Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Fortum Oyj Corp Ord — FY2024 Earnings Presentation
23 slides from Fortum Oyj's earnings presentation, Feb 11, 2025
Slide 1: Financial Statements 2024
FINANCIAL STATEMENTS 2024 Fortum Corporation 11 February 2025
Slide 2: Markus Rauramo, President and CEO
MARKUS RAURAMO President and CEO
Slide 3: Financial highlights 2024 – dividend yield ~10%
Financial highlights 2024 – dividend yield ~10% • Good generation optimisation – Achieved power price of 52.5 €/MWh (63.1 €/MWh) – Hydro and nuclear volume 1.2 TWh lower – Annual optimisation premium of 8.7 €/MWh • Efficiency improvement programme progressing • Divestments following the strategic re
Slide 4: Resilient performance despite warm, wet and windy weather
Resilient performance despite warm, 2024 wet and windy weather Comparable operating profit Key financial indicators for continuing operations declined due to lower achieved power price in the Comp. OP Comp. EPS OCF Leverage Generation segment 1.28 1,710 1.00 2-2.5x Cash flow 1,544 1,392 1,178 in Q4
Slide 5: Warm, wet and windy
Warm, wet and windy Weather - the main driver for Nordic power prices in 2024 EUR / MWh Nordic power prices EUR / tCO2 CO2 price (ICE EUA) 150 125 120 Realised 100 • In Q4, European gas prices increased due to multiple supply risks, especially uncertainty 90 Futures 6 Feb 2025 Futures 21 Oct 2024 75
Slide 6: Strategy execution continued in 2024
Strategy execution continued in 2024 DELIVER RELIABLE CLEAN DRIVE DECARBONISATION IN INDUSTRIES TRANSFORM AND DEVELOP ENERGY • Ensuring long-term productivity • Partnering with strategic customers • Restructuring organisation to fit the and security of supply and developing projects to enable curren
Slide 7: Net zero by 2040: 1.5°C-aligned transition plan and key actions
Net zero by 2040: 1.5°C-aligned transition plan and key actions Scope 1-2 Total absolute fossil emissions (Mt CO2-eq)1) Scope 1&2 emissions Coal exit 2027 Scope 3 emissions • Meri-Pori Planned Planned • Espoo Clean Heat (exit 2024) decarbonisation in own decarbonisation in • Poland operations value
Slide 8: Strategic targets to capture long-term opportunities, mitigate risks
Strategic targets to capture long-term opportunities, mitigate business and market risks STRATEGIC Strengthen Nordic Ensure value creation Stabilise Demand-driven TARGET leadership from flexibility income streams Renewables Rationale Focus on core competence Capitalising on volatile markets Lower co
Slide 9: Dividend proposal with maximum payout and a special dividend
Dividend proposal with maximum payout and a special dividend corrects the overcapitalised balance sheet in a situation with modest investments Disciplined capital expenditure Efficiency improvement and cash flow Total EUR 1.4 bn (excl. acquisitions) for 2025-2027 Fixed cost reduction of € 100 millio
Slide 10: Tiina Tuomela
él _I LJ = oO —_ _ ef — = (e) CF Powering a thriving world @fortum
Slide 11: Comparable net profit almost halved in the fourth quarter
Comparable net profit almost Lower power halved in the fourth quarter prices reflected in the result MEUR IV/2024 IV/2023 2024 2023 • Comparable operating profit Sales 1,435 1,858 5,800 6,711 at EUR 1,178 million 355 459 1,556 1,903 Comparable EBITDA • Excellent credit metrics with Comparable operat
Slide 12: Income statement
Income statement 2024 MEUR, CONTINUING OPERATIONS IV/2024 IV/2023 2024 2023 • Fixed costs decreased below EUR Sales 1,435 1,858 5,800 6,711 1 billion despite inflation Other Income 10 10 48 32 Materials and services -821 -1,106 -3,295 -3,808 • Share of profits of associates and joint ventures was im
Slide 13: Results impacted by lower power prices
Q4 2024 Results impacted by lower Generation power prices Lower result mainly due to lower hydro and nuclear volumes and lower spot and hedge power prices, partly offset by positive effect from lower nuclear waste costs in co-owned nuclear production in Finland. The result contribution of Pjelax win
Slide 14: Results negatively affected by lower results in the Generation segment
2024 Results negatively affected Generation by lower results in the Lower result mainly by the lower spot and hedge prices, but also lower generation volumes for both nuclear and hydro, and higher costs for Olkiluoto’s third unit. The Generation segment renewables business was positively impacted by
Slide 15: Low leverage and strong liquidity
Low leverage and strong liquidity Solid credit metrics Financial net debt 'BBB+' long-term issuer 655 credit rating, Stable outlook 167 133 'BBB' long-term issuer 18 367 credit rating, Stable outlook 758 511 Fortum’s objective: Maintain solid investment grade rating of at least BBB to maintain finan
Slide 16: Strong balance sheet and liquidity – leverage increasing with dividend payment
Strong balance sheet and liquidity – leverage increasing with dividend payment MEUR 2022 2023 2024 OBJECTIVE TO Gross debt 7,581 5,909 4,828 • Maintain investment grade rating of at least BBB Net margining 2,782 784 325 • Activate balance sheet and optimise liquidity Liquid funds 3,672 4,183 4,136 p
Slide 17: Outlook
Outlook Generation’s Nordic outright (47 TWh/a): Capital expenditure guidance: Hedges: 2025–2027: Capital expenditure excluding potential acquisitions of € 1.4 bn For 2025: 75% hedged at 42 €/MWh • maintenance of € 250 million per year (previously reported: 65% at 42 €/MWh) • growth of € 150–300 mil
Slide 18: Q&A
&A @fortum Powering a thriving world
Slide 19: Appendix
APPENDIX @fortum Powering a thriving world
Slide 20: Nordic hydro reservoirs and wholesale power price
Nordic hydro reservoirs and wholesale power price Hydro reservoirs Power price Reservoir content (TWh) EUR/MWh 120 500 Realised daily system price 100 Futures 6 Feb 2025 400 80 300 60 200 40 Norway 100 20 Sweden 2003 2020 2023 2024 2025 Average 0 Finland 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 21: Generation: Achieved power price declined
GENERATION: Achieved power price declined Power generation volumes, TWh IV/2024 IV/2023 Q4 2024 vs. Q4 2023 6.0 6.2 6.9 Comparable operating profit down by 32% to EUR 265 million, 4.6 mainly due to lower hydro and nuclear volumes and lower spot and 0,3 0,1 hedge power prices. Achieved power price de
Slide 22: Consumer Solutions: Improved and more normalised results
CONSUMER SOLUTIONS: Improved and more normalised results Q4 2024 vs. Q4 2023 Number of customers (‘000) 2 300 2 380 Comparable operating profit increased by EUR 4 million to EUR 16 million, mainly due to reduced scope of the regulated price cap for electricity end users in Poland. This was partly of
Slide 23: Other Operations: Results improved
OTHER OPERATIONS: Results improved Q4 2024 vs. Q4 2023 Comparable operating profit improved by EUR 19 million to EUR -24 million, MEUR IV/2024 IV/2023 2024 2023 mainly due to higher internal charges for services of enabling Sales 141 147 596 548 functions. The result of the Circular Solutions busine