Fortum Oyj : January-March 2021 Interim Report presentation . pdf, 974.16 KB

Interim Report January-March 2021

FORTUM CORPORATION 12 May 2021

Markus Rauramo President and CEO

2	Fortum Interim Report January-March 2021

Q1 Highlights

Active portfolio optimisation and benchmark operations

Improving market environment

Accelerated execution of strategic priorities

Strong performance

• Good performance across all segments securing supply to our customers during the colder winter quarter compared to previous year
• Good level of outright volumes while at the same time clearly increased spot prices
• Supporting market fundamentals with strong carbon price pushing for decarbonisation

Strategy execution moving ahead

• Changes in senior management at Uniper and Fortum to establish a more diverse and pan-European leadership team to leverage existing experience and expertise more widely and to develop a joint culture
• Updated ambitions on the group-wide 'One Team' approach within the strategic areas of Nordic hydro and physical trading optimisation, wind & solar, and hydrogen development
• Disclosed divestments of approximately EUR 1 billion
• Strategic reviews ongoing of Polish district heating, 50% stake in Stockholm Exergi and Consumer Solutions

3	Fortum Interim Report January-March 2021

Strong start for 2021

Strong headline numbers

Comp. OP

	1,171
393
Q1 2020	Q1 2021

Comp. EPS

0.91	0.94
Q1 2020	Q1 2021

OCF
	831
562
Q1 2020	Q1 2021

Leverage*
< 2	1.9
Target	LTM

Improved results in all segments

Strengthened balance sheet

Dividend of EUR 1.12/share

First-quarter summary

• Results supported by improved operational performance across all segments
• Material impact from full Uniper consolidation - Uniper result outlook for full year 2021 increased
• Comparable EPS of EUR 0.94 of which Uniper contribution EUR 0.51
• Robust cash flow from operating activities
• Balance sheet deleveraging on track being within our envisaged target ratio of Financial net debt-to-Comparable EBITDA < 2x
• Dividend of EUR 1.12/share paid on 7 May

4

Fortum Interim Report January-March 2021

* Financial net debt/Comparable EBITDA

Higher achieved power prices

System spot power price, Nord Pool	Fortum Generation's Nordic power price
EUR/MWh		EUR/MWh
	42.1					37.1		37.2
					35.2
		34.0		33.6
15.4	13.8

5.6 8.9

Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021

Spot power price, Urals hub	Achieved power price, Russia segment*
RUB/MWh	EUR/MWh

1,068		1,109	1,074	1,158	24.5	23.3	23.1	22.5	21.1
1,021

	Q1/2020	Q2/2020	Q3/2020	Q4/2020	Q1/2021	Q1/2020	Q2/2020	Q3/2020	Q4/2020	Q1/2021
						NOTE: Achieved power price (includes capacity payments) in RUB
						increased by 3%
5	Fortum Interim Report January-March 2021		* Does not include Uniper's subsidiary Unipro

Substantially higher spot power prices in the Nordics

Increased achieved power prices

Russian power demand picking up with increasing electricity prices

Russian achieved price in rubles increased while declining in euro terms