For a Cleaner World

Equity story of FORTUM – For a cleaner world

Investor / Analyst material July 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 – 22 Energy market transition 23 – 27 Interim report Q1 2021 28 – 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 14.6 GW

Hydro Wind & Solar Nuclear 8.4 GW 1.7 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 Fortum concludes the sale of mainly district heating assets and businesses worth approximately EUR 5.2 billion

• A key part of Fortum’s strategy execution is to continuously review, optimise, and rotate businesses for value creation, to enable new growth and to maintaining a financially strong Group • In particular, Fortum divested since 2020 the district heating businesses in Joensuu and Järvenpää (Finland) and in the Baltics, sold small hydro assets in Sweden and announced the sale of the 50% ownership in Stockholm Exergi. • Additionally, Fortum reduced its share in wind parks in Norway, Sweden, Finland and India and sold a majority share of its public charging point operator for electric vehicles Fortum Recharge. • The strategic reviews of the heating and cooling businesses in Poland and the Consumer Solutions business are currently ongoing

20 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

21 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

22 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

23 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

24 Energy market transition 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 + 5200 MW maximum 1,400 MW from March 2021 13.4 Norway - UK 1,400 MW North Sea Link (NSL) is due B 5 to be ready by end-2021 DK1-DE capacity to grow by further 1,000 MW to 11.0 11.0 6 3,500 MW with a new 400 kV line by end-2023 5 3 1,400 MW DK-UK Viking Link has been 4 7 8.2 A contracted to be built by end-2023 6.9 700 MW LT-PL Harmony Link to be built by 2025 as 7 1 8 6.2 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 8/2021 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

2019 2020 2021 2022 2023 2024 Russia Poland Germany 25 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

26 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 • Exit ~6 GW of coal capacity by end of 2025 Strengthen and grow in CO2-free power • Aim to decarbonise gas-fired power generation generation and transit to clean gas over time

Leverage strong position in gas to enable Carbon neutral as a group by 2050 at the the energy transition latest in line with the Paris Agreement **) • Reduction of the Group’s coal-fired generation capacity by >50% to ~5 GW by 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

27 Interim Report January-March 2021 FORTUM CORPORATION 12 May 2021 Interim report Q1 2021

Markus Rauramo President and CEO

29 Interim report Q1 2021 Q1 Highlights

Strong performance • Good performance across all segments securing supply to our customers during the colder winter quarter compared to previous year • Good level of outright volumes while at the same time clearly increased spot Active portfolio optimisation prices and benchmark operations • Supporting market fundamentals with strong carbon price pushing for decarbonisation

Improving market environment Strategy execution moving ahead • Changes in senior management at Uniper and Fortum to establish a more diverse and pan-European leadership team to leverage existing experience and expertise more widely and to develop a joint culture Accelerated execution of • Updated ambitions on the group-wide ‘One Team’ approach within the strategic priorities strategic areas of Nordic hydro and physical trading optimisation, wind & solar, and hydrogen development • Disclosed divestments of approximately EUR 1 billion • Strategic reviews ongoing of Polish district heating, 50% stake in Stockholm Exergi and Consumer Solutions

30 Interim report Q1 2021 Strong start for 2021

Comp. OP Comp. EPS OCF Leverage*

Strong headline numbers

First-quarter summary Improved results in all segments • Results supported by improved operational performance across all segments • Material impact from full Uniper consolidation – Uniper result outlook for full year 2021 increased Strengthened balance sheet • Comparable EPS of EUR 0.94 of which Uniper contribution EUR 0.51 • Robust cash flow from operating activities • Balance sheet deleveraging on track being within our envisaged target ratio Dividend of EUR 1.12/share of Financial net debt-to-Comparable EBITDA < 2x • Dividend of EUR 1.12/share paid on 7 May

31 * Financial net debt/Comparable EBITDA Interim report Q1 2021 Higher achieved power prices

System spot power price, Nord Pool Fortum Generation's Nordic power price

EUR/MWh EUR/MWh Substantially higher spot 42,1 37,1 37,2 34,0 33,6 35,2 power prices in the Nordics

15,4 13,8 Increased achieved power 8,9 5,6 prices

Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021

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

RUB/MWh EUR/MWh Russian power demand picking

24,5 up with increasing electricity 1 109 1 158 23,3 23,1 22,5 1 068 1 021 1 074 21,1 prices

Russian achieved price in rubles increased while declining in Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 euro terms NOTE: Achieved power price (includes capacity payments) in RUB increased by 3%

32 * Does not include Uniper’s subsidiary Unipro Interim report Q1 2021 All segments improved – significant impact of Uniper profits

Comparable operating profit (EUR million) Generation higher achieved power price

Russia stronger underlying performance

City Solutions higher heat sales volumes and improvement in recycling and waste solutions

Consumer Solutions higher margins from power sales

City Consumer Q1 2020 Generation Russia Uniper Other Q1 2021 Solutions Solutions Uniper full consolidation

33 Interim report Q1 2021 Executing our strategy – decarbonisation is key

Accelerated execution on strategic priorities • Coal-exit proceeding ahead of plan with the early closure of another coal- fired plant, Wilhelmshaven, following the early closure of Heyden Transform operations to carbon • Steps forward in first mover hydrogen position: Several early-stage hydrogen neutral projects initiated – establish national hubs for hydrogen across northwestern Europe (e.g. Rotterdam, Hamburg, Wilhelmshaven) • TCFD (Task Force on Climate-related Financial Disclosures) supporter and Partner with industrial and climate lobbying review infrastructure customers • EU Taxonomy regulation is taking shape with a substantial positive impact on climate and environment

Regulatory framework - steps in the right direction

34 Fortum Interim Report January-March 2021 Interim report Q1 2021 Fortum fleet broadly taxonomy aligned

Fortum assets Fortum growth CAPEX

Hydro Nuclear

Wind Waste to Solar (on/offshore) energy

Hydrogen CCS Gas

Portfolio transformation to further Hazardous Biomass Coal increase taxonomy alignment waste

35 Interim report Q1 2021

Bernhard Günther CFO

36 Interim report Q1 2021 Key financials

MEUR Q1 2021 Q1 2020 2020 LTM Q1 strong financial performance Sales 21,493 1,357 49,015 69,152

Comparable EBITDA 1,479 543 2,434 3,370 Introduction of Comparable Net Profit and Comparable EPS as new Comparable operating profit 1,171 393 1,344 2,122 APM’s Comparable share of profits of associates and joint ventures 67 551 656 172 First time Uniper consolidated as a Comparable profit before subsidiary for a full four quarters income taxes 1,257 901 1,897 2,253

Comparable net profit 837 812 1,483 1,508 LTM Comparable EPS at EUR 1.70 Comparable EPS 0.94 0.91 1.67 1.70

Net cash from operating activities 831 562 2,555 2,825 Healthy credit metrics – strong cash flow from operating activities Financial net debt / Comp. EBITDA 2.9 1.9

37 Interim report Q1 2021 Generation: Q1'21 Q1'20 Higher volumes and prices Volumes 6,7 6,4 6,3 6,3 (TWh) 0,0 0,2 Q1 2021 vs. Q1 2020 Hydro Nuclear Wind • Comparable operating profit up 14% mainly due to higher achieved Q1 2021 315 power prices Comp. EBITDA – Higher achieved power price +3.2€/MWh, +9% Q1 2020 273 – Successful physical and financial optimisation and higher spot prices • Higher power generation volumes Comp. Q1 2021 269 Generation recorded a tax-exempt capital gain of EUR 50 million OP • Q1 2020 235 during the quarter following the sale of eight small hydropower plants in Sweden MEUR Q1 2021 Q1 2020 • Strategy execution: Olkiluoto 3 performed fuel loading end of March Sales 675 574 targeting commencing power generation in October this year and Comparable EBITDA 315 273 regular power generation in February 2022 Comparable OP 269 235 ComparableNyaganLoviisa ,net ,Finland Russia assets 6,135 5,899 Comparable RONA % (LTM) 12.6 12.2* Gross investments 27 34

* full year 2020, recalculated following introduction of Comparable net profit in Q1 2021 38 Interim report Q1 2021 Nordic hydro reservoirs towards normal levels while spot prices are catching up

Reservoir content (TWh) • Cold winter with below normal wind generation and higher 120 availability of export capacity led to strong hydro 100 generation in Q1 80 • This can be seen as increased utilisation of Nordic water 60 reservoirs and gradually normalising reservoir levels

40 Norway • Nordic water reservoirs 14 TWh above long term average 20 Sweden Finland 2000 2003 2020 2021 Average at the end of Q1 2021 Hydro reservoirs 0 Q1 Q2 Q3 Q4

EUR/MWh 80 • Nord Pool system spot price saw a rapid recovery, reaching Realised system price 70 Futures 2 July 2021 42.1 EUR/MWh (15.4) in Q1 2021 60 50 • A multitude of factors contributed to strong Nordic price 40 recovery, including cold winter, low precipitation amounts, 30 below normal wind production, as well as the new Nordlink 20 interconnector

Power price 10 • Naturally, strong power prices in Continental Europe, driven 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 especially by gas and carbon prices, supported the Nordic 2019 2020 2021 2022 power prices Source: Nord Pool, Nasdaq Commodities

39 Interim report Q1 2021 Russia:

Solid underlying performance 8,4 8,4 7,5 Volumes 6,2 Q1'21 (TWh) Q1'20 Q1 2021 vs. Q1 2020 Power Heat • Comparable operating profit increased by 1% Q1 2021 134 – Russian RUB FX effect of EUR -21 million Comp.

– Sale of the 116-MW CSA-backed solar power project to JV contributed EUR EBITDA Q1 2020 138 17 million – Higher power prices Q1 2021 100 – Higher heat production volumes +21% due to cold temperatures and stable Comp. power generation OP Q1 2020 99 • Lower CSA** prices – The positive effect of three units entering the four-year period of higher MEUR Q1 2021 Q1 2020 CSA payments more than offset by the effect of the CSA period ending for Sales 264 317 the two units, and lower bond yields Comparable EBITDA 134 138 Comparable OP 100 99 • Strategy execution: Fortum to construct the largest solar power plant in Russia through a joint venture (78 MW expected to be Comparable net assets 2,517 2,612 commissioned in Q4) Comparable RONA % (LTM) 12.1 11.1* Gross investments 7 4

** = Capacity Supply Agreement * full year 2020 40 Interim report Q1 2021 City Solutions:

Clearly improved performance 4,4 Volumes 3,6 Q1'21 (TWh) Q1'20 Q1 2021 vs. Q1 2020 1,3 0,9 Power Heat • Comparable operating profit increased close to 50% Q1 2021 132 – Clearly higher heat sales volumes in all heating areas Comp. – Higher Norwegian heat prices EBITDA Q1 2020 106 – Improved results in the recycling and waste business The Covid-19 pandemic did not have any significant adverse effect • Comp. Q1 2021 86 • Strategy execution: OP Q1 2020 58 – Agreement to sell the Baltic district heating business for EUR 800 million (debt- and cash-free). Tax-exempt capital gain of approx. EUR 240 million MEUR Q1 2021 Q1 2020 in Q2 Sales 418 342 – Commissioning of 150 MW (of 250 MW) Rajasthan solar park in India. The Comparable EBITDA 132 106 remaining 100 MW is expected to be commissioned in Q2 Comparable OP 86 58 Comparable net assets 3,305 3,625 Nyagan, Russia Comparable RONA % (LTM) 3.8 2.8* Gross investments 48 38

* full year 2020 41 Interim report Q1 2021 Consumer Solutions: Continued improvement Amount of Q1 2021 2 360 customers Q1 2021 vs. Q1 2020 (´000) Q4 2020 2 390 • Comparable operating profit continued to improve, +12% Q1 2021 53 – Higher margins from power sales Comp. – Higher prices in the Nordics compared EBITDA Q1 2020 48 – Higher electricity sales volumes mainly due to clearly colder weather in the Nordics Q1 2021 36 • The gas volume increased by 23%, mainly due to an increase of Comp. enterprise customers in Poland OP Q1 2020 32 • The Covid-19 pandemic has increased market uncertainty, but no major negative implications materialised MEUR Q1 2021 Q1 2020 Sales 661 424 • 14th consecutive quarter of comparable EBITDA improvement Comparable EBITDA 53 48 Comparable OP 36 32 Gross investments 11 15

42 Interim report Q1 2021 Uniper: Very strong Q1 results Power Q1'21 generation 12.3 10.7 volumes 3.3 3.6 Q1 2021 vs. Q1 2020 (TWh) Hydro Nuclear Thermal CE Thermal RU • Consolidation: – Until Q1 2020: Uniper as an associated company Comp. Q1 2021 868

– From Q2 2020: Uniper as a subsidiary EBITDA Q1 2020 • European Generation: benefitted from Irsching 4&5 and Datteln 4 contribution, not in the market in Q1 2020 Comp. Q1 2021 711 • Global Commodities: Optimisation of supply-demand imbalances in OP North America and Asia following cold weather. Normalised Q1 2020 contribution in gas midstream vs Q1 2020, still strong with high withdrawals during cold spells MEUR Q1 2021 Q1 2020 Sales 19,770 - • Unipro: Operating environment significantly improved, offset Comparable EBITDA 868 - by expiry of CSA payments for two gas-fired units and weaker RUB; Comparable OP 711 - Completed repair work at Berezowskaya 3 power unit (800 MW), Comparable net assets 8,240 7,569 capacity payments May 2021 onwards Comparable RONA % 14.9 - Gross investments 136 -

CSA=Capacity Supply Agreements

43 Interim report Q1 2021 Improved financial net debt

Solid credit metrics

'BBB' long-term issuer credit rating, negative outlook

Target ratio: < 2x Financial net debt/ Comp. EBITDA

Fortum’s objective: Financial net debt Financial net debt Maintain solid investment grade rating of at least Financial net CF from Investments Divestments Other FX and other Financial net BBB to maintain financial strength, preserve debt Q4/20 operating paid investing debt Q1/21 financial flexibility and good access to capital. activities per 31 Mar 2021 Total loans EUR 9,910 million (excl. lease) • Average interest of 1.5% (2020: 1.5%) for Group loan portfolio incl. derivatives hedging financial net • EUR 652 million (2020: 634) swapped to RUB with average interest 6.5% (2020: 6.2%) incl. hedging cost • Average interest of 0.9% (2020: 0.9%) for EUR loans Liquid funds of EUR 3,598 million

Maturity profile Undrawn credit facilities of EUR 5,100 million

44 Interim report Q1 2021 Outlook

Hedging 2021 Estimated annual capital Russia Generation Nordic hedges: expenditure, including maintenance CSA changes: For the rest of 2021: 80% hedged at EUR 32 and excluding acquisitions, of Lower bond yield, bond yield 6.3% (7.6%) per MWh For 2022: 55% hedged at EUR 31 per MWh EUR 1,400 million Changes in CSA and CCS capacities: (Q4: 50% at EUR 31) see interim report p. 18-19, 24 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: 85% hedged at EUR 27 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: 80% hedged at EUR 24 per MWh for Fortum is estimated to be in the range effect of three units entering the four-year (Q4: 65% at EUR 24) of 20-25%. period of higher CSA payments. For 2023: 35% hedged at EUR 21 per MWh (Q4: 25% at EUR 22)

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 new 2030 emissions target will tighten the EU ETS CO2 abatement cost ranges for different sectors MtCO2 Eur/t Eur/t

2000 400 400

Abatement cost range 1000 300 300 -55%...-63% 0

200 EUA price 200

• The EU has agreed to increase the 2030 total emissions reduction target to Coal-to-gas switching range 55% vs 1990, which will require changes to existing policies, including the EU ETS • One of the changes needed is to tighten the EU ETS target for 2030 from - 100 100 43% currently to -55%...-63% (baseline year 2005) • The EU Commission is also planning to expand the EU ETS to other sectors sectors, such as transport and buildings • EU Commission proposals for revisions of the EU ETS by end of Q2 2021 Revisions could take effect somewhere around 2024-2026 • 0 0 • The EU ETS already has a self-tightening mechanism called the Market 2017 2018 2019 2020 Power Agriculture Industry Buildings Transport Stability Reserve (not shown), which reduces the annual supply to the market and cancels allowances as long as a historical surplus exists Abatement cost ranges formed of typical values found in industry analyses. Sources: 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 EUR / tCO Coal price (ICE API2 2022) 2 CO2 price (EUA DEC 2021) 100 60

80 48

60 36

40 24

20 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) 30 100

24 80

18 60

12 40

6 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 2 July 2021 European and Nordic power markets Wholesale power prices

EUR/MWh Spot prices Forward prices 100

70 German 60

50 Nordic

40 Russian* 30

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

Forwards 2 July 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 2 July 2021

Year23 70 Year22

50 Mar Apr May Jun 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

Nordic system price remained exceptionally depressed by the strong EUR/MWh Nordic and German daily spot prices in 2019 – 2021 Feb Mar Apr May June • 2021 2021 2021 2021 2021 hydrological surplus for most of 2020. The German-Nordic spread for 100 2020 realised at 20 €/MWh. 80 • Both Nordic and Continental electricity prices saw a recovery during Q1 60 2021. In Nordic prices the gains were especially strong, driven by cold 40 winter and normalising Nordic hydrological balance. 20 • German-Nordic spread for Q1 2021 realised at 8 €/MWh. 0 -20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 Forward price 5 July 2021 Nordic Germany • The German contract for 2022 delivery is trading close to 58 €/MWh, while corresponding Nordic SYS contract is close to 28 €/MWh. EUR/MWh Nordic and German year 2022 forwards in 2019 – 2021 80 The German-Nordic spread for 2022 delivery has increased from 15 • 70 EUR/MWh during the start of 2020 to a level of 30 EUR/MWh recently. 60 • German contract is tracking the changes in short-run marginal costs for 50 gas and coal fired condensing units, reflecting the stronger exposure to 40 fossil fuel and CO prices. 30 2 20 • The Nordic contract is influenced by growing Nordic renewable supply 10 and limited interconnector capacity towards the Continental Europe. 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021

2 July 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 2020 2021

Until 30 June 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 2020 2021

Until 30 June 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

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

Divestment of Gasum shares

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

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-June Interim Report on 17 August 2021 January-September Interim Report on 12 November 2021

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