Fortum’s financial targetsRevised on February 2016Fortum’s long-term over the cycle financial targets give guidance on our value creation potential, new growth strategy and business activities.

11 12 13

COMPARABLE NET DEBT/EBITDA

2.53

2

1

0

15

11 12 13

20

15

10

5

0

15

RETURN ON CAPITAL EMPLOYED%

At least10%

Generation City Solutions Russia Other

Business description

This division is responsible for the large scale power production, physical optimisation and trading activities in the Nordic area. The division comprises nuclear, hydro and thermal power production, portfolio management and trading, industrial intelligence and nuclear services.

This division is responsible for developing sustainable city solutions into a growing business for Fortum. The division comprises heating and cooling, waste to energy, biomass and other circular economy solutions and services as well as electricity sales and services.

Russia division will comprise Fortum's power and heat generation and sales activities in Russia.

Including two development units: Technology and New Ventures - to speed up innovation and new business development. Responsible for Fortum’s R&D activities. M&A and Solar & Wind Development - Fortum strives to create value by driving utility industry consolidation and restructuring through transformational mergers and acquisitions in its current home markets and in the integrating European market. The efforts to target a gigawatt-scale solar and wind portfolio.

Comparable operating profit, % of Group op EUR 561 million, 77% of total. EUR 108 million, 9% of total EUR 201 million, 14% of total

Net assets EUR 5,913 million EUR 2,170 million EUR 2,561 million

Volume (TWh) Nordic generation 48.8TWh CHP sales 2.5TWh, heat sales 7.8TWh, electricity sales 14.2TWh

Power gen. 29.4TWh Heat sales 25.4TWh

Drivers Nordic power price, generation volumes

Fuel mix, heat and power price, electricity sales market

New capacity and capacity price, electricity and heat price

Fortum in 3 minutes

We are a forerunner in sustainabilityFortum’s carbon exposure is among the lowest in Europe.

201564% of Fortum’s total power generation CO2-free97% of Fortum’s power generation in the EU CO2-free

Russia• The targeted operating profit (EBIT) level of RUB 18.2 billion in the Russia segment is

targeted to be reached during 2017-2018• The euro-denominated result level will be volatile, due to the translation effectAnnual capex estimate, excluding potential acquisitions• In 2016 approximately EUR 650 million (maintenance capex approximately EUR 300-350 million)Taxation• Effective tax rate for 2016 for the Group 19-21%

Business drivers and risksNordic markets• One of the key factors influencing Fortum’s business performance is the wholesale price of

electricity in the Nordic region• Fortum continues to expect that the annual electricity demand growth will be

approximately 0.5% on average in the coming years• Electricity is expected to continue to gain share of total energy consumption• Generation sensitivity: achieved price 1 EUR/MWh = EUR ~45 million in annual comparable

operating profit

39177

Fortum

tota

l

Gas N

atura

l Fen

osa

E.ON

Vatte

nfall

0

200

400

600

800

1000

1200

DEI

RWE

DRAX SSE

CEZ

A2A

EnBW

ENGIE

Dong Ener

gy

EDF

Verbund

Fortum

EU

PVO

Statk

raft

EDPEnel

Iber

drola

Average 313 g/kWh

g CO2/kWh electricity, 2014

Fortum is a leading clean energy company which provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. We employ some 8,000 professionals in the Nordic and the Baltic countries, Russia, Poland and India, and already 64% of our electricity generation is CO2 free. In 2015, our sales were EUR 3.5 billion. Fortum’s share is listed on Nasdaq Helsinki (FUM1V)

Global megatrends as well as low energy prices and the low overall economic development have created a need for energy sector transformation. Fortum aims to meet these global challenges with its strategy that targets growth and continued profitability with strong focus on clean energy, customers and shareholder value creation.

Key facts 2015:Exchange:Nasdaq Helsinki

ISIN: FI0009007132

Ticker: FUM1V

Industry: Electric Utilities

Sales EUR 3,459 million

Capex EUR 625 million

Comparable operating profit EUR 808 million

Employees:7,800

Fortum is highly committed to sustainability Sustainability is an integral part of Fortum’s strategy. The tight link between business operations and corporate responsibility underscores the importance of sustainability as a competitive advantage. In its operations, Fortum gives balanced consideration to economic, social and environmental responsibility. We strive to respond to the needs of our customers by generating and selling low-carbon electricity and heat and by offering energy-sector expert services. Fortum’s carbon exposure is among the lowest in Europe. The share of Fortum’s CO2 -free power production in EU was 97% in 2015 and in total Fortum, 64%.

Fortum’s reporting structureas of April 2016

Drive productivity and industry transformation

Create solutions for sustainable cities

Build new energy ventures

Grow in solar and wind

MISSIONWe 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.

STRATEGY

MEGATRENDSClimate change and resource efficiencyUrbanisationDigitalisation, new technologies

14

14

Måns HolmbergManager, Investor Relations (Financial communications & Private investors)

Tel. +358 10 452 1111mans.holmberg@fortum.com

Pirjo LifländerIR Specialist Tel. +358 40 643 3317pirjo.liflander@fortum.com

Biomass 6%

NyaganOAO FORTUM

TGC-1

Moscow Chelyabinsk

TyumenSt. PetersburgStockholm Helsinki

OlkiluotoLoviisa

Oskarshamn

Forsmark

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

0

250

500

750

1,000

1,250

1,500

2026+

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

TWh 2015 2014Hydro and wind power, Nordic 25.1 22.4Nuclear power, Nordic 22.7 23.8Thermal power, Nordic 0.3 0.9Total in the Nordic countries 48.1 47.1Thermal power in other countries 0.0 0.7Total 48.1 47.9

Fortum’s nuclear fleet Fortum’s CHP’s in Russia

FORTUM’S POWER GENERATION IN 2015IN TOTAL 75.9 TWh

Nuclear power 30%

Hydro power 33%

Natural gas 32%

Coal 4%

FORTUM POWER GENERATION BY SOURCE

Nordic Power generation totalled

390 TWh in 2015FORTUM’S HEAT PRODUCTION IN 2015IN TOTAL 32.2 TWh

Heat pumps 1%

Natural gas 75%

Peat 1%

Coal 15%

Waste 1%

Fortum’s financial calendar 20172 Feb Financial Statements Bulletin 2016

Week 10 Operating and Financial at the latest Review for 2016

4 April Annual General Meeting

13 April Dividend payment date

20 April Q1 Interim Report

20 July Half Year Financial Report

26 October Q3 Interim Report

DIVIDEND PER SHARE (EUR) DEBT MATURITY PROFILE AS OF 30 SEPTEMBER 2016Strong financial positionGood liquidity – committed credit lines total EUR 2.0 billion

Long-term credit ratingStandard & Poor’s BBB+ (stable)Fitch BBB+ (stable)

• Hedging of Generation’s estimated Nordic power sales volume at the end of September 2016:

For the rest of 2016: ~80% at EUR 29/MWh 2017: ~50% at EUR 28/MWh 2018: ~30% at EUR 25/MWh

• Hedges are disclosed quarterly

• Hedge ratios may vary significantly

HEDGING

Biomass 1%

1.00

201150%

1.00

201263%

1.10

201381%

1.30

201437%

1.100.20* 1.10

201524%

Sophie JollyVP, Investor Relations and Financial CommunicationsTel. +358 10 453 2552sophie.jolly@fortum.com

Investor relations

Rauno TiihonenManager, Investor RelationsTel. +358 10 453 6150 rauno.tiihonen@fortum.com

Meeting requests:Arja-Tuula TiainenExecutive Assistant Tel. +358 10 453 4487arja.tiainen@fortum.com

Fortum’s combined cycle gas turbine (CCGT)

Nordic and continental markets are integrating - interconnection capacity will double by 2023

Fortum’s target is to pay a stable, sustainable and over time increasing dividend of 50-80% of earnings per share excluding one-off items.

• The dividend policy ensures that shareholders receive a fair remuneration for their entrusted capital, supported by the company’s long-term strategy that aims at increasing earnings per share and thereby the dividend.

• When proposing the dividend, the Board of Directors looks at a range of factors, including the macro environment, balance sheet strength as well as future investment plans.

DIVIDEND POLICY

*An extra dividend.

• Total interest-bearing debt EUR 5,185 million · Average interest 3.4% (2015: 3.7%) · Portfolio mainly in EUR and SEK with average interest cost 2.0% (2015: 2.6%)

· EUR 734 million (2015: 641) swapped to RUB, average interest cost including cost for hedging 11.7% (2015: 12.8%)

Oil 1%

www.slideshare.net/FortumCorporation/

www.twitter.com/Fortum

http://fortumforenergyblog.wordpress.com

www.linkedin.com/company/fortum

www.youtube.com/user/fortum

OWNERSHIP STRUCTURE ON 30 SEPTEMBER 2016

Approx. 135,000 shareholdersHouseholds 11.6%

Financial and insurance institutions 1.6%

Other Finnish investors 8.7%

Foreign investors 27.7%

Finnish State 50.8%