For a Cleaner World

Equity story of FORTUM – For a cleaner world

Investor / Analyst material August 2021 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. Any references to the future represent the management’s current best understanding. However the final outcome may differ from them.

2 Content Fortum in brief 4 – 12 Fortum’s strategy 13 – 21 Energy market transition 22 – 26 Half-year Financial Report 2021 27 – 45 Appendices 46 European and Nordic power markets 47 – 56 Fortum’s Nordic power generation in detail 57 Fortum’s evolution and strategic route 58 Historical achieved prices 59 Dividend 60 IR contact 61

3 Fortum in brief Fortum in brief

Power generation assets Key figures 20201 Sales EUR 49.0 bn Comparable EBITDA EUR 2.4 bn Total assets EUR 57.8 bn Personnel 19,933

Main businesses1 Sales (€) Volume2 Capacity India Power 20.8 bn 142 TWh 50.3 GW Gas 22.4 bn ~370 TWh 7.6 bcm3 Heat 0.8 bn 30 TWh 19.5 GW

1) Until 31 of March 2020 Uniper's contribution to the income statement was recognised in the Share of profit/loss of associates and joint ventures. 2) For Power - Power generation, for Gas - Long-term gas supply contracts and for Heat – Heat production 3) Gas storage capacity, billion cubic meters 4 Fortum in brief Strong position to drive the energy transition in Europe

3rd largest 3rd largest 3rd largest 4th largest power generator CO2-free power generator nuclear generator gas storage operator in Europe and Russia in Europe in Europe in Europe

5 Fortum in brief

Consolidated Fortum is the third largest CO2-free power generator in Europe TWh 600 Power generation by type

500 Other, incl. bio Wind, solar, geoth. 400 Nuclear Hydro 300

200

100

0 DP CO DEI WE SSE EPS En+ EDF - CEZ E EPH PGE BKK Enel R E.ON Alpiq Axpo DTEK T Plus EnBW ENGIE Ørsted Acciona Naturgy usHydro berdrola Centrica Verbund Statkraft I Gazprom Sibgenco R Vattenfall Lyse Energi Norsk Hydro Agder Energi Agder Hidroelectrica Inter RAO UES Hafslund E Fortum+Uniper Rosenergoatom Ukrhydroenergo NNEGC Energoatom NNEGC Slovenské elektrárne Slovenské 6 Source: Company information, Fortum analyses, 2019 figures pro forma. EPH incl. LEAG Fortum in brief

Renewables and CO2-free power generation capacity of Fortum 14.1 GW

Hydro Wind & Solar Nuclear 8.4 GW 1.2 GW 4.5 GW

7 Fortum in brief Fortum is well positioned for the energy transition

Third largest CO2-free power generator in Europe with growing portfolio of wind and solar

Significant provider of flexible hydro and gas-fired power generation

Major provider and trader of gas for Europe’s energy and industrial customers

Versatile portfolio of decarbonisation and environmental solutions

Phase out or exit announced of ~8 GW coal-fired generation by 2030

8 Fortum in brief

Fortum’s CO2-free power generation increases by ~60% as Uniper is consolidated as a subsidiary

Fortum's power generation, TWh 150 Fortum*: Other Coal • CO2-free generation 120 Gas 45%

CO2-free • Gas-fired power 90 generation 45% Share of coal-fired 60 • generation 9%

30 • Share of coal of sales revenue ~1% * based on 2020 reported figures 0

Note: Fortum actuals 1990-2020. Uniper consolidated from Q2/2020 onwards, Q1/2020 generation of Uniper excluded. 9 Fortum in brief Fortum is a forerunner in sustainability Fortum is listed in several sustainability indices and ratings:

Our purpose is to drive the change for a cleaner world. We are securing a fast and reliable transition to a carbon-neutral economy by providing customers and societies with clean energy and sustainable solutions. This way we deliver excellent shareholder value. rd 3 largest CO2-free generator in Europe CO2-free power generation, including renewable and nuclear power, was 64 TWh in 2020. 73% of power generation in Europe, and 45% of total power generation was CO2-free.

Specific CO2 emissions Fortum’s specific CO2 emissions from total energy production in Europe were 188 gCO2/kWh in 2020, and 287 gCO2/kWh globally. Growing in solar and wind Targeting a multi-gigawatt wind and solar portfolio, which is subject to the capital recycling business model. Targeting an indicative growth capex for EUR 3 billion for 2021-2025, of which 50-55% to renewables. Signatory of TCFD Fortum an official signatory of TCFD on March 2021

MSCI ESG RATINGS DISCLAIMER STATEMENT: THE USE BY FORTUM CORPORATION OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF FORTUM CORPORATION BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI. 10 Fortum in brief Fortum's power generation and heat production by source

Fortum’s power generation in 2020 * Fortum's heat production in 2020 *

Natural gas 45% Natural gas 56%

Total Total Waste1% power generation Others 1% heat production Wind, solar 1% Heat pumps, Bio 1% 142.1 TWh Hydropower 23% electricity 3% 29.6 TWh Bio 5% Coal 9% Waste 9% Nuclear power 20% Coal 26%

* Uniper consolidated as of Q2/2020

11 Fortum in brief Fortum key profitability drivers

Key market drivers: Fortum profitability drivers: Fortum Group’s indicative EBITDA by business and market exposure Power market European power generation • EU coal/nuclear capacity closures • CO2-free generation: prices and volumes, hedging, PPAs • Growing share of renewables • Gas-fired generation: capturing the • Importance of gas-fired generation merchant upside • Commodity prices • Coal exit path, value from sites • Increasing interconnections between Gas midstream business Nordics, Continental Europe, and the UK • Long-term contracts and sales • Weather conditions • Gas storage, spread, and volatility • Increased demand from decarbonisation • Optimisation business, price volatility and electrification Russia power generation Gas market • Thermal CSAs gradually shifting to CCS • Decreasing gas production in Europe scheme, selective modernisation projects • More volatile gas demand • Renewables capacity with higher CSAs • Gas storage value • Berezovskaya 3 (CSA) • Weather conditions Growth based on strategy

Source: Fortum & Uniper financial reporting PPA= Power Purchase Agreement CSA= Capacity Supply Agreements 12 CCS= Competitive Capacity Selection (=KOM) Fortum’s strategy Our strategy – Driving the clean energy transition and delivering sustainable financial performance

For a cleaner world

Strengthen and grow in CO2-free Leverage strong position in gas Transform own operations to power generation to enable the energy transition Partner with industrial and carbon neutral infrastructure customers • Supply significant flexible and • Provide security of supply and • Phase out and exit coal reliable CO -free power generation flexibility in the power system • Provide decarbonisation and 2 environmental solutions • Transform gas-fired generation • Grow sizeable portfolio of • Secure supply of gas for heat, towards clean gas renewables power, and industrial processes • Build on first-mover position in hydrogen

Value creation targets

Carbon neutral as a Group latest by 2050, Sustainable financial performance through Strong financial position and over time in line with the Paris Agreement, and in our attractive value from investments, portfolio increasing dividend European generation latest by 2035 optimisation, and benchmark operations

13 Fortum’s strategy Measuring success for Fortum

Climate and environmental targets: • Group carbon neutral latest by 2050 (scope 1, 2, 3) • European generation carbon neutral latest by 2035 (1, 2)

• CO2 emission reduction of at least 50% by 2030 in European generation (1, 2) • Scope 3 target for the indirect emissions from fuel sales business (Cat. 11) to be set during 2021 • Biodiversity target: Number of major voluntary measures enhancing biodiversity ≥12 in 2021

Financial targets: Shareholder value creation: • Financial net debt/comparable EBITDA below 2x • Portfolio optimisation and delivering on investments • Hurdle rates for new investments • Realising financial benefits from the cooperation with Uniper • Rating of at least BBB • Stable, sustainable, and over time increasing dividend

Social targets: • Safety target: Total recordable incident frequency (TRIF) <1.0 in 2025

14 Fortum’s strategy Fortum – A leader in clean power and gas

Core Grow Strategic transformation Transform own operations Assets and businesses that have Businesses with potential Businesses and assets outside to carbon neutral a role in energy transition and to grow profitably strategic scope generate good cash-flow in the energy transition

Ambitious Hydro Onshore wind Strengthen and grow in coal exit plan CO2-free power generation District heating business Nuclear Solar in the Baltics

Leverage strong position in gas to enable Increasingly clean Hydrogen and 50% stake in the energy transition gas-fired generation clean gas Stockholm Exergi

Consumer Solutions Industrial and Provide decarbonisation Gas midstream business and environmental solutions infrastructure solutions for industrial and District heating business infrastructure customers in Poland

15 Fortum’s strategy Strategic steps going forward

2014-2020 2021-2022 2023-2025 Major transformation Balance sheet focus Growth in clean power and gas

Active portfolio rotation with Step up in Group EBITDA Growth in strategic areas focus on assets essential in the Secure strong balance sheet Sustainable financial performance energy transition and with good with benchmark operations cash flow Rating of at least BBB Cooperation financial benefits Uniper acquisition Details of strategy implementation and first investments Target to increase dividend Focus on aligned strategy Target to increase dividend Flat dividend

16 Fortum’s strategy Indicative capital expenditure for growth investments in 2021-2025 – renewables and clean gas

1 Renewables On-shore wind and solar

2 Hydrogen and clean gas Industrial decarbonisation solutions

3 Environmental and security of supply solutions Waste-to-Energy, recycling, industrial and TSO services

4 Other Venturing, innovation, digitalisation

Capital expenditure will depend on market conditions, asset rotation, and balance sheet strength

17 Fortum’s strategy Fortum is growing towards gigawatt scale target in solar and wind power generation

Ånstadblåheia 10 MW (Fortum share) Nygårdsfjellet 6 MW PORTFOLIO STATUS CAPACITY, MW FORTUM SHARE, MW SUPPLY STARTS/STARTED FINLAND 90 18 (Fortum share) Sørfjord 20 MW (Fortum share) ● Kalax Operational 90 18 Q4 2020 NORWAY 181 36 Solberg 15 MW ● Nygårdsfjellet Operational 32 6 2006 and 2011 ● Ånstadblåheia Operational 50 10 2018 (Fortum share) Kalax 18 MW Ulyanovsk-2 25 MW ● Sørfjord Operational 99 20 Q4 2019- Q1 2021 (Fortum share) (Fortum share) Ulyanovsk SWEDEN 76 15 35 MW 35 MW solar ● Solberg Operational 76 15 2018 Samara 118 MW power plants RUSSIA 2,009 1,040 (Fortum share) ● Bugulchansk Operational 15 15 2016-2017 Volgograd 52,5 MW ● Pleshanovsk Operational 10 10 2017 (Fortum share) ● Grachevsk Operational 10 10 2017 Rostov 175+25 MW Astrakhan 170 MW ● Kalmykia Under construction 78+38 39+19 Q4 2021- H2 2022 (Fortum share) (Fortum share) ● Ulyanovsk Operational 35 35 2018 Kalmykia 58 MW Bhadla 31 MW (Fortum share) ● Ulyanovsk 2 Operational 50 25 1.1.2019 Operational/Under (Fortum share) ● Rostov 350+50 175+25 Q1 2020- Q4 2021 Amrit 2 MW (Fortum share) construction ● Kalmykia Operational 200 100 1.12.2020 Kapeli 4 MW (Fortum share) ● Astrakhan Under construction 340 170 Q4 2021 ● Volgograd Under construction 88+17 44+9 Q4 2021- Q4 2022 ● Samara Under construction 237 118 Q4 2022 ● Rusnano JV Under development 491 246 2022-2023 INDIA 185 81 First focus markets Pavagada 44 MW ● Amrit Operational 5 2 2012 Wind power plants (Fortum share) ● Kapeli Operational 10 4 2014 ● Bhadla Operational 70 31 2017 Solar power plants ● Pavagada Operational 100 44 2017 TOTAL 2,541 1,190 Under development 491 246 *) NOTE: Table numbers not accounting; tells the size of renewables projects. All not consolidated to Fortum capacities. All Under construction 848 424 figures in MW and rounded to nearest megawatt. Additionally, target to invest 200 – 400 million euros in India solar and Operational 1,202 520 create partnership for operating assets. Under construction includes investment decisions made.

18 Fortum’s strategy Strong commitment to maintain rating of at least BBB

Ambition is to preserve financial flexibility and good Long term leverage target: access to capital markets. Financial net debt/comparable EBITDA Fortum will carefully manage its balance sheet going forward focusing on <2x • Profitability

• Cash flow optimisation RATING AGENCY CREDIT RATING VALID SINCE • Capital expenditure prioritisation Standard & Poor’s BBB/Outlook Stable 5 July 2021 • Portfolio optimisation

Fitch Ratings BBB/Outlook Stable 30 June 2021

19 Fortum’s strategy Return targets for new investments

Return targets for new investments: Group 2021 capital expenditure, including maintenance and WACC+ hurdle rate: excluding acquisitions, +100 bps for green investments is estimated to be EUR 1.4 billion +200 bps for other investments • Maintenance of EUR 700 million

The requirement might be higher depending on, e.g., business model and technology • Growth of EUR 700 million and will be evaluated case-by-case.

~EUR 3 bn Capital expenditure will depend on market conditions, growth capex asset rotation, and balance sheet strength for 2021-2025

20 Fortum’s strategy Fortum and Uniper cooperation estimated to deliver significant financial benefits

Cooperation benefits focus on monetary, safety, and environmental actions

• Positive cash impact on a consolidated group basis is estimated to be ~EUR 100 million annually • > EUR 50 million of these annual benefits gradually materialising by the end of 2023 and reaching full annual impact in 2025 • Approx. 450 people have been involved in various work streams

21 Energy market transition Europe committed to be a forerunner in reducing GHG emissions across all sectors

• EU is tightening both its 2030 and 2050 emissions targets – Requires emission reductions in all sectors, especially residential & commercial, transport, and industry • Sector coupling – clean electricity and gas enable other sectors to decarbonise – Emissions from some industrial and heavy transport sectors are difficult to abate by electrification • Successful energy transition must balance – Sustainability – Affordability – Security of supply

22 Energy market transition Energy transition will increase demand for electricity and hydrogen

Electricity Hydrogen Feedstocks Agriculture Industry Transport Residential and commercial

Source: IHS Markit Net Zero Carbon Europe scenario

23 European and Nordic power markets Nordic, Baltic, Continental and UK markets are integrating – Interconnection capacity growing to over 13 GW by end-2023

• Several interconnectors are currently under DK1-DE maximum transmission capacity has been 1 construction or decided to be built Current Nordic/Baltic upgraded from 1,780 MW to 2,500 MW in July 2020 interconnector New 400 MW DK2-DE connection via Kriegers Flak 2 • New interconnections will increase the projects offshore wind area in operation December 2020 Nordic export capacity from the current EU’s Connecting Europe Facility co-financed 3rd EE-LV 3 9.6 GW to over 13 GW by end of 2023 C transmission line, in operation January 2021 NO-DE NordLink is in commercial operation at 4 maximum 1,444 MW from March 2021 + 5200 MW Norway - UK 1,400 MW North Sea Link (NSL) is due 14.1 B 5 to be fully in operation by end-2021 13.4 13.4 13.4 DK1-DE capacity to grow by further 1,000 MW to 6 3,500 MW with a new 400 kV line by end-2023 11.0 11.0 5 3 1,400 MW Denmark - UK Viking Link is being built 4 A 7 to be ready by end-2023 8.2 700 MW LT-PL Harmony Link to be built by 2025 as 7 1 8 6.9 9 a part of the Baltic synchronisation project 8 6 700 MW Hansa PowerBridge DC link between Interconnection capacity (GW) 2 9 Sweden and Germany by 2026/2027

New interconnectors New Nordic lines A 1,200 MW SE3-SE4 South West Link ready 7/2021 800 MW with first measures on SE2-SE3 by 2024 Existing interconnectors B rd C 800 MW 3 400 kV line SE1-FI ready in 2025

2020 2021 2022 2023 2024 2025 2026 2027 Russia Poland Germany 24 Estonia Netherlands Years in the chart above refer to a snapshot of 1st of January each year. Source: Fortum Market Intelligence Lithuania United Kingdom Energy market transition Volatility and uncertainty in the European power market increases the value of flexible assets

Intermittent renewables

Nuclear and coal closures

Increasing role of gas

Volatility and Supply-demand balance uncertainty

Increased interconnection between Nordics and Continent

Commodity and CO2 prices

Weather conditions

25 Energy market transition Own transformation – coal exit to reach carbon neutrality by 2035 in European generation

European generation CO2 net emissions: Carbon neutral in our European generation by 2035 at the latest 2019 2030 2035 Transform own 100% -50% Carbon neutral operations to carbon Current trajectory to reduce CO emissions neutral • 2 in our European generation by at least 50%*) by 2030 Coal fired capacity in Europe (GW) • Exit ~6 GW of coal capacity by end of 2025 Strengthen and grow in 10 CO2-free power • Aim to decarbonise gas-fired power generation generation and transit to clean gas over 8 time 6

Leverage strong 4 position in gas to enable Carbon neutral as a group by 2050 at the the energy transition latest in line with the Paris Agreement 2 **) • Reduction of the Group’s coal-fired 0 generation capacity by >50% to ~5 GW by 2020 2025 2030 2035 2040 2045 Partner with industrial and infrastructure the end of 2025 customers Over time transform the Russian business *) Base year 2019 • **) portfolio by reducing the fossil exposure Datteln4 decommissioning as defined in the German coal-exit law

26 Half-year Financial Report January-June 2021 Fortum Corporation 17 August 2021 Markus Rauramo President and CEO

28 Fortum Interim Report January-June 2021 Market environment is improving

• Macroeconomic outlook is improving, and global growth forecasts have been upgraded lately as vaccination efforts appear to reduce disruptive effects of new Covid-19 waves on economic activity

• Strong year-on-year European demand growth reflects recovery from the very low levels impacted by Covid-19 • Energy commodity prices are supported by the ongoing economic recovery

• European power markets characterised by very strong performance during Q2 2021 • Normalising power demand led to significant growth in thermal power generation in central Europe • Increasing interconnection capacity and higher price volatility (due to renewables)

• “Fit for 55” package was presented by the European Commission in mid-July CO2 • The package puts strong focus on carbon pricing and extends the EU ETS to new sectors • Carbon prices continued to set new records in 2021

29 Determined execution of our strategy

• We deliver • We deliver • We deliver on our plans on our strategy on our way to net-zero

Use of coal in Fortum's Russia Solid operational performance Divestments concluded segment to cease at the end of across segments of up to EUR 5.2 billion 2022

Financial performance fully Rating outlook improved Accelerated coal phase-out: on track to “stable” early closures in GER and UK

30 Good operational performance across the group despite phasing effects

Comp. OP* Comp. EPS** OCF Leverage*** 1206 2.4 H1 1120 1.09 1.03 1002 < 2 596 0.18 Higher achieved power prices and 0.91 higher generation volumes

H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 Target LTM Uniper fully consolidated since Q2 2020

Comp. OP Comp. EPS OCF 203 440 Q2 0.17 289 Q2 2021 performance affected by 0.09 35 phasing effects in Uniper segment Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021

*Uniper full consolidation since Q2 2020. **Comp. EPS H1 2020 also includes Uniper Q4 2019 result as an associate with EUR 0.18. 31 ***Financial net debt/Comparable EBITDA does not include divestment of Baltic district heating (closed in July 2021) and divestment of 50% in Stockholm Eixerg (expected to close in H2 2021). H1, all segments improved – significant impact from Uniper profits

Comparable operating profit Generation (EUR million) -1 1206 510 higher achieved power price

Russia stronger underlying performance offsetting negative FX 4 55 2 39 596 City Solutions higher power and heat sales

Consumer Solutions higher margins from value added services

Uniper City Consumer fully consolidated from Q2 2020 I-II/2020 Generation Russia Uniper Other I-II/2021 Solutions Solutions

32 Q2 – Significant phasing effects in Uniper segment

Comparable operating profit (EUR million) Generation successful physical optimisation partly offset by slightly higher costs 11 0 -201 22 0 203 Russia stronger underlying performance offsetting lower CSAs

City Solutions higher power sales

Consumer Solutions higher margins from value added services -2 35 Uniper strong result in commodities business in Q2 2020 and negative phasing effect in Q2 2021

II/2020 Generation Russia City Consumer Uniper Other II/2021 Solutions Solutions 33 Determined execution of our transformation strategy continues

Strengthening balance sheet Accelerated decarbonisation Balanced growth

EUR 5.2 billion of divestments in 1.5 years Fortum Russia division end of coal-fired Leverage target: generation by end of 2022 Financial net debt/ • Stockholm Exergi: Sale of 50% ownership comparable EBITDA • Sale of Argayash coal-fired CHP, Chelyabinsk ratio <2x for EUR 2.9 billion, closing expected in H2 CHP-2 transition to gas 2021 • Reduction of annual CO2 emissions by • Baltic district heating business, approximately 2 million tonnes p.a. closing in Q3 with total considerations of Balance sheet EUR ~710 million Accelerated coal-exit path at Uniper* • Solar power in India: divestment of 500 MW, total consideration including the effect of deconsolidating net debt EUR Heyden 4 (875 MW), Wilhelms- Dividend Growth ~280 million, closing expected in H2 2021 haven 1 (757 MW), Scholven C and H1 2022 (345 MW) and Ratcliffe (500 MW) ahead of plan “Fortum’s dividend Return targets for new • Strategic reviews of the heating and policy is to pay a stable, investments cooling businesses in Poland and the sustainable and over WACC + hurdle rate Consumer Solutions business still time increasing +100 bps for green invest. ongoing. dividend” +200 bps for other invest.

* Source: Uniper, illustrative 34 Bernhard Günther CFO

35 Key financials

MEUR II/ II/ I-II/ I-II/ FY LTM 2021 2020 2021 2020 2020 H1 strong financial performance

Sales 17,128 12,330 38,621 13,687 49,015 73,950 LTM comparable EBITDA at EUR 3.2 Comparable EBITDA 348 512 1,827 1,055 2,434 3,206 billion

Comparable operating profit 35 203 1,206 596 1,344 1,954 LTM Comparable EPS at EUR 1.61 Comparable share of profits of 52 23 119 574 656 201 associates and joint ventures

Comparable profit before Healthy credit metrics of ‘BBB’ with 97 209 1,354 1,110 1,897 2,141 income taxes improved outlook to “stable” by S&P and

Comparable net profit 79 155 915 968 1,483 1,431 Fitch

Comparable EPS 0.09 0.17 1.03 1.09 1.67 1.61 Latest announced divestments to bring Net cash from operating 289 440 1,120 1,002 2,555 2,673 Financial net debt / Comp. EBITDA clearly activities below target level of <2x Financial net debt / Comp. 2.9 2.4 EBITDA

36 Q2 Generation: Q2'21 Q2'20 Volumes (TWh) Higher achieved power prices 5,5 5,1 5,4 5,6

0,0 0,1 Q2 2021 vs. Q2 2020 Hydro Nuclear Wind

H1 • Comparable operating profit +13% mainly due to higher achieved H1'21 H1'20 Volumes power prices and slightly higher volumes (TWh) 12,2 11,5 11,8 11,9 – Higher achieved power price EUR 38.1, +4.5 per MWh 0,0 0,3 – Very successful physical optimisation and higher spot prices Hydro Nuclear Wind

• Partly offset by slightly higher costs MEUR II/ II/ I-II/ I-II/ FY 2021 2020 2021 2020 2020 LTM

Sales 575 450 1,251 1,024 2,006 2,233

Comp. 243 212 558 485 886 959 H1 2021 vs. H1 2020 EBITDA Comp. OP 195 173 464 409 722 778

• Positive contribution from higher achieved prices and slightly higher Comp. net 6,207 5,957 6,234 hydro volumes (+0.7 TWh) while nuclear volumes marginally lower (- assets Comp. 0.1 TWh) due to maintenance breaks 12.2 13.0 RONA % Gross in- • Tax-exempt capital gain of EUR 50 million in Q1 2021 35 34 62 68 228 222 vestment

37 Nordic hydro reservoirs close to normal levels, strong spot prices influenced by Continental European power prices

Reservoir content (TWh) 120 • High hydro power generation and below normal precipitation led to normalisation of reservoirs 100 80 • Nordic reservoirs 3 TWh above long-term average at the 60 end of Q2 2021, 9 TWh below average in early August

40 Norway 20 Sweden Finland 2000 2003 2020 2021 Average Hydro reservoirs 0 Q1 Q2 Q3 Q4

EUR/MWh 80 • Nord Pool system spot price continued strong since Q1 2021 Realised system price 70 Futures 12 August 2021 recovery, reaching EUR 41.9 per MWh (5.6) in Q2 2021 60 Futures 6 May 2021 50 • Nordic spot price is supported by Continental European 40 power prices, which in turn are driven by increased gas and 30 carbon prices 20 Power price 10 • Below normal precipitation and wind generation, together

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 with increased export capacity have driven the Nordic power 2019 2020 2021 2022 price

Source: Nord Pool, Nasdaq Commodities

38 Higher achieved power prices

System spot power price, Nord Pool Achieved power price, Generation segment EUR/MWh EUR/MWh 42 37,1 37,2 38,1 Substantially higher spot 48 42,1 41,9 33,6 35,2 35 40 power prices in the Nordics 32 28 24 21 Increased achieved power 13,8 14 16 8,9 prices 8 5,6 7 0 0 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021

Spot power price, Urals hub Achieved power price, Russia segment*

RUB/MW EUR/MW Russian power demand picking 23,3 1 158 1 156 23,1 22,5 22,5 1 200 1 109 24 21,1 up with increasing electricity 1 021 1 074 1 000 20 prices 800 16 600 12 Russian achieved price in rubles 400 8 200 4 increased 0 0 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 NOTE: Achieved power price (includes capacity payments) in RUB increased by 7% 39 * Does not include Uniper’s subsidiary Unipro Q2 Russia: Q2'21 Q2'20 Volumes (TWh) Solid underlying performance 6,1 5,4 2,4 2,5 Q2 2021 vs. Q2 2020 Power Heat

H1 • Comparable operating profit flat at EUR 37 million H1'21 H1'20 Volumes – Changes in CSA* payments, lower bond yield, and higher power prices (TWh) 14,6 13,8 9,9 8,7 – Impact of the Russian ruble exchange rate was EUR -2 million Power Heat • Strategy execution: Divestment of Argayash CHP and decision to cease coal use by the end of MEUR II/ II/ I-II/ I-II/ FY – 2021 2020 2021 2020 2020 LTM 2022

– Annual CO2 emissions to be reduced by ~2 million tonnes Sales 182 202 446 519 929 856

Comp. H1 2021 vs. H1 2020 70 74 205 213 394 386 EBITDA

• Comparable operating profit increased by 1% Comp. OP 37 37 137 135 251 252

Comp. net – EUR 17 million positive effect of the sale of the 116-MW solar project 2,572 2,813 2,431 assets – Changes in CSA* payments, lower bond yield, and higher power prices Comp. 11.1 12.7 – Change in the Russian ruble exchange rate was EUR -23 million RONA % Gross in- 30 47 37 51 91 76 vestment

* CSA = Capacity Supply Agreement

40 Q2 City Solutions: Q2'21 Q2'20 Volumes Performance improved (TWh) 1,8 2,0 0,8 0,6 Q2 2021 vs. Q2 2020 Power Heat

H1 • District heating with higher power prices and higher power sales H1'21 H1'20 Volumes (TWh) 6,2 5,6

2,1 1,5 Power Heat H1 2021 vs. H1 2020 MEUR II/ II/ I-II/ I-II/ FY • Higher heat sales volumes, higher power prices, and higher 2021 2020 2021 2020 2020 LTM Norwegian heat prices Sales 256 212 674 554 1,075 1,196

Comp. 43 32 175 138 239 276 • Strategy execution: EBITDA Comp. OP -4 -15 82 43 47 87 – Announced divestment of 50% ownership in Stockholm Exergi Comp. net 2,572 3,628 3,679 – Announced divestment of 500 MW of solar power plants in India assets Comp. Closing of the sale of the Baltic district heating business in July 2.8 4.4 – RONA % Gross in- 39 30 86 69 333 350 vestment

41 Consumer Solutions: Number of Continued profitability improvement customers Q2 2021 2 320

Q4 2020 2 390 Q2 2021 vs. Q2 2020

• Comparable operating profit flat MEUR II/ II/ I-II/ I-II/ FY 2021 2020 2021 2020 2020 LTM • 15th consecutive quarter of comparable EBITDA improvement Sales 424 237 1,085 661 1,267 1,691 • The gas volume increased mainly due to an increase of enterprise Comp. customers in Poland 36 35 89 82 153 161 EBITDA

Comp. OP 19 19 55 51 90 94

Comp. net 618 543 565 H1 2021 vs. H1 2020 assets Gross in- 25 13 36 28 57 65 • Consumer Solutions’ competitiveness continued to strengthen vestment • Several new digital services were launched during the first half of 2021 • Higher margins from value-added services • Strategy execution: – Strategic review ongoing

42 Uniper: Q2 Q2'21 Q2'20 9,5 9,4 Volumes 8,4 Solid underlying performance (TWh) 5,3 3,2 3,5 2,9 2,8

Q2 2021 vs. Q2 2020 Hydro Nuclear Thermal CE Thermal RUS

• European Generation business benefitted from Irsching 4 & 5 H1 H1'21 H1'20 21,9 Volumes* 19,1 and Datteln 4 contribution (TWh) 9,4* 6,6 6,5 5,3* • Global Commodities business was significantly below previous year 3,5* 2,8* due to a positive effect of the realisation of hedges in the coal, freight, Hydro Nuclear Thermal CE Thermal RUS and oil business in Q2 2020 MEUR II/ II/ I-II/ I-II/ FY • Russian Power Generation’s Berezovskaya 3 back online in Q2 2021 2021 2020 2021 2020 2020 LTM

• Changes in fair value of derivatives of EUR -910 (160) million Sales 15,893 11,365 35,663 11,365 44,514 68,812

Strategy execution: Comp. • -17 184 851 184 856 1,523 EBITDA – Accelerated closure of more than 2 GW’s of coal: Heyden -177 24 534 24 363 873 4, Wilhelmshaven, Scholven C, and Ratcliffe Comp. OP Comp. net 8,233 7,768 7,432 assets Comp. H1 2021 vs. H1 2020 12.1 RONA % Gross in- • Uniper as a subsidiary from Q2 2020 184 145 320 145 639 813 vestment

• Strong Q1 2021 contribution (optimisation gains) * Uniper consolidated from Q2 2020

43 Credit outlook improved

Solid credit metrics

'BBB' long-term issuer credit rating, stable outlook 'BBB' long-term issuer credit rating, stable outlook Target ratio: < 2x Financial net debt / Comp. EBITDA

Financial net debt Fortum’s objective: Financial net debt Maintain solid investment grade rating of at least BBB to maintain financial strength, preserve financial flexibility, and good access to capital. 3 500 per 30 June 2021 Total loans EUR 9,790 million (excl. lease) 3 000 Bonds • Average interest of 1.5% (2020: 1.5%) for Group loan 2 500 Financial institutions portfolio incl. derivatives hedging financial net • EUR 685 million (2020: 634) swapped to RUB with 2 000 Other long-term loans average interest 6.4% (2020: 6.2%) incl. hedging cost Short-term loans • Average interest of 0.7% (2020: 0.9%) for EUR loans 1 500 Liquid funds of EUR 1,703 million 1 000 Undrawn credit facilities of EUR 5,100 million Maturity profile 500 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+

44 Outlook

Hedging 2021 Estimated annual capital Russia Generation Nordic hedges: expenditure, including maintenance CSA changes: For the rest of 2021: 75% hedged at EUR 33 and excluding acquisitions, of Lower bond yield, bond yield 6.3% (7.6%) per MWh For 2022: 60% hedged at EUR 31 per MWh EUR 1,400 million Changes in CSA and CCS capacities: (Q1: 55% at EUR 31) see interim report p. 22-23, 25 of which maintenance capital expenditure Uniper Nordic hedges: is EUR 700 million In 2021, in the Russia segment, the negative financial effect related to the For the rest of 2021: 90% hedged at EUR 26 Tax guidance for 2021: ending of the CSA period of two production per MWh The comparable effective income tax rate units is expected to exceed the positive For 2022: 85% hedged at EUR 24 per MWh for Fortum is estimated to be in the range effect of three units entering the four-year (Q1: 80% at EUR 24) of 20-25% period of higher CSA payments For 2023: 45% hedged at EUR 22 per MWh (Q1: 35% at EUR 21)

45 Appendices European and Nordic power markets Western European countries exiting coal during this decade

• Sweden and Austria closed their last coal plants during 2020 FI: Phase-out France is committed to phase out coal by 2022 by mid-2029 • DE: Phase-out SE: Last by 2038 plant closed • Portugal has 2023 as national exit goal, but operators aim for full closure 2020 already in 2021 UK: Phase-out by DK: Phase-out • UK full exit by the end of 2024 by restricting coal plants’ access to market 2024 by 2030 • Italy and Ireland have both announced phase-out by 2025, also Hungary to close its last coal plant by then NL: Phase-out by • Greece has stated 2028 as year for full phase-out end-2029 • Netherlands and Finland have 2029 as regulated phase-out year, Denmark is committed to 2030 as is Slovakia FR: Phase-out by 2022 • Germany to phase out coal by end-2038 latest, possibly already 2035 Significant coal countries without explicit exit date include e.g. Spain, AT: Last plant • closed 2020 Czechia and Poland SK: Phase-out by 2030 – In Spain, significant number of coal plants have recently already closed, and PT: Phase-out by operators are underway to close down even the rest by mid-2020s 2023 HU: Last plant to close 2025 – In Czechia, a multi-stakeholder commission has proposed a coal phase-out by 2038, but no political decision available as of yet IT: Phase-out by 2025 GR: Phase-out by – Poland expects share of coal in the power mix to decline and targets lower- 2028 carbon generation in newbuilds, but no timeline for phase-out of coal exists Phase-out from Phase-out from Phase-out from power sector power sector power sector latest by 2025 latest by 2030 latest by 2040 47 European and Nordic power markets Decarbonisation requires other sectors to join

• The EU has agreed to increase the 2030 total emissions reduction target to 55% vs 1990. • In July 2021, EU Commission put forward a “Fit for 55” package, laying out the roadmap for achieving the new ambitious climate target • Proposed EU ETS revisions widen its scope, tighten supply and push for faster decarbonisation: − Emissions reduction target increased from 43% to 61% from 2005 level − EU ETS scope to expand and include maritime sector − Higher LRF (4.2% instead of 2.2%) combined with cap rebasing − Free allocation to be gradually phased out − Higher MSR intake rate (24%) and thresholds (400-833) maintained − Cross Border Adjustment Mechanism (CBAM) proposed • Proposed revisions will have to go through the EU legislative process and are expected to take effect not earlier than late 2022 or 2023 Abatement cost ranges formed of typical values found in industry analyses. Sources: ICIS, Refinitiv, EU Commission.

48 European and Nordic power markets Fortum major player in power, gas and heat

Power generation Gas Heat production

Largest generators in Europe and Russia, 2019 Largest European gas storage operators, 2018 Largest global producers, 2019 TWh TWh TWh

EDF STOGIT Gazprom Rosenergoatom T Plus Fortum+Uniper Storengy Sibgenco RWE Hungarian Gas Storage Gazprom Inter RAO UES Enel Uniper Energy Storage Veolia RusHydro NAM RusHydro Inter RAO UES En+ Astora Vattenfall EDF ENGIE Enagas Fortum+Uniper EPH Gas Storage Poland Quadra NNEGC Energoat. KDHC En+ OMV Gas Storage TGC-2 Iberdrola TAQA Gas Storage CEZ Vattenfall PGE RAG.Energy.Storage Minskenergo PGE Statkraft TERÉGA T Plus Lukoil EnBW Depogaz Ploiești Tatenergo Sibgengo innogy Gas Storage PGNiG EDP Nafta E.ON EPS Kyivteploenergo Verbund VNG Gasspeicher Ørsted Axpo Conexus Baltic Grid DTEK Stockholm Exergi SSE EWE Gasspeicher EPH TGC-14 E.ON MMBF Naturgy Helen DEI GSA CEZ 0 100 200 300 400 500 600 0 40 80 120 160 200 0 20 40 60 80 100 120 140

Source: Company information, Fortum analyses, 2019 figures pro forma. GIE Storage Database. 49 EPH incl. LEAG. No data from China. European and Nordic power markets Commodity prices

USD / t Coal price (ICE API2 2022) EUR / tCO 2 CO2 price (EUA DEC 2021) 125 60

100 48

75 36

50 24

25 12

0 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21

EUR / MWh Gas price (TTF 2022) USD / bbl Crude oil price (ICE Brent) 35 100

28 80

21 60

14 40

7 20

0 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21

Source: Bloomberg 50 12 August 2021 European and Nordic power markets Wholesale power prices

EUR/MWh Spot prices Forward prices 110

100

70 German 60 Nordic 50

40 Russian*

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Forwards 12 August 2021 Rolling 7-day average spot price

* Including weighted average capacity price

51 Source: Nord Pool, Bloomberg Finance LP, ATS, NP “Market Council”, Fortum European and Nordic power markets Nordic year forwards

Year10 Year11 Year12 Year13 Year14 Year15 Year16 Year17 Year18 Year19 Year20 Year21 Year22 Year23

€/MWh 12 August 2021

Year23 70 Year22

50 Apr May Jun Jul 2021 2021 2021 2021

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

52 Source: Nasdaq Commodities, Bloomberg European and Nordic power markets German and Nordic forward spread

Spot price EUR/MWh Nordic and German daily spot prices in 2019 – 2021 May June July • After the price recovery seen in Q1 2021, Nordic system price has 120 2021 2021 2021 remained on average close to 40 €/MWh during Q2 2021. 100 • Continental European power prices have been driven higher by 80 increasing gas and carbon prices. 60 • German-Nordic spread for Q2 2021 realised at 18 €/MWh. 40 20 0 -20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Forward price 2019 2020 2021 13 August 2021 Nordic Germany • The German contract for 2022 delivery is trading around 80 €/MWh, while corresponding Nordic SYS contract is close to 40 €/MWh. EUR/MWh Nordic and German year 2022 forwards in 2019 – 2021 • The German-Nordic spread for 2022 delivery has increased from 25 90 EUR/MWh during the start of 2021 to a level of 40 EUR/MWh recently. 80 70 • German contract is tracking the changes in short-run marginal costs for 60 gas and coal fired condensing units, reflecting the stronger exposure to 50 fossil fuel and CO prices. 40 2 30 • The Nordic contract is influenced by growing Nordic renewable supply 20 and limited interconnector capacity towards the Continental Europe. 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021

12 August 2021 Nordic Germany

53 Source: Nord Pool, Bloomberg European and Nordic power markets

CO2 price and Nordic spot power price

EUR / tCO2 CO2 price (EUA DEC 2021) & Nordic sys spot price 80 CO2 price (EUA DEC 2021) 70 Nordic system spot price

0 Oct Nov Dec Jan Feb March April May June July August 2020 2021

Until 13 August 2021

54 Source: Bloomberg European and Nordic power markets

CO2 price and Nordic forward price

EUR / tCO2 CO2 price (EUA DEC 2021) & Year 22 forward price 60 CO2 price (EUA DEC 2021) Nordic year 2022 forward 50

0 Oct Nov Dec Jan Feb March April May June July August 2020 2021

Until 12 August 2021

55 Source: Bloomberg European and Nordic power markets Nordic forward prices and Nordic sys spot averages

EUR/MWh

50 Year 2018 forward System spot 2018 average Year 2019 forward System spot 2019 average Year 2020 forward System spot 2020 average 40

0 2013 2014 2015 2016 2017 2018 2019 2020

56 Source: Bloomberg Fortum’s Nordic power generation in detail Fortum’s Nordic, Baltic and Polish generation capacity

Of which GENERATION CAPACITY Fortum Uniper NORWAY MW FINLAND MW Hydro 6,448 1,771 Price areas Hydro 1,553 Nuclear 4,8181 1,9961 NO4, Wind 993 Nuclear 1,487 NO4 CHP 1,1852,4 4492 SE1 NO1, CHP 24 CHP 375 Other thermal 1,727 1,162 Generation capacity 123 Other thermal 565 3,4 Wind 101 - Generation capacity 3,980 FI SE2 NO3 Generation capacity, MW 14,279 5,378 Of which SWEDEN Fortum Uniper BALTICS AND NO5 Figures 31 December 2020 NO1 Price areas POLAND MW SE2, Hydro 3,185 1,635 Generation capacity, CHP NO2 SE3 4 EE SE3, Hydro 1,587 13 in Estonia 43 SE4, Hydro 123 123 in Latvia 284 1 SE3, Nuclear 3,3311 1,996 in Lithuania 184 1) Ringhals 1 (of which Uniper’s share 269 MW) closed at the end of 2020 LV 2) Öresundsverket 449 MW facility mothballed in 2018 DK1 SE4 SE3, CHP 6 - in Poland 233 3) The capacity includes the Sørfjord 99 MW wind portfolio in Norway, of 2 2 which a majority 80% ownership has been sold in January 2021. 1)2) LT SE4, CHP 449 449 4) The capacity includes the 89 MW CHP assets in the Baltics and DK2 1,162 1,162 4 the 2 MW wind power plant in Latvia, which have been divested in July 2021. SE4, Other th. in Latvia, Wind 2 Gen. capacity 9,843 5,378 PL Associated companies’ plants (not included in the MWs): Stockholm Exergi (Former Fortum Värme) in Stockholm; TSE in Naantali DENMARK, DK1 MW Generation capacity, CHP 9

57 Fortum’s evolution and strategic route Fortum’s evolution and historical strategic route

Skandinaviska Birka Energi Länsivoima Elnova Østfold Elverk 50% Fortum →100% 50% → 100% 50% Stockholm Gullspång merged Shares in Divestment of Divestment of Hafslund Gullspång with Stora Kraft Birka Energi TGC-1 E.ON Divestment Fingrid shares small scale hydro Stockholm Energi 50% → 100% established Finland of Lenenergo shares Shares in Divestment of Divestment of Länsivoima Lenenergo Lenenergo Oil business heat operations non-strategic 45% → shares → District heating spin-off TGC-10 outside of heat business 65% IVO FORTUM in Poland → Stockholm

NESTE 1996 1997 1998 2000 2002 2003 2005 2006 2007 2008 2011 2012

2014 2015 2016 2017 2018 2020 2021 Divestments of EUR ~5.2 bn

Divestment of electricity Divestment of DUON Nordkraft wind power Investment in Uniper Divestment of district heating businesses 0.5 GW solar divestment in India distribution business electricity in Joensuu and Järvenpää distribution Divestment of recharge infrastructure Divestment of district heating business Ekokem Restructuring of Divestment of Divestment of electricity ownership in Hafslund ownership in business in the Baltics distribution and heat businesses Hafslund Produksjon Majority owner in Uniper Turebergs Russian wind power JV Divestment of Stockholm Exergi Nordic wind capital recycling (80%) Divestment of Grangemouth power Recycling plant Divestment of small hydro

Divestment of Gasum shares

58 Historical achieved prices Hedging improves stability and predictability – principles based on risk mitigation, (Generation segment)

EUR/MWh Realised prices quarterly since 2000

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Achieved power price Spot price Fin,Sto,Sun avg (40/40/20) 59 2009 onwards thermal and import from Russia excluded Dividend Fortum’s dividend policy aiming at increasing dividend

Fortum dividends

EUR/share 1.12 1,20 1.10 1.10 1.10 1.10

1,00 Dividend policy: 0,80

“Fortum’s dividend policy is to pay a stable, 0,60 sustainable, and over time increasing dividend.” 0,40

0,20

0,00 2016 2017 2018 2019 2020

60 Next events: January-September Interim Report on 12 November 2021

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