Fortum hafslund. Fortum Annual Report 2017 2020-01-05

Fortum and City of Oslo restructure ownership in Hafslund and announce partnership

The average energy availability of our hydropower plants was 98. We are naturally very excited to be able to develop sustainable solutions for yet another major European city. Although the new legislation will increase the emission reduction target and strengthen the Market Stability Reserve, it still falls short of meeting the targets of the Paris Climate Agreement. The closing of the transactions is expected during the third quarter of 2017. Together with our new colleagues from Hafslund, we have updated the strategies for both our Consumer Solutions and City Solutions divisions. The Distribution segment operates distribution and regional network and distributes electricity to customers in Sweden, Finland, Norway and Estonia.

Hafslund (company)

Driving the change for a cleaner world is at the heart of Fortum's strategy and our role is to accelerate this change by reshaping the energy system, improving resource efficiency, and providing smart solutions. It operates through the following segments: Power, Heat, Distribution, Electricity Sales, Russia, and Other. Dear stakeholders, 2017 was a significant year for Fortum. In 2013 Hafslund sold the shares in. We want to engage our customers and society to join the change for a cleaner world. The Hafslund restructuring was concluded in the fourth quarter and the new business structure is now in place.

Fortum

We continue to be committed to keeping our promise to provide a safe workplace for all. Green partnership According to the , Fortum will sell its 34. In 2007 Hafslund also bought Viken Fjernvarme that operated the district heating in Oslo. The cost savings have enabled us to invest in new ventures for the future. We are naturally very excited to be able to develop sustainable solutions for yet another major European city. Following the earlier successful Ekokem and Hafslund transactions, we announced the bid for Uniper towards the end of 2017.

Fortum and City of Oslo restructure ownership in Hafslund and announce partnership for a greener Oslo Helsinki Stock Exchange:FUM1V

Fredrikstad Energi Nett is part of the Fredrikstad Energi Group. Suomi Power Networks is owned by First State Investments 40% , Borealis Infrastructure 40% , Keva 12,5 % and LähiTapiola 7,5 %. The price of coal, which is one of the main drivers for European power prices, continued slightly upward throughout 2017. This is the solid foundation that we build our future on. The Neste assets were divested into a separate stock-listed company in 2005.

Fortum and City of Oslo restructure ownership in Hafslund and announce partnership

In 2008 Hafslund sold the security operations and divested its business areas of building and operation of infrastructure into. Going forward we will continue to focus on cost efficiency and investment prioritisation. Hafslund will on the closing date settle the net interest-bearing debt in Fortum Distribution. The acquisitions of Ekokem and Hafslund are already impacting our results positively, further strengthened by our continued Fortum-wide focus on cost and overall efficiency. The municipality of Fredrikstad owns the majority of Fredrikstad Energi, with a share of 51 %, and Fredrikstad Energi is the majority owner of Fredikstad EnergiNett with a share of 65 %. Oslo municipality, with a stake of 53. We invested in solar and wind power production, restructured our ownership in Hafslund, and towards the end of the year, announced our investment in Uniper.

Fortum: ~6% Utility Yield From Scandinavia

Following several years of decline power prices reached their lowest levels in February 2016. It is complemented by our thorough understanding of power markets and trading as well as our deep expertise in combined heat and power production. At the same time, we want to enable people and businesses to make more environmentally friendly choices. Hafslund and Viken Energinett, that operated the power grid in Oslo, were merged in 2002. The Generation, City Solutions, and Russia segments continued to perform well, while the Consumer Solutions segment continues to be under pressure due to the tight competitive situation. The transactions are subject to approval by the Oslo City Council Bystyret , the necessary regulatory approvals and fulfilment of the customary closing conditions. Hafslund is a pure-play energy and infrastructure company with a leading position as Norway's largest networks, district heating and power sales company, and is a medium-sized power producer.

Hafslund acquires Fortum’s power distribution grid operations in Norway

The synergies will primarily be realized through more efficient contingency services and increased purchasing power of services within contingency, maintenance and building of new infrastructure. During the year we took many important steps in our strategy implementation. Security of supply The reliable supply of energy is a priority for Fortum. Equity 674 651 629 471 475 546 745 746 n. We invested in solar and wind power production, restructured our ownership in Hafslund, and towards the end of the year, announced our investment in Uniper. The Electricity Sales segment focuses on the retail sale of electricity to private and business customers as well as to other electricity retailers in Sweden, Finland, and Norway. The impacts of our previous investments in renewables, in circular economy, and in Russia can be seen in our strengthened financial results.

Fortum and City of Oslo restructure ownership in Hafslund and announce partnership for a greener Oslo Helsinki Stock Exchange:FUM1V

The investment in Uniper is a large investment for Fortum and is in line with our strategic goal to drive productivity and industry transformation in Europe. The company has 96 employees and its head office is located in Sarpsborg, southern Norway. Going forward, Fortum will focus on being an active, supportive, and reliable shareholder of Uniper and a constructive strategic partner to the company, its employees, and other stakeholders. During 2017, the hydrological situation in the Nordic area strengthened due to clearly higher than normal precipitation. Fortum's share is listed on Nasdaq Helsinki. The closing of the transactions is expected during the third quarter of 2017. For further information about Fredrikstad Energi and Fredrikstad EnergiNett respectively, see www.