Fortum Oyj · OMXHEX:FORTUM
Fortum Oyj — Investor Day (September 2010)
22 slides from Fortum Oyj's investor day presentation, Sep 16, 2010
Slide 1: Capital Markets Day 2010
Capital Rye /10 2010/09/16
Slide 2: Matti Ruotsala
MATTI uotsala 2010/09/16
Slide 3: Agenda
Agenda • Power Division • Fortum’s nuclear generation • Nuclear capacity upgrades in Sweden • Nuclear’s strategic role 3
Slide 4: Power key figures Q2/2010
Power key figures Q2/2010 • Operations in Finland, Sweden, UK, Germany, UAE • 1,700 employees MEUR I-II/2010 I-II/2009 LTM Sales 1,366 1,296 2,601 Comparable operating profit 695 755 1,394 Net Assets 5,726 5,353 Comparable RONA, % 24.4 Gross Investments 55 100 108 4
Slide 5: Fortum's power production in the Nordic countries
Fortum’s power production in the Nordic countries Thermal Hydro 10% 49% renewable 46% energy resources Nuclear 44% 91% of production CO2 - free Total 48.1 TWh (2009) 5
Slide 6: Fortum a significant nuclear and hydro generator
6 0 50 100 150 200 250 300 550 600 500 ED F Energoatom Concern E.ON N N EGC Energoatom R usH ydro Figures 2007 pro forma Vattenfall Enel TWh total generation Electrabel Statkraft Irkutskenergo Fortum Iberdrola R WE EnBW C EZ Verbund Axpo Krasnoyarskaya HPP H idroelectrica Gazprom Alpiq E-C O Energi
Slide 7: Fortum's nuclear generation
• Power Division • Fortum’s nuclear generation • Nuclear capacity upgrades in Sweden • Nuclear’s strategic role 7
Slide 8: Active owner in diversified fleet
Active owner in diversified fleet • Diversified fleet secures stable and reliable production • Active ownership assures involvement in all major decision making • Active industrial partner with relevant technical competence – Project development – Modernisation and power upgrade utilisation – Lifeti
Slide 9: Fortum's nuclear fleet consists of 10 reactors
Fortum’s nuclear fleet consists of 10 reactors Fortum's Fortum's # of share production NPP Start-up (MW) (TWh/a) units year Finland LO1: 1977 Loviisa (100%) 976 8.2 2 LO2: 1980 OL1: 1978 OL2: 1980 Olkiluoto (26%) 457 3.8 2+1 OL3: 2013 Sweden OKG1: 1972 Olkiluoto OKG2: 1974 Oskarshamn (43%) 1,083 3.7
Slide 10: Loviisa NPP is one of the best plants
Loviisa NPP is one of the best plants EAF, Loviisa PWR EAF, energy availability factor 10
Slide 11: Nuclear fleet availability in Finland and Sweden
Nuclear fleet availability in Finland and Sweden EAF, % Average 1995-2009 100 Olkiluoto 95% Loviisa 90% 90 Forsmark 86% 80 70 60 Oskarshamn 75% 50 -95 -97 -99 -01 -03 -05 -07 -09 EAF, energy availability factor 11
Slide 12: Active industrial investor with strong in-house competence
Active industrial investor with strong in-house competence Over 30 years experience of safe and reliable nuclear operation, maintenance and engineering. Active co-ownership and co-operation in Finland and Sweden. Strong in-house nuclear engineering: - Process technology - Plant life-time technologie
Slide 13: Nuclear capacity upgrades in Sweden
• Power Division • Fortum’s nuclear generation • Nuclear capacity upgrades in Sweden • Nuclear’s strategic role 13
Slide 14: Incidents during 2006-2010 have decreased availability
Incidents during 2006 - 2010 have decreased availability Forsmark OKG 3 and FKA 2 FKA 1, 3 and OKG 2 • Forsmark incident • Modernisation • Capacity upgrade and followed and capacity to be implemented "särskild tillsyn" upgrade from 2011 onwards • Inspections and production stops also in other OKG 3
Slide 15: Nuclear unit costs temporarily on a higher level
Nuclear unit costs temporarily on a higher level – but nuclear will remain cost-efficient to the future Indicative nuclear procurement costs*, €/MWh • The bulk of costs are fixed costs and/or 60 costs not directly linked to production 50 volume €/MWh 40 – 20-30% fuel and waste management – 40-50% of
Slide 16: Fortum to get 290 MW CO2 free capacity through upgrades in Sweden
Fortum to get 290 MW CO2 free capacity through upgrades in Sweden Reactor Increase Comp- Fortum's share 100% letion (MW) (act/est) Capacity Annual after generation estimate estimate (MW) (TWh/a) • Two reactors in process to OKG 1 0 - 205 ~2 be completed and three to OKG 2 30 + 180 2009, 363 ~3 be im
Slide 17: Efforts implemented to improve availability and profitability
Efforts implemented to improve availability and profitability • New unit established to bring Fortum competence to co-owned nuclear power plants in Sweden – New technical co-operation model agreed with other owners – High and experienced competence from Fortum’s nuclear operations • Active co-owners
Slide 18: Nuclear's strategic role
• Power Division • Fortum’s nuclear generation • Nuclear capacity upgrades in Sweden • Nuclear’s strategic role 18
Slide 19: Olkiluoto 3
Olkiluoto 3 • Currently under construction as a fixed price turnkey delivery from Areva-Siemens consortium • Main civil construction works completed • Estimated that the unit will be in operation 2013 (originally 2009) • Arbitration process initiated 2008 concerning the delay. The process may contin
Slide 20: Olkiluoto 4
Olkiluoto 4 • Favourable decision-in- principle ratified by the Finnish Parliament to construct Olkiluoto 4 • TVO continues project preparations and feasibility studies of the plant alternatives • Fortum is with 26% interest a shareholder in TVO 20
Slide 21: Nuclear in the strategic core of Fortum also in the future
Nuclear in the strategic core of Fortum also in the future • Power upgrades and Olkiluoto 3: approximately 700 MW new nuclear capacity • Olkiluoto 4: additional 400 MW • Acting as an industrial partner in attractive nuclear investments in Europe • Increasing the use of Fortum’s nuclear competence at
Slide 22: Capital Markets Day 2010
Capital Rye /10 2010/09/16