Fortum - Changes board/management/auditors

Fortum to reorganise its business structure as of 1 April 2016

FORTUM CORPORATION STOCK EXCHANGE RELEASE 19 February 2016 at 9.30 EET

Fortum reorganises its corporate structure as of 1 April 2016. The target of
the new organisation is to enable the implementation of the company’s new
vision and strategy, which were announced on 3 February 2016. The new
organisation consists of three business divisions: Generation, City Solutions
and Russia. In addition, two development units focusing on growing new
businesses are established: M&A and Solar & Wind Development as well as
Technology and New Ventures. 

Changes to Fortum's segment reporting are minor at this point and the company
will keep four reporting segments. The segments as of the second quarter 2016
are: Generation, City Solutions (mainly the former Heat, Electricity Sales and
Solutions) and Russia. M&A and Solar & Wind Development as well as Technology
and New Ventures will be reported under Other. Some businesses will be
repositioned due to the reorganisation, but because of the minor financial
impact at this point, the comparable segment information for 2015 will not be
restated. 

The new organisation will have four staff functions: Finance; Legal; Strategy,
People and Performance as well as Corporate Affairs and Communications.
Contrary to the current organisation, there will not be a Chief Operating
Officer role in the new structure, and the business divisions and development
units will report directly to the President and CEO. The current Chief
Operating Officer will be appointed Deputy CEO to support the President and CEO
in implementing the new vision and strategy. 

“With the new organisation we put focus on our new strategic priorities. We
enable productivity improvement of existing operations, growth in city
solutions, solar and wind as well as development of new energy ventures. We
also aim to increase speed and agility, reduce the number of organisational
layers wherever possible and offer opportunities to talented women and men
through active rotation. We will also emphasise key development efforts
critical to our future,” says Pekka Lundmark, President and CEO of Fortum
Corporation. 

Fortum's Executive Management Team:

- Pekka Lundmark, President and CEO
- Matti Ruotsala is appointed Deputy CEO until his planned retirement in summer
2017. He is currently Fortum's Chief Operating Officer. 
- Timo Karttinen will continue as Fortum’s CFO.
- Tiina Tuomela is appointed Executive Vice President, Generation. She is
currently Executive Vice President, Nuclear and Thermal Power Division. 
- Markus Rauramo is appointed Executive Vice President, City Solutions. He is
currently Executive Vice President, Heat, Electricity Sales and Solutions
Division. 
- Alexander Chuvaev will continue as Executive Vice President, Russia.
- Per Langer is appointed Senior Vice President, Technology and New Ventures.
He is currently Executive Vice President, Hydro Power and Technology Division. 
- Kari Kautinen is appointed Senior Vice President, M&A and Solar & Wind
Development. He is currently Senior Vice President, Strategy, Mergers and
Acquisitions. 
- Sirpa-Helena Sormunen will continue as General Counsel.
- Risto Penttinen is appointed Senior Vice President, Strategy, People and
Performance.  Mr Penttinen is a new member of the Fortum Executive Management
Team. He is currently Vice President, Corporate Strategy. 
- Arto Räty is appointed Senior Vice President, Corporate Affairs and
Communications. Mr Räty is a new member of the Fortum Executive Management Team
and will start at Fortum on 29 February 2016. 

All the members of the Executive Management Team will report to the President
and CEO apart from the General Counsel who reports to the CFO. 

Mikael Frisk, currently Senior Vice President, Human Resources and IT, has
requested rotation to new tasks after serving 15 years on the Fortum management
team. 

Esa Hyvärinen, Senior Vice President, Corporate Relations and currently member
of the Executive Management Team, will in the new organisation report to Arto
Räty. 

Helena Aatinen, currently Senior Vice President, Corporate Communications and
member of the Executive Management Team, has decided to leave the company. 

"There are several changes in the management team. I want to thank Helena
Aatinen, who is leaving the company, for her significant contribution to Fortum
during the past few years. Mikael Frisk has been successfully leading Corporate
HR since 2001. We have together come to the conclusion that it is now time for
something new. Mikael will evaluate new challenges, both internally and
externally. Esa Hyvärinen has done a great job in public affairs, the
importance of which will not decrease even though the function will now be part
of a larger unit. 

I am pleased to welcome Arto Räty, who has during his impressive career created
a unique national and international network to decision makers on the highest
level. Arto is also close to the developments of the energy sector, and as a
mature leader he will leave room in his team for exciting development
opportunities for existing and new talent. I also want to welcome Risto
Penttinen to the management team. He will lead a function aiming to create a
strategy-led approach to the development of our talent, competences and
performance culture," says Pekka Lundmark. 

As of 1 April 2016, Fortum’s new organisation and Executive Management
responsibilities in more detail are as follows: 

Generation
This division will be responsible for the large scale power production,
physical optimisation and trading activities in the Nordic area. The division
will comprise nuclear, hydro and thermal power production, portfolio management
and trading, industrial intelligence and nuclear services. The division will he
headed by Tiina Tuomela. 

City Solutions
This division is responsible for developing sustainable city solutions into a
growing business for Fortum. The division will comprise heating and cooling,
waste to energy, biomass and other circular economy solutions as well as
electricity sales and services. It will include the service business currently
organised in the Power Solutions unit with exception of nuclear services.  The
division will be headed by Markus Rauramo. 

Russia
Russia division will comprise Fortum's power and heat generation and sales
activities in Russia. The division is headed  by Alexander Chuvaev, who will
also continue as General Director, OAO Fortum. 

Technology and New Ventures
In order to speed up innovation and new business development, a new unit,
Technology and  New Ventures, is established. This unit will be responsible for
Fortum's research and development activities and be the in-house incubator for
startups. It will also be responsible for direct and indirect investments in
external startups as well as cooperation with universities and research
institutions. Furthermore, Fortum's Corporate IT will be part of this unit and
its role will be developed to a strategic enabler of digitalisation and
information technology solutions and applications for the businesses. The unit
will be headed by Per Langer. 

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 company also targets a
gigawatt-scale solar and wind portfolio. These efforts are centralised under a
new unit dedicated to leading group-wide mergers and acquisitions and the
development of the solar and wind portfolio. The unit will be headed by Kari
Kautinen. 

Finance
The Finance function's responsibilities include accounting and control,
treasury, risk management, internal audit, investor relations and financial
communication, tax and Fortum Business Services. The function is led by Timo
Karttinen. 

Legal
Legal is responsible for group-wide legal affairs, ethics and compliance as
well as internal control. The function will be headed by Sirpa-Helena Sormunen. 

Strategy, People and Performance
This new function’s target is to tie strategy and key people processes together
as well as to further develop the performance culture of the company. This
function comprises strategy, people processes focused on talent and competence
development, HR services as well as occupational health. The unit will also
drive improvement of group-wide performance in investment and procurement
activities. The function will be headed by Risto Penttinen. 

Corporate Affairs and Communications
This new function’s target is to further strengthen Fortum’s corporate affairs
and access to stakeholders internationally as well as to build the company's
reputation and brand and develop the active use of versatile communications
channels. This function comprises government and public affairs, corporate
communications, brand, sustainability and safety as well as corporate and
information security. The function will be headed by Arto Räty. 

Fortum Corporation
Pekka Lundmark
President and CEO

Further information:
Pekka Lundmark, President and CEO, tel. +358 10 45 24112

Investors:
Sophie Jolly, Vice President, Investor Relations, tel. +358 40 828 7317

Media:
Pauliina Vuosio, Vice President, Financial Communications, tel. +358 50 453 2383

Distribution:
Nasdaq Helsinki
Key media
www.fortum.com

Information on Fortum's continuing management team members:
http://www.fortum.com/en/corporation/corporate-governance/management-team/pages/
default.aspx 

Background information on the new Fortum Executive Management Team members:

RISTO PENTTINEN
Senior Vice President, Strategy, People and Performance as of 1 April 2016
Born in 1968, nationality Finnish
MSc (Economics)
Employed by Fortum since 2011

Previous positions:
Vice President, Corporate Strategy, Fortum Corporation, 2014–2016
Vice President, Strategic Ventures, Fortum Power Division, 2011–2014
Partner, McKinsey & Company, 2005–2011
Consultant and Project Leader, McKinsey & Company, 1996 and 1997–2005

Key positions of trust:
Finnish Energy Industries, Member of the Committee for Power Generation 2014-
Fingrid Oyj, Member of Advisory Committee 2012-2014


ARTO RÄTY
Senior Vice President, Corporate Affairs and Communications as of 29 February
2016 
Born in 1955, nationality Finnish
Lieutenant General (Ret.)
Cadet School, General Staff Officer Course at National Defence University,
Executives in National Security Program at Harvard University, John F. Kennedy
School of Government, USA, and several other international courses and programs 

Previous positions:
Permanent Secretary at the Ministry of Defence of Finland, 2011–2015 and
Director of the National Defence Policy Unit, 2005–2008 
Various positions within Finnish Defence Forces, including, Deputy Chief of
Staff, Operations at Defence Command, 2009–2010; Chief of Staff at Army
Command, 2008–2009; Brigade Commander, Pori Brigade, 2000–2002; Commanding
Officer of the Finnish Battalion in KFOR , Kosovo, 2000; Deputy Chief of the
International Department, Defence Command, 1997–2000 
Director of the National Defence Courses of the Finnish Government, 2003–2004
Finnish Liaison Officer at NATO HQ and PCC SHAPE, Brussels, Belgium, 1994–1997

Key positions of trust:
Chairman of the Board at Destia Oy, 2015–
Member of the Board and Vice Chairman, Destia Oy, 2014–2015
Member of the Board at Ahlström Capital Cleantech Fund I, 2011–
Chairman of the National Security Committee, Finland, 2011–2015
Member of the Emergency Supply Council, 2011–2015

Images of the new Fortum Executive Management Team members:
http://mediabank.fortum.com:80/public/35863606e18B.aspx