Fortum's Half-Year Financial Report 2017: Strategy implementation proceeds through Hafslund ownership restructuring. Low hydro volumes continue to...

FORTUM CORPORATION HALF-YEAR FINANCIAL REPORT JANUARY-JUNE 2017 20 JULY 2017 AT 9:00 EEST

Fortum's Half-Year Financial Report 2017: Strategy implementation proceeds through Hafslund ownership restructuring. Low hydro volumes continue to impact results

April−June 2017 

• Comparable EBITDA EUR 219 (209) million, +5%
• Comparable operating profit EUR 109 (122) million, -11%
• Operating profit EUR 66 (67) million, of which EUR -42 (-54) million related to items affecting comparability
• Earnings per share EUR -0.08 (0.06), of which EUR -0.14 (0.00) related to a Swedish income tax case and EUR -0.04 (-0.05) related to items affecting comparability
• Cash flow from operating activities totalled EUR 232 (-5) million
• Fortum and City of Oslo to restructure ownership in Hafslund

January−June 2017 

• Comparable EBITDA EUR 642 (566) million, +13%
• Comparable operating profit EUR 421 (397) million, +6%
• Operating profit EUR 456 (437) million, of which EUR 34 (40) million related to items affecting comparability
• Earnings per share EUR 0.30 (0.43), of which EUR -0.14 (0.00) related to a Swedish income tax case and EUR 0.03 (0.03) related to items affecting comparability
• Cash flow from operating activities totalled EUR 514 (370) million
• City Solutions division divided into City Solutions and Consumer Solutions to support strategy implementation
• The operating profit target level (EBIT) of RUB 18.2 billion for the Russia segment was reached in the first quarter of 2017

Summary of outlook 

• Fortum continues to expect the annual electricity demand to grow in the Nordic countries by approximately 0.5% on average
• The Generation segment's Nordic generation hedges: approximately 45% hedged at EUR 30 per MWh for the rest of 2017 and approximately 45% hedged at EUR 28 per MWh for 2018

Key financial ratios 

Key figures 

Fortum’s President and CEO Pekka Lundmark: 

“Fortum's strategy implementation and capital redeployment continued during the second quarter. Over the last two years we have made three significant acquisitions: DUON, Ekokem and, in the second quarter 2017, Hafslund. At the same time, we have stepped up our investments for the future. Recent initiatives include solar power in India, wind power in the Nordics and Russia, nuclear services in Germany, expanding our Charge & Drive network as well as digitalising our customer interface with the MyFortum app. Once these investments are completed we will have redeployed around 20% of the capital, and recovered close to 100% of the cash flow generated by the divested electricity distribution business. We will continue on the path set out by our strategy to increase our profitability and secure our long-term competitiveness.

The second quarter of 2017 did not show substantial improvements in the market conditions. Nordic spot prices remain on a fairly low level, although higher than the very low prices in 2016. Forward prices have improved somewhat, but are still on lower levels than the current spot prices. The quarter was characterised by colder weather and stable water reservoirs. The reservoir level at the end of June was close to the long-term average levels and changed only marginally during the quarter.

The comparable operating profit for the second quarter declined by 11% to EUR 109 million. Still the half-year result was above last year due to the strong performance in the first quarter.

Heat sales increased thanks to the colder weather, which positively affected the results of City Solutions. Consequently the comparable operating profit increased by EUR 6 million compared to the second quarter of 2016. In spite of good availability in our nuclear production, the result of Generation declined. The result was burdened by slightly lower hydro volumes and a lower achieved power price. The Russia segment continued the strong performance, improving its results by EUR 19 million. We have strengthened our development efforts in new ventures and R&D and expect them to start paying back from 2018.

The highlight of the quarter was the successful restructuring of our ownership in Hafslund, announced at the beginning of the quarter. Fortum will gain 1.1 million new customers through the restructuring, increasing our Nordic customer base to 2.4 million. This offers a great platform for the development of new innovative solutions and services for our customers. Fortum will also join forces with the City of Oslo by merging Hafslund's Heat business area with the City of Oslo's waste-to-energy plant, Klemetsrudanlegget. The transactions are completely in line with our strategic ambitions and will have a positive effect on our EBITDA. In June, the Oslo City Council approved the transactions. Also all required regulatory approvals have been received.

After finalising our investment programme in conventional power and heat generation in Russia last year, we embarked on diversifying our portfolio by investing in the Ulyanovsk wind park. It is the first industrial-scale wind park in Russia, with commissioning expected in the beginning of 2018. During the second quarter of 2017 we announced the establishment of the Fortum-RUSNANO wind investment fund. The investment supports our previously announced ambition to secure around 500 MW of wind power capacity in Russia. The Russian CSA auction in June 2017 was a success for the fund, as it was able to secure substantial capacities for a price range of EUR 115-135 per megawatt-hour.

Fortum advocates for market-based solutions and improved coherence between policies and countries. This was stressed in the joint statement by Fortum and other large Nordic utilities in June. Fortum also fully supports the stronger coordination between the Nordic countries, as proposed in the Nordic Energy Ministers' Ollila-report in June. Coherent energy policy is and will be an essential factor in securing a sustainable transition to a clean energy system largely based on renewables in the decades to come.“

Financial results 

Sales by segment 

Comparable EBITDA by segment 

Comparable operating profit by segment 

Operating profit by segment 

April-June 2017 

In the second quarter of 2017, sales were EUR 937 (768) million. The increase was mainly due to higher nuclear and thermal volumes, cold weather, the strengthening Russian rouble and the consolidation of Ekokem. Comparable EBITDA totalled EUR 219 (209) million. Comparable operating profit totalled EUR 109 (122) million. The comparable operating profit was burdened by lower hydro volumes and increased costs in the Other segment, mainly due to increased development efforts in new ventures and R&D. The reported operating profit totalled EUR 66 (67) million. Fortum's operating profit for the period was impacted by items affecting comparability, including sales gains, and the IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging, as well as nuclear fund adjustments, amounting to EUR -42 (-54) million (Note 4).

The share of profit from associates and joint ventures was EUR 35 (38) million, of which Hafslund represented EUR 17 (18), TGC-1 EUR 19 (18) and Fortum Värme EUR 1 (1) million. The share of profit from Hafslund and TGC-1 are based on the companies' published first-quarter 2017 interim reports (Note 12).

January-June 2017 

In January-June 2017, sales were EUR 2,169 (1,757) million. The increase was mainly due to the strengthening Russian rouble and the consolidation of Ekokem and DUON. Comparable EBITDA totalled EUR 642 (566) million. Comparable operating profit totalled EUR 421 (397) million and reported operating profit totalled EUR 456 (437) million. Fortum's operating profit for the period was impacted by items affecting comparability, including sales gains, and the IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging, as well as nuclear fund adjustments, amounting to EUR 34 (40) million (Note 4).

The share of profit from associates and joint ventures was EUR 94 (105) million, of which Hafslund represented EUR 31 (32), TGC-1 EUR 20 (27) and Fortum Värme EUR 44 (45) million. The share of profit from Hafslund and TGC-1 are based on the companies' published fourth quarter 2016 and first quarter 2017 interim reports (Note 12).

Net financial expenses were EUR -88 (-91) million and include changes in the fair value of financial instruments of EUR -6 (2) million.

Profit before taxes was EUR 461 (451) million.

Taxes for the period totalled EUR 190 (62) million. The effective income tax rate according to the income statement was 41.2% (13.9%). The comparable effective income tax rate, excluding the impact of the share of profit from associated companies and joint ventures as well as non-taxable capital gains and Swedish income tax cases, was 20.3% (18.7%) (Note 8).

The profit for the period was EUR 271 (389) million. Earnings per share were EUR 0.30 (0.43), of which EUR -0.14 (0.00) related to a Swedish income tax case effect and EUR 0.03 (0.03) per share relates to items affecting comparability.

Financial position and cash flow 

Cash flow 

In January-June 2017, net cash from operating activities increased by EUR 144 million to EUR 514 (370) million, due to EUR 76 million increase in comparable EBITDA, EUR 191 million decrease in realised foreign exchange gains and losses, and EUR 169 million lower income taxes paid. The foreign exchange gains and losses of EUR -63 (128) million relate to the rollover of foreign exchange contracts hedging loans to Russian and Swedish subsidiaries. In June 2016, Fortum paid income taxes in Sweden totalling EUR 127 million regarding an ongoing tax dispute. The change in working capital increased by EUR 58 million to EUR 65 (7) million, which includes the effect of the daily cash settlements for futures in Nasdaq OMX Commodities Europe (Additional cash flow information). 

Investments including acquisitions remained at the same level as the previous year, EUR 359 (357) million. Net cash used in investing activities decreased to EUR -199 (-641) million. The change was mainly due to the decrease in cash collaterals given as trading collaterals to commodity exchanges of EUR 72 (-269) million.

Cash flow before financing activities was EUR 315 (-271) million.

Fortum paid dividends totaling EUR 977 (977) million in April 2017. Payments of long-term liabilities totalled EUR 464 (808) million, including the repayment of bonds totalling EUR 343 million and loan payments of 120 million. The net decrease in liquid funds was EUR 1,034 (2,063) million.

Assets and capital employed 

Total assets decreased by EUR 1,681 million to EUR 20,283 (21,964 at the end of 2016) million.

Liquid funds at the end of the period were EUR 4,106 (5,155 at the end of 2016) million.

Capital employed was EUR 17,431 (18,649 at the end of 2016) million, a decrease of EUR 1,218 million.

Equity 

Equity attributable to owners of the parent company totalled EUR 12,635 (13,459 at the end of 2016) million.

The decrease in equity attributable to owners of the parent company totalled EUR 824 million, and was mainly due to the net profit for the period of EUR 265 million, translation differences of EUR -170 million and dividend payment of EUR 977 million.

Financing 

Net cash decreased by EUR 653 million to EUR -605 (48 at the end of 2016) million.

At the end of June, the Group’s liquid funds totalled EUR 4,106 (5,155 at the end of 2016) million. Liquid funds include cash and bank deposits held by OAO Fortum amounting to EUR 223 (105 at the end of 2016) million. In addition to liquid funds, Fortum had access to EUR 1.9 billion of undrawn committed credit facilities (Note 14).

Net financial expenses were EUR -88 (-91) million, of which net interest expenses were EUR -67 (-79) million.

Fortum’s long-term credit ratings were unchanged. Standard & Poor's rating (affirmed in June 2017) is BBB+ and the short-term rating A-2. The outlook is stable. Fitch Ratings long-term Issuer Default Rating (IDR) and senior unsecured rating is BBB+ and the short-term IDR is F2 with a stable outlook.

Key figures 

At the end of June, the comparable net debt to EBITDA for the last 12 months was 0.6 (0.0 at the end of 2016). 

Gearing was 5% (0% at the end of 2016) and the equity-to-assets ratio 63% (62% at the end of 2016). Equity per share was EUR 14.22 (15.15 at the end of 2016). Return on capital employed for the last 12 months totalled 4.3% (4.0% at the end of 2016). 

Market conditions 

Nordic countries 

According to preliminary statistics, electricity consumption in the Nordic countries was 88 (86) terawatt-hours (TWh) during the second quarter of 2017. The higher consumption was mainly caused by colder weather compared to the second quarter of 2016. In January-June 2017, electricity consumption was 202 (203) TWh. 

At the beginning of 2017, the Nordic water reservoirs were at 75 TWh, which is 8 TWh below the long-term average and 23 TWh lower than a year earlier. By the end of June, reservoirs were 3 TWh below the long-term average and 2 TWh lower than a year earlier. The reservoir balance turned from a clear deficit to close to the long-term average during the first half of the year, due to the higher than long-term average precipitation in Norway. 

In the second quarter of 2017, the average system spot price in Nord Pool was EUR 27.4 (23.9) per MWh. The main driver for the price increase was the clearly higher marginal cost of coal condense than a year earlier, which contributed to strong continental prices, increasing the export from the Nordics. Colder weather and the delayed spring flooding also contributed to the increase. The average area price in Finland was EUR 30.9 (30.2) per MWh and in Sweden SE3 (Stockholm) EUR 28.5 (26.5) per MWh. 

In January-June 2017, the average system spot price in Nord Pool was EUR 29.3 (24.0) per MWh, the average area price in Finland was EUR 32.0 (30.3) per MWh and in Sweden SE3 (Stockholm) EUR 30.2 (25.3) per MWh. 

In Germany, the average spot price in the second quarter of 2017 was EUR 29.8 (24.8) per MWh. In January-June 2017, the average spot price was EUR 35.5 (25.0) per MWh. 

The market price of CO2 emission allowances (EUA) was EUR 6.5 per tonne at the beginning of the year and EUR 5.0 per tonne at the end of June 2017. 

Russia 

Fortum operates both in the Tyumen and Khanty-Mansiysk area of Western Siberia, where industrial production is dominated by the oil and gas industries, and in the Chelyabinsk area of the Urals, which is dominated by the metal industry. 

According to preliminary statistics, Russian electricity consumption was 238 (230) TWh during the second quarter of 2017. The corresponding figure in Fortum’s operating area in the First price zone (European and Urals part of Russia) was 184 (176) TWh. In January-June 2017, Russian electricity consumption was 522 (510) TWh and the corresponding figure on Fortum's operating area in the First price zone was 402 (388) TWh. 

In the second quarter of 2017, the average electricity spot price, excluding capacity price, decreased by 1.6% to RUB 1,148 (1,166) per MWh in the First price zone. In January-June 2017, the average electricity spot price, excluding capacity price, increased by 0.6% to RUB 1,164 (1,157) per MWh in the First price zone. 

More detailed information about the market fundamentals is included in the tables at the end of the report (page 59). 

European business environment and carbon market 

Swedish nuclear and hydro taxes adopted 

In May 2017, the Swedish parliament adopted the proposed changes of nuclear and hydropower taxation in accordance with the energy agreement from June 2016. The tax on installed effect in nuclear reactors will be reduced by 90%, starting from 1 July 2017, from SEK 14,770/MW/month to SEK 1,500/MW/month, and abolished on 1 January 2018. The hydro real-estate tax will be reduced from 2.8% to 0.5% in four steps until 2020. 

Finnish waste plan published 

In May 2017, the National Waste Plan was published for consultation. The main objective is to increase waste recycling. The target rate for municipal solid waste recycling is set to 55% by 2023. According to the plan, the current waste-to-energy capacity is sufficient for municipal solid waste, but for other waste requiring thermal treatment additional capacity of at least one waste-to-energy plant is needed. More capacity is also needed e.g. for pretreatment of waste and biogasification. 

The plan also covers taxation of waste incineration and inclusion of waste incineration into the EU emissions trading system. 

Finnish Parliament’s statement on the national climate and energy strategy 

In May 2017, the Parliament gave its statement on the government’s proposal (November 2016) for the national climate and energy strategy for 2030. The Parliament requires, among others, that the government renews the support schemes for electricity and heat from renewable energy sources with the objective of having cost-efficient and truly technology-neutral schemes. The Parliament also highlights the preparatory measures for the electrification of transport. The government is requested to strengthen regional cooperation and coordination in the Nordic energy market and to study the preconditions for establishing a joint Nordic energy and climate strategy. 

Development of Nordic energy cooperation: report by Jorma Ollila 

The Nordic Council appointed Mr Jorma Ollila as an independent investigator to make proposals on how to improve Nordic energy cooperation. In June, Mr Ollila delivered his report, which contains several positive suggestions related to stronger coordination of national energy and climate policies, energy research as well as EU positions in order to strengthen the Nordic voice in Brussels. One important proposal is the establishment of a Nordic power market forum to bring together different energy stakeholders. The report supports further development of the energy-only market, stronger real-time price signals and harmonised retail markets. The Nordic energy ministers will discuss the report in their annual meeting in November 2017.

Outlook 

Nordic market 

Despite macroeconomic uncertainty, electricity is expected to continue to gain a higher share of total energy consumption. Electricity demand in the Nordic countries is expected to grow by approximately 0.5% on average, while the growth rate for the next few years will largely be determined by macroeconomic developments in Europe, and especially in the Nordic countries.   

During January-June 2017, the oil price decreased, whereas the coal price continued increasing and is at a clearly higher level than the second quarter of 2016. The price of CO2 emission allowances (EUA) remained on the same level. The price of electricity for the upcoming twelve months increased both in the Nordic area and in Germany. 

In mid-July 2017, the quotation for coal (ICE Rotterdam) for the remainder of 2017 was around USD 80 per tonne and for CO2 emission allowances for 2017 around EUR 5.5 per tonne. The Nordic system electricity forward price in Nasdaq Commodities for the rest of 2017 was around EUR 30 per MWh and for 2018 around EUR 26 per MWh. In Germany, the electricity forward price for the rest of 2017 was around EUR 35 per MWh and for 2018 around EUR 31 per MWh. Nordic water reservoirs were about 2 TWh below the long-term average, close to the levels one year ago. 

Generation 

The Generation segment’s achieved Nordic power price typically depends on such factors as the hedge ratios, hedge prices, spot prices, availability and utilisation of Fortum's flexible production portfolio, and currency fluctuations. Excluding the potential effects from changes in the power generation mix, a 1 EUR/MWh change in the Generation segment’s Nordic power sales achieved price will result in an approximately EUR 45 million change in Fortum's annual comparable operating profit. 

As a result of the nuclear stress tests in the EU, the Swedish Radiation Safety Authority (SSM) has decided on new regulations for Swedish nuclear reactors. For the operators, this means safety investments that should be in place no later than 2020.

The process to review the Swedish nuclear waste fees is done in a three-year cycle. The Swedish Nuclear Fuel and Waste Management Co (SKB) has updated the new technical plan for the SSM to review. The final decision on the new nuclear waste fees will be made by the Swedish government in December 2017. However, as a result of the decision on early closure of nuclear power plants, SSM recalculated the waste fees for the Oskarshamn and Ringhals power plants. 

On 1 June 2017, the Swedish government submitted a proposal to the parliament regarding the calculations of nuclear waste fees and the investment of the nuclear waste fund. According to the proposal the operating time for calculating the waste fee will be 50 years, as opposed to the current 40 years. The fund would also be allowed to invest in other financial instruments than government bonds. The proposed changes and the legislation are expected to be effective from 1 December 2017.

In September 2016, the Swedish government presented the budget proposal for the coming years. One of the key elements was the proposal that taxation of different energy production forms should be more equal and the tax burden of nuclear and hydro should be taken to the level of other production technologies. The budget states that the nuclear capacity tax will be reduced to 1,500 SEK/MW per month from 1 July 2017 and abolished on 1 January 2018. In 2017, the tax for Fortum is estimated to decrease by approximately EUR 32 million to EUR 52 million due to the tax decrease and by another EUR 5 million due to the premature closure of Oskarshamn 1 in the middle of the year. In 2018, there is no capacity tax. 

The hydropower real-estate tax will decrease over a four-year period beginning in 2017, from todays 2.8% to 0.5%. The real-estate tax on hydro will, as stated in the government’s budget, be reduced in four steps: in January 2017 to 2.2%; in January 2018 to 1.6%; in January 2019 to 1.0%; and in January 2020 to 0.5%. In 2017, the tax for Fortum is estimated to decrease by approximately EUR 20 million to approximately EUR 95 million. 

In addition to the decrease in the tax rate, the hydropower real-estate tax values, which are linked to electricity prices, will be updated in 2019. The real-estate tax values are updated every six years. With the current low electricity prices, the tax values in 2019 will be clearly lower than today. The process for renewing existing hydro permits will also be reformed. 

In October 2016, the Swedish Energy Agency presented a concrete proposal on how to increase the production of renewable electricity by 18 TWh in 2020-2030 within the electricity certificate system, as part of the Energy Agreement. In April 2017, the Swedish government decided that the increase will be carried out in a linear manner.

In 2015, Swedish OKG AB decided to permanently discontinue electricity production at Oskarshamn’s nuclear plant units 1 and 2. Unit 1 was shut down on 17 June 2017, approximately 2 weeks earlier than planned, and unit 2 has been out of operation since June 2013. The closing processes for both units are estimated to take several years. 

City Solutions 

In City Solutions, steady growth, cash flow and earnings are achieved through investments in new plants and through acquisitions. Fuel cost, availability, flexibility and efficiency as well as gate fees are key drivers in profitability, but also the power supply/demand balance, electricity price and the weather affect profitability. 

In May 2016, the Finnish government decided to increase the tax on heating fuels by EUR 90 million annually from 2017 onwards. The negative impact on Fortum is estimated to be approximately EUR 5 million per year. 

Consumer Solutions 

In Consumer Solutions, profitability is achieved through competitive product and service offerings, efficient operations, scale benefits in systems and operations as well as prudent risk management. As the Consumer Solutions segment hedges most of the market risk exposure, it is typically more exposed to short-term variations in power prices and demand than to long-term price trends. Short-term volatility, often caused by temperature, can have a substantial impact on power prices as well as on power demand. 

The competitive environment affects the Consumer Solutions segment both through the sales margins of the products sold as well as the size of the customer base. The competition in the Nordic electricity retail market is expected to remain challenging over the coming years, putting pressure on sales margins. 

Russia 

The Russia segment's new capacity generation built after 2007 under the Russian Capacity Supply Agreement (CSA) is a key driver for earnings growth in Russia, as it is expected to bring income from new volumes sold and also to receive considerably higher capacity payments than the old capacity. Fortum will receive guaranteed capacity payments for a period of 10 years from the commissioning of a plant. The received CSA payment will vary depending on the age, location, size and type of the plants, as well as on seasonality and availability. CSA payments can vary somewhat annually because they are linked to Russian Government long-term bonds with 8 to 10 years maturity. In addition, the regulator will review the earnings from the electricity-only market three years and six years after the commissioning of a unit and could revise the CSA payments accordingly. 

In June, 1,000 MW of the bids of the 50/50 owned Fortum-RUSNANO wind investment fund were selected in the Russian wind auction. The bids are for projects to be commissioned during the years 2018-2022 with a price corresponding to approximately EUR 115-135 per MWh. The projects will be covered by Capacity Supply Agreements (CSA) for a period of 15 years.

The long-term Competitive Capacity Selection (CCS) for the years 2017-2019 was held at the end of 2015, and the long-term CCS for year 2020 was held in September 2016. All Fortum’s plants were selected. For the volume of Fortum’s installed "old" capacity, 195 MW (out of 2,214 MW), Fortum has obtained forced mode status, i.e. it receives payments for the capacity at a higher rate. 

The Russian annual average gas price growth was 3.6% in 2016. Fortum estimates the Russian annual average gas price growth to be 2.0% in 2017. 

Capital expenditure and divestments 

Fortum currently expects its capital expenditure, excluding acquisitions, to be approximately EUR 800 million in 2017. The annual maintenance capital expenditure is estimated to be below EUR 300 million in 2017, well below the level of depreciation. 

Taxation 

The effective corporate income tax rate for Fortum in 2017 is estimated to be 19-21%, excluding the impact of the share of profits of associated companies and joint ventures, non-taxable capital gains, non-recurring items and a Swedish income tax case. 

On 11 May 2017, the administrative court in Stockholm, Sweden, gave its decisions related to Fortum’s income tax assessments for the year 2013. The court decisions were not in Fortum’s favour. Fortum will appeal the decisions. If the decisions remain in force despite the appeal, the impact on the net profit would be approximately EUR 28 million (approximately SEK 273 million). Fortum has not made a provision as, based on legal analysis, the EU Commission’s view and supporting legal opinions, the cases should be ruled in Fortum’s favour. The assessments concern the loans given in 2013 by Fortum’s Dutch financing company to Fortum’s subsidiaries in Sweden. The interest income for these loans was taxed in the Netherlands. The Swedish tax authority considers just over a half of the interest relating to each loan as deductible, i.e. deriving from business needs. The rest of the interest is seen as non-deductible. The decisions are based on the changes in the Swedish tax regulation in 2013. 

On 30 June 2017, the Court of Appeal in Stockholm, Sweden, ruled against Fortum related to Fortum's income tax assessments in Sweden for the years 2009-2012. Due to the decision of the Court of Appeal, Fortum booked a tax cost of 1,175 MSEK (EUR 123 million) in the second-quarter 2017 results. The booking did not have any cash flow effect for Fortum, as the additional taxes and interest have already been paid in 2016. The case concerns Fortum’s right to deduct intra-group interest expenses in Sweden in the years 2009-2012. Fortum restructured its operations and reallocated loans in 2004-2005 to ensure future operations. Fortum does not agree with the Court's decision and will apply for the right to appeal from the Supreme Administrative Court.

Hedging 

At the end of June 2017, approximately 45% of Generation's estimated Nordic power sales volume was hedged at EUR 30 per MWh for the rest of 2017 and approximately 45% at EUR 28 per MWh for 2018. 

The reported hedge ratios may vary significantly, depending on Fortum's actions on the electricity derivatives markets. Hedges are mainly financial contracts, most of them electricity derivatives quoted on Nasdaq Commodities. 

Change of Fortum Corporation's trading and issuer codes 

As of 25 January 2017, Fortum Corporation changed its trading and issuer codes. The trading code of Fortum Corporation's share changed from FUM1V to FORTUM, and Fortum's issuer code was changed from FUM to FORTUM. 

Dividend payment 

The Annual General Meeting 2017 decided to pay a dividend of EUR 1.10 per share for the financial year that ended 31 December 2016. The record date for the dividend was 6 April 2017 and the dividend payment date was 13 April 2017. 

Espoo, 19 July 2017 

Fortum Corporation
Board of Directors 

Further information: 

Pekka Lundmark, President and CEO, tel. +358 10 452 4112
Markus Rauramo, CFO, tel. +358 10 452 1909 

Investor Relations & Financial Communications: Måns Holmberg, tel. +358 44 518 1518, Rauno Tiihonen, tel. +358 10 453 6150, Pirjo Lifländer +358 40 643 3317, and investors@fortum.com 

Media: Corporate Press Officer, Mari Kalmari, tel. +358 40 520 1709 

The condensed Interim Report has been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU. The interim financials have not been audited. 

Financial calendar in 2017 

Interim Report January-September will be published on 26 October 2017 at approximately 9:00 EEST 

Distribution: 

Nasdaq Helsinki
Key media
www.fortum.com

More information, including detailed quarterly information, is available on Fortum’s website at www.fortum.com/investors

Summary Links

• Fortum half year financial report 2017 (pdf)