Fortum 2015

Fortum’s vision is to be the forerunner in clean energy. We provide our customers with electricity, heat and cooling as well as other energy solutions that improve present and future life. Already 64% of our electricity generation is CO2 free and our aim is to increase our renewable generation considerably. Our main markets are the Nordic and the Baltic countries, Russia, Poland and India, where we employ some 8,000 energy sector professionals. In 2015, our sales were EUR 3.5 billion and our comparable operating profit totalled EUR 808 million. We paid EUR 1,155 million in dividends to our shareholders and our total taxes borne amounted to EUR 413 million last year. Fortum’s share is listed on Nasdaq Helsinki.

Fortum 2015 reporting

Fortum 2015 reporting entity comprises this web page, Financial Statements, Corporate Governance Statement and Remuneration Statement as well as Tax footprint. More detailed information about the company, energy production and our products and services as well as sustainability can be found at our corporate website

Our reporting for the year 2015 is based on the integrated reporting principles and includes material information on aspects we estimate to have a significant effect on Fortum’s ability to create value for its stakeholders.

Value-creating new strategy

CEO’s letter

Fortum's strategy targets growth and continued profitability with a strong focus on clean energy, customers and shareholder value creation. Despite the discouraging market outlook in the Nordics, global megatrends create interesting new opportunities for Fortum.

Pekka Lundmark

CEO's review at

Vision to be the forerunner in clean energy

Fortum's vision is to be the forerunner in clean energy. Our strategy has four cornerstones: Drive productivity and industry transformation; Create solutions for sustainable cities; Grow in solar and wind; and Build new energy ventures.


We provide customers with energy solutions that improve present and future life, and we deliver excellent shareholder value.


Drive productivity and
industry transformation

Create solutions for
sustainable cities

Grow in solar
and wind

Build new
energy venture

Read more about Fortum's strategy

Global megatrends shaping the energy sector

The energy sector is changing fast, driven by megatrends: climate change, scarcity of resources, urbanisation, more active customers as well as new opportunities through digitalisation and fast technology development. Fortum is responding to these global challenges with its newly launched strategy and aims to be the forerunner in clean energy.

Read more about global megatrends

Transition towards the solar economy
gaining momentum

The future energy system, the solar economy, will be based on emissions-free and renewable energy sources. It will tackle two major challenges simultaneously: Higher resource and system efficiency and reduced emissions. The transition towards the solar economy has already begun in Europe, and it is changing the way electricity and heat are produced and consumed.

Read more about solar economy

Key figures


Comparable operating profit
(Continuing operations)

EUR 808 million

(2014: EUR 1,085 million)

Net cash from operating activities (Continuing operations)

EUR 1,228 million

(2014: EUR 1,406 million)

Earnings per share, total Fortum

EUR 4.66

(2014: EUR 3.55)


Share of CO2 free power generation


(2014: 64%)

Coverage of ISO 14001 certification
(power generation and heat production)


(2014: 99.9%)

Cumulative energy efficiency improvement as compared with 2012

1,240 GWh/a

(2014: 681 GWh/a)


Females in management


(2014: 33%)

Total recordable injury frequency (TRIF), Fortum personnel


(2014: 2.0)

Lost workday injury frequency (LWIF), Contractors


(2014: 3.2)

Key markets

Market position

Fortum is the 3rd largest power generator and the second largest electricity retailer in the Nordic countries. Globally, we are one of the leading heat producers. As two thirds of our power production is hydro and nuclear, Fortum is also among the lowest-emitting generators in Europe.

Operating environment

IN 2015

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Nordic countries

Despite the macroeconomic uncertainty, electricity consumption continued to increase slightly in 2015, mainly due to the higher industrial consumption in Sweden and Norway. The price of electricity decreased further, driven by very high hydro production volumes, mild weather and low commodity prices. The increased production of subsidised wind power also impacted spot prices negatively.


Both power demand and prices stagnated, and the market suffered from the economic sanctions, currency crises, low oil price and the surge in inflation.

European business environment

The global climate agreement reached in Paris will accelerate energy system transformation and create new business opportunities. Other key topics on the 2015 EU agenda included emissions trading reform, power market development, State of the Energy Union Report and the Circular Economy Package.


Fortum is an energy company highly committed to sustainability. We provide our customers with electricity, heat and cooling as well as other energy solutions that improve present and future life.

Fortum strives for balanced management of economic, social and environmental responsibility in company's operations. Fortum's financial targets give guidance on Fortum's view of the company's long-term value creation potential, its growth strategy and business activities. Fortum's sustainability targets emphasise Fortum's role in society and measure not only environmental and safety targets, but also Fortum's reputation, customer satisfaction, and the security of production of power and heat.

2015 2014
Comparable operating profit, continuing operations, EUR million 808 1,085
Comparable EBITDA, continuing operations, EUR million 1,102 1,457
Capital expenditure continuing operations, EUR million 582 626
Return on capital employed total Fortum, % 1) 22.7 19.5
Comparable net debt / EBITDA total Fortum 2) -1.7 2.3
CO2 emissions, million tonnes 19.2 20.3
Cumulative energy efficiency improvement as compared with 2012, GWh/a 1,240 681
Share of renewable energy in power generation, % 34 32
Share of renewable energy in heat production, % 8 6
Investments to renewable energy, EUR million 148 151
Lost workday injury frequency (LWIF), Fortum personnel and contractors combined 1.8 2.1
Serious accidents, number 16 16
Sickness absence rate, % 2.4 2.4
Departure turnover, % 8.6 8.1
Supplier audits, number 9 14
1) Target: 12% up to 2015, 10% from 2016. 2015 and 2014 include sales gains from the divestment of the Distribution business.
2) Target: around 2.5. Fortum has a large cash position from the divestment of the Distribution business.

Fortum is a significant economic actor in Finland, Sweden, Russia, Poland, Norway and the Baltic countries. The most significant direct monetary flows of Fortum’s operations come from sales revenue from customers, procurements from suppliers of goods and services, compensation to financiers and dividend to shareholders, growth and maintenance investments, employee wages and salaries, and taxes borne. Customer satisfaction and our capability to create customer value are key to our success.

Our operations also have indirect economic impacts. We contribute to a functioning society, for example, through the dividends we pay to our public sector shareholders. Our dividends help to finance society’s basic functions and build well-being. Investments and the procurement employ both locally and outside our operating areas. The wages and taxes paid have a positive impact on local communities.

We are a significant purchaser of goods and services: Our purchasing volume in 2015 was EUR 2.2 billion. In procurement we apply the same principles of sustainability as in our own operations. Of our purchases, EUR 527 million targeted various investments. Fortum's fuel purchases in 2015 totalled EUR 567 million.

Fortum’s performance from continuing operations in 2015 was not satisfactory. Sales declined to EUR 3,459 million (2014: 4,088) mainly due to weak power prices and the Russian rouble. Profitability weakened and remained depressed throughout the year due to the very low electricity prices mainly driven by extreme hydro conditions and low commodity prices.

The weak market in combination with an increasing cost burden, especially the nuclear capacity tax increase in Sweden, forced early closures of nuclear capacity. This led to extensive write-downs that together with other impairments and provisions totalled EUR -918 million and further burdened our results.

Fortum’s total operating profit, however, increased to EUR 4,245 million (2014: 3,428) due to the sale of the Swedish electricity distribution business that completed the divestment of Distribution started in 2013. Fortum’s balance sheet is also strong. At the end of 2015, net debt to EBITDA was -0.5 as Fortum was net cash positive by more than EUR 2 billion. Net debt decreased by approximately EUR 6.5 billion during 2015 as a result of the Distribution divestment.

Environmental efficiency

CO2 emissions

Our total direct CO2 emissions from power and heat production were 19.2 million tonnes. The 5-year average of specific CO2 emissions from total energy production was 191 g/kWh. The decrease in emissions in 2015 was mainly caused by low volume of coal-fired condensing power production in Finland.

Energy savings

During 2015 we completed projects that give an annual energy savings of 559 GWh. Starting from 2013 we have now achieved a total annual energy savings of 1,240 GWh which is well in line with the target of 1,400 GWh by 2020 as compared to 2012.

EHS incidents

During 2015 we had 18 major EHS incidents, while the annual target was 27. We have been able to eliminate major fires and to reduce the number of explosions and leaks into the environment.

Impacts on people and society

Security of supply

The reliable delivery of energy is a priority for Fortum. We measure the availability of our CHP and hydropower plants with an energy availability indicator. The average energy availability of our CHP plants in 2015 was 96.4%; the target was 95%. The average energy availability of our hydropower plants was 99.2%. The load factor describing the energy availability of the Loviisa nuclear power plant was 92.9%, which is high by international standards.


We strive to be a safe workplace for our employees and for the contractors. The total recordable injury frequency (TRIF) for Fortum employees improved in 2015 and was 1.6. The lost workday injury frequency (LWIF) for our own employees was 1.1 and for contractors 2.7. There were no fatal accidents in 2015. We could not achieve the set targets for number of serious accidents. There were 16 serious accidents while the target was less than 8.

Support for society

Fortum supports organisations and communities working for the common good in the countries where we operate. Our goal is for the collaboration to be mutually beneficial. In 2015, our support for activities promoting the common good totalled about EUR 3.6 million.

The average energy availibility
of our CHP plants in 2015

Firm steps towards the clean energy strategy

Fortum announced its new vision and four strategic cornerstones in February 2016. The strategy is firmly grounded in our existing strengths, expertise and competencies. Already in 2015, we took firm steps towards strengthening our businesses and further enhancing our competencies for the new direction.

The divestment of our electricity distribution business, concluded in June 2015, significantly strengthened our financial position to proactively drive industry transformation. The commissioning of the first CHP unit in Chelyabinsk GRES brought our Russian investment programme close to conclusion. We also found new revenue streams for our core capabilities, for example in the nuclear sector.

We worked in several cities in Europe to improve the efficiency of heat and power supply, using local fuels where possible. Our solutions for sustainable cities, such as use of waste heat, open district heating, demand-response and e-vehicle charging, proceeded well. Our first greenfield solar project was commissioned in India, and we decided on investments in wind power in Russia and Sweden.

We cooperated with promising start-ups, universities, technology companies and research institutes to study the potential of wave energy, geothermal heating and big data. Our HorsePower service gained international fame, and our Otso bio-oil advanced to the pilot export phase.

Stakeholder views and expectations

More detailed stakeholder information at


Fortum Corporation’s shares (FUM1V) have been listed on Nasdaq Helsinki since 1998. Fortum’s industrial sector, according to the Global Industry Classification Standard, is Electric Utilities. The State of Finland is the majority owner in Fortum with 50.76% of the shares as at 31 December 2015.

Corporate Governance at Fortum is based on Finnish laws and the company’s Articles of Association. Fortum complies also fully with the Finnish Corporate Governance Code 2010.

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Report content

Materiality process

Our reporting for the year 2015 is based on the integrated reporting principles and includes material information on aspects we estimate to have a significant effect on Fortum’s value creation. Our understanding of stakeholder views is based on the results of the One Fortum survey, customer satisfaction surveys and the stakeholder sustainability survey, as well as information gained through daily stakeholder collaboration.