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

2 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

3 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

4 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 0,91 and higher generation volumes

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

Comp. OP Comp. EPS OCF Q2 203 440 0,17 289 Q2 2021 performance affected 0,09 35 by 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. 5 ***Financial net debt/Comparable EBITDA does not include divestment of Baltic district heating (closed in July 2021) and divestment of 50% in Stockholm Exergi (expected to close in H2 2021). H1, all segments improved – significant impact from Uniper profits

Comparable operating profit (EUR million) 510 -1 1206 Generation 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

6 Q2 – Significant phasing effects in Uniper segment

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

City Solutions higher power sales

Consumer Solutions -2 35 higher margins from value added services

Uniper strong result in commodities business in Q2 City Consumer 2020 and negative phasing effect in Q2 2021 II/2020 Generation Russia Uniper Other II/2021 Solutions Solutions

7 Determined execution of our transformation strategy continues Strengthening balance sheet Accelerated decarbonisation Balanced growth

EUR 5.2 billion of divestments in 1.5 Fortum Russia division end of coal-fired Leverage target: years generation by end of 2022 Financial net debt/ • Stockholm Exergi: Sale of 50% comparable EBITDA • Sale of Argayash coal-fired CHP, ratio <2x ownership for EUR 2.9 billion, closing Chelyabinsk CHP-2 transition to gas expected in H2 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 EUR ~710 million sheet Accelerated coal-exit path at Uniper* • Solar power in India: divestment of 500 MW, total consideration including the effect of deconsolidating net debt Heyden 4 (875 MW), Wilhelms- Dividend Growth EUR ~280 million, closing expected in haven 1 (757 MW), Scholven C H2 2021 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 investments cooling businesses in Poland and the stable, sustainable WACC + hurdle rate Consumer Solutions business still and over time +100 bps for green invest. dividend” ongoing. increasing +200 bps for other invest.

* Source: Uniper, illustrative 8 Bernhard Günther CFO

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

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

10 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 EBITDA H1 2021 vs. H1 2020 Comp. OP 195 173 464 409 722 778

• Positive contribution from higher achieved prices and slightly Comp. net 6,207 5,957 6,234 higher hydro volumes (+0.7 TWh) while nuclear volumes assets Comp. marginally lower (-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

11 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 Realised system price 2021 recovery, reaching EUR 41.9 per MWh (5.6) in Q2 70 Futures 12 August 2021 60 Futures 6 May 2021 2021 50 • Nordic spot price is supported by Continental European 40 power prices, which in turn are driven by increased gas 30 and 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 2019 2020 2021 2022 power price

Source: Nord Pool, Nasdaq Commodities

12 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 23,3 1 158 1 156 23,1 22,5 22,5 1 200 1 109 24 21,1 picking up with increasing 1 021 1 074 1 000 20 electricity prices 800 16 600 12 Russian achieved price in 400 8 200 4 rubles 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% 13 * 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 rouble exchange rate was EUR -2 million • Strategy execution: Power Heat – Divestment of Argayash CHP and decision to cease coal use by the end MEUR II/ II/ I-II/ I-II/ FY 2021 2020 2021 2020 2020 LTM of 2022

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

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 rouble exchange rate was EUR -23 million RONA % Gross in- 30 47 37 51 91 76 vestment

* CSA = Capacity Supply Agreement

14 Q2 City Solutions: Q2'21 Q2'20 Volumes (TWh) Performance improved 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

15 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

16 Q2 Uniper: Q2'21 Q2'20 9,5 9,4 Volumes 8,4 (TWh) 5,3 Solid underlying performance 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 Volumes* 21,9 and Datteln 4 contribution (TWh) 19,1 9,4* • Global Commodities business was significantly below previous 6,6 3,5* 6,5 2,8* 5,3* year due to a positive effect of the realisation of hedges in the coal, Hydro Nuclear Thermal CE Thermal RUS freight, 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 2020 2021 2020 2020 LTM 2021 Sales 15,893 11,365 35,663 11,365 44,514 68,812 • Changes in fair value of derivatives of EUR -910 (160) million Comp. -17 184 851 184 856 1,523 • Strategy execution: EBITDA Comp. OP -177 24 534 24 363 873 – Accelerated closure of more than 2 GW’s of coal: Heyden Comp. net 4, Wilhelmshaven, Scholven C, and Ratcliffe 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

17 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 debt net Financial

Financial net debt Fortum’s objective: 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 2 000 Other long-term loans • EUR 685 million (2020: 634) swapped to RUB with Short-term loans average interest 6.4% (2020: 6.2%) incl. hedging cost 1 500 • Average interest of 0.7% (2020: 0.9%) for EUR loans 1 000 Liquid funds of EUR 1,703 million

Maturity profile 500 Undrawn credit facilities of EUR 5,100 million 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+

18 Outlook

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

19 Q&A