Fortum to reorganise its business structure as of 1 March 2014

FORTUM CORPORATION STOCK EXCHANGE RELEASE, 4 February 2014 at 8.30 EET

Fortum will renew its business structure as of 1 March 2014. Target of the reorganisation is to strengthen Fortum's capability to execute the company's strategy in the fast developing operating environment. In the new structure, Fortum has four reporting segments: Heat, Electricity Sales and Solutions; Power and Technology; Russia and Distribution. Fortum will report its 2014 first quarter financial results according to the new structure.

“With the new operational structure, we are more equipped to take advantage of the changes in the current volatile business environment. We also see that we can find better synergies between the businesses through the new structure. Hence, we expand our competences by changing the management responsibilities,” says Tapio Kuula, President and CEO of Fortum Corporation.

Matti Ruotsala will be appointed Chief Operating Officer (COO) and will act as deputy to the CEO. Fortum's CFO will be Timo Karttinen. New Executive Management members will be Tiina Tuomela, who will be appointed Executive Vice President, Nuclear and Thermal Power division; Kari Kautinen, Senior Vice President, Strategy, Mergers and Acquisitions and Esa Hyvärinen, Senior Vice President, Corporate Relations.

Other Executive Management members are Tapio Kuula, President and CEO; Matti Ruotsala, COO; Timo Karttinen, CFO; Markus Rauramo in a new role as Executive Vice President for Heat, Electricity Sales and Solution division; Per Langer in a new role as Executive Vice President for Hydro Power and Technology division; Alexander Chuvaev, Executive Vice President, Russia Division as well as Kaarina Ståhlberg, General Counsel; Mikael Frisk, Senior Vice President, Human Resources and IT and Helena Aatinen, Senior Vice President, Communications. 

As of 1 March 2014, Fortum's four reporting segments and their business divisions are as follows:

Heat, Electricity Sales and Solutions
The division will comprise Fortum's combined heat and power (CHP) production, district heating activities and business to business heating solutions, solar business, electricity sales and related customer offering and Corporate Sustainability. The division will be headed by Markus Rauramo, Executive Vice President, who will report to COO Matti Ruotsala. Markus Rauramo will also be the country responsible for Poland, Baltic countries and India.
 

Power and Technology
Power and Technology will consist of Fortum's hydro, nuclear and thermal power generation, Power Solutions with expert services, portfolio management and trading as well as technology and R&D functions. The segment will incorporate two divisions:
- Hydro Power and Technology headed by Per Langer, Executive Vice President, who will continue as country responsible for Sweden.
- Nuclear and Thermal Power headed by Tiina Tuomela, Executive Vice President.
Both Tiina Tuomela and Per Langer will report to COO Matti Ruotsala.

Russia
Russia division will comprise Fortum's activities in Russia. The division is headed by Alexander Chuvaev, Executive Vice President, who will continue also as General Director, OAO Fortum and the country responsible for Russia.

Distribution
Distribution division will consist of Fortum's electricity distribution activities. In addition to his CFO role, Timo Karttinen will be heading the division and will also be country responsible for Finland and Norway.

Fortum's six staff functions are:
- Finance, headed by CFO Timo Karttinen
- Strategy and Mergers & Acquisitions, headed by Kari Kautinen, Senior Vice President
- Legal, headed by Kaarina Ståhlberg, General Counsel
- Human Resources and IT, headed by Mikael Frisk, Senior Vice President
- Communications, headed by Helena Aatinen, Senior Vice President 
- Corporate Relations, headed by Esa Hyvärinen, Senior Vice President.

COO Matti Ruotsala, CFO Timo Karttinen and Alexander Chuvaev, EVP of Russia Division, as well as the staff functions heads will report to the President and CEO Tapio Kuula.

Fortum Corporation
Helena Aatinen
SVP, Corporate Communications
 
Further information:
Tapio Kuula, President and CEO, Fortum Corporation, +358 10 452 4112
 
Distribution:
NASDAQ OMX Helsinki
Key media
www.fortum.com

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

Background information on the new Fortum Management Group members:

Tiina Tuomela
Executive Vice President, Nuclear and Thermal Power
Born in 1966. MSc (Eng) from Lappeenranta University of Technology and MBA, Helsinki School of Economics. Joined Fortum in 1990. Served as Vice President, Finance in Power Division during 2009 - 2014 and as Vice President, Business Control and Support in Generation during 2005 - 2009. Previously held other senior positions within Fortum, during 2000 – 2003 as Business Controller in Fortum Generation in UK. Member of the Board of Directors of Teollisuuden Voima Oyj and Raskone Oy as well as several Fortum Group companies.

Kari Kautinen
Senior Vice President, Strategy, Mergers and Acquisitions
Born in 1964. LL.M. from University of Helsinki. Joined Fortum in 1998. Has several years' experience on international business: Served first as Legal Counsel in South-East Asia, moved then to Mergers & Acquisitions in Germany and from there to Business development in Russia. Held Vice President position in Mergers and Acquisitions within Fortum during 2007 - 2012 and has been heading Strategy, Mergers and Acquisitions since 2012. Member of the Board of Directors of TGC-1, OAO Fortum and several other Fortum-owned holdings in Russia.

Esa Hyvärinen
Senior Vice President, Corporate Relations
Born in 1967. Master of Social Sciences (Economics) and Master of Agriculture and Forestry (Forest Economy) from University of Helsinki. Joined Fortum as Vice President, Corporate Relations in 2006. Served as Head of Recycling and Environmental units at the Confederation of European paper industries in Brussels during 2000-2006 and as Senior Advisor at the Finnish Ministry of Trade and Industry during 1997-2000.