Aalto Global Impact organized together with the New Global an event called Co-creating Business Ecosystems in Emerging Markets on 17th of June. The event was hosted by Fortum.

1. Co-Creating Inclusive Business Ecosystems
Tue, 17th June
Dr Heli Antila, Chief Technology Officer

2. 2
• Fortum today
• Energy markets in transition
• Fortum R&D examples

3. Our geographical presence today
3
TGC-1 (~25%)
Power generation ~7 TWh
Heat sales ~8 TWh
OAO Fortum
Power generation 20.0 TWh
Heat sales 24.2 TWh
Russia
Poland
Power generation 0.6 TWh
Heat sales 4.0 TWh
Baltic countries
Power generation 0.5 TWh
Heat sales 1.1 TWh
Nordic countries
Power generation 46.5 TWh
Heat sales 13.9 TWh
Distribution customers 1.6 million
Electricity customers 1.2 million
Nr 3 Power
generation
Electricity
sales
Nr 2
Nr 1 Heat
DistributionNr 1
Key figures 2013
Sales EUR 6.1 bn
Operating profit EUR 1.7 bn
Balance sheet EUR 24 bn
Personnel 9,900
Great Britain
Power generation 1.0 TWh
Heat sales 1.8 TWh

4. Fortum's carbon exposure among the lowest in Europe
4
Note: Only European generation except “Fortum total“ which includes Russia.
Source:
PWC & Enerpresse, November 2013
Climate Change and Electricity, Fortum
0
200
400
600
800
1000
1200
DEI
Drax
RWE
SSE
EDP
E.ON
Vattenfall
Enel
Edipower
UnionFenosa
CEZ
EnBW
GDFSUEZ
DongEnergy
Iberdrola
Fortumtotal
EDF
Verbund
FortumEU
PVO
Statkraft
42
g CO2/kWh electricity, 2012
2012
68% of Fortum's total power generation CO2-free
93% of Fortum’s power generation in the EU CO2-free
Close to 100% of the ongoing investment programme
in the EU CO2-free
Average 350 g/kWh
171

5. Fortum’s investment programme
– Nordic region and Baltic countries
5
Already commissioned in 2013
Blaiken, Sweden, wind power 30 Q1 2013
Klaipeda, Lithuania, waste CHP 20 60 Q2 2013
Järvenpää, Finland, biomass CHP 23 63 Q2 2013
Jelgava, Latvia, biomass CHP 23 45 Q2 2013
Brista, Sweden, waste CHP 20 57 Q4 2013
Additional electricity capacity around 830 MW, 100% CO2-free
Project Electricity, MW Heat, MW Commissioned
Olkiluoto 3, Finland 400
Swedish nuclear upgrades 290
Refurbishing of hydro power 10 Annually
Värtan, Sweden, biomass CHP 130 280 Q2 2016
Total ~ 830 ~ 280

6. 6
• Fortum today
• Energy markets in transition
• Fortum R&D examples

7. Transition towards Solar Economy Solar Economy
Solar based production with
high overall system efficiency
Resource&systemefficiency
Finite fuel resources Large CO2 emissions Infinite fuel resources Emissions free production
HighLow
Geothermal
Hydro
Wind
Sun
Ocean
Bio
Coal Gas
Oil Nuclear
today
Nuclear
tomorrow
CHP
CCS
Traditional
energy production
Exhaustible fuels that burden
the environment
Advanced
energy production
Energy efficient and/or
low-emission production
Copyright © Fortum Corporation
All rights reserved by Fortum Corporation and shall be deemed the sole property of Fortum Corporation and nothing in
this slide or otherwise shall be construed as granting or conferring any rights, in particular any intellectual property rights
7

8. Forecasted PV system price development going forward
Source: EPIA: Connecting the Sun, 2012 September, Nominal price development of PV system prices / Right hand figure
continues EPIA 2022 scenario with 3% nominal system price degradation
€/W nominal
Utility scale system price 2012 on efficient
PV markets
8

9. PV has already reached retail grid parity except for Nordics
• Retail grid parity means that self-generated PV electricity cost is lower for the end customer than
variable part of the electricity retail price*. This is the case already in many countries, Fortum
home markets (Nordics, Poland, Russia) are exceptions because of the low retail price.
*) Retail price here = energy + grid + taxes, fixed costs are excluded
PV Investment cost 2013 rooftop averages: Germany and India 1.5, Italy and Turkey 2.1, Nordic and Australia 2.4 €/Wp + VAT
VAT: Nordic 25%, Italy 22%, Germany 19%, Turkey 18%, India 13.5%, California 10%; O&M cost: 10 €/kWp
Real interest rates: Nordic, Germany and Australia 3%, Italy 5%, Turkey 5.5%, India 7.5%; System lifetime 25 years
Yearly electricity production: Nordic 810, Germany 900, Italy 1350, Turkey 1440, India 1620, Australia 1800 Wh/Wp
Nordics Germany TurkeyItaly India Australia
(Queensland)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Taxes
Grid
Energy
PV LCOE

10. 10
• Fortum today
• Energy markets in transition
• Fortum R&D examples

11. Solar energy

12. First steps in India - Amrit 5,4 MW solar power plant
12
• Operation begun in March 2012
• Fortum acquired the plant in June 2013
• Production 1760 kWh/kW/a

13. Wave power

14. Wave power is progressing to demonstration project phase in
Sweden
• Full-scale demonstration project launched in west
coast of Sweden in co-operation and using
technology by Seabased
• Once completed, the wave power site would be the
world’s largest wave power plant with a power
generation capacity of 10 MW with 420 units.
– Installation of first phase 42 buoys (1 MW) has
started and power generation is planned to begin
early 2014
14

15. AW-Energy Oy has great potential to become industry leader in
near-shore technology
Technology
• AWE’s 3 x 100 kW WaveRoller demonstration
plant launched in Portugal in August, promising
results so far.
• AWE has commenced engineering and
industrialization work for 500 kW WaveRoller
device.
Future projects
• Fortum has formed a partnership with French
naval company DCNS to develop and test wave
power in France – AWE’s technology is one
technology option.
• Fortum is one of the AW-Energy shareholders.
15
WaveRoller in operation

16. Wello Penguin demonstration
16
The technology is developed by the Finnish
company Wello.
The vessels movement in the waves makes the
concentric weight and the generator rotor rotate.
Fortum have made an agreement with Wave
Hub to lease a part of the test bed off Cornwall.
The plan is to start the demonstration with one
Penguin unit with the capacity of 1MW during
2015.
Depending on the results the installation can
be scaled up to 10 MW.

17. Combined heat and power +

18. 18
Sustainable district solution in Espoo
District heating
network
Heat pump facility
District cooling
network
Server centre
CHP plant

19. Bio-oil CHP+ concept: Renewable Energy and Flexibility
• Globally first CHP-integrated pyrolysis plant in commercial size was
inaugurated November 29th, 2013 in Joensuu
• Plant produces Fortum Otso® bio-oil, which can now replace heavy fuel oil
and in the future target is to produce higher value traffic biofuels and green
chemicals
• Integrated bio-oil production increases flexibility and
operation hours of CHP-plant
• In addition several other resource efficient benefits:
– Synergies in operation and maintenance as well as in raw
material and fuel supply
– Charcoal and the non-condensed gases that are created as a
result of bio-oil production can be used as fuel for the plant, so all
raw materials can be utilised
19

20. Solving traditional biomass dilemma on India
20
• Benefits if traditional biomass in households would
be replaced with solar ovens and solar heating
systems :
– No indoor air pollution
– Safety increase
– Biomass could be sold to CHP-plants , whcih
would bring business for the low-income
people both in biomass collection and in
biomass logistics
CO2 emissions in India could be
reduced 45 % by replacing coal with
biomass based CHP production.
One CHP-plant could bring
employment to thousands of the
poorest
1433TWh
428 TWh Traditional
biomass for
cooking and
heating
Other energy
consumption
RESIDENTIAL ENERGY CONSUMPTION IN INDIA
Source: ITP 2012, Year 2009 data
Power
406 TWh
Heat
812 TWh
Combined heat and
power plant (CHP)
Zero CO2
emissions
Fuel 1433 TWh
BIOMASS, CHP

21. Electricity solutions

22. Environmentally-benign R&D electricity solutions
• Advancing fast adoption of electric vehicles
– Projects on continuous basis in Finland, Sweden and
Estonia
– Development of fast and slow charging business
models
• Decentralised energy production and smart grids
enable energy efficiency and demand
management
– Stockholm Royal Seaport (SRS) – a sustainable
urban district with world class aspirations
– Smart home products in Sweden and Finland
• Smart home product “Fortum Fiksu” launched at first
in September 2012
– Solar package launched 2012 in Sweden and
Finland for residential customers
22
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23. We work for the next
generation energy company!