platform for
        future growth

        Competence in CO2-free hydro nuclear and energy efficient CHP production

        and operating in competitive energy markets

        Fortumrsquos Strategy

        Work continues -

        Fortumrsquos strategy remains intact

        MEURII2011II2010I-II2011I-II2010LTM

        Sales1833275569641 390

        Comparable operating profit101021-335

        Net Assets7759

        Comparable RONA 341

        Gross Investments10404

        MEURII2011II2010I-II2011I-II2010LTM

        Sales2152005264801 009

        Comparable operating profit6053184155336

        Net Assets3 4873 482

        Comparable RONA 99

        Gross Investments62479676233

        0

        250

        500

        750

        1000

        1250

        1500

        1750

        20112012201320142015201620172018201920202021+

        BondsFinancial institutionsOther long-term debtCPsOther short-term debt

        MEURII2011II2010I-II2011I-II2010LTM

        Sales195169490413881

        Comparable operating profit21-955756

        Net Assets3 0512 690

        Comparable RONA 34

        Gross Investments192167267258608

        MEURII2011II2010I-II2011I-II2010LTM

        Sales5745971 2671 3662 603

        Comparable operating profit2572715826951 185

        Net Assets5 9985 726

        Comparable RONA 198

        Gross Investments36226955136

        MEURII2011II2010I-II2011I-II20102010LTM

        Sales1 316

        1 2953 3503 2426 296

        6 404

        Expenses-968-956-2 353-2 252-4 463-4 564

        Comparable operating profit3483399979901 8331 840

        Other items affecting comparability2611251285-125302

        Operating profit6093511 5091 0751 7082 142

        Share of profit of associates and jvs1515743162105

        Financial expenses net-72-34-127-61-155-221

        Profit before taxes5523321 4561 0451 6152 026

        Income tax expense-74-61-232-191-261-302

        Net profit for the period4782711 2248541 3541 724

        Non-controlling interests6874325496

        EPS basic (EUR)053030129093146183

        EPS diluted (EUR)053030129093146183

        Spot price for power in NordPool power exchange

        448

        459

        662

        523

        621

        0

        12

        24

        36

        48

        60

        72

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        Powers Nordic power price

        447

        469

        488

        479

        474

        0

        10

        20

        30

        40

        50

        60

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        MEURII2011II2010I-II2011I-II20102010LTM

        Operating profit before depreciations7644901 8131 3512 2712 733

        Non-cash flow items and divesting activities

        -299-6-569-73124-372

        Financial items and fx gainslosses

        12-146-290-323-641-608

        Taxes

        -144-73-258-155-355-458

        Funds from operations (FFO)

        3332656968001 3991 295

        Change in working capital

        771571681433863

        Total net cash from operating activities4104228649431 4371 358

        Paid capital expenditures-297-263-503-486-1 134-1 151

        Acquisition of shares-1-1-20-1-28-47

        Other investing activities331-165417260529

        Cash flow before financing activities443142882528335689

        MEURII2011II2010I-II2011I-II2010LTM

        Sales3223011 0479521 865

        Comparable operating profit2533196165306

        Net Assets3 9113 884

        Comparable RONA 82

        Gross Investments7259130121314

        MEUR

        II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

        Power257271271280582695760747

        Heat25332535196165290194

        Russia21-921-95575523

        Distribution605325253184155377166

        Electricity Sales1010232321-33-6

        Other-25-1917-31-41-2924-49

        Total3483396093519979901 5091 075

        Comparable operating profit

        Reported operating profit

        Comparable operating profit

        Reported operating profit

        Spot price for power (market price) Urals hub

        770

        935

        817

        950

        954

        0

        200

        400

        600

        800

        1 000

        1 200

        Q22010Q32010Q42010Q12011Q22011

        RUBMWh

        Achieved power price for OAO Fortum

        256

        288

        305

        292

        290

        0

        6

        12

        18

        24

        30

        36

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        MEURLTM20102009

        EBITDA2 7332 2712 292

        Comparable EBITDA2 4312 3962 398

        Interest-bearing net debt6 7836 8265 969

        Net debtEBITDA253026

        Comparable Net debtEBITDA282825

        Return on capital employed ()138116121

        Return on shareholders equity ()191157160

        ) as of 30 June 2011

MEUR
2011		231
2012		668
2013		639
2014		1223
2015		1051
2016		879
2017		270
2018		190
2019		840
2020		73
2021+		1530

MEUR		LTM		2010		2009		2008		2006		2005
EBITDA		2733		2271		2292		2478		1884
Comparable EBITDA		2431		2396		2398			1151		1271
Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
Net debtEBITDA		25		30		26		25		8161
Comparable Net debtEBITDA		28		28		25			16839		15130
					23		18
Return on capital employed ()		138		116		121		150		134		135
Return on shareholders equity ()		191		157		160		187		144		135
) as of 30 June 2011

MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
Change in working capital		77		157		168		143		38		63		-102		161		5		0
Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

MEUR					Q1-Q300			II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM			2004
Sales					7732			1316		1295		3350		3242		6296		6404		5636		3159		5354		0			3835
	Expenses				-7109			-968		-956		-2353		-2252		-4463		-4564		-3673		-1832		-3482		0			-2640
Comparable operating profit					623			348		339		997		990		1833		1840		1963		1327		1872		0			1195
	Other items affecting comparability						261		12		512		85		-125		302
Operating profit							609		351		1509		1075		1708		2142
	Share of profit of associates and jvs						15		15		74		31		62		105		126		223		96		0			12
	Financial expenses net				-209			-72		-34		-127		-61		-155		-221		-239		-117		-222		0			-245
Profit before taxes					0			552		332		1456		1045		1615		2026		1850		1433		1746		0			0
	Income tax expense				-83			-74		-61		-232		-191		-261		-302		-254		-218		-364		0			-259
Net profit for the period					-26			478		271		1224		854		1354		1724		1596		1215		1382		0			0
	Non-controlling interests						6		8		74		32		54		96		54		31		35		0			33
EPS basic (EUR)					039			053		030		129		093		146		183		174		133		152		171			148
EPS diluted (EUR)							053		030		129		093		146		183		174		133		152		171			079
																	069

Sheet1

ampA

Page ampP

Key ratios

Q2 lsquo11

Sheet1

Sheet2

Sheet3

Debt maturity profile

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards)4435

Portion of floating fixed debt 47 53 49 51

Strong financial position

Return on capital employed

12

Return on shareholders equity

14

Net debtEBITDA

around 30

138

191

28

Fortumrsquos financial targets

LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

Outlook

Q2 Summary

• Solid performance continued - seasonality
• Power
• Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
• Swedish nuclear back at 80-85 in availability
• Lower hydro volumes ndash water reservoirs improved at the end of the quarter
• SEK burdened
• Results year-end weighted compared to 2010
• Russia
• Commissioning of new units contributed to result improvement
• The return for the new capacity is guaranteed
• EUR 100 million efficiency improvement reached
• Nordic countries
• Water reservoirs improved to long-term average
• Overall strong financial position

• Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Market continues to recover ndash 2008 level to be reached by 2012-2014
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Wholesale market liberalised
  • Profits from Russia build up in pace with the capacity increases

  • Outlook

    • Capex (excluding potential acquisitions)
    • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
    • 2013-2014 around EUR 11 to 14 billion annually
    • Disclosed divestments totalled approximately EUR 05 billion
    • Hedging
    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

    • (Q1 70 at EUR 44MWh)

      • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

      • (Q1 45 at EUR 45MWh)

        Wholesale prices for electricity

        Source

        EURMWh

        German

        Nordic

        15 July 2011

        2007

        2008

        2009

        2010

        2011

        2012

        0

        10

        20

        30

        40

        50

        60

        70

        80

        90

        100

        110

        Spot prices

        Forward prices

        CO2-free and energy-efficient solutions important

        Create solid earnings
        growth in Russia

        Leverage the strong
        Nordic core

        Build platform for
        future growth

        Competence in CO2-free hydro nuclear and energy efficient CHP production

        and operating in competitive energy markets

        Fortumrsquos Strategy

        Work continues -

        Fortumrsquos strategy remains intact

        MEURII2011II2010I-II2011I-II2010LTM

        Sales1833275569641 390

        Comparable operating profit101021-335

        Net Assets7759

        Comparable RONA 341

        Gross Investments10404

        MEURII2011II2010I-II2011I-II2010LTM

        Sales2152005264801 009

        Comparable operating profit6053184155336

        Net Assets3 4873 482

        Comparable RONA 99

        Gross Investments62479676233

        0

        250

        500

        750

        1000

        1250

        1500

        1750

        20112012201320142015201620172018201920202021+

        BondsFinancial institutionsOther long-term debtCPsOther short-term debt

        MEURII2011II2010I-II2011I-II2010LTM

        Sales195169490413881

        Comparable operating profit21-955756

        Net Assets3 0512 690

        Comparable RONA 34

        Gross Investments192167267258608

        MEURII2011II2010I-II2011I-II2010LTM

        Sales5745971 2671 3662 603

        Comparable operating profit2572715826951 185

        Net Assets5 9985 726

        Comparable RONA 198

        Gross Investments36226955136

        MEURII2011II2010I-II2011I-II20102010LTM

        Sales1 316

        1 2953 3503 2426 296

        6 404

        Expenses-968-956-2 353-2 252-4 463-4 564

        Comparable operating profit3483399979901 8331 840

        Other items affecting comparability2611251285-125302

        Operating profit6093511 5091 0751 7082 142

        Share of profit of associates and jvs1515743162105

        Financial expenses net-72-34-127-61-155-221

        Profit before taxes5523321 4561 0451 6152 026

        Income tax expense-74-61-232-191-261-302

        Net profit for the period4782711 2248541 3541 724

        Non-controlling interests6874325496

        EPS basic (EUR)053030129093146183

        EPS diluted (EUR)053030129093146183

        Spot price for power in NordPool power exchange

        448

        459

        662

        523

        621

        0

        12

        24

        36

        48

        60

        72

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        Powers Nordic power price

        447

        469

        488

        479

        474

        0

        10

        20

        30

        40

        50

        60

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        MEURII2011II2010I-II2011I-II20102010LTM

        Operating profit before depreciations7644901 8131 3512 2712 733

        Non-cash flow items and divesting activities

        -299-6-569-73124-372

        Financial items and fx gainslosses

        12-146-290-323-641-608

        Taxes

        -144-73-258-155-355-458

        Funds from operations (FFO)

        3332656968001 3991 295

        Change in working capital

        771571681433863

        Total net cash from operating activities4104228649431 4371 358

        Paid capital expenditures-297-263-503-486-1 134-1 151

        Acquisition of shares-1-1-20-1-28-47

        Other investing activities331-165417260529

        Cash flow before financing activities443142882528335689

        MEURII2011II2010I-II2011I-II2010LTM

        Sales3223011 0479521 865

        Comparable operating profit2533196165306

        Net Assets3 9113 884

        Comparable RONA 82

        Gross Investments7259130121314

        MEUR

        II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

        Power257271271280582695760747

        Heat25332535196165290194

        Russia21-921-95575523

        Distribution605325253184155377166

        Electricity Sales1010232321-33-6

        Other-25-1917-31-41-2924-49

        Total3483396093519979901 5091 075

        Comparable operating profit

        Reported operating profit

        Comparable operating profit

        Reported operating profit

        Spot price for power (market price) Urals hub

        770

        935

        817

        950

        954

        0

        200

        400

        600

        800

        1 000

        1 200

        Q22010Q32010Q42010Q12011Q22011

        RUBMWh

        Achieved power price for OAO Fortum

        256

        288

        305

        292

        290

        0

        6

        12

        18

        24

        30

        36

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        MEURLTM20102009

        EBITDA2 7332 2712 292

        Comparable EBITDA2 4312 3962 398

        Interest-bearing net debt6 7836 8265 969

        Net debtEBITDA253026

        Comparable Net debtEBITDA282825

        Return on capital employed ()138116121

        Return on shareholders equity ()191157160

        ) as of 30 June 2011

MEUR
2011		231
2012		668
2013		639
2014		1223
2015		1051
2016		879
2017		270
2018		190
2019		840
2020		73
2021+		1530

MEUR		LTM		2010		2009		2008		2006		2005
EBITDA		2733		2271		2292		2478		1884
Comparable EBITDA		2431		2396		2398			1151		1271
Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
Net debtEBITDA		25		30		26		25		8161
Comparable Net debtEBITDA		28		28		25			16839		15130
					23		18
Return on capital employed ()		138		116		121		150		134		135
Return on shareholders equity ()		191		157		160		187		144		135
) as of 30 June 2011

MEUR		II2011		II2010		I-II2011		I-II2010		2010		LTM		2007		I-III2007		LTM		LTM
Operating profit before depreciations		764		490		1813		1351		2271		2733		2478		1663		2370		0
Non-cash flow items and divesting activities		-299		-6		-569		-73		124		-372		-275		-268		-56		0
Financial items and fx gainslosses		12		-146		-290		-323		-641		-608		233
Taxes		-144		-73		-258		-155		-355		-458		-332		-231		-534		0
Funds from operations (FFO)		333		265		696		800		1399		1295		2104		1164		1780		0
Change in working capital		77		157		168		143		38		63		-102		161		5		0
Total net cash from operating activities		410		422		864		943		1437		1358		2002		1325		1785		0
Paid capital expenditures		-297		-263		-503		-486		-1134		-1151		-1018		-341		-931		0
Acquisition of shares		-1		-1		-20		-1		-28		-47		-1243		-257		-1243		0
Other investing activities		331		-16		541		72		60		529		-21		258		-34		0
Cash flow before financing activities		443		142		882		528		335		689		-280		985		-423		0

Sheet1

Sheet2

Sheet3

Debt maturity profile

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards)4435

Portion of floating fixed debt 47 53 49 51

Strong financial position

Return on capital employed

12

Return on shareholders equity

14

Net debtEBITDA

around 30

138

191

28

Fortumrsquos financial targets

LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

Outlook

Q2 Summary

• Solid performance continued - seasonality
• Power
• Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
• Swedish nuclear back at 80-85 in availability
• Lower hydro volumes ndash water reservoirs improved at the end of the quarter
• SEK burdened
• Results year-end weighted compared to 2010
• Russia
• Commissioning of new units contributed to result improvement
• The return for the new capacity is guaranteed
• EUR 100 million efficiency improvement reached
• Nordic countries
• Water reservoirs improved to long-term average
• Overall strong financial position

• Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Market continues to recover ndash 2008 level to be reached by 2012-2014
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Wholesale market liberalised
  • Profits from Russia build up in pace with the capacity increases

  • Outlook

    • Capex (excluding potential acquisitions)
    • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
    • 2013-2014 around EUR 11 to 14 billion annually
    • Disclosed divestments totalled approximately EUR 05 billion
    • Hedging
    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

    • (Q1 70 at EUR 44MWh)

      • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

      • (Q1 45 at EUR 45MWh)

        Wholesale prices for electricity

        Source

        EURMWh

        German

        Nordic

        15 July 2011

        2007

        2008

        2009

        2010

        2011

        2012

        0

        10

        20

        30

        40

        50

        60

        70

        80

        90

        100

        110

        Spot prices

        Forward prices

        CO2-free and energy-efficient solutions important

        Create solid earnings
        growth in Russia

        Leverage the strong
        Nordic core

        Build platform for
        future growth

        Competence in CO2-free hydro nuclear and energy efficient CHP production

        and operating in competitive energy markets

        Fortumrsquos Strategy

        Work continues -

        Fortumrsquos strategy remains intact

        MEURII2011II2010I-II2011I-II2010LTM

        Sales1833275569641 390

        Comparable operating profit101021-335

        Net Assets7759

        Comparable RONA 341

        Gross Investments10404

        MEURII2011II2010I-II2011I-II2010LTM

        Sales2152005264801 009

        Comparable operating profit6053184155336

        Net Assets3 4873 482

        Comparable RONA 99

        Gross Investments62479676233

        0

        250

        500

        750

        1000

        1250

        1500

        1750

        20112012201320142015201620172018201920202021+

        BondsFinancial institutionsOther long-term debtCPsOther short-term debt

        MEURII2011II2010I-II2011I-II2010LTM

        Sales195169490413881

        Comparable operating profit21-955756

        Net Assets3 0512 690

        Comparable RONA 34

        Gross Investments192167267258608

        MEURII2011II2010I-II2011I-II2010LTM

        Sales5745971 2671 3662 603

        Comparable operating profit2572715826951 185

        Net Assets5 9985 726

        Comparable RONA 198

        Gross Investments36226955136

        MEURII2011II2010I-II2011I-II20102010LTM

        Sales1 316

        1 2953 3503 2426 296

        6 404

        Expenses-968-956-2 353-2 252-4 463-4 564

        Comparable operating profit3483399979901 8331 840

        Other items affecting comparability2611251285-125302

        Operating profit6093511 5091 0751 7082 142

        Share of profit of associates and jvs1515743162105

        Financial expenses net-72-34-127-61-155-221

        Profit before taxes5523321 4561 0451 6152 026

        Income tax expense-74-61-232-191-261-302

        Net profit for the period4782711 2248541 3541 724

        Non-controlling interests6874325496

        EPS basic (EUR)053030129093146183

        EPS diluted (EUR)053030129093146183

        Spot price for power in NordPool power exchange

        448

        459

        662

        523

        621

        0

        12

        24

        36

        48

        60

        72

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        Powers Nordic power price

        447

        469

        488

        479

        474

        0

        10

        20

        30

        40

        50

        60

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        MEURII2011II2010I-II2011I-II20102010LTM

        Operating profit before depreciations7644901 8131 3512 2712 733

        Non-cash flow items and divesting activities

        -299-6-569-73124-372

        Financial items and fx gainslosses

        12-146-290-323-641-608

        Taxes

        -144-73-258-155-355-458

        Funds from operations (FFO)

        3332656968001 3991 295

        Change in working capital

        771571681433863

        Total net cash from operating activities4104228649431 4371 358

        Paid capital expenditures-297-263-503-486-1 134-1 151

        Acquisition of shares-1-1-20-1-28-47

        Other investing activities331-165417260529

        Cash flow before financing activities443142882528335689

        MEURII2011II2010I-II2011I-II2010LTM

        Sales3223011 0479521 865

        Comparable operating profit2533196165306

        Net Assets3 9113 884

        Comparable RONA 82

        Gross Investments7259130121314

        MEUR

        II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

        Power257271271280582695760747

        Heat25332535196165290194

        Russia21-921-95575523

        Distribution605325253184155377166

        Electricity Sales1010232321-33-6

        Other-25-1917-31-41-2924-49

        Total3483396093519979901 5091 075

        Comparable operating profit

        Reported operating profit

        Comparable operating profit

        Reported operating profit

        Spot price for power (market price) Urals hub

        770

        935

        817

        950

        954

        0

        200

        400

        600

        800

        1 000

        1 200

        Q22010Q32010Q42010Q12011Q22011

        RUBMWh

        Achieved power price for OAO Fortum

        256

        288

        305

        292

        290

        0

        6

        12

        18

        24

        30

        36

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        MEURLTM20102009

        EBITDA2 7332 2712 292

        Comparable EBITDA2 4312 3962 398

        Interest-bearing net debt6 7836 8265 969

        Net debtEBITDA253026

        Comparable Net debtEBITDA282825

        Return on capital employed ()138116121

        Return on shareholders equity ()191157160

        ) as of 30 June 2011

MEUR
2011		231
2012		668
2013		639
2014		1223
2015		1051
2016		879
2017		270
2018		190
2019		840
2020		73
2021+		1530

MEUR		LTM		2010		2009		2008		2006		2005
EBITDA		2733		2271		2292		2478		1884
Comparable EBITDA		2431		2396		2398			1151		1271
Interest-bearing net debt		6 783		6826		5969		6179		4345		3158
Net debtEBITDA		25		30		26		25		8161
Comparable Net debtEBITDA		28		28		25			16839		15130
					23		18
Return on capital employed ()		138		116		121		150		134		135
Return on shareholders equity ()		191		157		160		187		144		135
) as of 30 June 2011

Sheet2

Sheet3

Debt maturity profile

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards)4435

Portion of floating fixed debt 47 53 49 51

Strong financial position

Return on capital employed

12

Return on shareholders equity

14

Net debtEBITDA

around 30

138

191

28

Fortumrsquos financial targets

LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

Outlook

Q2 Summary

• Solid performance continued - seasonality
• Power
• Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
• Swedish nuclear back at 80-85 in availability
• Lower hydro volumes ndash water reservoirs improved at the end of the quarter
• SEK burdened
• Results year-end weighted compared to 2010
• Russia
• Commissioning of new units contributed to result improvement
• The return for the new capacity is guaranteed
• EUR 100 million efficiency improvement reached
• Nordic countries
• Water reservoirs improved to long-term average
• Overall strong financial position

• Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Market continues to recover ndash 2008 level to be reached by 2012-2014
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Wholesale market liberalised
  • Profits from Russia build up in pace with the capacity increases

  • Outlook

    • Capex (excluding potential acquisitions)
    • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
    • 2013-2014 around EUR 11 to 14 billion annually
    • Disclosed divestments totalled approximately EUR 05 billion
    • Hedging
    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

    • (Q1 70 at EUR 44MWh)

      • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

      • (Q1 45 at EUR 45MWh)

        Wholesale prices for electricity

        Source

        EURMWh

        German

        Nordic

        15 July 2011

        2007

        2008

        2009

        2010

        2011

        2012

        0

        10

        20

        30

        40

        50

        60

        70

        80

        90

        100

        110

        Spot prices

        Forward prices

        CO2-free and energy-efficient solutions important

        Create solid earnings
        growth in Russia

        Leverage the strong
        Nordic core

        Build platform for
        future growth

        Competence in CO2-free hydro nuclear and energy efficient CHP production

        and operating in competitive energy markets

        Fortumrsquos Strategy

        Work continues -

        Fortumrsquos strategy remains intact

        MEURII2011II2010I-II2011I-II2010LTM

        Sales1833275569641 390

        Comparable operating profit101021-335

        Net Assets7759

        Comparable RONA 341

        Gross Investments10404

        MEURII2011II2010I-II2011I-II2010LTM

        Sales2152005264801 009

        Comparable operating profit6053184155336

        Net Assets3 4873 482

        Comparable RONA 99

        Gross Investments62479676233

        0

        250

        500

        750

        1000

        1250

        1500

        1750

        20112012201320142015201620172018201920202021+

        BondsFinancial institutionsOther long-term debtCPsOther short-term debt

        MEURII2011II2010I-II2011I-II2010LTM

        Sales195169490413881

        Comparable operating profit21-955756

        Net Assets3 0512 690

        Comparable RONA 34

        Gross Investments192167267258608

        MEURII2011II2010I-II2011I-II2010LTM

        Sales5745971 2671 3662 603

        Comparable operating profit2572715826951 185

        Net Assets5 9985 726

        Comparable RONA 198

        Gross Investments36226955136

        MEURII2011II2010I-II2011I-II20102010LTM

        Sales1 316

        1 2953 3503 2426 296

        6 404

        Expenses-968-956-2 353-2 252-4 463-4 564

        Comparable operating profit3483399979901 8331 840

        Other items affecting comparability2611251285-125302

        Operating profit6093511 5091 0751 7082 142

        Share of profit of associates and jvs1515743162105

        Financial expenses net-72-34-127-61-155-221

        Profit before taxes5523321 4561 0451 6152 026

        Income tax expense-74-61-232-191-261-302

        Net profit for the period4782711 2248541 3541 724

        Non-controlling interests6874325496

        EPS basic (EUR)053030129093146183

        EPS diluted (EUR)053030129093146183

        Spot price for power in NordPool power exchange

        448

        459

        662

        523

        621

        0

        12

        24

        36

        48

        60

        72

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        Powers Nordic power price

        447

        469

        488

        479

        474

        0

        10

        20

        30

        40

        50

        60

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        MEURII2011II2010I-II2011I-II20102010LTM

        Operating profit before depreciations7644901 8131 3512 2712 733

        Non-cash flow items and divesting activities

        -299-6-569-73124-372

        Financial items and fx gainslosses

        12-146-290-323-641-608

        Taxes

        -144-73-258-155-355-458

        Funds from operations (FFO)

        3332656968001 3991 295

        Change in working capital

        771571681433863

        Total net cash from operating activities4104228649431 4371 358

        Paid capital expenditures-297-263-503-486-1 134-1 151

        Acquisition of shares-1-1-20-1-28-47

        Other investing activities331-165417260529

        Cash flow before financing activities443142882528335689

        MEURII2011II2010I-II2011I-II2010LTM

        Sales3223011 0479521 865

        Comparable operating profit2533196165306

        Net Assets3 9113 884

        Comparable RONA 82

        Gross Investments7259130121314

        MEUR

        II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

        Power257271271280582695760747

        Heat25332535196165290194

        Russia21-921-95575523

        Distribution605325253184155377166

        Electricity Sales1010232321-33-6

        Other-25-1917-31-41-2924-49

        Total3483396093519979901 5091 075

        Comparable operating profit

        Reported operating profit

        Comparable operating profit

        Reported operating profit

        Spot price for power (market price) Urals hub

        770

        935

        817

        950

        954

        0

        200

        400

        600

        800

        1 000

        1 200

        Q22010Q32010Q42010Q12011Q22011

        RUBMWh

        Achieved power price for OAO Fortum

        256

        288

        305

        292

        290

        0

        6

        12

        18

        24

        30

        36

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        MEURLTM20102009

        EBITDA2 7332 2712 292

        Comparable EBITDA2 4312 3962 398

        Interest-bearing net debt6 7836 8265 969

        Net debtEBITDA253026

        Comparable Net debtEBITDA282825

        Return on capital employed ()138116121

        Return on shareholders equity ()191157160

        ) as of 30 June 2011

MEUR
2011		231
2012		668
2013		639
2014		1223
2015		1051
2016		879
2017		270
2018		190
2019		840
2020		73
2021+		1530

Sheet3

Debt maturity profile

per 30 June 2011 per 31 Dec 2010

Average interest rate (incl swaps and forwards)4435

Portion of floating fixed debt 47 53 49 51

Strong financial position

Return on capital employed

12

Return on shareholders equity

14

Net debtEBITDA

around 30

138

191

28

Fortumrsquos financial targets

LTM in Q22011

Good liquidity ndash committed credit lines total EUR 27 billion

Comparable net debtEBITDA

Outlook

Q2 Summary

• Solid performance continued - seasonality
• Power
• Improved nuclear availability- timing of Swedish planned nuclear outages impacted volume
• Swedish nuclear back at 80-85 in availability
• Lower hydro volumes ndash water reservoirs improved at the end of the quarter
• SEK burdened
• Results year-end weighted compared to 2010
• Russia
• Commissioning of new units contributed to result improvement
• The return for the new capacity is guaranteed
• EUR 100 million efficiency improvement reached
• Nordic countries
• Water reservoirs improved to long-term average
• Overall strong financial position

• Outlook

  • Key drivers and risks
  • Wholesale price of electricity
  • Demand
  • Fuels
  • CO2 emissions prices
  • Water reservoirs
  • Nuclear availability
  • Nordic markets
  • Market continues to recover ndash 2008 level to be reached by 2012-2014
  • Electricity continues to gain share of total energy consumption
  • Russia
  • Wholesale market liberalised
  • Profits from Russia build up in pace with the capacity increases

  • Outlook

    • Capex (excluding potential acquisitions)
    • 2011-2012 around EUR 16 to 18 billion annually (mainly due to Russian investment programme)
    • 2013-2014 around EUR 11 to 14 billion annually
    • Disclosed divestments totalled approximately EUR 05 billion
    • Hedging
    • 2011 approximately 70 hedge ratio at approximately EUR 45MWh

    • (Q1 70 at EUR 44MWh)

      • 2012 approximately 50 hedge ratio at approximately EUR 46MWh

      • (Q1 45 at EUR 45MWh)

        Wholesale prices for electricity

        Source

        EURMWh

        German

        Nordic

        15 July 2011

        2007

        2008

        2009

        2010

        2011

        2012

        0

        10

        20

        30

        40

        50

        60

        70

        80

        90

        100

        110

        Spot prices

        Forward prices

        CO2-free and energy-efficient solutions important

        Create solid earnings
        growth in Russia

        Leverage the strong
        Nordic core

        Build platform for
        future growth

        Competence in CO2-free hydro nuclear and energy efficient CHP production

        and operating in competitive energy markets

        Fortumrsquos Strategy

        Work continues -

        Fortumrsquos strategy remains intact

        MEURII2011II2010I-II2011I-II2010LTM

        Sales1833275569641 390

        Comparable operating profit101021-335

        Net Assets7759

        Comparable RONA 341

        Gross Investments10404

        MEURII2011II2010I-II2011I-II2010LTM

        Sales2152005264801 009

        Comparable operating profit6053184155336

        Net Assets3 4873 482

        Comparable RONA 99

        Gross Investments62479676233

        0

        250

        500

        750

        1000

        1250

        1500

        1750

        20112012201320142015201620172018201920202021+

        BondsFinancial institutionsOther long-term debtCPsOther short-term debt

        MEURII2011II2010I-II2011I-II2010LTM

        Sales195169490413881

        Comparable operating profit21-955756

        Net Assets3 0512 690

        Comparable RONA 34

        Gross Investments192167267258608

        MEURII2011II2010I-II2011I-II2010LTM

        Sales5745971 2671 3662 603

        Comparable operating profit2572715826951 185

        Net Assets5 9985 726

        Comparable RONA 198

        Gross Investments36226955136

        MEURII2011II2010I-II2011I-II20102010LTM

        Sales1 316

        1 2953 3503 2426 296

        6 404

        Expenses-968-956-2 353-2 252-4 463-4 564

        Comparable operating profit3483399979901 8331 840

        Other items affecting comparability2611251285-125302

        Operating profit6093511 5091 0751 7082 142

        Share of profit of associates and jvs1515743162105

        Financial expenses net-72-34-127-61-155-221

        Profit before taxes5523321 4561 0451 6152 026

        Income tax expense-74-61-232-191-261-302

        Net profit for the period4782711 2248541 3541 724

        Non-controlling interests6874325496

        EPS basic (EUR)053030129093146183

        EPS diluted (EUR)053030129093146183

        Spot price for power in NordPool power exchange

        448

        459

        662

        523

        621

        0

        12

        24

        36

        48

        60

        72

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        Powers Nordic power price

        447

        469

        488

        479

        474

        0

        10

        20

        30

        40

        50

        60

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        MEURII2011II2010I-II2011I-II20102010LTM

        Operating profit before depreciations7644901 8131 3512 2712 733

        Non-cash flow items and divesting activities

        -299-6-569-73124-372

        Financial items and fx gainslosses

        12-146-290-323-641-608

        Taxes

        -144-73-258-155-355-458

        Funds from operations (FFO)

        3332656968001 3991 295

        Change in working capital

        771571681433863

        Total net cash from operating activities4104228649431 4371 358

        Paid capital expenditures-297-263-503-486-1 134-1 151

        Acquisition of shares-1-1-20-1-28-47

        Other investing activities331-165417260529

        Cash flow before financing activities443142882528335689

        MEURII2011II2010I-II2011I-II2010LTM

        Sales3223011 0479521 865

        Comparable operating profit2533196165306

        Net Assets3 9113 884

        Comparable RONA 82

        Gross Investments7259130121314

        MEUR

        II2011II2010II2011II2010I-II2011I-II2010I-II2011I-II2010

        Power257271271280582695760747

        Heat25332535196165290194

        Russia21-921-95575523

        Distribution605325253184155377166

        Electricity Sales1010232321-33-6

        Other-25-1917-31-41-2924-49

        Total3483396093519979901 5091 075

        Comparable operating profit

        Reported operating profit

        Comparable operating profit

        Reported operating profit

        Spot price for power (market price) Urals hub

        770

        935

        817

        950

        954

        0

        200

        400

        600

        800

        1 000

        1 200

        Q22010Q32010Q42010Q12011Q22011

        RUBMWh

        Achieved power price for OAO Fortum

        256

        288

        305

        292

        290

        0

        6

        12

        18

        24

        30

        36

        Q22010Q32010Q42010Q12011Q22011

        eurMWh

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        g CO

        2

        kWh electricity 2009

        Average346 gkWh

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        0

        200

        400

        600

        800

        1000

        1200

        DEI

        Drax

        RWE

        CEZ

        SSE

        EDP

        Enel

        Vattenfall

        EON

        Dong

        Union

        Fenosa

        GDF SUEZ Europe

        Iberdrola

        Fortum total

        EDF

        PVO

        Verbund

        Fortum EU

        Statkraft

        41155

        MEURLTM20102009

        EBITDA2 7332 2712 292

        Comparable EBITDA2 4312 3962 398

        Interest-bearing net debt6 7836 8265 969

        Net debtEBITDA253026

        Comparable Net debtEBITDA282825

        Return on capital employed ()138116121

        Return on shareholders equity ()191157160

        ) as of 30 June 2011

MEUR
2011		231
2012		668
2013		639
2014		1223
2015		1051
2016		879
2017		270
2018		190
2019		840
2020		73
2021+		1530