Fortum Corporation Interim Report 1 Janu

Fortum Corporation    STOCK EXCHANGE RELEASE
                      23 October 2003 at 9.00 a.m.       1 (1)



Fortum Corporation Interim Report 1 January – 30 September 2003

Strong business performance continues
- Fortum´s operating profit hits EUR 1 billion

January-September in brief
- Operating profit excluding non-recurring items up by 71%
- Strong cash flow, EUR 1,381 million
- Third quarter earnings per share double previous year's figure
- Decision to separate and list oil business


              Key figures III  III  I-III   I-III  2002    Last
                         /03   /02  /03     /02            12
                                                           months
                                                           (LTM)
   Net sales, EUR million 2527 2605   8555   7858  11148   11845
    Operating profit, EUR  239  149   1000    898   1289    1391
                  million
- excluding non-recurring  231  136    974    571    974    1377
                    items
 Profit before taxes, EUR  185   75    811    690   1008    1129
                  million
  Earnings per share, EUR 0.15 0.07   0.64   0.57   0.79    0.86
 Shareholders’ equity per             7.30   6.77   6.97        
               share, EUR
         Capital employed            12773  13488  13765        
  (at end of period), EUR
                  million
Interest-bearing net debt             4420   6033   5848        
  (at end of period), EUR
                  million
 Investments, EUR million              889   4121   4381        
  Net cash from operating             1381    977   1351        
              activities,
              EUR million
        Return on capital             10.6    9.6   11.1    11.3
              employed, %
  Return on shareholders’             10.5    8.7   10.5    10.8
                equity, %
               Gearing, %               58     84     80        
        Average number of            13594  14333  14053        
                employees
Average number of shares,           845836 845655 845642  845783
                   1,000s

The Group’s financial performance in January-September was strong
and cash flow continued to be healthy, based on good operating
results and supported by a further decrease in working capital and
high foreign exchange gains owing to debt restructuring. Net debt
was further reduced to EUR 4,420 million. As a result, gearing
decreased to 58%.

The various moves to improve performance have contributed to the
positive trend in the results. The integration of Birka Energi
progressed as planned. The synergy benefits achieved in January-
September amounted to EUR 90 million.

Fortum took important strategic steps in Norway and in north-
western Russia after concluding an agreement with E.ON AG on a
swap of power assets. In addition, Fortum acquired further shares
in Hafslund in June on the market, thereby increasing its
shareholding interest in the company to 34.1%.

During the period under review, the key market drivers, the market
price of electricity and the international oil refining margin
were significantly higher than during the corresponding period in
2002. After the record highs reached around year-end, Nordic power
Exchange (Nord Pool) electricity prices decreased, although they
remained well in excess of the previous year's levels. Likewise,
the international oil refining reference margin, which was very
high at the beginning of the year, decreased somewhat but
continued on a higher level than a year ago.

In September, Fortum decided to commence preparations to separate
its oil business into a new company and subsequently to list the
new company on the Helsinki stock exchange. Fortum also decided to
invest EUR 500 million to upgrade the Porvoo refinery, in order to
take advantage of well-established market trends and thereby
further improve its competitiveness and profitability. These
strategic decisions will enable Fortum to further increase its
Nordic utility focus and continue to participate actively in the
restructuring of the Nordic power and heat markets.

Net sales and results

July-September

The operating profit for all segments improved compared to the
corresponding period last year. Power, Heat and Gas more than
doubled its operating profit excluding non-recurring items. Oil
Refining and Marketing's results improved by more than 50%.

Group operating profit totalled EUR 239 (149) million. The
operating profit excluding non-recurring items stood at EUR 231
(136) million, an increase of EUR 95 million compared to the
corresponding period in 2002. The net amount of non-recurring
items was EUR 8 (13) million. Earnings per share doubled to EUR
0.15 (0.07).

During the third quarter, the Nord Pool electricity price and the
international oil refining margin both exceeded the levels reached
in the corresponding period in 2002.

January-September

Group net sales stood at EUR 8,555 (7,858) million. The increase
was mainly attributable to the higher market price of electricity
and petroleum products.

Group operating profit totalled EUR 1,000 (898) million. The
operating profit excluding non-recurring items stood at EUR 974
(571) million, an increase of EUR 403 million compared to the
corresponding period in 2002. Taking into consideration also the
impact of discontinuing operations, the improvement of operating
profit was EUR 500 million. The net amount of non-recurring items
was EUR 26 (327) million. Most of the non-recurring items last
year were gains on sales of fixed assets.

Electricity and heat sales volumes increased. This, together with
higher electricity prices, resulted in a significant improvement
in the results of Power, Heat and Gas.

Electricity Distribution's results were somewhat lower than
previous year due to substantial gains on sales in 2002. However,
operating profit excluding non-recurring items was well up on the
previous year's figures.

The Markets segment tripled its results compared to last year.

The international oil refining margins were markedly higher than a
year ago, which gave a major boost to Oil Refining and Marketing's
results. Shipping enjoyed high freight rates, mainly during the
first quarter. The fleet utilisation rate continued to be high as
a result of renewed tonnage and specialist knowledge of arctic
conditions. The Oil Retail business also performed well.

Profit before taxes was EUR 811 (690) million.

The Group´s net financial expenses were EUR 189 (208) million.

Minority interests accounted for EUR 57 (50) million. These were
mainly attributable to the preference shares issued by Fortum
Capital Ltd in 2000 and to Fortum Värme Holding, in which the City
of Stockholm has a 50% economic interest.

Taxes for the period totalled EUR 212 (158) million.

Net profit for the period was EUR 542 (482) million. Earnings per
share were EUR 0.64 (0.57). Return on capital employed was 10.6%
(9.6%) and return on shareholders´ equity was 10.5% (8.7%).

SEGMENT REVIEWS

Power, Heat and Gas

The main business area comprises power and heat generation and
sales as well as gas operations in the Nordic countries and other
parts of the Baltic Rim. Fortum is the second largest power
company in the Nordic countries as well as the leading heat
producer in the region. The Service business (former Fortum Energy
Solutions) is included in this segment as from 1 January 2003.


EUR million             III    III    I-III  I-III 2002 LTM
                       /03    /02    /03    /02
Net sales                626   694   2558   2410  3644   3792
- electricity sales      337   325   1393   1028  1661   2026
- heat sales             107   114    540    453   686    773
- other sales            182   255    625    929  1297    993
Operating profit          77    28    506    333   617    790
- excluding non-          78    33    508    230   501    779
recurring items
Return on net assets, %               7.8    5.5   7.5    9.1
Net assets (at end of                8720   8717  8748       
period)

According to preliminary estimates, electricity consumption in the
Nordic countries decreased by 1% during the third quarter and was
77.6 (78.3) terawatt-hours (TWh). Consumption in Finland was on a
par with the previous year's level while in Sweden it fell by
about 3% and in Norway it increased by about 1% on the
corresponding period last year.

In January-September, according to preliminary estimates,
electricity consumption in the Nordic countries decreased by 1%
and was 275 (277) TWh. Consumption in Finland increased by 4%. In
Sweden, consumption was at the same level as last year and in
Norway it was down by 4% on the corresponding period last year.

During the third quarter the average spot price for electricity on
the Nordic power exchange (Nord Pool) was EUR 31.0 (20.1) per
megawatt-hour (MWh) and the deficit in water reservoirs remained
practically unchanged. The average price of electricity was EUR
37.6 (19.2) per megawatt-hour in January-September. The price
level was supported by the prevailing deficit in water reservoirs
and lower-than-normal inflows.

In January-September, the Nord Pool price increased by 95%
compared to last year. The corresponding price increase in
electricity sold by Fortum in the Nordic countries was 39%.

Power, Heat and Gas strengthened its market position. Sales in the
Nordic countries totalled 41.9 (37.8) TWh which accounted for
approximately 15% (14%) of total Nordic electricity consumption in
January-September.

Fortum’s own power generation in the Nordic countries in January-
September was 37.1 (32.7) TWh which represented approximately 13%
(12%) of total Nordic electricity consumption. The balance between
energy sources was significantly different from last year due to
low water reservoirs. This illustrates the flexibility of Fortum's
flexible production portfolio.

In line with its Nordic strategy, Fortum divested its gas retail
operations in the UK in June and is in the process of divesting
its gas trading operations. Fortum continues to be a shareholder
in a number of gas companies in the Nordic area and is involved in
various development projects including the North Transgas project.

Demand for contract-based maintenance was healthy, and Fortum
Service signed several new contracts with industrial customers.
Also demand for substation and hydropower services continued to be
good.


Electricity sales by    III    III    I-III  I-III 2002   LTM
area                    /03    /02    /03    /02
TWh
Sweden *)                5.5   5.1   20.7  19.6   28.0   29.1
Finland                  6.2   6.1   21.2  18.2   26.1   29.1
Other countries          0.4   1.1    2.1   5.2    5.9    2.8
Total                   12.1  12.3   44.0  43.0   60.0   61.0


Heat sales by area      III    III    I-III  I-III 2002   LTM
TWh                     /03    /02    /03    /02
Sweden *)                0.8   0.7    6.5   4.6    8.2   10.1
Finland                  1.6   1.8    7.4   7.1    9.8   10.1
Other countries          0.6   1.1    2.8   3.3    4.5    4.0
Total                    3.0   3.6   16.7  15.0   22.5   24.2
*) The effects of Birka Energi’s change of ownership on
electricity and heat sales volumes were 2.4 TWh and 1.4 TWh
respectively in 2002.

Own power generation    III    III    I-III  I-III 2002   LTM
by source, TWh,         /03    /02    03     /02
in the Nordic countries
Hydro                    3.5   4.4   11.9  14.1   18.1   15.9
Nuclear                  4.8   5.0   17.5  15.6   22.0   23.9
Thermal                  2.1   0.7    7.7   3.0    6.4   11.1
Total                   10.4  10.1   37.1  32.7   46.5   50.9

Share of own            III    III    I-III  I-III 2002   LTM
production, %,          /03    /02    /03    /02
in the Nordic countries
Hydro                     34    44     32    43     39     31
Nuclear                   46    49     47    48     47     47
Thermal                   20     7     21     9     14     22
Total                    100   100    100   100    100    100

Electricity Distribution

Fortum owns and operates distribution and regional networks and
distributes electricity to a total of 1.4 million customers in
Sweden, Finland, Norway and Estonia.


EUR million             III    III    I-III  I-III 2002   LTM
                       /03    /02    /03    /02
Net sales                143   138    502   456    640    686
- distribution network   118   110    415   377    526    564
transmission
- regional network        19    19     64    56     80     88
transmission
- other sales              6     9     23    23     34     34
Operating profit          47    34    189   219    279    249
- excluding               48    34    169   128    187    228
non–recurring items
Return on net assets, %                8.0   9.9    9.3    7.9
Net assets (at end of                 3106  3117   3199       
period)

Volume of distributed   III    III    I-III  I-III 2002   LTM
electricity by area     /03    /02    /03    /02
TWh 
Sweden*)                 2.7   2.9   11.0   9.5   14.4   15.9
Finland                  1.1   1.1    4.4   3.6    5.4    6.2
Other countries          0.4   0.0    0.7   1.3    1.4    0.8
Total                    4.2   4.0   16.1  14.4   21.2   22.9
*)The Birka Energi acquisition accounts for a 1.7 TWh increase in
the volume transmitted via the distribution networks in 2002.

Number of electricity         30.9.2003    30.9.2002    2002
distribution customers
by area, 1,000s
Sweden                          850          890         890
Finland                         395          390         390
Other countries*)               115           20          20
Total                          1360         1300        1300
*) Østfold Energi Nett AS with 94,000 customers is included in the
figures as of 1 May, 2003.

The volumes of distribution and regional network transmissions
totalled 16.1 (14.4) TWh and 14.7 (14.3) TWh respectively.

Electricity transmissions via the regional distribution network to
customers outside the Group totalled 10.8 (9.7) TWh in Sweden and
3.9 (4.5) TWh in Finland.

Electricity distribution prices were raised in Sweden and Norway
as from 1 October, with an average rise of 5% in Sweden and 6% in
Norway.

Markets

The Markets business unit focuses on the retail sale of
electricity and oil products, mainly heating oil, as well as
related services to a total of 1.3 million private and business
customers.


EUR million             III    III    I-III  I-III 2002   LTM
                       /03    /02    /03    /02
Net sales                329   286  1,132   862   1280   1550
Operating profit          14     2     22     8    -11      3
- excluding               14     2     22     7    -12      3
non–recurring items
Return on net assets, %               41.3   9.1  -11.4    4.6
Net assets (at end of                   74    73     55       
period)

The Markets business unit buys its electricity and oil products
at market terms.

In Finland, the average retail market prices for private customers
were stable whereas in Sweden and Norway they increased towards
the end of summer and early autumn. Fortum's retail prices
remained unchanged during the third quarter.

During the third quarter, electricity sales totalled 7.6 (8.0) TWh
and sales of heating oil 0.1 (0.1) million tonnes. In January-
September, electricity sales totalled 24.8 (23.6) TWh. The effect
on electricity sales volumes of the change in Birka Energi's
ownership was 1.9 TWh during the period from January to February
2002. Sales of heating oil amounted to 0.5 (0.5) million tonnes in
January-September.

The business processes improvement programme launched in the
spring contributed to the turnaround in the unit's results.

Oil Refining and Marketing

The activities of Oil Refining and Marketing cover the production,
refining and marketing of oil as well as logistics. The main
products are traffic fuels and heating oils.

EUR million             III    III    I-III  I-III 2002   LTM
                       /03    /02    /03    /02
Net sales               1717  1794   5435  5114   7083   7404
Operating profit         118    76    318   211    253    360
- excluding              104    60    320   157    205    367
non–recurring items
Return on net assets, %              28.7  17.6   16.0   24.1
Net assets (at end of                1446  1555   1510       
period)

The average international refining margin in north-western Europe
(Brent Complex) during the third quarter was USD 2.7/bbl
(1.3/bbl). In January-September, it averaged USD 2.8/bbl
(0.7/bbl). Fortum’s premium margin continued to average about USD
2/bbl above the international reference margin.

The price of Brent crude averaged USD 28.4/bbl (26.9/bbl) during
the third quarter. In January-September, the average price was
USD 28.6/bbl (24.4/bbl). At the end of September, the price of
Brent was around USD 27/bbl.

The inventory gain during the third quarter was EUR 14 (17)
million and EUR -0.4 (47) million in January-September.

In January-September, Fortum refined a total of 9.7 (9.9) million
tonnes of crude oil and other feedstocks. A total of 5.8 (5.7)
million tonnes of petroleum products were sold in Finland. Exports
amounted to 3.9 (3.8) million tonnes.

During the third quarter, shipping rates remained at a normal
level, but were considerably lower than during the first half of
the year. The fleet utilisation rate remained high and the fleet
renewal programme was continued. In September, a decision was made
to sell one crude oil tanker and to divest the offshore loading
business. One new product tanker was delivered to Fortum in
September.

Fortum started production at the South Shapkino oil field in north-
western Russia in mid-July. The daily production rates are about
20,000 barrels per day (100%). The planned maximum production rate
of 50,000 barrels per day (of which Fortum’s share is 25,000
barrels per day) will be reached by the end of 2004 according to
current estimates. Fortum’s share of the exploitable oil reserves
in this oil field, which is owned fifty-fifty by Fortum and the
Russian company Lukoil, has been estimated at approximately 82
million barrels.


Deliveries of petroleum III    III    I-III  I-III 2002   LTM
products refined by     /03    /02    /03    /02
Fortum – by product
group (1,000 t)
Gasoline                1075  1247   3135  3390   4595   4340
Diesel                   971   783   2876  2626   3619   3869
Aviation fuel            159   172    410   472    586    524
Light fuel oil           362   331   1081  1054   1503   1530
Heavy fuel oil           269   260    951   939   1233   1245
Other                    488   424   1276  1039   1504   1741
Total                   3324  3217   9729  9520  13040  13249


Deliveries of petroleum III    III    I-III  I-III 2002   LTM
products refined by     /03    /02    /03    /02
Fortum – by area (1,000
t)
Finland                 2002  1848   5791  5718   7845   7918
Other Nordic countries   503   529   1470  1457   1982   1995
Baltic countries and      33     9     62    28     41     75
Russia
USA and Canada           278   435    795  1022   1276   1049
Other countries          508   396   1611  1295   1896   2212
Total                   3324  3217   9729  9520  13040  13249


Business development and restructuring

Transactions relating to the swap of power assets between Fortum
and E.ON AG were completed by the end of June. Fortum acquired
assets in Norway and north-western Russia and sold some non-core
assets in Ireland, Germany and southern Sweden. The transaction
relating to the shares in the Norwegian company Fredrikstad Energi
AS is still waiting for technical conclusion.

The disposal of the Norwegian E&P assets was completed in March.
The financial impact of the transaction was included in Fortum´s
2002 annual results. In June, Fortum divested its retail gas sales
operations in the UK and started a process to divest its gas
trading operations.

In September, Fortum announced that it will commence preparations
to separate its oil business into a new company and to have the
new company listed on the Helsinki stock exchange (IPO). The new
company will comprise all of Fortum’s existing oil business with
its refining, marketing, shipping and oil production activities.

This strategic decision will enable Fortum to further increase its
Nordic utility focus and to continue to participate actively in
the restructuring of the Nordic power and heat markets. It will
also improve the competitive position and commercial prospects of
the oil business and create two leading Nordic companies with
strong competitive positions in their respective markets.

Investments and financing

The IPO will facilitate a EUR 500 million investment to add
sulphur-free diesel production capacity at the Porvoo refinery.
While the total production capacity will remain unchanged, the
refinery will be able to significantly increase the production of
high-margin products utilising more Russian crudes, for example,
which are competitively available as Porvoo is adjacent to
established Russian crude oil export routes to the Western
markets. The annual production of sulphur-free diesel at the
refinery will grow by about one million tonnes and will be mainly
replacing heavy fuel oil production. Fortum expects to increase
its refining margin premium by at least USD 1/bbl and thus achieve
an attractive return on investment even using relatively
conservative assumptions.

The high expected return from the upgrade investment is driven by
the Porvoo refinery’s ability to produce more high-margin,
environmentally benign products from less expensive crude oil. The
demand for these products is rapidly growing in Fortum’s key
markets. The investment is expected to be completed by the end of
2006.

Investments in fixed assets in January-September totalled EUR 889
(4,121) million. Of this, EUR 520 (3,729) million were
acquisitions.

At the end of the period, interest-bearing net debt stood at EUR
4,420 (6,033) million. The gearing ratio at the end of September
was 58% (80% at the end of 2002). Adjusted gearing (Fortum Capital
Ltd's minority interest included in liabilities) was 88% (115% at
the end of 2002).

Group net financial expenses were EUR 189 (208) million.

In February, Fortum Corporation established a bond programme
(Medium Term Note Programme) of SEK 7.0 billion for the purpose of
enabling the issue of bonds on the Swedish capital markets in
Swedish krona and euro. The programme replaces the SEK 7.0 billion
programme in the name of Fortum Power and Heat AB.

In April, Fortum Corporation signed a EUR 1.2 billion revolving
credit facility. This five-year facility is for general corporate
purposes and replaces existing syndicated facilities established
by various subsidiaries.

In July, Fortum Corporation established a bond programme (Euro
Medium Term Note Programme) of EUR 4.0 billion in order to enable
the issue of bonds on the international capital markets.

Shares and shareholdings

A total of 137,820 Fortum Corporation shares were subscribed for
and entered in the trade register under Fortum Corporation’s 1999
bond loan with warrants to employees and the management stock
option scheme.

After these increases, Fortum Corporation’s share capital is EUR
2,876,052,435 and the total number of shares is 845,897,775.

Currently the Board of Directors has no unused authorisations from
the General Meeting of shareholders to issue convertible bond
loans or bonds with warrants, issue new shares or acquire the
company´s own shares.

Group personnel

The average number of employees in the Group in January-September
was 13,594 (14,333). The reduction is mainly attributable to the
combination of the businesses of Birka Energi and Fortum, as well
as to the formation of the new associated company Enprima at the
beginning of this year. The number of employees at the end of the
period was 13,201 (13,670 at the end of 2002).

Outlook

The key market drivers influencing Fortum´s performance are the
market price of electricity and the international oil refining
margin. Other important market drivers are the price of crude oil,
and the exchange rates of the US dollar and the Swedish krona.
During 2005, emission trading may become a new key market driver.

During the past five years the volume of Fortum's CO2-free power
production has increased from 27 TWh to 41 TWh. Its share was 79%
of Fortum`s power generation in 2002. With this production
portfolio Fortum is well-positioned when emission trading starts.

According to general market information, electricity consumption
in the Nordic countries is predicted to increase by about 1% a
year over the next few years. In January-September 2003, the
average spot price for electricity was EUR 37.6 per megawatt-hour
on the Nordic electricity market, or 95% higher than the
corresponding figure for 2002. Currently the deficit in water
reservoirs is 17 TWh and the electricity forwards for the rest of
2003 are in the range of EUR 37-40 per megawatt-hour and EUR 34-42
for the period January-April 2004.

The synergy benefits generated by the creation of a pan-Nordic
power and heat business following the acquisition of the remaining
50% of the former Birka Energi will exceed the target of EUR 100
million a year as of 2004.

The continuous operations of the power and heat businesses usually
result in a significantly better performance in the first and last
quarter of the year than in the second and third quarter.

In 2002, the operating profit for discontinuing Oil and Gas
Upstream segment was EUR 213 million. During the fourth quarter,
the operating profit was EUR 51 million.

The international refining margin in north-western Europe (Brent
Complex) was considerably higher than in the corresponding period
in 2002 and averaged USD 2.8/bbl (0.7/bbl) in January-September.
In October 2003, the international refining margin has been
averaging USD 1.8/bbl. For several years, the international Brent
Complex refining margin has averaged USD 1.5 – 2.0/bbl. Management
expects Fortum’s premium margin to remain as strong as in previous
years. No major maintenance shutdowns are planned at the
refineries during 2004.

The average price for Brent crude oil was USD 28.6/bbl in January-
September 2003. On 30 September, it was USD 28.2/bbl. In October
2003, the price has been averaging USD 30.2/bbl. Currently the
International Petroleum Exchange’s Brent futures for the remainder
of 2003 average USD 28.6/bbl and USD 27.3/bbl for the first half
of 2004. The price of crude oil has an impact on the results of
Oil Refining and Marketing through inventory gains and losses.

Oil production at the South Shapkino oil field in north-western
Russia started in mid-July. In late September, the production
level was 20,000 bbl/d (Fortum’s 50% share).  Production will
gradually be increased and full capacity (Fortum´s share 25,000
bbl/d) will be reached by the end of 2004. The operations will be
earnings neutral during 2003.

The separation and listing of the oil business will allow the new
company to take full advantage of market developments and
facilitate the upgrade of the Porvoo refinery. These measures will
also enable Fortum to further increase its Nordic utility focus
and to continue its active participation in the restructuring of
the Nordic power and heat markets.

During 2003, Fortum's ongoing businesses have been performing
well. The company's current position, ongoing performance
improvement measures and the market outlook all point to an
attractive near future for Fortum.

The information contained in the Interim Financial Statements has
not been audited.

Espoo, 23 October 2003
Fortum Corporation
The Board of Directors


Fortum Corporation
Carola Teir-Lehtinen
Senior Vice President, Corporate Communications

Distribution:
Helsinki Exchanges
Key media

For further information please contact:
Juha Laaksonen, CFO, tel. +358 10 452 4519

FORTUM GROUP   
                                                    
JANUARY-SEPTEMBER 2003

Interim financial statements are unaudited

CONSOLIDATED INCOME STATEMENT
MEUR                        Q3/03 Q3/02 Q1-Q3/03 Q1-Q3/02 2002  Last 12 
                                                                months

Net sales                   2527  2605    8555    7858    11148   11845
  Share of profits of 
    associated companies       9     3      29      16       31      44
  Other operating income      19     9      95     336      370     129
  Depreciation,amortisation
    and write-downs         -128   -165   -395    -488     -694    -601                           
  Other operating expenses -2188  -2303  -7284   -6824    -9566  -10026
Operating profit             239    149   1000     898     1289    1391
  Financial income 
    and expenses             -54    -74   -189    -208     -281    -262
Profit before taxes          185     75    811     690     1008    1129
  Income taxes               -45     -9   -212    -158     -269    -323
  Minority interests         -10    -10    -57     -50      -73     -80
Net profit for the period    130     56    542     482      666     726


Earnings per share, EUR     0.15   0.07   0.64    0.57     0.79    0.86
Fully diluted earnings
  per share                 0.15   0.07   0.63    0.57     0.78
Average number of 
  shares, 1000 shares                   845836  845655    845642 845783
Diluted adjusted average 
  number of shares,1000 shares          857249  851169    851482

CONSOLIDATED BALANCE SHEET
MEUR                                 Sep 30 2003 Sep 30 02 Dec 31 02

ASSETS
Fixed assets and other long-term inve      14189     14819     14837
Current assets
    Inventories                              541       671       504
    Receivables                             1157      1520      2027
    Cash and cash equivalents                277       259       592
    Total                                   1975      2450      3123
Total                                      16164     17269     17960

SHAREHOLDERS' EQUITY AND LIABILITIES 

Shareholders' equity
    Share capital                           2876      2875      2876
    Other equity                            3297      2854      3020
    Total                                   6173      5729      5896
Minority interests                          1449      1447      1432
Provisions for liabilities and charge        187        95       133
Deferred tax liabilities                    1803      1774      1866
Long-term liabilities                       3844      5367      4699
Short-term liabilities                      2708      2857      3934
Total                                      16164     17269     17960

Equity per share, EUR                       7.30      6.77      6.97
Number of shares, 1,000 shares            845898    845720    845776

CASH FLOW STATEMENT

MEUR                                 Sep 30 2003 Sep 30 02 Dec 31 02

Net cash from operating activities          1381       977      1351
  Capital expenditures                      -370      -393      -649
  Acquisition of shares                     -504     -1765     -1771
  Proceeds from sales of fixed assets        101       105       120
  Proceeds from sales of shares             1221       857       889
  Change in other investments                -53        15        33

Cash flow before financing activities       1776      -204       -27
  Net change in loans                      -1791        20       209
  Dividends paid                            -264      -220      -220
  Other financing items                      -40        67        30
Net cash from financing activities         -2095      -133        19

Net increase (+)/decrease (-) in cash
and marketable securities                   -319      -337        -8

KEY RATIOS
                                  Sep30 2003 Sep30 02 Dec31 02 Last 12 
                                                               months
Capital employed, MEUR                 12773    13488    13765
Interest-bearing net debt, MEUR         4420     6033     5848
Investments, MEUR                        889     4121     4381   1149
Return on capital employed, %           10.6      9.6     11.1   11.3
Return on shareholders' equity, %       10.5      8.7     10.5   10.8
Interest coverage                        5.1      4.3      4.7    5.2
FFO / interest-bearing net debt, % 1)   39.5     24.0     28.1
Gearing, %                                58       84       80
Adjusted gearing, % 2)                    88      121      115
Equity-to-assets ratio, %                 47       42       41
Average number of employees            13594    14333    14053

1) FFO = Net cash from operating activities before changes in working 
capital
2) The minority interest related to the preference shares amounting to 
EUR 1.2 billion and carrying fixed income dividend of 6.7 percent,
issued by Fortum Capital Ltd, is treated as liability.

NET SALES BY SEGMENTS
MEUR                         Q3/03  Q3/02 Q1-Q3/03 Q1-Q3/02 2002 Last 12
                                                                 months
 
Power, Heat and Gas            626    694   2558    2410    3644   3792
Electricity Distribution       143    138    502     456     640    686
Oil Refining and Marketing    1717   1794   5435    5114    7083   7404
Markets                        329    286   1132     862    1280   1550
Other Operations                22     15     61      45      64     80
Eliminations                  -310   -344  -1133   -1100   -1668  -1701
Total                         2527   2583   8555    7787   11043  11811
Discontinuing operations*)       -     22      -      71     105     34
Total                         2527   2605   8555    7858   11148  11845

*) Internal sales excluded

OPERATING PROFIT BY SEGMENTS
MEUR                         Q3/03  Q3/02 Q1-Q3/03 Q1-Q3/02 2002 Last 12
                                                                 months

Power, Heat and Gas             77     28    506     333     617    790
Electricity Distribution        47     34    189     219     279    249
Oil Refining and Marketing     118     76    318     211     253    360
Markets                         14      2     22       8     -11      3
Other Operations               -16    -17    -35     -37     -64    -62
Eliminations                    -1      1      -       1       -     -1
Total                          239    124   1000     735    1074   1339
Discontinuing operations         -     25      -     163     215     52
Total                          239    149   1000     898    1289   1391

NON-RECURRING ITEMS IN OPERATING PROFIT BY SEGMENTS
MEUR                         Q3/03  Q3/02 Q1-Q3/03 Q1-Q3/02 2002 Last 12
                                                                 months

Power, Heat and Gas             -1     -5     -2     103     116     11
Electricity Distribution        -1      -     20      91      92     21
Oil Refining and Marketing      15     16     -1      54      48     -7
Markets                          -      -      -       1       1      -
Other Operations                -5      2      9      11       4      2
Total                            8     13     26     260     261     27
Discontinuing operations         -      -      -      67      54    -13
Total                            8     13     26     327     315     14

DEPRECIATION, AMORTISATION AND WRITE-DOWNS BY SEGMENTS
MEUR                         Q3/03  Q3/02 Q1-Q3/03 Q1-Q3/02 2002 Last 12
                                                                 months

Power, Heat and Gas             55     62    171     177     236    230
Electricity Distribution        34     38    110     114     147    143
Oil Refining and Marketing      30     33     91     100     152    143
Markets                          5      7     12      19      25     18
Other Operations                 4      3     11       9      23     25
Eliminations                     -      -      -      -2      -1      1
Total                          128    143    395     417     582    560
Discontinuing operations         -     22      -      71     112     41
Total                          128    165    395     488     694    601

INVESTMENTS BY SEGMENTS 
MEUR                         Q3/03  Q3/02 Q1-Q3/03 Q1-Q3/02 2002 Last 12
                                                                 months

Power, Heat and Gas             61     59    465    2527    2619    557
Electricity Distribution        17     45    241    1332    1394    303
Oil Refining and Marketing      47     45    143     109     177    211
Markets                          -      1     26     109     109     26
Other Operations                 3      -     14       3       7     18
Total                          128    150    889    4080    4306   1115
Discontinuing operations        -      15      -      41      75     34
Total                          128    165    889    4121    4381   1149

NET ASSETS BY SEGMENTS
MEUR                                 Sep 30 2003 Sep 30 02  Dec 31 02

Power, Heat and Gas 3)                    8720        8717       8748
Electricity Distribution 3)               3106        3117       3199
Oil Refining and Marketing                1446        1555       1510
Markets                                     74          73         55
Other Operations                           113         144         30
Total                                    13459       13606      13542
Discontinuing operations                     -        1002        927
Total                                    13459       14608      14469

3) Net assets include deferred tax liabilities due to the allocated 
goodwill: EUR 509 mill. September 30, 2003,and EUR 502 mill. 
December 31, 2002 in Power, Heat and Gas segment; and EUR 247 mill. 
September 30,  2003 EUR 344 mill. December 31, 2002 in Electricity 
Distribution.

RETURN ON NET ASSETS  BY SEGMENTS  4)

%                    Sep30 Sep30 Sep30 Sep30 Dec31 Dec31 Last 12 Last 12                                               2003 2003*) 2002 2002*) 2002 2002*) months  months*)

Power, Heat and Gas   7.8   7.8    5.5   3.8   7.5   6.1     9.1    9.0
Electricity 
  Distribution        8.0   7.2    9.9   5.8   9.3   6.2     7.9    7.3
Oil Refining and 
  Marketing          28.7  28.8   17.6  13.1  16.0  13.0    24.1   24.6
Markets              41.3  41.3    9.1   7.9 -11.4 -12.4     4.6    4.1

4) Return on net assets, % = Operating profit/average net assets
*) Non-recurring items deducted from operating profit

CONTINGENT LIABILITIES
MEUR                                  Sep 30 2003 Sep 30 02  Dec 31 02
Contingent liabilities
On own behalf
    For debt
      Pledges                               525         438        553
      Real estate mortgages                 237         235        237
      Company mortgages                       -          34         32
      Other mortgages                         -          26         26
    For other commitments
      Real estate mortgages                  54          54         55
      Pledges, company and other mortgages    1          15          8
    Sale and leaseback                        9          16         15
    Other contingent liabilities             96         527        474
    Total                                   922        1345       1400
On behalf of associated companies
    Pledges and real estate mortgages        12          17          9
    Guarantees                              597         277        345
    Other contingent liabilities            182         184        184
    Total                                   791         478        538
On behalf of others
    Guarantees                               15           -          4
    Other contingent liabilities              5          10          4
    Total                                    20          10          8
Total                                      1733         1833      1946
Operating lease liabilities
Due within a year                            55           61        58
Due after a year                            108          119        91
Total                                       163          180       149

Finance leases have been recognised as assets and liabilities.

Liability for nuclear waste disposal        545          515       545
Share of reserves in the Nuclear Waste 
  Disposal Fund                            -535         -505      -535
Liabilities in the balance sheet 5)          10           10        10

5) Mortgaged bearer papers as security

In addition to other contingent liabilities, a guarantee has been given 
on behalf of Gasum Oy,which covers 75% of the natural gas commitments 
arising from the natural gas supply agreement between Gasum and 
OOO Gazexport.

Derivatives                    Sep 30 2003            Dec 31 2002
Interest and currency 
  derivatives		Contract Fair  Not recogn. Contract Fair Not rec. 
                           or    value   as an        or   value as an 
                        notional        income      notional     income
 MEUR                    value                       value

Forward rate agreements     335     -         -      2950     -2    -2
Interest rate swaps        5784      9       16      6898     21    34
Forward foreign exchange
  contracts 6)             7866    -54       33      5626     63    30
Currency swaps              347     13        5      2334    227    60
Purchased currency options   32      4        4       248      9    11
Written currency options     15      -        -        66      1     1

                               Sep 30 2002
                   
Forward rate agreements    4617     -2      -2   
Interest rate swaps        6872     15      26    
Forward foreign exchange
  contracts 6)	           5530    -31      -9   
Currency swaps             2359    271      73    
Purchased currency options  278      7       7     
Written currency options     75      2       2      

6) Incl. also contracts used for equity hedging

Oil futures and forward instruments

                             Sep 30 2003             Dec 31 2002  
                        Volume   Fair  Not recogn. Volume Fair Not rec.
                                 value as an              value as an
                                       income                   income

                        1000 bbl MEUR   MEUR      1000 bbl  MEUR  MEUR

Sales contracts           11345    -3       -3      10697    -11   -11
Purchase contracts        26398     7        7      12170     13    13
Purchased options           100     -        -          -      -     -
Written options             100     -        -          -      -     -

                               Sep 30 2002
                      
Sales contracts            8391    -7       -7   
Purchase contracts         6767     7        7   
Purchased options           250     -        -       
Written options             250     -        -       


Electricity derivatives 

                              Sep 30 2003             Dec 31 2002                       
                         Volume Fair  Not recogn. Volume  Fair  Not rec.
                                value as an               value as an
                                      income                   income

                         TWh     MEUR  MEUR        TWh     MEUR  MEUR
Sales contracts             58   -349     -218        94  -2065 -1406
Purchase contracts          57    308      176        78   1709  1051
Purchased options            1     -1       -2         2      1    -1
Written options              3     -4       -3         6      3     6

                              Sep 30 2002                                 
                       
Sales contracts             82   -207     -154       
Purchase contracts          76    216      146       
Purchased options           4       1        2        
Written options             9       -        -        

Natural gas derivates  
 
                             Sep 30 2003             Dec 31 2002
                        Volume Fair  Not recogn. Volume  Fair  Not rec.                                                          value as an               value as an 
                                     income                    income

                        Mill.th. MEUR MEUR       Mill.th.   MEUR    MEUR
Sales contracts          2543      36    -         4072      127     127
Purchase contracts       2543     -34    -         3773     -115    -115
Purchased options         709       1    -         1287       -7      -7
Written options           709      -3    -         1335       -        -

                            Sep 30 2002            
                      
Sales contracts          2218     -19     -19    
Purchase contracts       2110      23      23    
Purchased options         783      -2      -2   
Written options           697       1       1   

The fair values of derivative contracts subject to public trading are 
based on market prices as of the balance sheet date. The fair values of
other derivatives are based on the present value of cash flows 
resulting from the contracts, and, in respect of options, on evaluation 
models. The amounts also include unsettled closed positions. Derivative 
contracts are mainly used to manage the group's currency, interest rate 
and price risk.

QUARTERLY NET SALES BY SEGMENTS
MEUR                      Q3/03  Q2/03  Q1/03  Q4/02  Q3/02  Q2/02 Q1/02
Power, Heat and Gas         626    718   1214   1234    694    783   933
Electricity Distribution    143    160    199    184    138    156   162
Oil Refining and Marketing 1717   1643   2075   1968   1794   1790  1531
Markets                     329    327    476    418    286   270    306
Other Operations             22     19     20     19     15    16     14
Eliminations               -310   -432   -391   -567   -344  -356   -401
Total                      2527   2435   3593   3256   2583  2659   2545
Discontinuing operations      -      -      -     34     22    23     26
Total                      2527   2435   3593   3290   2605  2682   2571

QUARTERLY OPERATING PROFIT BY SEGMENTS
MEUR                    
                          Q3/03  Q2/03  Q1/03  Q4/02  Q3/02  Q2/02 Q1/02
Power, Heat and Gas          77    136    293    284     28    156   149
Electricity Distribution     47     61     81     61     34     72   113
Oil Refining and Marketing  118     75    125     42     76     79    57
Markets                      14     15     -7    -19      2      4     2
Other Operations            -16     -2    -17    -27    -17    -10   -12
Eliminations                 -1      1      -     -1      1      1    -1
Total                        239   286    475    340    124    302   308
Discontinuing operations       -     -      -     51     25    120    19
Total                        239   286    475    391    149    422   327


SHARES AND SHAREHOLDINGS                     Number             Share
                                             of shares          capital
                                                                EUR 
Share capital on 31 Dec 2002               845 759 955    2 875 583 847

Subscribed under bond loan with 
warrants 1999
- 20 February 2003                              15 600           53 040
- 5 May  2003                                   27 060           92 004
- 3 September  2003                             50 160          170 544

Subscribed under management share
option scheme 1999  5 May 2003                  45 000          153 000

Share capital on 30 September 2003         845 897 775    2 876 052 435

About Us

Fortum is a leading clean-energy company that 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 Baltic countries, Russia, Poland and India, and 62% of our electricity generation is CO2 free. In 2016, our sales were EUR 3.6 billion. Fortum's share is listed on Nasdaq Helsinki. www.fortum.com

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