31 Fortum Corporation - First UBC Sponsor

Fortum Corporation
Fortum, which has its headquarters in Espoo, Finland, is a leading energy company in the Nordic countries and the other parts of the Baltic Rim. Fortum's activities cover generation, distribution and sale of electricity and heat, production, refining and marketing of oil, operation and maintenance of power plants as well as energy-related services. The main products are electricity, heat and steam, traffic fuels and heating oils. Fortum's core expertise also covers the management of environmental issues and the use of new technologies.

Nordic energy
Fortum's power generation portfolio is diversified and flexible. It consists of hydro, nuclear, coal, peat, biomass, natural gas, oil, waste and wind power. Some 14% of the total electricity consumed in the Nordic countries is generated by Fortum.

Fortum is a forerunner in the environmentally benign cogeneration of power and heat (CHP) and has its own advanced technology for exploiting biofuels in heat production. One of the focus areas in the heat business is the development and use of waste and recycled fuels.

In power generation, the volume of Fortum's CO2-free production has steadily increased and in 2003, as much as 78% of the power generation was already CO2-free. As a leading distributor of electricity with some 1.4 million customers Fortum is also a major retailer of electricity and heating oil with 1.3 million private and business customers in Finland, Sweden and Norway.

Clean traffic fuels
Fortum is the number one oil refiner and a remarkable retailer of clean traffic fuels in the Nordic area. Environmentally benign traffic fuels and other oil products for domestic and industrial customers are produced at the two oil refineries in Finland. The product range consists of gasolines, diesel fuels, light and heavy fuel oils, aviation fuels, base oils, lubricants, gasoline components, solvents and liquified petroleum gas (LPG).

Clean traffic fuels and other oil products are also exported to countries outside Europe. To ensure safe marine transport Fortum accepts only double-hull or partly double-hull tanker vessels in its tanker fleet. In 2003, Fortum started oil production in north-west Russia, where it owns an oil field jointly with Lukoil, a Russian company.

Fortum's goal is to maintain its position as the leading refiner of clean traffic fuels. To support this, Fortum has decided to separate its oil business into a new company and to list it on the Helsinki Exchanges.

Finances
In 2003, Fortum's net sales totalled EUR 11.4 billion and operating profit stood at EUR 1.4 million. The average number of employees was 13,300. Fortum's shares are quoted on the Helsinki Exchanges.

Key Figures in 2003

Net sales, EUR billion 11.4
Operating profit, EUR billion 1.4
Balance sheet total, EUR billion 16.5
Average number of employees 3,300

ELECTRICITY
Generation capacity, MW 11,329
Sales, TWh 59.5
Distributed electricity TWh 21.9

HEAT
Generation capacity, MW 9,688
Sales, TWh 23.7
Refinery capacity 14,000,000 tonnes
Refinery production 12,500,000 tonnes
Deliveries of oil products 13,400,000 tonnes
Oil retail outlets 1,100

POSITION IN THE NORDIC MARKET
Electricity distribution - #1
District heating - #1
Refining of clean traffic fuels - #1
Power generation - #2
Number of electricity customers - #2