Year-end Report 2002

Year-end Report 2002 Fortum Power & Heat AB (publ) (formerly Birka Energi) [REMOVED GRAPHICS] Turnover and profit The Group's net turnover, which amounted to SEK 15,671 million (14,110), shows an increase of SEK 1,561 million compared with the previous year. The increase in turnover is attributable mainly to increased revenues from electricity sales as a result of higher price levels, but also to increased turnover from heating sales. The Group's operating profit amounted to SEK 2,690 million (3,045), which is SEK 355 million down compared with the previous year. The restructuring that was initiated in connection with the Fortum Group's acquisition of the remaining shares in Birka Energi continued during the year. The goals that were established with respect to returns based on synergy and coordination have been met and exceeded. However, this has resulted in the operating profit for the Fortum Power and Heat Group being encumbered by restructuring costs in the order of SEK 450 million, due mainly to redundancy. After adjustment for restructuring costs, the operating profit is roughly SEK 100 million better than for the previous year. The operating profit was affected by the rising market prices for electricity. Operating margin including restructuring costs has decreased and amounts to 17.2 per cent (21.6). As a result of lower indebtedness and lower interest rate levels, the Group's net interest shows an improvement compared with the previous year. Capital gains resulting from the sale of AB Avesta Energi and Renea AB had a positive effect on net financial items for the year. These items are, however, significantly lower than the capital gains reported during 2001. Net other financial items amounts to SEK 20 million (277), which means that net financial items as a whole are SEK 112 million down compared with the previous year. Profit after financial items totalling SEK 762 M (1,229) was SEK 467 million down compared with the previous year. The underlying profit level showed an improvement after adjustment for restructuring costs and capital gains. Energy turnover Heating sales for the year totalled 9.5 TWh (9.3), representing an increase of 0.2 TWh compared with the previous year. The year began with a mild winter and a hot summer, which resulted in the heating sales for the first nine months of the year being lower than in the previous year. The last quarter of the year and, in particular, the month of December were colder than usual, which resulted in a recovery of the decline in sales volume seen in the earlier months of the year. Continued expansion in cooling operations combined with the hot summer resulted in a 27% increase in cooling sales compared with the previous year. Cooling sales for the year totalled 347 GWh (273). However, gas sales fell somewhat in comparison with the previous year, totalling 376 GWh (405). At 24.1 TWh (24.2), the Group's sales of electricity are on a par with those the previous year. Nuclear power production was down by around 0.8 TWh on the previous year as a result of the Oskarshamn 1 plant being closed down for scheduled maintenance. Hydroelectric power production was down by around 1.9 TWh on the previous year as a result of low inflow. The volume of the Group's power distribution in part- or fully-owned network areas amounted to SEK 31.7 million (32.3). The volume supplied during the last quarter was up by 0.6 TWh compared with the corresponding period of the previous year. However, the relatively mild weather for the year as a whole resulted in a lower volume than in 2001. For further information, please contact: Susanne Jonsson, President and Chief Executive Officer, Tel +46 8-671 74 11 or 070-344 51 56 Merril Boman, Director of Information, Tel +46 8-671 79 51 or 070-590 79 75 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/03/21/20030321BIT00920/wkr0001.doc Full report http://www.waymaker.net/bitonline/2003/03/21/20030321BIT00920/wkr0002.pdf Full report

About Us

Fortum’s purpose is to create energy that improves life for present and future generations. Catering to the versatile needs of our customers, we generate, distribute and sell electricity and heat, and offer related expert services. Our operations focus on the Nordic and Baltic countries, Russia and Poland. In 2013, Fortum’s sales totalled EUR 6.1 billion and comparable operating profit was EUR 1.6 billion. We employ approximately 8,800 people. Fortum’s shares are traded on the NASDAQ OMX Helsinki. www.fortum.com

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