For a Cleaner World

Equity story of FORTUM – For a cleaner world

Investor / Analyst material May 2020 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 – 5 Energy market transition 6 – 9 Fortum’s strategic route 10 – 16 Q1 2020 Interim Report 17 – 40 Appendices 41 European and Nordic power markets 42 – 48 Fortum’s power generation 49 – 51 Fortum’s Russian capacity and prices 52 Historical achieved prices 53 Dividend 54 IR contacts 55

3 Fortum in brief Fortum at a glance

Description of Fortum Key shareholders Finnish households 12.3% • A leading clean-energy company across the Nordic region, the Baltic • Listed on the Helsinki Financial and countries, Poland, and Russia Stock Exchange since insurance institutions 2.2% 1998 • A circular economy champion, providing solutions for sustainable cities, Other Finnish including waste, recycling, and biomass • Market capitalisation of Finnish investors ~EUR 14bn 9.0% • Rated BBB/CreditWatch Negative and BBB/Rating Watch Negative by State 50.8% S&P and Fitch respectively • Finnish State is a majority owner • In 2018, Fortum closed its tender offer to shareholders in Uniper (holding Foreign investors of 49.99% of the outstanding shares and voting rights as of 31.12.2018), in 25.7% 2020 additional >20% stake to be closed 30.4.2020 Operations by business segment Production by source Consumer Solutions 8% City Natural gas 37% Natural gas 59% Coal 18% Solutions Generation Nuclear 17% 50% power 31% Waste 10% (1) Waste1% Power Heat EBITDA Wind, solar 1% EUR 1.8 bn Biomass 1% 76.3 TWh 26.4 TWh Coal 3% Biomass 9% Heat pumps, electricity Peat 1% 2% Russia 25% Hydropower 26% Others 1%

Note: All data as of FYE 2019 unless otherwise stated, Uniper will be consolidated from Q2/2020 onwards 4 (1) Comparable EBITDA defined as operating profit plus depreciation and amortisation less items affecting comparability Fortum in brief Fortum’s geographical footprint

Nordic countries Russia Key figures 2019 PAO Fortum #3 Power generation Sales EUR 5.4 bn 45.5 TWh Comparable Heat sales Power generation EBITDA EUR 1.8 bn #5 #10 5.9 TWh 29.3 TWh Total assets EUR 23 bn Electricity customers Heat sales #1 #7 Personnel 8,200 2.3 million 16.9 TWh

Poland Baltic countries Sales by market area 2019

Power generation Power generation Poland Other 4% 0.6 TWh 0.7 TWh 7% Nordics Heat sales Heat sales 69% 3.3 TWh 1.5 TWh Russia 20% EUR 5.4 bn

x = Fortum market share ranking

Note: Ranking based on year 2018 pro forma figures Source: Fortum, company data, shares of the largest actors 5 Energy market transition

Europe needs to eliminate CO2 emissions to reach climate goals – this requires actions from all sectors

MtCO2-eq

6 000 Greenhouse gas emissions

5 000

Coal Power 4 000 - 40%

3 000 Oil 1 Transport -50…-55% - 60%

2 000 Old climate targets Industry2 Gas - 80% 1 000 Buildings3 Others Others4 - 95% 0 Source Sector -100% 1990 2000 2010 2020 2030 2040 2050 Sources: EEA, IEA, Fortum 1 including international aviation and marine 2 6 iron & steel and chemicals are among the biggest contributors 3 residential and commercial heating & cooling 4 non-energy related emissions: industrial processes and product use, waste management, agriculture, fugitive emissions 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

7 Energy market transition The MSR introduces tightness to carbon market

Linear reduction factor (LRF) tightens the market Market stability reserve restores scarcity by Abatement from coal to gas switching depends reducing future auction volumes on coal and gas prices, together represented by MtCO2 a switching range 2500 Eur/t 60 24% of cumulative surplus Need for abatement 2000 CO2eq.) of or inventory reduction Switch range CO2 price 50

1500 (Mton 40

1000 Cap (excl. aviation) 57% of cap 30

500 20 EU ETS emissions (incl. call on EUAs from aviation) 0 volumesIllustrative 10 43% of of cap 43% Free Auction MSR Auction Deficit Emissions 2010 2012 2014 2016 2018 2030 2032 2034 2036 2038 2040 2042 2044 2046 2020 2022 2024 2026 2028 2048 2050 0 allocation pre- effec post- 2017 2018 2019 2020 MSR t MSR

2 • Linear reduction factor (LRF) is the percentage of • When TNAC > 833 Mt, MSR deducts 24% of the • CO2 price has almost quadrupled since November baseline supply1 by which the annual supply of TNAC from the auction volume each year placing 2017, when the final decision was reached on the allowances (cap) is reduced every year. LRF is set them into the reserve during 2019-2023 future EU ETS rules, including the intake rate of the at • MSR rate is 12% during 2024-2030 Market Stability Reserve, which became • 1.74% for 2013-2020 (equals to a reduction • When TNAC < 400 Mt, MSR releases 100 million operational in January 2019 of 38 MtCO2/year) EUAs annually from the reserve adding them to • Market tightness forces the EUA market to find • 2.2% for 2021-2030 (equals to a reduction future auctions ways to reducing demand, including by coal-to-gas of 48 MtCO2/year) • 900 million back loaded allowances from 2014-2016 switching, making the relative gas/coal price an • In total, emissions are set to decrease by 43% by will be transferred into the MSR in 2019-2020 important price anchor for CO2 2030 vs. 2005 • As from 2023, allowances in MSR above the total • Political risks also continue to play a role in EUA • Next LRF review is scheduled for 2024 number of allowances auctioned during the previous prices, with developments around Brexit and • 3.03% LRF from 2030 onwards would year will be cancelled national coal phase-out policies in particular being deliver net zero emissions by 2050 • Next MSR review is scheduled in 2021 closely watched

2 TNAC = total number of allowances in circulation = Efficiency assumptions in switching range; 1 8 Average annual total quantity of allowances released in 2008-2012. supply – (demand + allowances in the MSR). According to the latest at low-end: gas 52% and coal 34%; at high- publication May 15, 2018 the TNAC corresponds to 1655 million end: gas 48% and coal 38%. O&M cost allowances. assumptions apply. Energy market transition Several Western European countries exiting coal over the next decade

FI: Phase-out • France to phase out coal from power sector at latest in 2022 Germany: Phase- by 2029 out by 2038 • United Kingdom to exclude coal condense from capacity SE: Last coal plant to close market by capping allowed emissions from 2025 2022 UK: Phase-out by • Netherlands’ new government aims at exit by 2030, regulation 2025 not yet in place

• Poland: investments in new coal generation, after 2025 will be NL: Phase-out by 2030 based on CHP or other technologies, which will allow the emission standards on the level of 450kg CO2 per MWh of generated energy FR: Phase-out by 2022 • Germany’s coal phaseout law was agreed by the cabinet in January and currently awaits for parliamentary approval – By end-2022, only 15 GW of hard coal and 15 GW of lignite is allowed in the AT: Phase-out by 2025 market, compared to 21 GW and 18 GW at end-2019 • By end-2030, 8 GW of hard coal and 9 GW of lignite allowed in the market • Full coal exit by end-2038, with an option for an early exit already in 2035 PT: Phase-out by 2030 – Compensation for hard coal operators is to based on reverse auctions set to start already in 2020, provided the draft enters into law – Compensation for lignite closures will be agreed on one-by-one basis and will follow a formula based on, inter alia, expected earnings IT: Phase-out by 2025 – The government intends to cancel European Emission Allowances in order to neutralize the phaseout’s impact on the EU ETS Phase-out from Phase-out from Phase-out from Phase-out commitment power sector power sector power sector mainly via “Powering latest by 2025 latest by 2030 latest by 2040 past coal Alliance”

9 Fortum’s strategic route Positioning Fortum for the decade of electricity – For a cleaner world

10 Fortum’s strategic route Delivering on financial targets through operational excellence and portfolio optimisation in the short to mid term

Strategic priorities… … creating value

Operational excellence • Continue productivity improvement • Benchmark performance • Prioritise capital expenditure • Optimise cash flow

Increased flexibility • Strengthen balance sheet • Maximise flexibility in current businesses and assets • Develop new sources of flexibility • Create financial flexibility

Solid investment grade rating Value creation and portfolio optimisation • • Ensure competitive asset fit for changing business environment • Focus on core businesses • Selective investments

11 Fortum’s strategic route

Consolidated Fortum is the third largest CO2 free generator in Europe

12 Source: Company information, Fortum analyses, 2018 figures pro forma. EPH incl. LEAG Fortum’s strategic route Scale, competences and resources to prosper, grow and lead European energy transition

2019 combined Comparable Combined power generation assets(2) EBITDA(1)

Fortum EUR 1.8 bln Nordics Russia EUR 3.3 bln #2 #3 Uniper EUR 1.6 bln

Baltics Combined capacity split(3) UK Low + Zero emissions NL 17% Germany Poland Hydro 9% Nuclear #2 45% 48.6 GW Gas 7% + India Other termal Hungary Other 22% Fortum Uniper Combined geographical presence Combined market positions (1) Coal phased out over time

(1) Comparable EBITDA is based on the Fortum's Comparable EBITDA and Uniper's Adjusted EBITDA as defined in Fortum’s and Uniper's financial statements. No impacts from the assumed transaction has been included. (2) Market positions for Central-Europe/Europe and Nordics are based on total installed capacity; the market position in Russia is based on thermal capacity. 13 (3) Based on 31 Dec. 2019 capacity. Fortum’s strategic route

Fortum’s CO2-free power generation to increase by ~60% as Uniper will be consolidated in 2020

Fortum's power generation, TWh 200 Fortum and Uniper

175 consolidated*:

150 • CO2-free generation +60%

125 • Gas-fired power

100 generation triples Share of coal-fired 75 • CO2-free Gas Coal Other generation ~12%

50 • Share of coal of sales

25 revenue ~1%

* based on 2019 reported figures 0 2011 1991 2017 2012 1997 2013 1992 2015 2018 1993 2016 2019 1995 2014 1998 1996 1999 2010 2001 1994 1990 2007 2002 2003 2005 2008 2006 2009 2004 2000 2020 ind.

INDICATIVE GENERATION FOR 2020, NOT OFFICIAL GUIDANCE. Note: Fortum actuals 1990-2019 excluding associated company Stockholm Exergi. 2020 indicative figures adjusted for Nordic wind and Joensuu CHP assets sold in 2020. Uniper’s disclosed 2018 numbers used for indicative consolidation 2020 with the following corrections/assumptions: normal hydrological year, accounting view adjusted to pro forma, French coal assets sold, Datteln 4 approximately 2.2 TWh in 2020, 14 no net increase in generation from Beresovskaya 3, coal-to-gas switch 2 TWh, Ringhals 2 closed on 31 Dec 2019. Fortum’s strategic route Fortum is listed in several Fortum is a forerunner in sustainability sustainability indices and ratings:

We engage our customers and society to drive the change towards a cleaner world. Our role is to accelerate this change by reshaping the energy system, improving resource efficiency, and providing smart solutions. This way we deliver excellent shareholder value.

Increasing CO2-free power generation Annual CO2-free power generation will increase appr. 60% from ~45 TWh to ~70 TWh when consolidating Uniper

Among the lowest specific emissions

96% of power generation in the EU and 59% of total power generation was CO2-free in 2019. Fortum’s specific emissions from power generation in Europe were 27 gCO2/kWh in 2019, total 183 gCO2/kWh.

Growing in solar and wind Targeting a multi-gigawatt wind and solar portfolio, which is subject to the capital recycling business model

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. 15 Fortum’s 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 Hafslund Gullspång with Stockholm Energi Stora Kraft Birka Energi TGC-1 E.ON Divestment Fingrid shares 50% → 100% established Finland of Lenenergo shares Shares in Divestment of Länsivoima Lenenergo shares → Lenenergo Oil business heat operations outside 45% → District heating spin-off TGC-10 of 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

Divestment of Divestment of electricity Divestment of DUON Nordkraft wind power Investment in Uniper Divestment of district non-strategic distribution business electricity distribution heating business in heat business business Joensuu Ekokem Restructuring of Divestment of Divestment of electricity ownership in Hafslund ownership in distribution and heat businesses Hafslund Produksjon Majority 73.4% owner in Uniper Divestment of Turebergs Russian wind power JV small scale hydro Divestment of Grangemouth power Recycling plant Nordic wind capital recycling (80%)

Divestment of Gasum shares

16 Interim Report January-March 2020

Fortum Corporation 15 May 2020 Q1 2020 – Solid result in a volatile market environment

• Power and heat consumption down due to mild winter – Nordic spot price down 67% – Water reservoirs clearly above long-term average levels in Q1

– Volatile commodity and CO2 prices • Covid-19 has had limited immediate impact on Fortum’s business • Comparable EBITDA at EUR 543 (545) million • Comparable operating profit at EUR 393 (408) million • Fortum’s share of profits from associates of EUR 479 (111) million – Strong result contribution from Uniper of EUR 469 million • EPS at EUR 1.05 (0.38) – Items affecting comparability EUR 0.22 (-0.04) and Uniper 0.53 (0.06) • Balance sheet supported by strong operational cash flow and divestments • Long-term financial targets will be revised following Uniper consolidation

18 Q1 2020 highlights

Majority owner in Uniper 73.4% Joensuu district - consolidating as a subsidiary heating divested

Fortum partners Nordic wind with Infracapital Uniper Supervisory Board capital recycling on EV appointments closed infrastructure business Power demand development in different areas Decrease in the Nordics and Russia due to warm weather, other regions mainly affected by Covid-19

Nordics CWE Russia (First price zone) 65 170 110 2019 2020 60 160 105 100 55 150 95 50 140 90 45 130 GWh/h GWh/h GWh/h 85 -3% -3% -3% 40 120 80 35 110 75 30 100 70 11/11 11/11 12/11 12/11 11/11 11/26 11/26 10/12 12/11 01/31 10/12 01/31 01/16 12/26 01/16 01/01 10/27 12/26 01/01 10/27 02/15 03/31 07/14 09/12 02/15 08/13 11/26 03/31 07/14 05/15 03/16 09/12 08/13 10/12 04/15 05/15 03/16 03/01 01/31 06/14 04/15 03/01 06/14 01/16 07/29 09/27 12/26 07/29 09/27 01/01 10/27 08/28 08/28 06/29 02/15 03/31 07/14 05/30 06/29 09/12 08/13 04/30 05/15 05/30 03/16 04/15 04/30 03/01 06/14 07/29 09/27 08/28 06/29 05/30 04/30

Germany France Italy 65 80 45 75 60 70 40 55 65 50 60 35 -1% 55 45 GWh/h GWh/h GWh/h 50 30 -5% 40 45 -7% 40 25 35 35 30 30 20 11/11 11/11 12/11 12/11 11/12 11/27 11/26 12/12 10/12 01/31 11/26 10/12 01/16 12/27 01/31 01/31 10/13 12/26 01/01 10/27 01/16 01/16 12/26 01/01 01/01 02/15 10/27 03/31 07/14 03/17 09/12 08/13 05/15 07/15 03/16 02/15 03/31 02/15 04/15 07/14 10/28 03/01 05/31 09/12 06/14 08/13 05/15 03/16 09/13 05/16 06/15 04/15 07/29 09/27 03/01 08/14 06/14 04/16 05/01 08/28 04/01 07/29 09/27 06/29 05/30 08/28 07/30 08/29 09/28 03/02 04/30 06/29 05/30 04/30 06/30

Source: ENTSO-E hourly reported power demand, 7 day moving avg CWE = Central Western Europe (Germany, France, Netherlands, Belgium) 2 Percentage change in Q1 2020 compared to Q1 2019 0 Risk assessment of Covid-19 impact on Fortum So far very limited effect from Covid-19, lot will depend on industrial activity on our core areas

Not directly Covid-19 related Directly (also) Covid-19 related

• Power price – hedging supports result • Power and heat price – CSA and CCS capacity • Power demand – impacted by weather payments provides stability and visibility conditions and seasonality • Power and heat demand – impacted by • Power demand – affected by industrial weather conditions and seasonality power demand in the Nordics GENERATION RUSSIA • Power and heat demand – affected by • Planning of annual overhauls of nuclear industrial demand plants and regular maintenance of • Negative EUR translation effect - weaker RUB power plants • Potential bad debts – affected by customers’ financial situation and solvency

• Heat and power prices – resilience as • Sales price and gross margin – impacted heating is contracted, power prices by power price hedged Potential credit losses - affected by • Heat demand – impacted by weather • conditions and seasonality CONSUMER customers’ financial situation and solvency CITY SOLUTIONS • Power and heat demand – affected by SOLUTIONS industrial demand • Recycling and waste business – affected by industrial demand and smoothness in supply chain logistics

21 Nordic hydro reservoir surplus increased during Q1

Reservoir content (TWh) 120 • Rainy and mild weather led to a clear increase in the 100 surplus of the Nordic water reservoirs during January 80 and February 2020 • Weather conditions were 60 closer to long term average level in March and April 40 • After the rainy period in the Norway first quarter, the water 20 reservoirs are currently at Sweden 2000 2003 2018 2019 2020 Average 2000-2018 normal level 0 Finland Q1 Q2 Q3 Q4 • Snow balance currently

shows a surplus

22 Source: Nord Pool, 2019 by country Fuel prices in Q1 on a downward trend

USD / t Coal price (ICE API2 2021) • Generally coal prices have been less affected by Covid-19 compared to 120 many other energy commodities. 100 • During Q1, 2021 coal forward dropped ~13% from 62 USD/t to 55 80 USD/t. Mild winter combined with weakening gas and power prices 60 contributed to the decline in European coal prices.

40 • Global coal prices have declined driven by ample LNG supply and decreasing coal demand. Rising power generation based on nuclear 20 and renewables in Asia have contributed to decreasing coal demand. 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

EUR / MWh Gas price (TTF 2021) • European gas prices declined strongly during Q1 2020 with the summer 30 2020 contracts down almost 40% and year 2021 contract down 25%. 25 • During March, the outbreak of the corona pandemic worked as a 20 catalyst in a market situation that was already impacted by ample LNG supply and record high storage levels in Europe. 15 • Recent years weak gas price trend has been driven by the fast increase 10 of global LNG supply coupled with slower growth in North East Asia. 5 Similarly to coal, weak gas demand in Asia is related to growth in power 0 production based on nuclear and renewables and slowing industrial Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 production.

Source: Bloomberg 23 12 May 2020 Volatile CO2 and oil prices

CO price (EUA DEC 2020) EUR / tCO2 2 EUA price saw a drastic decline during mid-March when in just five 36 • days the prices dropped from 24 €/t level to 14 €/t. Increased auction 30 supply in 2020 coupled with falling demand due to Covid-19 being the 24 main drivers. In addition the year ahead gas price weakening strongly against coal, decreasing the coal to gas switching price. 18 • After a sharp fall, the EUA prices recovered rapidly to above 21 €/t. 12 2019 emissions dropped 9% (~150 mton) compared to 2018. 6 •

0 • On a few year’s perspective, the strong intake of MSR continues to Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 make the EUA market tighter. Also, the EU is in the process of tightening its 2030 climate target. USD / bbl Crude oil price (ICE Brent) 120 • Oil price declined strongly during the quarter as the front-month of 100 Brent declined from above 60 USD/t level to below 20 USD/t. 80 • Oil price have been impacted by Covid-19 since Feb 2020 as the 60 market started to discount lower demand. 40 • Oil price collapse followed the unsuccessful OPEC+ meeting that 20 practically led to an oil price war between Saudi Arabia and Russia.

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

Source: Bloomberg 24 12 May 2020 Rainy and mild weather combined with weak commodities Nordic forward prices especially for 2020 declined

• During Q1, the average Nord Pool system spot price was EUR/MWh Nordic spot and forward prices 15.4 EUR/MWh (46.8) 70 Realised system price • The average area prices were: Futures 3 Feb 2020 60 Futures 12 May 2020 – 24.0 EUR/MWh (47.5) in Finland

50 – 18.7 EUR/MWh (46.4) in Sweden (SE3, Stockholm) • The Nordic spot prices declined during Q1 2020 caused 40 by exceptionally rainy and mild weather. This development was also supported by low spot prices in 30 Continental Europe, driven especially by declining gas prices. 20 • The forward market is expecting the Nordic system price 10 to remain on current low level until next winter. • The decline in power demand in the Nordics during Q1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 from 116 TWh to 112 TWh y-on-y is mainly explained by 2018 2019 2020 2021 the rainy and mild winter, not depending on Covid-19

Source: Nord Pool, Nasdaq Commodities impact.

25 Nordic year forwards driven by Continental European power prices and hydrology • Along with the declining spot price, also the EUR/MWh forward prices have come down significantly since 45 year end. 40 • While hydrology is clearly the main driver for soft

35 Nordic spot prices, the forward curve is more

driven by Continental power prices, fuels and CO2 30 prices. 25 • In the beginning of 2020, Nordic YR 2021 forward 20 contract dropped from 33 EUR/MWh to 22 Year20 15 EUR/MWh (end of April). Year21 10 • The decline in Nordic yearly power contracts Year22 during the last months can especially be attributed 5 Year23 to weaker gas prices and declining CO2 prices. 0 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 • Weak market sentiment for global energy commodities is partly caused by the Covid-19 and Source: Bloomberg, forwards until 12 May 2020 the measures to restrict its spreading.

26 Fortum hedging supported achieved power price in the Nordics as power prices declined, Russia power prices stable

Spot price for power in Nord Pool power exchange Spot price for power (market price), Urals hub EUR/MWh RUB/MWh 54 46,9 1 500 45 1 250 1 128 1 151 38,6 1 107 1 081 1 068 35,6 34,7 36 1 000

27 750 -5% 18 15,4 500

9 -67% 250 0 0 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020

Generation's Nordic power price Achieved power price for PAO Fortum EUR/MWh EUR/MWh 42 38,4 37,6 30 27,2 27,5 28,2 35,7 26,4 35,0 34,0 24,5 35 25

28 20 -11% -7% 21 15

14 10

7 5

0 0 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020

Changes refer to year-on-year difference (Q1 2020 versus Q1 2019) NOTE: Achieved power price (includes capacity payments) in roubles decreased by 10% 27 Generation

• Higher comparable operating profit in Q1, +5% – Higher hydro power generation, +33% – Achieved power price supported by hedges, 4.4 EUR/MWh lower at 34.0 EUR/MWh, -11% while spot price -67% • The segment’s overall operational performance and the load factor for nuclear generation were at a good level

• The CO2 free generation accounted for 100% (99%) of the total power generation. MEUR I/2020 I/2019 2019 LTM Sales 574 601 2,141 2,114 Comparable EBITDA 273 259 939 953 Comparable operating profit 235 223 794 806 Comparable net assets 5,306 6,228 6,147 Comparable RONA % 12.8 12.6 Gross investments 34 38 260 256 Imatra, Finland

28 Russia

• Comparable operating profit flat in Q1 – Lower electricity margin and CSA payments – Higher heat tariffs – FX impact EUR -2 million • In 2020, no new units will receive higher CSA payments

MEUR I/2020 I/2019 2019 LTM Sales 317 298 1,071 1,090 Comparable EBITDA 138 135 469 472 Comparable operating profit 99 99 316 316 Comparable net assets 2,606 3,030 3,205 Comparable RONA % 12.3 12.6 Gross investments 4 5 133 132 Ulyanovsk, Russia

CSA=Capacity Supply Agreements

29 City Solutions • Lower comparable operating profit in Q1 – Heating and cooling business EUR 22 million negatively affected by • Lower heat sales volumes • Lower power prices especially lowering heat prices in Norway – The divestment of Joensuu district heating impact EUR -10 million – Recycling and waste business negatively affected by changing market conditions and one-time effects • Strategic review of district heating in Järvenpää (Finland), Poland and Baltics initiated MEUR I/2020 I/2019 2019 LTM Sales 342 405 1,200 1,137 Comparable EBITDA 106 137 309 278 Comparable operating profit 58 92 121 87 Comparable net assets 3,577 3,845 3,892 Comparable RONA % 4.7 3.8 Gross investments 38 72 322 288 Järvenpää, Finland

30 Consumer Solutions

• Sales -37% following significantly lower power prices in Q1 – Competition continued to be intense with high customer churn – Accelerated Covid-19 pandemic increased uncertainty in the small and medium size enterprise segment • Comparable operating profit +23% in Q1 – Higher sales margins as a result of active development of the service offering following the Hafslund integration and subsequent development of the business

MEUR I/2020 I/2019 2019 LTM Sales 424 669 1,835 1,590 Comparable EBITDA 48 41 141 148 Comparable operating profit 32 26 79 85 Comparable net assets 567 647 640 Fortum team providing lunches to intensive care hospital in Customer base, million 2.38 2.46 2.38 collaboration with Fortum enterprise customer, restaurant Gross investments 15 13 55 57 Operakällaren, #StrongerTogether

31 Uniper

Ownership and collaboration • Fortum’s ownership increased to 73.4% – Uniper has become a subsidiary and a valuable part of the Fortum group • New Supervisory Board members appointed – Fortum nominated 4/6 shareholder representatives • First collaboration areas established, strategic alignment during 2020 – Results and target setting expected by the end of this year

Financial impact and consolidation • Uniper’s balance sheet consolidated at the end of Q1 2020 • Fortum’s share of profit from Uniper, EUR 469 million (49), and EPS effect of EUR 0.53 (0.06) – Recorded in “Other Operations” • Uniper’s result consolidated to Fortum’s income statement from Q2 2020 onwards

32 Q1 2020 – Lower achieved power price and higher hydro volumesComparable operating profit EUR million

1.6 TWh higher • • Lower power hydro volumes margin • Low power • Higher sales 4.4 EUR/MWh • • Higher heat prices margin lower achieved tariffs • Warm weather price • FX- effect EUR lowered heat 2 million volumes • Joensuu district heating divested • Lower profitability in recycling and waste solutions’

33 Income statement

MEUR I/2020 I/2019 2019 LTM • Lower power prices: Sales 1,357 1,690 5,447 5,114 • Sales declined due to lower power Other income 23 21 110 112 prices and divestment of district Materials and services -576 -917 -2,721 -2,380 heating business in Joensuu, Finland Employee benefits -123 -122 -480 -481 • Materials and services down due to Depreciations and amortisation -150 -137 -575 -588 lower power purchase costs Other expenses -138 -127 -591 -602 Items affecting comparability includes Comparable operating profit 393 408 1,191 1,176 • • EUR 431 million sales gain related to Items affecting comparability 199 -50 -81 168 divestment of Joensuu Operating profit 592 358 1,110 1,344 • EUR -222 million from the change of Share of profits/loss of associates and 479 111 744 1,112 Uniper to a subsidiary from being an joint ventures associated company (translation Finance costs - net -57 -46 -125 -136 differences) Profit before income tax 1,014 424 1,728 2,318 Income tax expense -76 -65 -221 -232 • Share of profits from associated Profit for the period 938 359 1,507 2,086 companies related to significant share of profits from Uniper, EUR 469 million

34 Cash flow statement

MEUR I/2020 I/2019 2019 LTM Comparable EBITDA 543 545 1,766 1,764 • Strong net cash from operating Paid net financial costs, income taxes and activities other -115 -64 -74 -125 Change in net margin liabilities 553 292 356 617 • Net cash from investing activities Change in working capital impacted by 133 -22 -33 122 acquisition of shares in Uniper, Net cash from operating activities 1,114 751 2,015 2,378 • EUR 844 million net of cash Capital expenditures -110 -150 -695 -655 • divestment of shares, mainly Acquisitions of shares (net of cash) Joensuu district heating -844 -12 -107 -939 business, EUR 524 million Divestments of shares 524 8 53 569 Change in cash collaterals and restricted • Dividend of EUR 977 million paid on cash 7 310 311 8 5 May, no impact Q1 2020 Other investing activities 17 12 69 74 Cash flow from investing activities -406 167 -369 -942 Cash flow before financing activities 708 918 1,646 1,436 Paid dividends 0 0 -977 -977 35 Balance sheet

MEUR I/2020 2019 MEUR I/2020 2019 Intangible assets 2,185 1,143 Equity of the parent company 13,776 12,982 Property, plant and equipment 18,716 10,123 Non controlling interest 3,192 252 Participations in associates and JVs 2,869 6,435 Total equity 16,968 13,235 Derivative financial instruments 23,205 311 Derivative financial instruments 21,415 389 Interest-bearing receivables 2,661 1,035 Interest-bearing liabilities 10,458 6,688 Shares in Nuclear Waste Funds 2,962 813 Nuclear provisions 3,276 813 Other assets including trade receivables 11,870 2,074 Other provisions 4,489 225 Liquid funds 4,081 1,433 Other liabilities 11,944 2,014 Total assets 68,550 23,364 Total liabilities 51,582 10,129 Total equity and liabilities 68,550 23,364 • PPE increased (EUR 9.1 billion) due to Uniper’s assets • Uniper reclassified from associate to subsidiary • Derivative assets (EUR 23.2 billion) and Derivative liabilities (EUR 21.4 billion) mainly due to Uniper’s financial contracts • Share in Nuclear Waste Funds and Nuclear provisions increased due to Uniper nuclear assets in Sweden • Other (than nuclear) provisions increased by EUR 4.2 billion • New lines on balance sheet; Margin receivables (EUR 0.6 billion) and Margin liabilities (EUR 1.5 billion) • Goodwill (EUR 1.8 billion) in Uniper’s balance sheet not included as it is not an identifiable asset of Fortum according to IFRS

36 New net debt definitions Financial net debt and adjusted net debt

EUR million 31 Mar 2020 + Interest-bearing liabilities 10 464 “Net debt” of EUR 6,383 million - Liquid funds 4 081 according to Fortum’s previous - Non-current securities 76 definition - Collateral arrangement securities 243 - Securities in interest bearing receivables 319 - Margin receivables 559 + Margin liabilities 1 478 + Net margin liabilities 919 Financial net debt 6 983 New “Financial net debt”

+ Pension obligations 1 032 + Other asset retirement obligations 775 - Share of Finnish and Swedish Nuclear Waste Funds 2 962 + Nuclear provisions 3 276 + Nuclear provisions net of assets in Nuclear Waste Funds 314 + Total provisions net of assets in Nuclear Waste Funds 2 121 Adjusted net debt 9 104 New “Adjusted net debt”

37 Ongoing actions to optimise cash flow and financial flexibility

Fortum targets to have a solid investment grade rating of at least BBB to maintain its financial strength, preserve financial flexibility and good access to capital markets for the enlarged group. Focus on cash flow - profitability, optimizing of cash flow and tight prioritising of capital expenditure in the current market and business environment.

Maturity profile • Loans total EUR 9,502 million 3 250 3 000 –Average interest rate for total portfolio 2 750 1.7% (2019: 2.3%), including hedging cost 2 500 2 250 of all loans of which EUR 641 million 2 000 (2019: 787) is swapped to RUB with 1 750 average interest including cost for 1 500 hedging 7.5% (2019: 7.8%) 1 250 1 000 1) 750 –Average interest rate for euro 500 denominated loans 0.8% (2019: 0.9%) 250 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+ –Including loans in Uniper group EUR 559 million

Bonds Financial institutions Other long-term debt Short-term debt

1) In addition, Fortum has received EUR 351 million based on collateral agreements with several counterparties. This amount has been booked as a short term liability. 38 Fortum’s financial targets under review after Uniper consolidation Aim to set new targets by end of 2020 at the latest

By the end of the year at the latest, Fortum aims to set new long-term financial targets for the enlarged group Fortum’s dividend policy and ambitious decarbonisation targets covering the combined operations of both companies. remains intact:

“Fortum’s dividend policy is • Following the consolidation of Uniper, the Group’s business profile has changed. to pay a stable, sustainable, and over time increasing • Fortum’s long term financial targets for ROCE and net debt-to-EBITDA do not appropriately reflect the dividend of 50-80% of group’s business profile and are now under review earnings per share • Fortum will closely monitor that its net debt-to-EBITDA excluding one-time items.“ ratio remains at a level that ensures a credit rating of at least BBB.

39 Outlook

Demand growth Hedging 2020 Estimated annual Taxation capital expenditure, Electricity demand in the Generation Nordic hedges: In 2020, the comparable including maintenance and Nordics is expected to effective corporate income excluding acquisitions grow by ~0.5% on average For the remainder of 2020: ~85% tax rate for Fortum is hedged at EUR 33 per MWh EUR 700 million estimated to increase from the 2019 level (22.4%) For 2021: ~50% hedged at EUR Note: capital expenditure guidance does 34 per MWh not include Uniper estimates following the consolidation of (Q4: 40% at EUR 33) Uniper

Uniper Nordic hedges: Fortum and Uniper share the For the remainder of 2020: ~95% view of the importance of hedged at EUR 28 per MWh credit rating and take it into account when making new For 2021: ~70% hedged at EUR capex decisions 28 per MWh For 2022: ~15% hedged at EUR 23 per MWh

40 Appendices European and Nordic power markets Still a highly fragmented Nordic power market Fortum has the largest electricity customer base in the Nordics

Power generation in 2018 Electricity retail 400 TWh 16 million customers >350 companies ~350 companies

Vattenfall Others Fortum

Others Vattenfall 36% Statkraft 49%50% E.ON

Ørsted BKK Ørsted Fortum Norlys Agder Energi Fjordkraft Norsk Hydro Uniper Helen PVO Hafslund E-CO Oomi SEAS-NVE Din El, Göteborg

Source: Fortum, company data, shares of the largest actors, pro forma 2018 figures 42 Norlys was formed through the merger of the companies SE and Eniig in Denmark Oomi was formed through the merger of the retail businesses of Oulun Seudun Sähkö, Lahti Energia, Vantaan Energia, Pori Energia and Oulun Sähkönmyynti Oy and its stakeholders Oulun Energia, Tornion Energia, Haukiputaan Sähköosuuskunta, Raahen Energia, Rantakairan Sähkö and Tenergia in Finland European and Nordic power markets Fortum mid-sized European power generation player – major producer in global heat

Power generation Heat production Customers Largest producers in Europe and Russia, 2018 Largest global producers, 2018 Electricity customers in Europe, 2018 TWh TWh Millions

EDF Gazprom Enel Rosenergoatom T Plus RWE Sibgenco EDF Enel Gazprom Inter RAO UES E.ON RusHydro Veolia Inter RAO UES RusHydro Iberdrola Uniper En+ ENGIE Vattenfall EDF ENGIE Fortum DEI EPH Quadra NNEGC Energoat. CEZ Fortum TGC-2 En+ KDHC Vattenfall PGE Minskenergo Iberdrola Vattenfall EDP CEZ PGE Centrica Statkraft Lukoil T Plus EnBW EnBW Tatenergo Sibgengo PGNiG Tauron EDP Kyivteploenergo EPS Ørsted PGE DTEK EPH SSE Verbund Stockholm Exergi Naturgy Axpo E.ON SSE E.ON CEZ Fortum Naturgy Helen DEI TGC-14 Ørsted 0 100 200 300 400 500 600 0 20 40 60 80 100 120 140 0 10 20 30 40

Source: Company information, Fortum analyses, 2018 figures pro forma. 43 EPH incl. LEAG, E.ON incl. Innogy customers. No data from China. European and Nordic power markets Wholesale power prices

EUR/MWh Spot prices Forward prices 100

70 German 60

50 Nordic

40 Russian* 30

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

* Including weighted average capacity price

44 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

€/MWh 12 May 2020

Year21 70 Year22 36 34 32 30 60 28 26 24 22 20 18 50 01/01/2020Jan01/02/2020Feb01/03/2020Mar01/04/2020Apr01/05/2020

2020 2020 2020 2020

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

45 Source: Nasdaq Commodities, Bloomberg European and Nordic power markets German and Nordic forward prices softened

Spot price • During Q1 2020, the average spread was 11.1 EUR/MWh with the EUR/MWh Nordic and German daily spot prices in Jan 2019 – May 2020 Nordic system average price at 15.4 EUR/MWh and the German spot 100 price at 26.5 EUR/MWh. 80 • Nordic prices were strongly impacted by the exceptionally rainy and 60 mild weather. Also German spot prices softened mainly du to 40

weakening gas and CO2 prices and lower demand - all impacted by 20 mild winter - and Covid-19 measures. 0 • During 2012-2019, the average realised German-Nordic spot spread -20 Q1 Q2 Q3 Q4 Q1 was 4 EUR/MWh, fluctuating on an annual level in the range of -1…15 2019 2020 EUR/MWh. Nordic Germany

Forward price EUR/MWh Nordic and German year 2021 forwards in Jan 2019 – May 2020 60 • During Q1 2020, the spread for 2021 delivery traded in the range 11.3-16.8 EUR/MWh, average at 13.7 EUR/MWh. At the end of March, it 50 was at 16.2 EUR/MWh. 40 30 • The German-Nordic spread is essentially determined by the supply- demand balance in the Nordics and on Continental Europe, in 20 combination with available interconnector capacity. Thus investments 10 in interconnectors, demand growth, expansion of renewable capacity, 0 Q1 Q2 Q3 Q4 Q1 as well as phasing out of nuclear and coal capacity all play a key role. 2019 2020 Nordic Germany

Including 12 May 2020 46 Source: Nord Pool, Bloomberg 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 700 MW COBRAcable from DK to NL has been • 1 construction or decided to be built Current Nordic/Baltic taken into operation in September 2019 interconnector 2 New 400 MW Zealand – DE connection via Kriegers • New interconnections will increase the projects Flak offshore wind area due in August 2020 rd Nordic export capacity from the current 6.9 3 EU’s Connecting Europe Facility co-financing 3 EE-LV GW to over 13 GW by end of 2023 C transmission line, due to be ready by end-2020 4 DK1-DE capacity will grow by 860 MW by end-2020, +94% with further 1,000 MW increase by end-2023

13.4 1,400 MW NordLink as first direct NO-DE link is due 5 B to start commercial operation in March 2021 Norway - UK 1,400 MW North Sea Link (NSL) is 11.0 11.0 6 due to be ready by end-2021 6 3 1,400 MW DK-UK Viking Link has been 5 7 8.2 A contracted to be built by end-2023

6.9 7 8 700 MW LT-PL Harmony Link to be built by 2025 as 6.2 1 9 a part of the Baltic synchronisation project 8 4 700 MW Hansa PowerBridge DC link between Interconnection capacity (GW) 2 9 Sweden and Germany by 2026/2027 A 1200 MW SE3-SE4 South West Link ready Oct 2020 New interconnectors New Nordic lines B 800 MW with first measures on SE2-SE3 by 2023 Existing interconnectors C 800 MW 3rd 400 kV line SE1-FI ready in 2025

2019 2020 2021 2022 2023 2024 Russia Poland Germany 47 Estonia Netherlands Years in the chart above refer to a snapshot of 1st of January each year. Source: Fortum Market Intelligence Lithuania United Kingdom European and Nordic power markets Power Generation in the Baltic Rim in 2018 (2017)

Hydro NORDICS BALTICS Nuclear Sweden 2018 TWh % TWh % Fossil fuel 158 TWh Biomass (159) Hydro *212 53 3 17 Waste Wind Finland Nuclear 88 22 - - 67 TWh Solar (65) 28 7 13 62 Others Norway Fossil fuel 146 TWh (149) Biomass 26 6 2 9

Estonia Waste 3 1 0 1 10 TWh (11) 40 10 2 9 Denmark Wind 29 TWh (29) Latvia 7 TWh (7) Solar 1 0 0 1

Lithuania Others 2 1 0 1 3 TWh (4) Total generation 400 100 20 100 Germany Net export Net import 598 TWh 2 TWh 9 TWh (602) Poland 157 TWh (158) *) Normal annual Nordic hydro generation 200 TWh, variation +/- 40 TWh.

Source: ENTSO-E Statistical Factsheet 48 Graph sizes are illustrative. Fortum’s power generation Fortum's power and heat production by source

Fortum's power generation in 2019 Fortum's heat production in 2019

Natural gas 37% Natural gas 59%

Total Total Waste1% Nuclear Others 1% Wind, solar 1% power generation power Peat 1% heat production Heat pumps, Biomass 1% 76.3 TWh 31% 26.4 TWh Coal 3% electricity 2% Biomass 9%

Waste 10% Hydropower 26% Coal 18%

Note: Fortum’s power generation capacity 14,230 MW (hydro 4,677, nuclear 2,821, CHP 5,689, condensing 565, wind 194 and solar 285) and heat production capacity 13,249 MW at the end of 2019

49 Fortum’s power generation Fortum’s Nordic, Baltic and Polish generation capacity

GENERATION CAPACITY MW NORWAY MW FINLAND MW Hydro 4,677 Price areas Hydro 1,553 NO4, Wind 82 Nuclear 1,487 Nuclear 2,821 NO4 SE1 NO1, CHP 20 CHP 452 CHP 831 Other thermal 565 Other thermal 565 Generation capacity 102 Generation capacity 4,057 Wind 159 SE2 FI NO3 Nordic, Baltic and Polish generation capacity 9,053 SWEDEN MW BALTICS AND NO5 NO1 Figures 31 December 2019 Price areas POLAND MW

NO2 SE3 SE2, Hydro 1,550 Generation capacity, CHP EE The capacity includes the 52 MW Joensuu CHP plant in SE2, Wind 75 in Estonia 49 Finland, which has been sold in January 2020. SE3, Hydro 1,574 in Latvia 34 The capacity includes the 157 MW wind portfolio in LV SE3, Nuclear 1,334 in Lithuania 18 Norway and Sweden, of which a majority 80% DK1 SE4 ownership has been sold in May 2020. SE3, CHP 9 in Poland 233 LT DK2 Generation capacity 4,542 in Latvia, Wind 2

PL Associated companies’ plants (not included in the MWs) Stockholm DENMARK, DK1 MW Exergi (Former Fortum Värme), Stockholm; TSE, Naantali Generation capacity, CHP 16

50 Fortum’s power generation Fortum is growing towards gigawatt scale target in solar PORTFOLIO TECHNOLOGY STATUS CAPACITY FORTUM SUPPLY STARTS/ and wind power generation MW SHARE, MW STARTED FINLAND 90 18 Kalax Wind Under construction 90 18 (20%) Q1 2021 Ånstadblåheia 10 MW (Fortum share) NORWAY 179 113 Nygårdsfjellet Wind Operational 32 6 (20%) 2006 and 2011 Sørfjord 97 MW Ånstadblåheia Wind Operational 50 10 (20%) 2018 Sørfjord Wind Under construction 97 97 Q4 2019-Q3 2020 Solberg 15 MW (Fortum share) SWEDEN 76 15 Ulyanovsk-2 25 MW Kalax 18 MW (Fortum share) Solberg Wind Operational 76 15 (20%) 2018 (Fortum share) RUSSIA 2,009 1,098 Astrakhan 88 MW (Fortum share) Bugulchansk Solar Operational 15 15 2016-2017 Nygårdsfjellet Ulyanovsk 35 MW solar power plants Pleshanovsk Solar Operational 10 10 2017 6 MW (Fortum share) 35 MW Grachevsk Solar Operational 10 10 2017 Solar Under development 110+6 110+6 2021-2022 Rostov 200 MW (Fortum share) Ulyanovsk Wind Operational 35 35 2018 Ulyanovsk 2 Wind Operational 50 25 (50%) 1.1.2019 Rostov Wind Operational/Under cons 200+200 100+100 (50%) Q1 2020-Q4 2021 Bhadla 31 MW (Fortum share) Kalmykia 100 MW Kalmykia Wind Under construction 200 100 (50%) Q4 2020 (Fortum share) Amrit 2 MW (Fortum share) Astrakhan Wind Under construction 176 88 (50%) Q4 2021 Rusnano JV Wind Under development 997 499 (50%) 2021-2023 Kapeli 4 MW (Fortum share) INDIA 685 581 Amrit Solar Operational 5 2 (44%) 2012 Kapeli Solar Operational 10 4 (44%) 2014 First focus markets Bhadla Solar Operational 70 31 (44%) 2017 Pavagada 250+44 MW Operating wind power plants Pavagada Solar Operational 100 44 (44%) 2017 (Fortum share) Pavagada 2 Solar Operational 250 250 Q3 2019 Operating solar power plants Rajasthan Solar Under construction 250 250 Q4 2020 Projects under construction TOTAL 3,039 1,826 Under development 1,113 615 Under construction 1,013 653 Operational 913 558

51 *) NOTE: Table numbers not accounting; tells the size of renewables projects. All not consolidated to Fortum capacities. All figures in MW and rounded to nearest megawatt. Additionally, target to invest 200 – 400 million euros in India solar and create partnership for operating assets. Under construction includes investment decisions made. Fortum’s Russian capacity and prices Day ahead wholesale market prices in Russia

Key electricity, capacity and gas prices in the PAO Fortum area I/20 I19 2019 LTM Electricity spot price (market price), Urals hub, RUB/MWh 1,068 1,128 1,117 1,102 Average regulated gas price, Urals region, RUB 1000 m3 3,937 3,883 3,910 3,924 Average capacity price for CCS, tRUB/MW/month 165 162 154 154 Average capacity price for CSA, tRUB/MW/month 1,163 1,196 1,096 1,088 Average capacity price, tRUB/MW/month 672 678 624 622 Achieved power price for Fortum in Russia, RUB/MWh 1,810 2,002 1,990 1,932 Achieved power price for Fortum in Russia, EUR/MWh 24.5 26.4 27.3 26.7

Day ahead 35 1,400 power market prices 30 1,200 for Urals 25 1,000

20 800

15 600 € / MWh RUB / RUB / MWh 10 400

5 200 Source: ATS In addition to the power price generators 0 0 receive a capacity payment. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

52 Historical achieved prices Hedging improves stability and predictability – principles based on risk mitigation

53 2009 onwards thermal and import from Russia excluded Dividend Capital returns: 2019 EUR 1.10 per share ~ EUR 1 billion

Five year history of dividend per share Fortum's target is to pay a stable, sustainable, and over time increasing dividend of 50-80% of earnings EUR per share excluding one-off items 1,2 1.10 1.10 1.10 1.10 1.10

Fortum’s dividend policy is based on the following 1,0 preconditions: 0,8 • The dividend policy ensures that shareholders receive a fair remuneration for their entrusted capital, supported 0,6 by the company’s long-term strategy that aims at increasing earnings per share and thereby the dividend. 0,4 • When proposing the dividend, the Board of Directors looks 0,2 at a range of factors, including the macro environment, balance sheet strength as well as 0,0 2015 2016 2017 2018 2019 future investment plans. Since 1998 Fortum has paid dividends totaling EUR 24% 196% 112% 116% 66% 16.5 billion

54 Next events: January-June Half-year Financial Report on 19 August January-September Interim Report on 17 November The CMD planned for 3 December 2020

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