Fortum - Company Announcement

Fortum assesses its strategic position in the electricity distribution business

Espoo, Finland, 2013-01-31 07:45 CET (GLOBE NEWSWIRE) -- FORTUM CORPORATION
STOCK EXCHANGE RELEASE 31 January 2013 at 8.45 EET 

Fortum has decided to assess the future alternatives, including divestment, of
its electricity distribution business. In accordance with its strategy, Fortum
seeks in growth low-carbon power generation, energy-efficient combined heat and
power (CHP) production and customer offerings. The assessment has no impact on
Fortum's electricity distribution customers and excludes the company's
electricity retail business. Fortum expects to conclude the assessment during
2013. 

Distribution is a regulated business that has yielded a stable, somewhat over
8% comparable return on net assets. Fortum's Distribution business area's
comparable EBITDA for the last 12 months at the end of the third quarter 2012
was EUR 466 million. 

Fortum sees that its distribution business holds value potential that could be
captured to the fullest extent in a different setting. Furthermore, Fortum's
core-competence, where it seeks growth, is the production and sales of
low-carbon power and energy-efficient heat. 

Fortum is the leading electricity distribution company in the Nordic countries
with altogether approximately 1.6 million customers in Finland, Sweden and
Norway. The Distribution business area's sales during the last 12 months at the
end of the third quarter 2012 was EUR 1,000 million and comparable operating
profit was EUR 265 million. The business area's share of Fortum's comparable
operating profit was approximately 16%. Net assets at the end of the third
quarter 2012 totaled EUR 3,847 million. The business area employs approximately
900 people. 

Fortum's purpose is to create energy that improves life for present and future
generations. In accordance with its strategy, the company's aim is to build on
its strong Nordic core, create solid earnings growth in Russia and build a
platform for future growth. 

Fortum Corporation
Helena Aatinen
Senior Vice President, Corporate Communications

Further information:
Tapio Kuula, President and CEO,
tel. +358 10 45 24112 (available to the media 1.00pm-3.30pm EET)
Corporate Communications: Helena Aatinen, Senior Vice President, +358 10 45
20480, 
Fortum Media Desk: +358 40 1982 843
Investor Relations: Sophie Jolly, Vice President, tel. +358 10 45 32552

Distribution:
NASDAQ OMX Helsinki
Media
www.fortum.com


Further information to news desks:
Fortum is the leading electricity distribution company in the Nordic countries
with approximately 1.6 million network customers; ~900 000 in Sweden, 600 000
in Finland and ~100 000 in Norway. Fortum's distribution businesses in Estonia
were sold in the beginning of 2012. At Fortum, the Distribution business area
is part of the company's Electricity Solutions and Distribution Division that
is also responsible for retail sales of electricity. 

Fortum is the second largest electricity retail company in the Nordic countries
with approximately 1.2 million customers in Finland, Sweden and Norway.
Electricity sales is a competed business and there are altogether 350
electricity retailers in the Nordic countries. Fortum's retail business is not
included in the strategic review announced today. 

Fortum's largest division, Power, consists of Fortum's power generation, power
trading and power capacity development as well as expert services for power
producers. Fortum's Heat Division consists of combined heat and power (CHP)
generation, district heating activities and business-to-business heating
solutions in the Nordic countries and other parts of the Baltic Rim. The Russia
Division consists of power and heat generation and sales in Russia.