Fortum Corporation

Interim Report January-March 2014

29 April 2014

Fortum Corporation Domicile Espoo Business ID 1463611-4

Good comparable operating profit despite low prices and weak rouble	3
Fortum's President and CEO Tapio Kuula	4
Efficiency programme 2013-2014	5
Assessment of the electricity distribution business	5
Restatement related to IFRS changes and the new reporting structure	6
Financial results	6
Financial position and cash flow	7
Market conditions	8
Segment reviews	10
Capital expenditures, divestments and investments in shares	15
Shares and share capital	16
Group personnel	17
Research and development	17
Sustainability	18
Changes in Fortum's Management	20
Events after the balance sheet date	21
Annual General Meeting 2014	21
Outlook	22
Dividend payment	25

Tables to the interim financial statements

Condensed consolidated income statement	26
Condensed consolidated balance sheet	28
Condensed consolidated statement of changes in total equity	29
Condensed consolidated cash flow statement	30
Change in net debt and key ratios	32
Notes to the condensed consolidated interim financial statements	33
Definition of key figures	53
Market conditions and achieved power prices	55
Production and sales volumes	56
Restated and previously communicated (old) quarterly information for 2013	58

Good comparable operating profit despite low prices and weak rouble

January−March 2014

Finnish electricity distribution business sale completed
Comparable operating profit EUR 477 (524) million, -9%
Operating profit EUR 2,333 (477) million, of which EUR 1,856 (-47) million relates to items affecting comparability, i.e. mainly to the sale of the Finnish electricity distribution business
Earnings per share EUR 2.53 (0.45), +462%, of which EUR 2.09 (-0.04) per share relates to items affecting comparability. The effect of the sale of the Finnish electricity distribution business was EUR 2.08 per share.
Cash flow from operating activities totalled EUR 566 (467) million, +21%
New organisational structure

Key figures	I/14	I/13*	2013*	LTM
Sales, EUR million	1,473	1,654	5,309	5,128
Operating profit, EUR million	2,333	477	1,508	3,364
Comparable operating profit, EUR million	477	524	1,403	1,356
Profit before taxes, EUR million	2,341	490	1,398	3,249
Earnings per share, EUR	2.53	0.45	1.36	3.44
Net cash from operating activities, EUR million	566	467	1,548	1,647
Shareholders' equity per share, EUR	13.63	11.82	11.28
Interest-bearing net debt (at end of period), EUR million	4,838	7,376	7,793

Key financial ratios	2013*	LTM
Return on capital employed, %	9.0	17.9
Return on shareholders' equity, %	12.0	26.8
Net debt/EBITDA	3.7	1.2
Comparable net debt/EBITDA	3.9	2.5
Comparable net debt/EBITDA without Värme financing	3.4	1.9

*) Comparative period figures for 2013 presented in the interim report are restated due to an accounting change for Fortum Värme and segment reporting changes; see page 4 as well as Notes 2 and 4.

**) LTM, Last 12 months

Summary of outlook

Fortum continues to expect the annual electricity demand growth in the Nordic countries to be on average 0.5% in the coming years
Capital expenditure guidance: EUR 0.9-1.1 billion in 2014, excluding potential acquisitions
• Power and Technology Segment's Nordic generation hedges: for the rest of the calendar year 2014, approx. 55% hedged at EUR 44 per MWh; and for the 2015 calendar year, approx. 25% hedged at EUR 42 per MWh
Fortum's goal is to achieve an operating profit level (EBIT) of about EUR 500 million run-rate in its Russia Segment during 2015

Fortum's President and CEO Tapio Kuula

"Industrial transformation is one of the key challenges today – its economical and social impacts affect both the declining traditional sectors as well as the emerging new areas. It is not enough to streamline operations and focus on only the essential. We must build the future with our own resources, as a continuing slower growth phase is expected in the global economy, and the general economic fundamentals offer little support. We will continue our focussed development of Fortum in line with our strategy. The sale of the Finnish electricity distribution business, which has now already transferred to its new owner, was a part of this. I firmly believe that the sale was a good solution both for our distribution customers as well as for Fortum.

In the first quarter of 2014, electricity consumption in the Nordic countries was lower than in the corresponding quarter last year. The decrease was almost completely due to the extremely mild weather. In Russia, in the areas where Fortum operates, electricity demand decreased marginally.

The exceptionally warm weather in the Nordic countries and low electricity prices burdened both Fortum's achieved price as well as heat, distribution and electricity volumes, and hence the result in the first quarter. Higher hydro production volumes contributed positively and partly offset the decline as Nordic hydro reservoirs normalised. In Russia, the comparable result was good despite the weakened rouble. Earnings per share were EUR 2.53; the sale of the Finnish distribution business impacted the earnings per share by EUR 2.08 per share. The cash flow from operating activities was strong.

In line with the conclusions of the assessment of the electricity distribution business in 2013, the Finnish electricity distribution sale was completed in March. Furthermore, the sale of the Norwegian electricity distribution business was announced in April and is expected be finalised during the second quarter of 2014. The work continues, and we are currently evaluating the possible future divestment of our Swedish electricity distribution business.

Looking at the overall operating environment for Fortum, it's clear that the markets will remain challenging also in 2014. We can only ensure that the foundation for success is in place through our own actions. As for the intensified political situation, significant economic relations and connections established within trade and industry have a stabilising effect on general development. The EU and Russia's interdependence in energy issues and in many other areas of business will hopefully add stability to the relations between the regions. For Fortum, the currently suggested gas price development in Russia and the weaker Russian rouble are challenging, but the company is making every effort to mitigate the negative impacts. Fortum is evaluating its targets on a continuing basis, and will do so also once the political and economic situation stabilises. The company will then estimate if there still are possibilities to achieve the current target or if a new target level should be set.

Changes to the EU energy and climate policy are likely to be seen in 2014. In January, the European Commission published a new proposal for the EU's climate and energy policy; the proposal is a step in the right direction, but overlapping targets remain. In Finland, the power plant tax (the former so-called windfall tax) was adopted as of 2014, but it will enter force only if the European Commission assesses the tax as being in line with the general tax principles and regime in Finland and that it does not include prohibited state aid. The Swedish hydro real-estate tax levels enforced in 2013 for the years 2013-2018 are also being challenged.

Fortum is well positioned to leverage new opportunities that may emerge in the market. We will continue to pursue growth, carefully considering and prioritising alternatives in line with our strategy. I consider Fortum to be well positioned among its peers and ready to seize opportunities that are a good fit with our strategic focus on low-carbon power generation, energy-efficient combined heat and power (CHP) production and sales as well as innovative customer offerings."

Efficiency programme 2013-2014

Fortum started an efficiency programme in 2012 in order to maintain and strengthen its strategic flexibility and competitiveness and to enable the company to reach its financial targets in the future.

The aim is to improve the company's cash flow by more than approximately EUR 1 billion during 2013–2014 by reducing capital expenditures (capex) by EUR 250–350 million, divesting approximately EUR 500 million of non-core assets, reducing fixed costs and focusing on working capital efficiency.

At the end of 2014, the cost run-rate is targeted to be approximately EUR 150 million lower compared to 2012, including growth projects.

If headcount reductions are needed, Fortum seeks to limit redundancies whenever possible. The assessments will therefore be done at a unit level.

At the end of March, Fortum had divested non-core assets of approximately EUR 300 million since the start of the efficiency programme. At the end of 2013, the company had been able to decrease its cost run-rate by approximately half of the targeted EUR 150 million and working capital efficiency had been improved. The programme is proceeding according to plan.

Assessment of the electricity distribution business

In March, Fortum completed the divestment of its Finnish electricity distribution business to Suomi Power Networks Oy, owned by a consortium of Finnish and international investors. The total consideration was EUR 2.55 billion on a debt- and cash-free basis. Fortum's one-time sales gain of approximately EUR 1.85 billion corresponds to EUR 2.08 per share. The sales gain is booked in Fortum's Distribution Segment in the first quarter of 2014 (Note 6).

The decision to divest Fortum's electricity distribution business in Finland is linked to last year's strategic assessment of the company's future alternatives for its electricity distribution business. Fortum originally announced the completion of the assessment and the sale of the business in December 2013.

Fortum is currently evaluating a possible divestment opportunity of distribution business in Sweden. The outcome is dependent on the market development and development of national regulation.

In April 2014, Fortum agreed to sell its Norwegian electricity distribution business. Fortum expects to complete the divestments during the second quarter of 2014 after the necessary regulatory approvals as well as customary closing conditions have been met.

Restatement related to IFRS changes and the new reporting structure

As of 1 January 2014, Fortum applied the new IFRS 10 Consolidated Financial Statements and 11 Joint Arrangements standards. The major effect of this reassessment relates to Fortum Värme, operating in the capital area in Sweden, which is treated as a joint venture and thus consolidated with the equity method (Note 2). Comparative information for 2013 presented in this interim report has been restated accordingly.

The segment information for 2013 has been restated due to the change in the organisation from 1 March 2014.

Presented figures have been rounded and consequently the sum of individual figures may deviate from the sum presented.

Financial results

January–March

In the first quarter of 2014, Group sales were EUR 1,473 (1,654) million. Comparable operating profit totalled EUR 477 (524) million and the reported operating profit totalled EUR 2,333 (477) million. Fortum's operating profit for the period was affected by non-recurring items. The sale of the Finnish electricity distribution business as well as an IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging Fortum's power production and nuclear fund adjustments amounting to EUR 1,856 (-47) million (Note 4).

EUR million	I/14	I/13	2013	LTM
Power and Technology	586	665	2,252	2,173
Heat, Electricity Sales and Solutions	446	531	1,516	1,431
Russia	333	344	1,119	1,108
Distribution	300	339	1,064	1,025
Other	14	15	63	62
Netting of Nord Pool transactions	-133	-171	-478	-440
Eliminations	-72	-70	-228	-230
Total	1,473	1,654	5,309	5,128

Sales by segment

Comparable operating profit by segment

EUR million	I/14	I/13	2013	LTM
Power and Technology	251	303	859	807
Heat, Electricity Sales and Solutions	48	57	109	100
Russia	73	41	156	188
Distribution	119	137	332	314
Other	-14	-14	-54	-54
Total	477	524	1,403	1,356

EUR million	I/14	I/13	2013	LTM
Power and Technology	262	263	922	921
Heat, Electricity Sales and Solutions	45	51	134	128
Russia	73	40	156	189
Distribution	1,968	136	349	2,181
Other	-14	-14	-53	-53
Total	2,333	477	1,508	3,364

Operating profit by segment

The share of profit from associates in the first quarter was EUR 72 (78) million, of which Fortum Värme represents EUR 44 (49) million. The share of profit from Hafslund and TGC-1 are based on the companies' published fourth –quarter 2013 interim reports (Note 12).

The Group's net financial expenses were EUR 64 (65) million. Net financial expenses included changes in the fair value of financial instruments of EUR -3 (-2) million.

Profit before taxes was EUR 2,341 (490) million.

Taxes for the period totalled EUR 86 (86) million. The tax rate according to the income statement was 3.7% (17.6%). In Finland, the corporate tax rate was decreased from 24.5% to 20.0% starting 1 January 2014. The tax rate, excluding the impact of the share of profit from associated companies and joint ventures as well as non-taxable capital gains, was 20.6% (21.3%).

The profit for the period was EUR 2,255 (404) million. Fortum's earnings per share were EUR 2.53 (0.45), of which EUR 2.09 (-0.04) per share relates to items affecting comparability. The earnings per share impact from the sale of the Finnish electricity distribution business was EUR 2.08 per share (Note 6).

Financial position and cash flow

Cash flow

In the first quarter of 2014, total net cash from operating activities increased by EUR 99 million to EUR 566 (467) million, mainly due to realised foreign exchange differences turning to positive EUR 182 million, which were offset with a lower EBITDA. In addition, there was a decrease in working capital of EUR 65 million in the first quarter of 2013. Capital expenditures decreased by EUR 48 million to EUR 162 (210) million. Proceeds from divestments of shares totalled EUR 2,502 (35) million mainly from the divestment of the Finnish distribution business. Total net cash used in investing activities was positive EUR 2,387 (-67) million. Cash flow before financing activities, i.e. financing, increased by EUR 2,553 million to EUR 2,953 (400) million. Realised foreign exchange gains and losses of EUR 74 (-108) million were related to the rollover of foreign exchange contract hedging loans to Fortum's Swedish and Russian subsidiaries.

Assets and capital employed

Total assets increased by EUR 325 million to EUR 23,673 (23,348 at year-end 2013) million. Cash and cash equivalents increased by EUR 1,724 million, which was mainly attributable to the Finnish distribution divestment. Assets of distribution Finland, amounting to EUR 1,173 million, were presented in Assets held for sale at the end of 2013. The total impact of translation differences on intangible assets, property, plant and equipment as well as on participation in associates and joint ventures was negative EUR 340 million.

Capital employed was EUR 20,033 (19,183 at year-end 2013) million, an increase of EUR 850 million. The increase was due to the higher amount of total assets, EUR 325 million, and a EUR 525 million decrease in interest-free liabilities.

Equity

Total equity was EUR 12,207 (10,124 at year-end 2013) million, of which equity attributable to owners of the parent company totalled EUR 12,109 (10,024) million and non-controlling interests EUR 97 (101) million.

The increase in equity attributable to owners of the parent company totalled EUR 2,085 million and was mainly from the net profit of EUR 2,251 million for the period, including a gain of EUR 1,850 million from sale of the Finnish distribution business and translation differences of EUR -231 million. The dividends decided on at the Annual General Meeting on 8 April 2014, totalling EUR 977 million, are not reflected in these interim financial statements.

Financing

Net debt decreased during the first quarter of 2014 by EUR 2,955 million to EUR 4,838 (7,793 at year-end 2013) million.

At the end of March 2014, the Group's liquid funds totalled EUR 2,989 (1,265 at year-end 2013) million. Liquid funds include cash and bank deposits held by OAO Fortum amounting to EUR 198 (113 at year-end 2013) million. In addition to the liquid funds, Fortum had access to approximately EUR 2.2 billion of undrawn committed credit facilities.

The Group's net financial expenses during the quarter were EUR 64 (65) million. Net financial expenses include changes in the fair value of financial instruments of EUR -3 (-2) million.

Fortum Corporation's long-term credit rating with both S&P and Fitch is A- (negative outlook).

Key figures

For the last twelve months, net debt to EBITDA was 1.2 (3.7 at year-end 2013) and comparable net debt to EBITDA 2.5 (3.9). Fortum is currently financing Fortum Värme, and these loans are presented as interest-bearing loan receivables in Fortum's balance sheet. However, there is a target to refinance those loans during 2014-2015. If these loans are deducted from the net debt, the lasttwelve-months comparable net debt to EBITDA was 1.9 (3.4 at the year-end 2013).

Gearing was 40% (77%) and the equity-to-assets ratio 52% (43%). Equity per share was EUR 13.63 (11.28). For the last twelve months, return on capital employed totalled 17.9% (9%) and return on shareholders' equity 26.8% (12%). Both return on capital employed and return on equity were positively affected with the capital gain from the sale of the Finnish distribution business.

Market conditions

Nordic countries

According to preliminary statistics, electricity consumption in the Nordic countries during the first quarter was 110 (117) terawatt-hours (TWh). The decrease was almost completely due to mild weather.

At the beginning of the year, the Nordic water reservoirs were at 82 TWh, i.e. 1 TWh lower than the long-term average and 3 TWh lower than a year earlier. At the end of the quarter, the reservoirs were at 45 TWh, which is 4 TWh above the long-term average and 10 TWh above the corresponding level in 2013. Precipitation has been clearly higher than the historical average over winter, particularly in Norway.

In the first quarter of 2014, the average system spot price of electricity in Nord Pool was EUR 30.2 (42.0) per megawatt-hour (MWh). Prices were depressed by lower variable costs of coal-fired power, and by wet and mild weather, which also led to higher than average hydropower generation. The average area price in Finland was EUR 35.2 (42.1) per MWh and in Sweden (SE3) 30.0 (42.0) per MWh. The Finnish area price was well above the system price due to need for condensing power and increased exports to Estonia after the Estlink-2 interconnector was commissioned in December 2013.

In Germany, the average spot price during the first quarter of 2014 was EUR 33.5 (42.3) per MWh.

The market price of CO2 emission allowances (EUA) was at approximately EUR 4.8 per tonne at the beginning of the year. The price appreciated clearly later during the quarter, but returned to EUR 4.7 per tonne by quarter-end. During January–March, EUAs traded between EUR 4.4 and EUR 7.2 per tonne.

Russia

Fortum operates in the Urals and Western Siberia. Both in the Tyumen and Khanty-Mansiysk area, where industrial production is dominated by the oil and gas industries, and in the Chelyabinsk area, which is dominated by the metal industry, electricity demand decreased marginally in the first quarter compared to the same period of the previous year.

According to preliminary statistics, Russia consumed 283 (288) TWh of electricity during the first quarter of 2014. The corresponding figure in Fortum's operating area in the First price zone (European and Urals part of Russia) was 211 (214) TWh.

In the first quarter of 2014, the average electricity spot price, excluding capacity price, increased by 11% to RUB (Russian rouble) 1,116 (1,002) per MWh in the First price zone.

More detailed information about the market fundamentals is included in the tables at the end of the report (page 55).

European business environment and carbon market

In January 2014, the European Commission made a proposal for the EU's climate and energy policy for 2020-2030. It was received as a balanced compromise. Recently, the Ukraine crisis has somewhat shifted the focus from competitiveness and climate change towards the EU's energy dependency. Due to the crisis and also the upcoming European Parliamentary elections, there will be a time-out in 2030 target-setting.

In March, the Commission's proposal was discussed by the European Council. According to the Council conclusions, the EU's 2030 target will be in line with the EU's long-term objective and a final decision on targets will be made no later than October 2014. Although a majority of member states appear to support the Commission's approach, there is strong resistance among Eastern European countries for new EU commitments before an outcome of the Paris 2015 international climate negotiations. By summer the Commission is expected to undertake a study on EU energy dependency and to present a plan to reduce it. In addition, the review of the energy efficiency directive, including possible new targets, will be available by summer.

Fortum highlights the need for a prompt decision on the 2030 greenhouse gas reduction target to increase the long-term predictability of investments. The single emission reduction target is the most cost-efficient way to reach the climate goals and to promote the use of renewable energy.

The price of emission allowances in the EU's emissions trading is increasing the production cost of fossil-based energy. The implementation of the backloading started on 12 March 2014 when the first allowances were withdrawn from the auctions. A total of 400 million EUAs will be backloaded during 2014.

A debate at the political level has started on the Commission's legislative proposal concerning the establishment and operation of a market stability reserve (MSR) for the EU's emissions trading scheme (ETS). More substantial negotiations will be postponed until the new Commission and Parliament take office. The proposal has received preliminary support from the energy industry and several other stakeholders.

In Fortum's opinion, the MSR is essential in order to decrease price volatility in the carbon market benefitting both energy consumers and producers. The MSR should be implemented in accordance with the Commission's proposal, but the starting date should be earlier than 2021 and the allowances backloaded during 2014-2016 should be directly returned into the proposed allowance reserve. The MSR should be followed by other structural reforms of the ETS, including the tightening of the annual linear emission reduction factor.

Segment reviews

Power and Technology

Power and Technology consists of Fortum's hydro, nuclear and thermal power generation, Power Solutions with expert services, portfolio management and trading as well as technology and R&D functions. The segment incorporates two divisions: the Hydro Power and Technology division and the Nuclear and Thermal Power division.

EUR million	I/14	I/13	2013	LTM
Sales	586	665	2,252	2,173
- power sales	546	631	2,117	2,032
of which Nordic power sales*	500	552	1,866	1,814
- other sales	40	33	131	138
Operating profit	262	263	922	921
Comparable operating profit	251	303	859	807
Comparable EBITDA	282	334	1,007	955
Net assets (at period-end)	6,276	6,421	6,355
Return on net assets, %			14.5	14.6
Comparable return on net assets, %			13.8	13.0
Capital expenditure and gross
investments in shares	35	26	181	190
Number of employees	1,672	1,899	1,723

Power generation by source, TWh	I/14	I/13	2013	LTM
Hydropower, Nordic	6.4	5.8	18.1	18.7
Nuclear power, Nordic	6.6	6.7	23.7	23.6
Thermal power, Nordic	0.2	0.7	1.9	1.4
Total in the Nordic countries	13.2	13.2	43.7	43.7
Thermal power in other countries	0.3	0.3	1.0	1.0
Total	13.5	13.5	44.7	44.7

Nordic sales volumes, TWh	I/14	I/13	2013	LTM
Nordic sales volume	13.6	13.7	45.3	45.2
of which Nordic power sales volume*	12.6	12.1	40.2	40.7

* The Nordic power sales income and volume does not include thermal generation, market price-related purchases or minorities (i.e. Meri-Pori, Inkoo and imports from Russia).

Sales price, EUR/MWh	I/14	I/13	2013	LTM
Power and Technology's Nordic power
price**	39.7	45.7	46.4	44.5

** Power and Technology's Nordic power price does not include sales income from thermal generation, market price-related purchases or minorities (i.e. Meri-Pori, Inkoo and imports from Russia).

January–March

In the first quarter of 2014, Power and Technology's comparable operating profit was EUR 251 (303) million, i.e. EUR 52 million lower than in the corresponding period in 2013. This is mainly due to the lower achieved power price caused by lower spot prices. The price impact was partly offset by higher hydro power production volumes.

Operating profit, EUR 262 (263) million, was affected by sales gains totalling EUR 1 (5) million and by the IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging Fortum's power production, and by nuclear fund adjustments amounting to EUR 10 (-45) million (Note 4).

Power and Technology's achieved Nordic power price was EUR 39.7 (45.7) per MWh, or EUR 6.0 per MWh lower than in the corresponding period in 2013. The system and all area prices were clearly lower during the first quarter of 2014 compared to the same period in 2013. The average system spot price of electricity in Nord Pool was EUR 30.2 (42.0) per MWh. The average area price in Finland was EUR 35.2 (42.1) per MWh and in Stockholm, Sweden, (SE3) EUR 30.0 (42.0) per MWh.

In the first quarter of 2014, the segment's total power generation in the Nordic countries was 13.2 (13.2) TWh. Due to normalised hydro inflow, hydropower production was 0.6 TWh higher during the first quarter of 2014 compared to the same period in 2013. Thermal production was 0.2 (0.7) TWh in Nordic countries. The CO2-free production amounted to 96% (93%).

Nuclear availability was at a high level in all operating reactors. Oskarshamn 2 has been shut down since 1 June 2013 for an extensive safety modernisation.

Heat, Electricity Sales and Solutions

Heat, Electricity Sales and Solutions consist of combined heat and power production as well as heat and electricity sales and development of customer-oriented solutions. The business operations are located in the Nordics, the Baltic countries, Poland and India. The segment also includes Fortum's 50% holding in Fortum Värme, which is a joint venture and is accounted for using the equity method.

EUR million	I/14	I/13	2013	LTM
Sales	446	531	1,516	1,431
- heat sales	164	195	492	461
- power sales	257	314	900	843
- other sales	25	22	124	127
Operating profit	45	51	134	128
Comparable operating profit	48	57	109	100
of which Electricity Sales	9	14	47	42
Comparable EBITDA	74	81	211	204
Net assets (at period-end)	2,365	2,408	2,295
Return on net assets, %			9.7	9.4
Comparable return on net assets, %			8.7	8.2
Capital expenditure and gross investments in shares	13	33	134	114
Number of employees	1,960	2,086	1,968

The former Heat division and Electricity Sales and Solutions business area are reported as one segment (Note 4). In addition, Fortum Värme, which earlier was consolidated as a subsidiary under the Heat division, is now treated as a joint venture and thus consolidated with the equity method (Note 2). Comparative information presented in this interim report has been restated accordingly.

January–March

Heat, Electricity Sales and Solutions' heat sales volumes amounted to 3.3 (4.4) TWh during the first quarter of 2014. During the same period, power sales volumes from CHP production totalled 1.0 (1.2) TWh. Despite the new capacity, heat and power sales volumes were lower mainly due to the warmer than average weather and the divestments made in 2013 in Finland. The warm weather also burdened retail sales.

Comparable operating profit in the first quarter was EUR 48 (57) million. The result decreased mainly due to the lower volumes.

The operating profit in the first quarter totalled EUR 45 (51) million and was affected by sales gains totalling EUR 1 (0) million (Note 4).

At the end of March 2014, Fortum's customer base in Electricity Sales was approximately 1.2 million.

Heat sales by area, TWh	I/14	I/13	2013	LTM
Finland	1.2	2.0	5.4	4.6
Poland	1.5	2.0	4.1	3.6
Other countries	0.6	0.4	1.2	1.4
Total	3.3	4.4	10.7	9.6

Power sales, TWh	I/14	I/13	2013	LTM
CHP	1.0	1.2	3.5	3.3
Electricity Sales	4.4	4.8	13.6	13.2
Total	5.4	6.0	17.1	16.5

Russia

The Russia segment consists of power and heat generation and sales in Russia. The segment also includes Fortum's over 25% holding in TGC-1, which is an associated company and is accounted for using the equity method.

EUR million	I/14	I/13	2013	LTM
Sales	333	344	1,119	1,108
- power sales	218	226	822	814
- heat sales	112	116	290	286
- other sales	3	2	7	8
Operating profit	73	40	156	189
Comparable operating profit	73	41	156	188
Comparable EBITDA	113	71	258	300
Net assets (at period-end)	3,619	3,998	3,846
Return on net assets, %			5.2	6.0
Comparable return on net assets, %			5.2	6.0
Capital expenditure and gross investments in shares	59	71	435	423
Number of employees	4,169	4,284	4,162

The liberalisation of the Russian wholesale power market has been completed since the beginning of 2011. However, all generating companies continue to sell a part of their electricity and capacity – an amount equalling the consumption of households and a few special groups of consumers – under regulated prices. During the first quarter of 2014, Fortum sold approximately 82% of its power production in Russia at a liberalised electricity price.

The capacity selection for generation built prior to 2008 (CCS – "old capacity") for 2014 was held in September 2013. All of Fortum's capacity was allowed to participate in the selection for 2014 and the majority of Fortum's power plants were also selected. The volume of Fortum's installed capacity not selected in the auction totalled 132 MW, which is approximately 4.6% of Fortum's total old capacity in Russia.

The generation capacity built after 2007 under the government capacity supply agreements (CSA – "new capacity") receives guaranteed payments for a period of 10 years. The period and the prices for capacity under CSA were defined to ensure a sufficient return on investments. At the time of the acquisition in 2008, Fortum made a provision, as penalty clauses are included in the CSA agreement in case of possible delays. If the new capacity is delayed or if the agreed major terms of the capacity supply agreement are not otherwise fulfilled, possible penalties can be claimed. The effect of changes in the timing of commissioning of new units is assessed at each balance sheet date and the provision is changed accordingly (Note 16).

Received capacity payments differ depending on the age, location, type and size of the plant as well as seasonality and availability. The CSA payments can also vary somewhat annually because they are linked to the Russian Government long-term bonds with 8 to 10 years maturity. In addition, the regulator will review the guaranteed CSA payments by re-examining earnings from the electricityonly market three and six years after the commissioning of a unit and could revise the CSA payments accordingly.

January–March

The Russia Segment's power sales volumes amounted to 7.1 (7.4) TWh during the first quarter of 2014. Heat sales totalled 9.7 (9.7) TWh during the same period.

The Russia Segment's comparable operating profit was EUR 73 (41) million in the first quarter of 2014. The positive effect from the new units, receiving CSA payments, amounted to approximately EUR 49 (29) million, including EUR -9 million due to the rouble. In addition, better heat spreads mainly due to increased tariffs as well as improved bad debt collections and increased efficiency had a positive effect on the result. Overall, the weakened Russian rouble affected the result negatively by approximately EUR 14 million.

Operating profit was EUR 73 (40) million in the first quarter of 2014.

Key electricity, capacity and gas prices for Fortum Russia	I/14	I/13	2013	LTM
Electricity spot price (market price), Urals hub, RUB/MWh	1,018	931	1,021	1,031
Average regulated gas price, Urals region, RUB/1000 m3	3,362	2,924	3,131	3,362
Average capacity price for CCS "old capacity", tRUB/MW/month*	183	177	163	165
Average capacity price for CSA "new capacity", tRUB/MW/month*	609	678	576	573
Average capacity price, tRUB/MW/month	335	273	276	293
Achieved power price for OAO Fortum, EUR/MWh	30.7	30.6	32.1	32.1

*Capacity prices paid for the capacity volumes, excluding unplanned outages, repairs and own consumption

Distribution

Fortum owns and operates electricity distribution and regional networks and distributes electricity to a total of 1.1 million customers in Sweden and Norway.

EUR million	I/14	I/13	2013	LTM
Sales	300	339	1,064	1,025
- distribution network transmission	241	295	896	842
- regional network transmission	46	37	129	138
- other sales	14	7	39	45
Operating profit	1,968	136	349	2,181
Comparable operating profit	119	137	332	314
Comparable EBITDA	171	191	548	528
Net assets (at period-end)	2,872	3,941	3,745
Return on net assets, %			9.3	60.5
Comparable return on net assets, %			8.8	8.8
Capital expenditure and gross investments in shares	25	49	255	231
Number of employees	466	765	805

January–March

The volume of distribution and regional network transmissions during the first quarter of 2014 totalled 7.7 (8.6) TWh and 4.5 (4.8) TWh, respectively. Volumes were lower due to warmer weather. The Distribution segment's comparable operating profit was EUR 119 (137) million. The decrease is mainly due to the very mild weather during the first quarter of 2014.

Operating profit in the first quarter of 2014 totalled EUR 1,968 (136) million and was affected by sales gain totalling EUR 1,850 million from the Finnish electricity distribution business (Note 6).

In line with the conclusions of the completed assessment of the electricity distribution business in 2013, the finalisation of the Finnish electricity distribution sale was in March 2014. Furthermore, the Norwegian sale, announced in April 2014, will be finalised during the second quarter. Fortum is currently evaluating the possible future divestment opportunities of the Swedish electricity distribution business.

In Sweden, legal processes are under way concerning the appeal filed regarding the network income regulatory period 2012-2015, which came into force as of 1 January 2012. The Administrative Court in Sweden ruled in favour of the network companies in December 2013. The Energy Market Inspectorate decided to appeal the decision, however, and during the first quarter had been given leave to appeal to the Administrative Court of Appeals; therefore, the process continues. The court hearing is expected in Q4 2014 or Q1 2015.

The Swedish Energy Market Inspectorate's work to define the income regulation for the next regulatory period, 2016-2019, is ongoing. Decisions are expected to be made during 2014.

Volume of distributed electricity in distribution network, TWh	I/14	I/13	2013	LTM
Sweden	4.2	4.6	14.1	13.7
Finland	2.7	3.1	9.5	9.1
Norway	0.8	0.9	2.5	2.4
Total	7.7	8.6	26.1	25.3

Number of electricity distribution customers by area, thousands	31 March 2014	31 March 2013
Sweden	903	898
Finland	0	638
Norway	103	102
Total	1,006	1,628

Capital expenditures, divestments and investments in shares

Capital expenditures and investments in shares totalled EUR 135 (182) million in the first quarter of 2014 (Note 4).

Fortum expects to start the supply of power and heat from new power plants and to upgrade existing plants as follows:

	Type	Electricity capacity,	Heat capacity, MW MW
Power and Technology
Hydro refurbishment	Hydropower	10		2014
Russia*
Nyagan 3	Gas (CCGT)	418		2H 2014
Chelyabinsk 1	Gas (CCGT)	248	175	1H 2015
Chelyabinsk 2	Gas (CCGT)	248	175	1H 2015

*) Start of commercial operation.

Power and Technology

Through its interest in Teollisuuden Voima Oyj (TVO), Fortum is participating in the building of Olkiluoto 3 (OL3), a 1,600-MW nuclear power plant unit in Finland. (Note 13)

Fortum started an extensive refurbishment of two of the Imatra hydropower plant's seven units in March. The refurbishment will increase the capacity of the power plant to 192 megawatts and will improve safety and reliability. After the refurbishment, the Imatra plant will be Finland's largest hydropower plant in terms of capacity and production.

Heat, Electricity Sales and Solutions

Through Fortum's interests in Fortum Värme, Fortum's joint venture with the City of Stockholm, the company is investing in a new biofuelled combined heat and power (CHP) plant in Värtan, Stockholm. The new CHP plant will replace some existing heat production and is planned to be commissioned in 2016. The new plant will have a production capacity of 280 MW heat and 130 MW electricity.

In addition, Fortum is participating in its joint venture Turun Seudun Energiantuotanto Oy's (TSE) new combined heat and power (CHP) plant in Naantali, Finland replacing the old existing plant. The plan is to commission the new power plant in 2017. The plant's production capacity will be 142 MW electricity and 244 MW heat.

Distribution

In March 2014, Fortum completed the divestment of its Finnish electricity distribution business to Suomi Power Networks Oy, owned by a consortium of Finnish and international investors. The total consideration was EUR 2.55 billion on a debt- and cash-free basis. Fortum's one-time sales gain of approximately EUR 1.85 billion corresponds to EUR 2.08 per share. The sales gain is booked in Fortum's Distribution Segment in the first quarter of 2014 (Note 6).

Shares and share capital

Fortum Corporation is listed on the NASDAQ OMX Helsinki Ltd. During the first quarter of 2014, a total of 130.6 (165.2) million Fortum Corporation shares, totalling EUR 2,173 million, were traded. The highest quotation of Fortum Corporation shares during the reporting period was EUR 18.19, the lowest EUR 15.66, and the volume-weighted average EUR 16.64. The closing quotation on the last trading day of the quarter, 31 March 2014, was EUR 16.50 (15.72). Fortum's market capitalisation, calculated using the closing quotation of the last trading day of the quarter, was approximately EUR 14,658 million.

In addition to the NASDAQ OMX Helsinki Ltd., Fortum shares were traded on several alternative market places, for example Boat, BATS Chi-X and Turquoise, and on the OTC market. In the first quarter 2014, approximately 52% of Fortum's shares were traded on markets other than the NASDAQ OMX Helsinki Ltd.

On 31 March 2014, Fortum Corporation's share capital was EUR 3,046,185,953 and the total number of registered shares was 888,367,045. Fortum Corporation did not own its own shares. The number of registered shareholders was 129,764. The Finnish State's holding in Fortum was 50.8%, and the proportion of nominee registrations and direct foreign shareholders was 27.1% at the end of the review period.

Fortum Corporation received on 5 April 2014 notification under Chapter 2 Section 9 of the Securities Markets Act that Capital Group Companies Inc's ("CGC") holding in Fortum was above the threshold of 5 per cent on 3 April 2014.

The Board of Directors has no unused authorisations from the Annual General Meeting of Shareholders to issue convertible loans or bonds with warrants or to issue new shares.

Group personnel

Fortum's operations are mainly based in the Nordic countries, Russia and the Baltic Rim area. The total number of employees at the end of March was 8,770 (9,186 at the end of 2013).

At the end of March 2014, Power and Technology had 1,672 (1,723) employees; Heat, Electricity Sales and Solutions 1,960 (1,968); Russia 4,169 (4,162); Distribution 466 (805); and Other 503 (528).

Headcount reductions were due to the sale of the Finnish distribution business and Fortum's efficiency programme. Reductions related to the efficiency programme have been implemented on a unit level by using natural rotation, the rearranging of vacant jobs and by retirement. Vacant jobs have primarily been filled internally. The possibilities for internal rotation have been improved. By rotating staff between different countries and divisions, the company improves know-how and develops the exchange of competencies throughout the organisation.

Research and development

Sustainability is at the core of Fortum's strategy, and Fortum's research and development activities promote environmentally-benign energy solutions. Investments in the development of renewable energy production, like solar power, are an important part of Fortum's strategy implementation.

In the first quarter of 2014, Fortum signed a leasing agreement with the UK-based Wave Hub in order to test wave power solutions off the coast of Cornwall. The agreement provides Fortum with a new opportunity to rapidly deploy advanced, full-scale wave power converters in ocean conditions. In addition, Fortum, UPM and Valmet joined forces to develop a new technology to produce advanced high-value lignocellulosic fuels, such as transportation fuels or higher value bio liquids in order to develop catalytic pyrolysis technology for upgrading bio-oil and to commercialise the new technology.

The Group reports its R&D expenditure on a yearly basis. In 2013, Fortum's R&D expenditure was EUR 49 (41) million or 0.8% (0.7%) of sales.

Sustainability

Fortum strives for balanced management of economic, social and environmental responsibility in the company's operations. Fortum's sustainability targets consist of Group-level key indicators and segment level indicators.

The Group-level sustainability targets emphasise Fortum's role in society and measure not only environmental and safety targets, but also Fortum's reputation, customer satisfaction, and the security of supply of power and heat.

As of the beginning of 2014, the Group target-setting was adjusted by adding contractors' injury frequency to the corporate targets and expanding the CHP availability target to cover the whole Group (in 2013, only the former Heat Division).

The achievements of the sustainability targets are monitored through monthly, quarterly and annual reporting. Sustainability target-setting and follow-up as well as the approval of Fortum's Sustainability policy and the review of Fortum's Sustainability Report are included in the working order of the Board of Directors. Fortum's Sustainability Report 2013 was published on 26 March 2014 and reviewed by Fortum Board of Directors on 8 April 2014. Fortum's Sustainability Report is available at: http//annualreport2013.fortum.com.

The company is listed on the STOXX Global ESG Leaders, the NASDAQ OMX, OMX GES Sustainability Finland and ECPI® indices.

Targets	I/14	2013	Five-year average
Specific CO2 emissions from power generation in the EU as a five-year average, g/kWh	< 80	36	64	59
Specific CO2 emissions from total energy production (electricity and heat) as a five year average, g/kWh	< 200	182	204	197
Overall efficiency of fuel use as a five-year average, %	> 70	69	59	64
Environmental incidents	< 35	5	31	-
Energy availability of CHP plants in the EU, %	> 95	98	n/a	-
SAIDI, (minutes)
Sweden	< 100	18	103	-
Norway	< 96	33	135	-
Lost workday injury frequency (LWIF) for own personnel	< 1.0	0.8	1.0	-
Lost workday injury frequency (LWIF) for contractors	< 3.5	5.3	2.6	-

Fortum's sustainability targets and performance*

*Targets for the reputation and customer satisfaction are monitored annually.

Economic responsibility

In the area of economic responsibility, the focus is on competitiveness, performance excellence and market-driven production. The aim is to create long-term economic value and enable profitable growth and added value for shareholders, customers, employees, suppliers, and other key stakeholders in the company's operating areas. Fortum's goal is to achieve excellent financial performance in strategically selected core areas through strong competence and responsible ways of operating. The key figures by which Fortum measures its financial success include return on capital employed (target: 12%), return on shareholders' equity (target: 14%) and capital structure

(target: net debt/EBITDA around 3). In addition, Fortum uses the applicable Global Reporting Initiative (GRI) G3.1 indicators for reporting economic responsibility.

Environmental responsibility

Fortum's environmental responsibility emphasises mitigation of climate change, efficient use of resources as well as management of the impacts of our energy production, distribution and supply chain. Our know-how in CO2-free hydro and nuclear power production and in energy-efficient CHP production is highlighted in environmental responsibility. Fortum's Group-level environmental targets are related to CO2 emissions, energy efficiency as well as major environment, health and safety (EHS) incidents. At the end of March 2014, ISO 14001 certification covered 100% of Fortum's power and heat production and distribution operations worldwide.

Fortum's climate targets over the next five years are: specific CO2 emissions from power generation in the EU below 80 grams per kilowatt-hour (g/kWh) and total specific CO2 emissions from both electricity and heat production in all countries below 200 g/kWh. Both targets are calculated as a five-year average. At the end of March 2014, the five-year average for specific CO2 emissions from power generation in the EU was at 59 (57) g/kWh and the total specific CO2 emissions from energy production was at 197 (190) g/kWh, both better than the target level.

Fortum's total CO2 emissions in the first quarter of 2014 amounted to 6.0 (6.7) million tonnes (Mt), of which 1.2 (1.9) Mt were within the EU's emissions trading scheme (ETS). Since 2013, electricity production does not receive free allowances in the EU ETS. The amount of free allowances for heat will gradually decrease during 2013-2020 as well. Fortum's free allowances in 2013 totalled 1.8 Mt.

Fortum's total CO2 emissions (million tonnes, Mt)	I/14	I/13	2013	LTM
Total emissions	6.0	6.7	20.5	19.8
Emissions subject to ETS	1.2	1.9	5.1	4.3
Free emissions allocation			1.8
Emissions in Russia	4.9	4.7	15.3	15.4

Fortum's energy efficiency target is to raise the overall efficiency of fuel use to 70% as a five-year average. In the first quarter of 2014, the overall efficiency of fuel use was 69% (65%) and the fiveyear average after March 2014 was 64% (65%), meaning the target level was not met.

Fortum's target is for fewer than 35 major EHS incidents annually. In January-March 2014, a total of 5 (8) major EHS incidents took place in Fortum's operations. This includes two leaks or spills of oil into the environment, two explosions and one International Nuclear Event Scale1 incident (INES). None of these incidents had significant environmental or financial impacts.

Social responsibility

In the area of social responsibility, Fortum's innovations and the secure supply of low-carbon power and heat support the development of society and increase well-being. Good corporate citizenship, reliable energy supply and ensuring a safe working environment for all employees and contractors at Fortum sites are emphasised. At the end of March 2014, OHSAS 18001 certification covered 73% of Fortum's power and heat production and distribution operations worldwide.

In the first quarter of 2014, the average energy availability of Fortum's European CHP plants was 98%, which is above the annual target level of 95%. In electricity distribution, the cumulative SAIDI (System Average Interruption Duration Index) was 18 (13) minutes in Sweden and 33 (6) minutes in Norway, while the annual target is less than 100 and 96 minutes, respectively.

In the first quarter of 2014, the lost workday injury frequency (LWIF) for Fortum employees was 0.8 (0.8). This complies with the Group-level target of less than one per million working hours for own

personnel. In contrast to Fortum's own employees, contractor safety has not developed as desired and the injury frequency is higher than in 2013. Implementation of agreed actions to improve contractor safety continues and contractors' LWIF has been elevated as a Group-level target. Fortum's categorical target is to avoid serious injuries.

Fortum wants to conduct business with viable companies that act responsibly and comply with the Fortum Code of Conduct and the Fortum Supplier Code of Conduct. In the first quarter of 2014, Fortum audited one material supplier.

Changes in Fortum's Management

Fortum renewed its business structure as of 1 March 2014. Target of the reorganisation is to strengthen Fortum's capability to execute the company's strategy in the fast developing operating environment. In the new structure, Fortum has four reporting segments: Power and Technology; Heat, Electricity Sales and Solutions; Russia and Distribution.

"With the new operational structure, we are more equipped to take advantage of the changes in the current volatile business environment. We also see that we can find better synergies between the businesses through the new structure. Hence, we are expanding our competences by changing management responsibilities," says Tapio Kuula, President and CEO of Fortum Corporation.

Matti Ruotsala was appointed Chief Operating Officer (COO) and is acting as deputy to the CEO. Fortum's CFO is Timo Karttinen. New Executive Management members are Tiina Tuomela, who was appointed Executive Vice President, Nuclear and Thermal Power; Kari Kautinen, Senior Vice President, Strategy, Mergers and Acquisitions; and Esa Hyvärinen, Senior Vice President, Corporate Relations.

Other Executive Management members are Tapio Kuula, President and CEO; Matti Ruotsala, COO; Timo Karttinen, CFO; Markus Rauramo in a new role as Executive Vice President for the Heat, Electricity Sales and Solutions ; Per Langer in a new role as Executive Vice President for the Hydro Power and Technology; Alexander Chuvaev, Executive Vice President, Russia; as well as Kaarina Ståhlberg, General Counsel; Mikael Frisk, Senior Vice President, Human Resources and IT; and Helena Aatinen, Senior Vice President, Communications.

As of 1 March 2014, Fortum's four reporting segments and their business divisions are as follows:

Hydro Power and Technology headed by Per Langer, Executive Vice President, who continues as country responsible for Sweden.
Nuclear and Thermal Power headed by Tiina Tuomela, Executive Vice President. Both Tiina Tuomela and Per Langer report to COO Matti Ruotsala.

Heat, Electricity Sales and Solutions comprises Fortum's combined heat and power (CHP) production, district heating activities and business-to-business heating solutions, solar business, electricity sales and related customer offering, and Corporate Sustainability. Heat, Electricity Sales and Solutions is headed by Markus Rauramo, Executive Vice President, who reports to COO Matti Ruotsala. Markus Rauramo is also the country responsible for Poland, Baltic countries and India.

Russia comprises Fortum's activities in Russia and is headed by Alexander Chuvaev, Executive Vice President, who continues also as General Director, OAO Fortum, and is the country responsible for Russia.

Distribution consists of Fortum's electricity distribution activities. In addition to his CFO role, Timo Karttinen is heading Distribution and is also the country responsible for Finland and Norway.

Fortum's six staff functions are:

Finance, headed by CFO Timo Karttinen
Strategy and Mergers & Acquisitions, headed by Kari Kautinen, Senior Vice President
Legal, headed by Kaarina Ståhlberg, General Counsel
Human Resources and IT, headed by Mikael Frisk, Senior Vice President
Communications, headed by Helena Aatinen, Senior Vice President
Corporate Relations, headed by Esa Hyvärinen, Senior Vice President

COO Matti Ruotsala, CFO Timo Karttinen and Alexander Chuvaev, EVP of Russia Division, as well as the heads of the staff functions report to President and CEO Tapio Kuula.

Events after the balance sheet date

On 5 April 2014, Fortum Corporation received notification under Chapter 2 Section 9 of the Securities Markets Act that Capital Group Companies Inc's ("CGC") holding in Fortum was above the threshold of 5% on 3 April 2014.

On 8 April, Fortum announced that the company's General Counsel and Executive Team member Kaarina Ståhlberg will leave her position as General Counsel and member of Fortum's Executive Management as of 8 April 2014, due to family reasons. She will continue as Legal Advisor in nuclear business-related matters, reporting to COO Matti Ruotsala.

On 9 April, Fortum agreed to sell its Norwegian electricity distribution business to Hafslund and its heat business in Norway to iCON Infrastructure Partners II, L.P. fund. The decision to divest the electricity distribution business in Norway is linked to the strategic assessment of the company's future alternatives in the electricity distribution business in 2013.In addition, Fortum has agreed to sell its shareholding in Fredrikstad Energi AS (49%) and Fredrikstad Energi Nett AS (35%). In the heat business, Fortum is focusing on larger urban centres with potential for combined heat and power (CHP) development.

The total consideration is EUR 340 million on a debt- and cash-free basis. Fortum expects to complete the divestments during the second quarter of 2014 after the necessary regulatory approvals and the customary closing conditions have been met. Fortum expects to book a one-time sales gain totalling approximately EUR 70 million, and corresponding to approximately EUR 0.08 per share, in the second-quarter 2014 results. The sales gain will be booked in Fortum's Distribution segment and Heat and Electricity Sales and Solutions segment.

Annual General Meeting 2014

Fortum Corporation's Annual General Meeting, which was held in Helsinki on 8 April 2014, adopted the financial statements of the parent company and the Group for the financial period 1 January-31 December 2013 and discharged the members of Fortum's Board of Directors as well as the President and CEO and his deputy from liability for the year 2013.

The Annual General Meeting decided to pay a dividend of EUR 1.10 per share for the financial year that ended 31 December 2013. The record date for the dividend payment was 11 April 2014 and the dividend payment date was 22 April 2014.

The Annual General Meeting confirmed the number of members in the Board of Directors to be eight. Ms Sari Baldauf was re-elected as Chairman and Mr Kim Ignatius was elected as Deputy Chairman, and Ms Minoo Akhtarzand, Mr Heinz-Werner Binzel, Ms Ilona Ervasti-Vaintola, Mr Christian Ramm-Schmidt were re-elected, and Mr Petteri Taalas and Mr Jyrki Talvitie were elected as new members.

The Annual General Meeting confirmed the compensation of EUR 75,000 per year to the Chairman, EUR 57,000 per year to the Deputy Chairman and EUR 40,000 per year to each member of the Board, as well as EUR 57,000 per year to the Board member acting as the Chairman of the Audit and Risk Committee if he or she is not at the same time acting as Chairman or Deputy Chairman of the Board. In addition, a EUR 600 meeting fee is paid for Board meetings as well as for committee meetings. The meeting fee is doubled for Board members who live outside Finland in Europe and tripled for members living outside Europe.

The Annual General Meeting also resolved to amend the Articles of Association as follows. Firstly, in accordance with the stand of the Ownership Steering of the Finnish State, the age limit of Board member elects is removed from § 6. Secondly, the possibility to deliver the notice to a General Meeting by publishing the notice on the company's website is added to § 12; and thirdly, certain linguistic and technical amendments are made to § 3 and 4, i.a. by removing the par value of shares referred to in the Finnish Companies Act.

In addition, Authorised Public Accountant Deloitte & Touche Ltd was re-elected as auditor, and the auditor's fee is paid pursuant to an invoice approved by the company.

Outlook

Key drivers and risks

Fortum's financial results are exposed to a number of economic, strategic, political, financial and operational risks. One of the key factors influencing Fortum's business performance is the wholesale price of electricity in the Nordic region. The key drivers behind the wholesale price development in the Nordic region are the supply-demand balance, fuel and CO2 emissions allowance prices as well as the hydrological situation. The completion of Fortum's investment programme in Russia is also one key driver to the company's result growth, due to the increase in production volumes and CSA payments.

The continued global economic uncertainty and Europe's sovereign-debt crisis has kept the outlook for economic growth unpredictable. The overall economic uncertainty impacts commodity and CO2 emissions allowance prices, and this could maintain downward pressure on the Nordic wholesale price for electricity in the short term. In Fortum's Russian business, the key factors are economic growth, rouble exchange rate, the regulation around the heat business and further development of electricity and capacity markets. Operational risks related to the investment projects in the current investment programme are still valid. In all regions, fuel prices and power plant availability also impact profitability. In addition, increased volatility in exchange rates due to financial turbulence could have both translation and transaction effects on Fortum's financials, especially through the SEK and RUB. In the Nordic countries, also the regulatory and fiscal environment for the energy sector has added risks for utility companies.

Nordic market

Despite macroeconomic uncertainty, electricity is expected to continue to gain a higher share of the total energy consumption. Fortum continues to expect the annual growth rate in electricity consumption to be on average 0.5%, while the growth rate for the nearest years will largely be determined by macroeconomic development in Europe and especially in the Nordic countries. The new 650-MW Estlink-2 interconnector between Finland and Estonia increased market coupling between the Nordic and Baltic countries.

During the first quarter of 2014, the price of oil appreciated, whereas coal and EUA ended close to their opening levels. The price of electricity for the upcoming twelve months clearly decreased in the Nordic area, whereas in Germany it was largely unchanged.

In late April 2014, the future quotation for coal (ICE Rotterdam) for the rest of 2014 was around USD 78 per tonne, and the price for CO2 for 2014 was about EUR 6 per tonne.

In late April 2014, the electricity forward price in Nord Pool for the rest of 2014 was around EUR 28 per MWh. For 2015, the price was around EUR 30 per MWh, and, for 2016, around EUR 30 per MWh. In Germany, the electricity forward price for the rest of 2014 was around EUR 34 per MWh and for 2015 EUR 35 per MWh.

In late April 2014, Nordic water reservoirs were about 4 TWh above the long-term average and 10 TWh above the corresponding level of 2013.

Power and Technology

The Power and Technology's Nordic power price typically depends on such factors as hedge ratios, hedge prices, spot prices, availability and utilisation of Fortum's flexible production portfolio, and currency fluctuations. Excluding the potential effects from the changes in the power generation mix, a 1 EUR/MWh change in the Power and Technology Segment's Nordic power sales (achieved) price will result in an approximately EUR 45 million change in Fortum's annual comparable operating profit. In addition, the comparable operating profit of the Power and Tehnology will be affected by the possible thermal power generation volumes and its profits.

The ongoing, multi-year Swedish nuclear investment programmes are expected to enhance safety, improve availability and increase the capacity of the current nuclear fleet. The implementation of the investment programmes could, however, affect availability. Fortum's power procurement costs from co-owned nuclear companies are affected by these investment programmes through increased depreciation and finance costs of associated companies.

Russia

The generation capacity built after 2007 under the Russian Government's Capacity Supply Agreements (CSA – "new capacity") receives guaranteed capacity payments for a period of 10 years. Prices for capacity under CSA are defined in order to ensure a sufficient return on investments. The issue of prolonged CSA payments from 10 to 15 years have been under discussion in the Russian government; however, no official decisions have yet been made.

Capacity not under CSA competes in the competitive capacity selection (CCS – "old capacity"). The capacity selection for generation built prior to 2008 (CCS – "old capacity") for 2014 was held in September 2013. All of Fortum's capacity was allowed to participate in the selection for 2014 and the majority of Fortum's power plants were also selected. The volume of Fortum's installed capacity not selected in the auction totalled 132 MW, which is approximately 4.6% of Fortum's total old capacity in Russia.

The Russia Segment's new capacity will be a key driver for earnings growth in Russia as it is expected to bring income from new volumes sold and also receive considerably higher capacity payments than the old capacity. However, the received capacity payment will differ depending on the age, location, size and type of the plants as well as seasonality and availability. The return on the new capacity is guaranteed, as regulated in the CSA. CSA payments can vary somewhat annually because they are linked to Russian Government long-term bonds with 8 to 10 years maturity. In addition, the regulator will review the earnings from the electricity-only market three years and six years after the commissioning of a unit and could revise the CSA payments accordingly.

The value of the remaining part of the investment programme, calculated at the exchange rates prevailing at the end of March 2014, is estimated to be approximately EUR 0.4 billion, as of April 2014.

The Russian result is impacted by seasonal volatility caused by the heat business' characteristics, with the first and last quarter being clearly the strongest.

After completing the on-going investment programme by mid-2015, Fortum's goal is to achieve an operating profit level (EBIT) of about EUR 500 million run-rate in its Russia Segment during 2015 and to create positive economic added value in Russia. The segment's profits are impacted by possible changes in gas prices, currency exchange rates and other regulations. The currently suggested gas price development and the weaker Russian rouble make the approximately EUR 500 million operating profit level (EBIT) goal more challenging for the Russia Segment, but the company is making every effort to mitigate the negative impacts. Fortum is evaluating its targets on a continuing basis, and will do so also once the political and economic situation stabilises. The company will then estimate if there still are possibilities to achieve the current target or if a new target level should be set.

In 2013, the Ministry of Energy stated that heat reform should be developed before changing the current electricity and capacity market model. Therefore, at the end of the year, the Ministry of Energy proposed a new heat market model (for public discussion), which is supposed to ensure transition to economically justified heat tariffs by 2020 and attract investments into the heat sector. The new regulation concept is at an early stage and expected to be further developed during 2014.

According to a forecast made by the Russian Ministry of Economic Development, Russian gas price indexation will not take place as of July 2014. However, year-on-year gas price growth is estimated to be 7.6% in 2014.

Distribution

In April, Fortum agreed to sell its Norwegian electricity distribution business. The decision to divest the electricity distribution business in Norway is linked to the 2013 strategic assessment of the further alternatives for the company's electricity distribution business. Fortum expects to complete the divestment during the second quarter of 2014. after the necessary regulatory approvals as well as customary closing conditions have been met.

Fortum is preparing for a possible sale of the Swedish electricity distribution businesses. The decision to complete the process is dependent on market development and development of national regulation, among other factors.

The work to define the Swedish network income regulation model for the next regulatory period 2016-2019 has been ongoing, and a first proposal from the Energy Market Inspectorate was given in March. Details, however, is expected to be set during the autumn 2014.

Capital expenditure and divestments

Fortum currently expects its capital expenditure in 2014 to be approximately EUR 0.9-1.1 billion, excluding potential acquisitions. The Finnish distribution business is included in the figure until the end of the first quarter 2014. The annual maintenance capital expenditure is estimated to be about EUR 400-500 million in 2014, below the level of depreciation. Capex for electricity distribution in Finland has been approximately EUR 150 million annually.

Fortum will gradually decrease its financing to Värme during 2014-2015. At the end of 2013, Värme's share of debt totalled approximately EUR 1 billion.

Taxation

The effective corporate tax rate for Fortum in 2014 is estimated to be 19–21%, excluding the impact of the share of profits of associated companies and joint ventures, non-taxable capital gains and non-recurring items. In Finland, the corporate tax rate was reduced from 24.5% to 20% as of 1 January 2014.

The Finnish Parliament approved the power plant tax (the so-called windfall tax) in December 2013. It will be enacted later and will be applied from the beginning of 2014, provided that the EU

Commission approves it. Fortum has filed a complaint on the tax to the Commission, arguing that it is not in line with general tax principles in Finland and that it constitutes illegal state aid for those plants that are not subject to the tax. If implemented, the estimated impact on Fortum would be approximately EUR 25 million annually.

Hedging

At the end of March 2014, approximately 55% of Power and Technology's estimated Nordic power sales volume was hedged at approximately EUR 44 per MWh for the rest of 2014. The corresponding figures for the calendar year 2015 were approximately 25% at approximately EUR 42 per MWh.

The hedge price for the Power and Technology's Nordic generation excludes hedging of the condensing power margin. In addition, the hedge ratio excludes the financial hedges and physical volume of Fortum's coal-condensing generation as well as the segment's imports from Russia.

The reported hedge ratios may vary significantly, depending on Fortum's actions on the electricity derivatives markets. Hedges are mainly financial contracts, most of them Nord Pool forwards.

Dividend payment

The Annual General Meeting 2014 decided to pay a dividend of EUR 1.10 per share for 2013. The record date for the dividend was 11 April 2014, and the dividend payment date was 22 April 2014.

Espoo, 28 April 2014 Fortum Corporation Board of Directors

Further information: Tapio Kuula, President and CEO, tel. +358 10 452 4112 Timo Karttinen, CFO, tel. +358 10 453 6555

Fortum's Investor Relations, Sophie Jolly, tel.+358 10 453 2552, Rauno Tiihonen, tel. +358 10 453 6150 and [email protected]

Publication of financial results in 2014:

Interim Report January-June on 18 July 2014 at approximately 9.00 EEST
Interim Report January-September on 23 October 2014 at approximately 9.00 EEST

Distribution: NASDAQ OMX Helsinki Key media www.fortum.com

More information, including detailed quarterly information, is available on Fortum's website at www.fortum.com/investors.

Condensed consolidated income statement

Q1 Q1 2013 2013 2013 Last twelve restated restated old months 2014 Note EUR million 4 1,654 5,309 6,056 5,128 Sales 1,473 Other income 13 93 94 87 7 Materials and services -738 -2,270 -2,533 -2,132 -600






Employee benefits -120 -460 -529 -455 -115
Depreciation, amortisation and impairment charges 4,10,11 -150 -140 -621 -740 -631
Other expenses -139 -144 -648 -741 -643
Comparable operating profit 477 524 1,403 1,607 1,356
Items affecting comparability 1,856 -47 106 105 2,009
Operating profit 2,333 477 1,508 1,712 3,364
Share of profit/loss of associates and joint ventures 4, 12 72 78 178 105 172
Interest expense -71 -70 -301 -295 -302
Interest income 19 18 75 42 76
Fair value gains and losses on financial instruments -3 -2 -16 -16 -17
Other financial expenses - net -11 -12 -47 -49 -46
Finance costs - net -65 -289 -318 -288 -64
490 1,398 1,499 3,249 Profit before income tax 2,341
Income tax expense 8 -86 -186 -220 -186 -86
404 1,212 1,279 3,063 Profit for the period 2,255


Attributable to:
Owners of the parent 401 1,204 1,204 3,054 2,251
Non-controlling interests 4 3 8 75 9
2,255 404 1,212 1,279 3,063



Earnings per share (in € per share)
Basic 2.53 0.45 1.36 1.36 3.44
Diluted 0.45 1.36 1.36 3.44 2.53

		Q1
	Q1	2013	2013	2013	Last twelve
EUR million	2014	restated*	restated*	old	months
Comparable operating profit	477	524	1,403	1,607	1,356
Non-recurring items (capital gains and losses)	1,851	4	61	61	1,908
Changes in fair values of derivatives hedging future cash flow	9	-48	21	21	78
Nuclear fund adjustment	-4	-3	23	23	22
Items affecting comparability	1,856	-47	106	105	2,009
Operating profit	2,333	477	1,508	1,712	3,364

*Comparative period information for 2013 presented in this interim statement has been restated due to the accounting change for Fortum Värme, see Note 2.

Condensed consolidated statement of comprehensive income

		Q1
	Q1	2013	2013	2013	Last twelve
EUR million	2014	restated	restated	old	months

Profit for the period	2,255	404	1,212	1,279	3,063

Other comprehensive income Items that may be reclassified to profit or loss in subsequent periods
Cash flow hedges
Fair value gains/losses in the period	57	-36	96	105	189
Transfers to income statement	-13	-1	-51	-51	-63
Transfers to inventory/fixed assets	-2	0	-8	-8	-10
Tax effect	-9	9	-6	-8	-24
Net investment hedges					0
Fair value gains/losses in the period	36	0	28	28	64
Tax effect	-7	0	-7	-7	-14
Available for sale financial assets					0
Fair value changes in the period	0	0	0	0	0
Exchange differences on translating foreign operations	-235	63	-478	-496	-776
Share of other comprehensive income of associates	1	-2	42	39	45
Other changes	0	0	0	0	0
	-172	33	-384	-398	-589
Items that will not be reclassified to profit or loss in subsequent periods
Actuarial gains/losses on defined benefit plans	0	1	44	58	43
Actuarial gains/losses on defined benefit plans in associates	0	34	9	2	-25
	0	35	53	60	18
Other comprehensive income for the period, net of tax	-172	68	-331	-338	-571
Total comprehensive income for the year	2,083	473	882	941	2,492

Total comprehensive income attributable to
Owners of the parent	2,083	469	881	881	2,495
Non-controlling interests	0	4	1	60	-3
	2,083	473	882	941	2,492

Condensed consolidated balance sheet

			March 31	Dec 31	Dec 31	Jan 1
		March 31	2013	2013	2013	2013
EUR million	Note	2014	restated	restated	old	restated
ASSETS
Non-current assets
Intangible assets	10	381	428	384	392	427
Property, plant and equipment	11		14,480	12,849	15,201	14,235
		12,536
Participations in associates and joint ventures	4, 12	2,374	2,504	2,341	1,905	2,373
Share in State Nuclear Waste Management Fund	15	750	684	744	744	678
Other non-current assets		67	69	77	75	68
Deferred tax assets		118	119	126	130	169
Derivative financial instruments	5	461	379	367	363	452
Long-term interest-bearing receivables	13	2,526	2,511	2,598	1,463	2,555
Total non-current assets		19,213	21,175	19,486	20,273	20,958
Current assets
Inventories		237	244	264	375	298
Derivative financial instruments	5	382	208	307	297	233
Trade and other receivables		852	1,054	869	1,048	1,044
Cash and cash equivalents	14	2,989	1,716	1,250	1,254	961
Assets held for sale	6	0	0	1,173	1,173	0
Total current assets		4,460	3,224	3,863	4,147	2,537

Total assets		23,673	24,398	23,348	24,420	23,495
EQUITY
Equity attributable to owners of the parent
Share capital		3,046	3,046	3,046	3,046	3,046
Share premium		73	73	73	73	73
Retained earnings			7,477	6,851	6,851	7,020
		8,874
Other equity components		116	-94	54	54	-99
Total		12,109	10,502	10,024	10,024	10,039
Non-controlling interests Total equity		97 12,207	111 10,613	101 10,124	638 10,662	108 10,147

LIABILITIES
Non-current liabilities
Interest-bearing liabilities	14	6,903	7,291	6,936	6,960	7,647
Derivative financial instruments	5	198	180	181	177	182
Deferred tax liabilities		1,332	1,517	1,338	1,648	1,561
Nuclear provisions	15	750	684	744	744	678
Other provisions	16	95	193	94	103	199
Pension obligations		49	121	50	65	120
Other non-current liabilities		148	461	148	151	467
Total non-current liabilities		9,475	10,446	9,492	9,848	10,854

Current liabilities
Interest-bearing liabilities	14	924	1,801	2,103	2,138	1,071
Derivative financial instruments	5	109	345	95	85	271
Trade and other payables		958	1,191	994	1,147	1,152
Liabilities related to assets held for sale	6	0	0	540	540	0
Total current liabilities		1,991	3,338	3,732	3,910	2,494
Total liabilities		11,466	13,784	13,224	13,758	13,348
Total equity and liabilities		23,673	24,398	23,348	24,420	23,495

Condensed consolidated statement of changes in total equity

	Share capital	Share premium		Retained earnings		Other equity components		Owners of the parent	Non controlling interests	Total equity
			Retained earnings and other funds	Translation of foreign operations	Cash flow hedges	Other OCI items	OCI items associated companies
EUR million Total equity 31 December 2013	3,046	73	7,500	-649	66	-51	38	10,024	101	10,124
Net profit for the period			2,251					2,251	4	2,255
Translation differences				-230	-1			-231	-4	-235
Other comprehensive income					33	29	1	63		63
Total comprehensive income for the period			2,251	-230	32	29	1	2,083	0	2,083
Other			2					2	-3	-1
Total equity 31 March 2014	3,046	73	9,753	-879	98	-22	40	12,109	97	12,207

Total equity 1 January 2013	3,046	73	7,193	-173	36	-118	-17	10,039	108	10,147
Net profit for the period			401					401	3	404
Translation differences				62		-2	2	62	1	63
Other comprehensive income					-28	1	32	6	0	6
Total comprehensive income for the period			401	62	-28	-1	34	469	4	473
Other			-6					-6	-1	-7
Total equity 31 March 2013	3,046	73	7,588	-111	8	-119	17	10,502	111	10,613

Total equity 31 December 2012, as
previously reported	3,046	73	7,193	-173	34	-133	0	10,040	603	10,643
Change in accounting policy (Note 2)					2	15	-17	-1	-495	-496
Total equity 1 January 2013	3,046	73	7,193	-173	36	-118	-17	10,039	108	10,147
Net profit for the period			1,204					1,204	8	1,212
Translation differences				-476	-1	2	4	-471	-7	-478
Other comprehensive income					31	65	51	148	0	148
Total comprehensive income for the period Cash dividend			1,204 -888	-476	30	67	55	881 -888	1	882 -888
Dividends to non-controlling interests									-3
Changes due to business combinations			1					0 1		-3 1
Other			-10					-10	-5	-15
Total equity 31 December 2013	3,046	73	7,500	-649	66	-51	38	10,024	101	10,124

Translation differences

Translation differences impacted equity attributable to owners of the parent company with EUR -231 million during Q1 2014 (Q1 2013: 62). Translation differences are mainly related to RUB amounting to EUR -230 million in Q1 2014 (Q1 2013 mainly related to RUB and SEK: 77).

Translation of financial information from subsidiaries in foreign currency is done using average rate for the income statement and end rate for the balance sheet. The exchange rate differences occurring from translation to EUR are booked to equity. For information regarding exchange rates used, see Note 7 Exchange rates.

Cash flow hedges

The impact on equity attributable to owners of the parent from fair valuation of cash flow hedges, EUR 32 million during Q1 2014 (Q1 2013: -28), mainly relates to cash flow hedges hedging electricity price for future transactions, where hedge accounting is applied. When electricity price is lower/higher than the hedging price, the impact on equity is positive/negative.

Cash dividends

A dividend for 2013 of EUR 1.10 per share, amounting to a total of EUR 977 million, was decided at the Annual General Meeting on 8 April 2014. These Financial statements do not reflect this dividend. The dividend was paid on 22 April 2014.

The dividend in respect of 2012 of EUR 1.00 per share, amounting to a total of EUR 888 million, was decided at the Annual General Meeting on 9 April 2013. The dividend was paid on 19 April 2013.

Condensed consolidated cash flow statement

		Q1			Last twelve
	Q1	2013	2013	2013	months
EUR million	2014	restated	restated	old	restated
Cash flow from operating activities
Net profit for the period	2,255	404	1,212	1,279	3,063
Adjustments:
Income tax expenses	86	86	186	220	186
Finance costs - net	64	65	289	318	288
Share of profit of associates and joint ventures	-72	-78	-178	-105	-172
Depreciation, amortisation and impairment charges	149	140	620	740	629
Operating profit before depreciations (EBITDA)	2,483	617	2,129	2,452	3,995
Non-cash flow items and divesting activities	-1,864	26	-262	-260	-2,152
Interest received	27	12	62	28	77
Interest paid	-128	-115	-371	-374	-384
Dividends received	1	2	74	50	73
Realised foreign exchange gains and losses and other financial items	76	-109	47	46	232
Taxes	-29	-31	-210	-229	-208
Funds from operations	567	402	1,469	1,713	1,634
Change in working capital	0	65	79	123	14
Total net cash from operating activities	566	467	1,548	1,836	1,647

Cash flow from investing activities
Capital expenditures	-162	-210	-1,004	-1,271	-956
Acquisitions of shares	-1	-1	-15	-15	-15
Proceeds from sales of fixed assets	2	2	66	66	66
Divestments of shares	2,425	13	122	122	2,534
Proceeds from the interest-bearing receivables relating to divestments	77	22	22	22	77
Shareholder loans to associated companies and joint ventures	46	107	-136	-136	-197
Change in other interest-bearing receivables	1	0	2	2	3
Total net cash used in investing activities	2,387	-67	-944	-1,210	1,510

Cash flow before financing activities	2,953	400	604	626	3,157

Cash flow from financing activities
Proceeds from long-term liabilities	47	379	781	790	449
Payments of long-term liabilities	-773	-3	-636	-642	-1,406
Change in short-term liabilities	-494	-22	438	438	-34
Dividends paid to the owners of the parent	0	0	-888	-888	-888
Other financing items	-1	-1	22	-2	22
Total net cash used in financing activities	-1,220	353	-284	-304	-1,857


Total net increase(+) / decrease(-) in cash and cash equivalents	1,734	752	320	322	1,302

Cash and cash equivalents at the beginning of the period	1,265	961	961	963	1,265
Foreign exchange differences in cash and cash equivalents	-10	3	-17	-16	-30
Cash and cash equivalents at the end of the period 1)	2,989	1,716	1,265	1,269	2,538

1) Including cash balances of EUR 15 million relating to assets held for sale as of 31 December 2013.

Non-cash flow items and divesting activities

Non-cash flow items and divesting activities mainly consist of capital gains EUR -1,851 million (Q1 2013: -4) and adjustments for unrealised fair value changes of derivatives EUR -11 million (Q1 2013: 47). The actual proceeds for divestments are shown under cash flow from investing activities.

Realised foreign exchange gains and losses and other financial items

Realised foreign exchange gains and losses and other financial items include foreign exchange gains and losses of EUR 74 million for Q1 2014 (Q1 2013: -108) related mainly to financing of Fortum's Swedish and Russian subsidiaries and the fact that the Group's main external financing currency is EUR. The foreign exchange gains and losses arise for rollover of foreign exchange contracts hedging the internal loans as major part of these forwards is entered into with short maturities i.e. less than twelve months.

Additional cash flow information

Change in working capital

		Q1
	Q1	2013	2013		Last twelve
EUR million	2014	restated	restated	2013 old	months
Change in interest-free receivables, decrease (+)/increase (-)	-49	-26	92	123	69
Change in inventories, decrease (+)/increase (-)	24	54	24	39	-6
Change in interest-free liabilities, decrease (-)/increase (+)	25	36	-37	-39	-48
Total	0	65	79	123	14

Capital expenditure in cash flow

		Q1
	Q1	2013	2013		Last twelve
EUR million	2014	restated	restated	2013 old	months
Capital expenditure	134	181	1,005	1,284	958
Change in not yet paid investments, decrease(+)/increase(-)	38	52	60	56	46
Capitalised borrowing costs	-10	-23	-60	-69	-47
Total	162	210	1,004	1,271	956

Capital expenditures for intangible assets and property, plant and equipment were in Q1 2014 EUR 134 million (Q1 2013: 181). Capital expenditure in cash flow in Q1 2014 EUR 162 million (Q1 2013: 210) is without not yet paid investments i.e. change in trade payables related to investments EUR -38 million (Q1 2013: -52) and capitalised borrowing costs EUR 10 million (Q1 2013: 23), which are presented in interest paid.

Acquisition of shares in cash flow

Acquisition of shares, net of cash acquired, amounted to EUR 1 million during Q1 2014 (Q1 2013: 1).

Divestment of shares in cash flow

		Q1
	Q1	2013	2013		Last twelve
EUR million	2014	restated	restated	2013 old	months
Proceeds from sales of subsidiaries, net of cash disposed	2,424	13	22	22	2,433
Proceeds from sales of associates	1	0	100	100	101
Proceeds from available for sale financial assets	0	0	0	0	0
Total	2,425	13	122	122	2,534

Gross divestment of shares totalled EUR 2,502 million in Q1 2014 (Q1 2013: 35) including interest-bearing debt in sold subsidiaries of EUR 77 million (Q1 2013: 22), see Note 6. Proceeds from divestments of shares totalled EUR 2,425 million in Q1 2014 (Q1 2013: 13) relating mostly to divestment of Finnish electricity distribution business.

Change in net debt

EUR million	Q1 2014	Q1 2013 restated	2013 restated	2013 old	Last twelve months

Net debt beginning of the period	7,793	7,757	7,757	7,814	7,376
Foreign exchange rate differences	-23	56	-106	-110	-185
EBITDA	2,483	617	2,129	2,452	3,995
Paid net financial costs, taxes and adjustments for non-cash and divestment items	-1,917	-215	-660	-739	-2,362
Change in working capital	0	65	79	123	14
Capital expenditures	-162	-210	-1,004	-1,271	-956
Acquisitions	-1	-1	-15	-15	-15
Divestments	2,427	15	188	188	2,600
Proceeds from the interest-bearing receivables relating to divestments	77	22	22	22	77
Shareholder loans to associated companies	46	107	-136	-136	-197
Change in other interest-bearing receivables	1	0	2	2	3
Dividends	0	0	-888	-888	-888
Other financing activities	-1	-1	22	-2	22
Net cash flow (- increase in net debt)	2,953	399	-261	-264	2,293
Fair value change of bonds, amortised cost valuation and other	21	-38	-119	-119	-60
Net debt end of the period	4,838	7,376	7,793	7,849	4,838

Key ratios

		March 31	Dec 31		Last
	March 31 2014	2013 restated	2013 restated	Dec 31 2013 old	twelve months
EBITDA, EUR million	2,483	617	2,129	2,452	3,995
Comparable EBITDA, EUR million	627	664	1,975	2,299	1,938
Earnings per share (basic), EUR	2.53	0.45	1.36	1.36	3.44
Capital employed, EUR million	20,033	19,705	19,183	19,780	20,033
Interest-bearing net debt, EUR million	4,838	7,376	7,793	7,849	4,838
Interest-bearing net debt without Värme financing, EUR million	3,765	6,275	6,658		3,765
Capital expenditure and gross investments in shares, EUR million	135	182	1,020	1,299	973
Capital expenditure, EUR million	134	181	1,005	1,284	958
Return on capital employed, % 1)	20.8	12.4	9.0	9.2	17.9
Return on shareholders' equity, % 1)	30.9	16.9	12.0	12.0	26.8
Net debt / EBITDA 1)	1.1	2.8	3.7	3.2	1.2
Comparable net debt / EBITDA 1)	1.9	2.8	3.9	3.4	2.5
Comparable net debt / EBITDA without Värme financing 1)	1.5	2.4	3.4		1.9
Interest coverage	45.6	9.3	6.7	6.8	14.9
Interest coverage including capitalised borrowing costs	38.1	6.4	5.3	5.3	12.3
Funds from operations/interest-bearing net debt, % 1)	42.3	26.2	18.8	21.8	33.8
Funds from operations/interest-bearing net debt without Värme financing, % 1)	54.4	30.8	22.1		43.4
Gearing, %	40	69	77	74
Equity per share, EUR	13.63	11.82	11.28	11.28
Equity-to-assets ratio, %	52	43	43	44
Number of employees	8,770	9,591	9,186	9,886
Average number of employees	9,054	9,606	9,532	10,246
Average number of shares, 1 000 shares	888,367	888,367	888,367	888,367
Diluted adjusted average number of shares, 1 000 shares	888,367	888,367	888,367	888,367
Number of registered shares, 1 000 shares	888,367	888,367	888,367	888,367

1) Quarterly figures are annualised except items affecting comparability.

For definitions, see Note 24.

Notes to the condensed consolidated interim financial statements

1. Basis of preparation

The condensed interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU. The condensed interim financial report should be read in conjunction with the consolidated financial statements for the year ended 31 December 2013.

All figures in the consolidated interim financial statements have been rounded and consequently the sum of individual figures may deviate from the sum presented. Key figures have been calculated using exact figures.

2. Accounting policies

The same accounting policies and presentation have been followed in these condensed interim financial statements as were applied in the preparation of the consolidated financial statements for the year ended 31 December 2013 except for the policies and presentation described below.

Adoption of new IFRS standards from 1 Jan 2014

Change in accounting for Fortum Värme

As disclosed in the consolidated financial statements for the year 2013 Fortum has applied the new IFRS 10 Consolidated financial statements and IFRS 11 Joint arrangements from 1 January 2014 onwards. IFRS 10 builds on the principle of identifying the concept of control as the determining factor whether an entity should be included within the consolidated financial statements of the parent company. The standard provides additional guidance to assist in the determination of control where this is difficult to assess. IFRS 11 replaces IAS 31 Interests in joint ventures. Joint control under IFRS 11 is defined as the contractual sharing of control of an arrangement, which exists only when the decisions about the relevant activities require unanimous consent of the parties sharing control.

The effect of applying the new standards to Fortum Group financial information relates to AB Fortum Värme samägt med Stockholm Stad (Fortum Värme), that is treated as a joint venture and thus consolidated with equity method from 1 January 2014 onwards. Fortum Värme is a district heating company producing heat and power with CHP plants in Stockholm area. Before the change the company was consolidated as a subsidiary with 50% minority interest.

In the restated income statement for 2013 the effect of Fortum Värme is included in the share of profits in associates and joint ventures amounting to EUR 73 million and in the restated balance sheet for 2013 the participation in Fortum Värme is included in the participations in associates and joint ventures. At the year-end Fortum Oyj and its subsidiaries had given loans to Fortum Värme which are presented as long-term interest-bearing receivables, approximately EUR 1.1 billion, in the restated balance sheet. There is a plan targeting to gradually refinance those shareholder loans with external financing by the end of 2015.

Restatement does not have any or only limited effect on Fortum's key ratios such as earnings per share, return on capital employed and return on shareholders' equity. The current financing arrangement effects the restated comparable net debt to EBITDA ratio negatively, increase from 3.4 to 3.9 at the end of 2013, due to Fortum's definition of net debt where interest-bearing receivables are not deducted from net debt. The effect will decrease as Fortum's shareholder loans are replaced with external financing. Comparable net debt to EBITDA ratio at December 2013 would have been 3.4, if the interest-bearing receivables from Fortum Värme were deducted from net debt.

Restated quarterly information for 2013 (including effects for primary statements and segment information) is presented in the attachement to this interim report. The following tables, included also in the consolidated financial statements for the year ended 31 December 2013, summarize the impact of restatement to income statement, balance sheet and key ratios.

Impact on income statement for 2013

	Fortum Group with	Fortum Group restated Värme as
EUR million	Värme as subsidiary	joint venture	Change
Sales	6,056	5,309	-747
Other income	94	93	-1
Materials and services	-2,533	-2,270	263
Employee benefit costs	-529	-460	69
Depreciation, amortisation and impairment charges	-740	-621	119
Other expenses	-741	-648	93
Comparable operating profit	1,607	1,403	-204
Items affecting comparability	105	106	1
Operating profit	1,712	1,508	-204
Share of profits in associates and joint ventures	105	178	73
Finance costs - net	-318	-289	29
Profit before income taxes	1,499	1,398	-101
Income taxes	-220	-186	34
Profit for the period	1,279	1,212	-67
Non-controlling interests	-75	-8	67
Net profit for the period, owners of the parent	1,204	1,204	0
Earnings per share, EUR	1.36	1.36	0

Impact on balance sheet as of 31 December 2013

		Fortum
		Group
	Fortum Group with	restated Värme as
	Värme as	joint
EUR million	subsidiary	venture	Change
ASSETS
Intangible assets	392	384	-8
Property, plant and equipement	15,201	12,849	-2,352
Shares in associated companies and joint ventures	1,905	2,341	436
Long-term interest-bearing receivables	1,463	2,598	1,135
Other non-current assets	1,312	1,314	2
Total non-current assets	20,273	19,486	-787
Inventories, total	375	264	-111
Trade and other receivables	2,518	2,349	-169
Liquid funds	1,254	1,250	-4
Total current assets	4,147	3,863	-284
Total assets	24,420	23,348	-1,072

EQUITY AND LIABILITIES
Share capital	3,046	3,046	0
Other equity	6,978	6,978	0
Total	10,024	10,024	0
Non-controlling interests	638	101	-537
Total equity	10,662	10,124	-538
Interest-bearing liabilities	9,098	9,039	-59
Deferred tax liabilities	1,648	1,338	-310
Other interest-free liabilities	3,012	2,847	-165
Total liabilities	13,758	13,224	-534
Total liabilities and equity	24,420	23,348	-1,072

Impact on key ratios for 2013

		Fortum Group
	Fortum Group with Värme as	restated Värme as joint
EUR million	subsidiary	venture	Change
Comparable EBITDA, EUR million	2,299	1,975	-324
Earnings per share (basic), EUR	1.36	1.36	0.00

Capital expenditure, EUR million	1,284	1,005	-279

Capital employed, EUR million	19,780	19,183	-597
Interest-bearing net debt, EUR million	7,849	7,793	-56
Interest-bearing net debt without Värme financing, EUR million	7,849	6,658	-1,191

Return on capital employed, %	9.2	9.0	-0.2
Return on shareholders' equity, %	12.0	12.0	0.0
Comparable net debt / EBITDA	3.4	3.9	0.5
Comparable net debt / EBITDA without Värme financing	3.4	3.4	0.0

3. Critical accounting estimates and judgements

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2013.

4. Segment information

Fortum renewed its business structure as of 1 March 2014. The reorganisation lead to a change in Fortum's external financial reporting structure as previously separately reported segments Heat and Electricity Sales are now combined into one segment: Heat, Electricity Sales and Solutions. Reorganisation had also some minor changes to the composition of the segments mainly due to the transfer of certain centralised functions to the business areas. Fortum reports its 2014 first quarter financial results according to the new structure. The reportable segments under IFRS have been renamed correspondingly.

The four reporting segments and their business divisions are as follows:

Power and Technology consists of Fortum's hydro, nuclear and thermal power generation, Power solutions with expert services, portfolio management and trading as well as technology and R&D functions. The segment incorporates two divisions Hydro power and technology and Nuclear and thermal power.
Heat, Electricity Sales and Solutions comprises of Fortum's combined heat and power (CHP) production, district heating activities and business to business heating solutions, solar business, electricity sales and related customer offering and corporate sustainability. - Russia comprises of Fortum's activities in Russia.
Distribution comprises of Fortum's electricity distribution activities.

Please see the attachment to this interim report for the quarterly segment information 2013 revised based on the new business structure.

Sales
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power sales excluding indirect taxes	843	972	3,284	3,155
Heating sales	289	324	828	793
Network transmissions	287	332	1,024	979
Other sales	54	26	173	201
Total	1,473	1,654	5,309	5,128

Sales by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology1)	586	665	2,252	2,173
- of which internal	39	22	69	86
Heat, Electricity Sales and Solutions1)	446	531	1,516	1,431
- of which internal	18	31	87	74
Russia	333	344	1,119	1,108
- of which internal	0	0	0	0
Distribution	300	339	1,064	1,025
- of which internal	4	4	19	19
Other 1)	14	15	63	62
- of which internal	12	12	54	54
Netting of Nord Pool transactions 2)	-133	-171	-478	-440
Eliminations	-72	-70	-228	-230
Total	1,473	1,654	5,309	5,128

1) Sales, both internal and external, includes effects from realised hedging contracts. Effect on sales can be negative or positive depending on the average contract price and realised spot price.

2) Sales and purchases with Nord Pool Spot is netted on Group level on an hourly basis and posted either as revenue or cost depending on if Fortum is a net seller or net buyer during any particular hour.

Comparable operating profit by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology	251	303	859	807
Heat, Electricity Sales and Solutions	48	57	109	100
Russia	73	41	156	188
Distribution	119	137	332	314
Other	-14	-14	-54	-54
Total	477	524	1,403	1,356

Operating profit by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology	262	263	922	921
Heat, Electricity Sales and Solutions	45	51	134	128
Russia	73	40	156	189
Distribution	1,968	136	349	2,181
Other	-14	-14	-53	-53
Total	2,333	477	1,508	3,364

Non-recurring items by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology	1	5	25	21
Heat, Electricity Sales and Solutions	1	0	18	19
Russia	0	0	0	0
Distribution	1,850	0	17	1,867
Other	0	0	1	1
Total	1,851	4	61	1,908

Non-recurring items in Distribution segment in Q1 include a gain of approximately EUR 1.85 billion from the sale of Finnish electricity distribution business.

January-March 2014

Other items affecting comparability by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology 1)	10	-45	38	93
Heat, Electricity Sales and Solutions	-4	-6	7	9
Russia	0	0	0	0
Distribution	-1	-1	0	0
Other	0	1	1	0
Total	5	-51	45	101
1) Including effects from the accounting of Fortum's part of the
Finnish State Nuclear Waste Management Fund with (EUR
million):	-4	-3	23	22

Other items affecting comparability mainly include effects from financial derivatives hedging future cash-flows where hedge accounting is not applied according to IAS 39. Other segment includes mainly the effect arising from changes in hedge accounting status on group level. In Power and Technology segment there are also effects from the accounting of Fortum's part of the Finnish State Nuclear Waste Management Fund where the asset in the balance sheet cannot exceed the related liabilities according to IFRIC interpretation 5.

Comparable EBITDA by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology	282	334	1,007	955
Heat, Electricity Sales and Solutions	74	81	211	204
Russia	113	71	258	300
Distribution	171	191	548	528
Other	-13	-13	-49	-49
Total	627	664	1,975	1,938

EBITDA is calculated by adding back depreciation, amortisation and impairment charges to operating profit. Comparable EBITDA does not include items affecting comparability and net release of CSA provision.

Depreciation, amortisation and impairment charges by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology 1)	31	31	148	148
Heat, Electricity Sales and Solutions	25	23	102	104
Russia	40	31	150	159
Distribution	52	54	216	214
Other	1	1	5	5
Total	150	140	621	631

1) Including EUR 20 million impairment loss relating to Inkoo power plant in 2013.

Share of profit/loss in associates and joint ventures by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology 1), 2)	-10	-11	4	5
Heat, Electricity Sales and Solutions	57	58	91	90
Russia	14	19	46	41
Distribution	3	3	4	4
Other	9	10	32	31
Total	72	78	178	172
1) Including effects from the accounting of Fortum's associates

part of Finnish and Swedish Nuclear Waste Management Funds

with (EUR million): -2 -2 -6 -6

2) The main part of the associated companies in Power and Technology are power production companies from which Fortum purchases produced electricity at production costs including interest costs, production taxes and income taxes.

Participation in associates and joint ventures by segment
	March 31	March 31	Dec 31
EUR million	2014	2013	2013
Power and Technology	882	913	896
Heat, Electricity Sales and Solutions	532	620	592
Russia	444	502	463
Distribution	54	97	52
Other	463	371	339
Total	2,374	2,504	2,341

See Note 12 for information on participation in associates and joint ventures and Note 6 for information on associated company divestments.

Capital expenditure by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology	35	26	179	188
Heat, Electricity Sales and Solutions	13	33	123	103
Russia	58	71	435	422
Distribution	25	49	255	231
Other	3	1	12	14
Total	134	181	1,005	958

Of which capitalised borrowing costs	10	23	60	47

Gross investments in shares by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology	0	0	2	2
Heat, Electricity Sales and Solutions	0	0	11	11
Russia	1	0	0	1
Distribution	0	0	0	0
Other	0	0	2	2
Total	1	1	15	15

Gross divestments of shares by segment
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power and Technology	1	35	79	45
Heat, Electricity Sales and Solutions	0	0	11	11
Russia	0	0	0	0
Distribution	2,501	0	52	2,553
Other	0	0	0	0
Total	2,502	35	142	2,609

See Note 6 and additional cash flow information for more information about gross divestment in shares.

Net assets by segment
	March 31	March 31	Dec 31
EUR million	2014	2013	2013
Power and Technology	6,276	6,421	6,355
Heat, Electricity Sales and Solutions	2,365	2,408	2,295
Russia	3,619	3,998	3,846
Distribution	2,872	3,941	3,745
Other	374	115	295
Total	15,505	16,882	16,537

Comparable return on net assets by segment
	Last twelve	Dec 31
%	months	2013
Power and Technology	13.0	13.8
Heat, Electricity Sales and Solutions	8.2	8.7
Russia	6.0	5.2
Distribution	8.8	8.8
Other	-30.2	-6.9

Return on net assets by segment
	Last twelve	Dec 31
%	months	2013
Power and Technology	14.6	14.5
Heat, Electricity Sales and Solutions	9.4	9.7
Russia	6.0	5.2
Distribution1)	60.5	9.3
Other	-7.6	-8.5

1) LTM figure impacted by capital gain (see Note 6).

Return on net assets is calculated by dividing the sum of operating profit and share of profit of associated companies and joint ventures with average net assets. Average net assets are calculated using the opening balance and end of each quarter values.

Assets by segments
	March 31	March 31	Dec 31
EUR million	2014	2013	2013
Power and Technology	7,300	7,508	7,366
Heat, Electricity Sales and Solutions	2,962	3,017	2,860
Russia	3,893	4,450	4,150
Distribution	3,012	4,485	4,271
Other	485	475	437
Eliminations	-244	-348	-293
Assets included in net assets	17,407	19,587	18,791
Interest-bearing receivables	2,531	2,506	2,477
Deferred taxes	118	119	126
Other assets 1)	628	470	704
Cash and cash equivalents	2,989	1,716	1,250
Total assets	23,673	24,398	23,348

1)Other assets 31 December 2013 includes cash, EUR 15 million, included in assets held for sale.

Liabilities by segments
	March 31	March 31	Dec 31
EUR million	2014	2013	2013
Power and Technology	1,024	1,088	1,010
Heat, Electricity Sales and Solutions	597	609	565
Russia	275	452	304
Distribution	140	544	526
Other	111	360	142
Eliminations	-244	-348	-293
Liabilities included in net assets	1,902	2,705	2,254
Deferred tax liabilities	1,332	1,517	1,338
Other liabilities	406	470	573
Total liabilities included in capital employed	3,640	4,691	4,166
Interest-bearing liabilities1)	7,827	9,092	9,058
Total equity	12,207	10,613	10,124
Total equity and liabilities	23,673	24,398	23,348

1)Interest-bearing liabilities 31 December 2013 includes interest-bearing liabilities, EUR 20 million, included in Liabilities related to assets held for sale.

Other assets and Other liabilities not included in segments' Net assets consists mainly of income tax receivables and liabilities, accrued interest expenses, derivative receivables and liabilities qualifying as hedges and receivables and liabilities for interest rate derivatives.

January-March 2014

Number of employees
	March 31	March 31	Dec 31
	2014	2013	2013
Power and Technology	1,672	1,899	1,723
Heat, Electricity Sales and Solutions	1,960	2,086	1,968
Russia	4,169	4,284	4,162
Distribution	466	765	805
Other	503	557	528
Total	8,770	9,591	9,186

Average number of employees
	Q1	Q1
	2014	2013	2013
Power and Technology	1,695	1,922	1,900
Heat, Electricity Sales and Solutions	1,952	2,095	2,051
Russia	4,165	4,268	4,245
Distribution	719	761	786
Other	524	560	550
Total	9,054	9,606	9,532

Average number of employees is based on a monthly average for the whole period in question.

5. Financial risk management

The Group has not made any significant changes in policies regarding risk management during the period. Aspects of the Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements for the year ended 31 December 2013.

Fair value hierarchy information

Financial instruments that are measured in the balance sheet at fair value are presented according to following fair value measurement hierarchy:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3: inputs for the asset or liability that is not based on observable market data (unobservable inputs).

See also accounting policies in the consolidated financial statements 2013, in Note 17 Financial assets and liabilities by fair value hierarchy

Financial assets

		Level 1			Level 2		Level 3			Netting 2)			Total
EUR million	Mar 31 2014	Mar 31 2013	Dec 31 2013	Mar 31 2014	Mar 31 2013	Dec 31 2013	Mar 31 2014	Mar 31 2013	Dec 31 2013	Mar 31 2014	Mar 31 2013	Dec 31 2013	Mar 31 2014	Mar 31 2013	Dec 31 2013
In non-current assets
Available for sale financial assets 1)	1	1	1				29	30	30				30	31	31
Derivative financial instruments
Electricity derivatives
Hedge accounting				64	46	54				-12	-18	-12	52	28	42
Non-hedge accounting y				110	54	71				-44	-23	-28	66	32	43
derivatives
Hedge accounting				165	169	94							165	169	94
Non-hedge accounting				171	129	186							171	129	186
Oil and other futures and forward contracts
Hedge accounting													0	0	0
Non-hedge accounting	7	35	3	1	1						-14		8	21	3
Total in non-current assets	8	36	4	511	399	405	29	30	30	-56	-55	-40	492	410	399
In current assets
Derivative financial instruments
Electricity derivatives
Hedge accounting				165	46	127				-25	-32	-23	140	14	104
Non-hedge accounting y	2	17	2	278	146	250				-177	-103	-164	103	60	88
derivatives
Hedge accounting				6	8	5							6	8	5
Non-hedge accounting				72	43	80							72	43	80
Oil and other futures and forward contracts
Hedge accounting		3	1							0		-1	0	3	0
Non-hedge accounting	64	235	59			2				-2	-154	-32	62	81	29
Total in current assets	66	255	62	521	243	464	0	0	0	-204	-289	-220	382	208	307
Total	74	291		66 1,032	642	869	29	30	30	-260	-344	-260	874	618	706

Financial liabilities

		Level 1			Level 2	Level 3			Netting 2)
	Mar 31	Mar 31	Dec 31	Mar 31	Mar 31	Dec 31	Mar 31	Mar 31	Dec 31	Mar 31	Mar 31	Dec 31	Mar 31	Mar 31	Dec 31
EUR million	2014	2013	2013	2014	2013	2013	2014	2013	2013	2014	2013	2013	2014	2013	2013
In non-current liabilities
Interest-bearing liabilities 3)					1,196 1,766 1,299									1,196 1,766 1,299
Derivative financial instruments
Electricity derivatives
Hedge accounting				20	24	19				-12	-18	-12	8	6	7
Non-hedge accounting		1		97	33	58				-44	-23	-28	53	11	30
Interest rate and currency derivatives
Hedge accounting				69	60	72							69	60	72
Non-hedge accounting				63	98	71							63	98	71
Oil and other futures and forward contracts
Non-hedge accounting	5	19	2								-14		5	5	2
Total in non-current liabilities	5	20		2 1,445 1,981 1,519			0	0	0	-56	-55		-40 1,394 1,946 1,480
In current liabilities
Derivative financial instruments
Electricity derivatives
Hedge accounting				25	40	23				-25	-32	-23	0	8	0
Non-hedge accounting	3	15	3	208	109	192				-177	-103	-164	34	21	31
Interest rate and currency derivatives
Hedge accounting				6	5	5							6	5	5
Non-hedge accounting				27	228	48							27	228	48
Oil and other futures and forward contracts
Hedge accounting		5	2									-1	0	5	1
Non-hedge accounting	45	231	41		1					-2	-154	-32	43	78	10
Total in current liabilties	48	251	46	266	383	268	0	0	0	-204	-289	-220	109	345	95
Total	53	271		48 1,711 2,364 1,787			0	0	0	-260	-344		-260 1,503 2,291 1,575

1) Available for sale financial assets, i.e. shares which are not classified as associated companies or joint ventures, consists mainly of shares in unlisted companies of EUR 30 million (Dec 31 2013: 30), for which the fair value cannot be reliably determined. These assets are measured at cost less possible impairment. Available for sale financial assets include listed shares at fair value of EUR 1 million (Dec 31 2013: 1). The cumulative fair value change booked in Fortum's equity was EUR -3 million (Dec 31 2013: -3).

2) Receivables and liabilities against electricity, oil and other commodity exchanges arising from standard derivative contracts with same delivery period are netted.

3) Fair valued part of bonds when hedge accounting is applied (fair value hedge).

Net fair value amount of interest rate and currency derivatives is EUR 249 million, assets EUR 414 million and liabilities EUR 165 million. Fortum has cash collaterals based on Credit Support Annex agreements with some counterparties. At the end of March 2014 Fortum had received EUR 165 million from Credit Support Annex agreements. The received cash has been booked as short term liability.

Regarding the relevant interest-bearing liabilities, see Note 14 Interest-bearing liabilities and Note 17 Pledged assets.

6. Acquisitions, disposals and assets held for sale

Acquisitions

There were no material acquisitions during Q1 2014 nor during 2013.

Disposals

Disposals for Q1 2014

In January 2014, Fortum agreed to sell its Tohkoja wind power project located in Kalajoki, in western Finland, to wpd europe GmbH, part of the international wpd group. The transaction will be implemented in phases and is expected to be completed during the second quarter of 2014. The transaction will have a minor positive impact on Power and Technology segment's results.

In January 2014 Fortum agreed to sell its 30%-stake in the Swedish power company Karlshamns Kraft AB to the company's majority owner E.ON. The sale has a minor impact on Power and Technology segment's first quarter 2014 results.

In December 2013 Fortum announced that it had agreed to sell its Finnish electricity distribution business to Suomi Power Networks Oy, owned by a consortium of Finnish and international investors. The transaction has all the necessary regulatory approvals and the customary closing conditions have been met.

The total consideration is EUR 2.55 billion on a debt- and cash-free basis. Fortum booked a one-time sales gain of EUR 1.85 billion corresponding to EUR 2.08 per share. The sales gain was reported in Fortum's Distribution segment in the first quarter of 2014.

Disposals for 2013

During 2013 Fortum divested small hydropower plants in Sweden and a minor gain was recognised in Power and Technology segment.

In June 2013, Fortum agreed to sell its 47.9% ownership in the Swedish energy company Härjeåns Kraft AB to the Finnish energy company Oy Herrfors Ab, a subsidiary of Katternö Group. The sales price was SEK 445 million (approximately EUR 51 million). The transaction was completed in July and a capital gain of EUR 17 million was booked to Distribution segment's third quarter results.

In July 2013 Fortum completed the divestment of its 33% holding in Infratek ASA to a fund managed by Triton. The sales price was NOK 295 million (approximately EUR 38 million). A capital gain of EUR 11 million was booked in Power and Technology segment's third quarter results.

During fourth quarter there were several divestments that had a minor effect to Fortum's Heat, Electricity Sales and Solutions segment's results. In November 2013 Fortum sold its 50% ownership in the Finnish district heating company Riihimäen Kaukolämpö Oy to the City of Riihimäki (40%) and to Riihimäen Kaukolämpö Oy (10%).

In December 2013 Fortum sold its Kauttua combined heat and power (CHP) plant in Eura, Finland to the Finnish energy company Adven Oy. Also in December 2013 Fortum sold its CHP plant as well as its natural gas and district heating network in the town of Nokia to Leppäkosken Sähkö Oy. Furthermore Fortum's Uimaharju CHP plant ownership was transferred to Stora Enso on 31 December 2013 according to an earlier agreement signed in 1990.

Gross divestments of shares

EUR million	Q1 2014	Q1 2013	2013	Last twelve months
Proceeds settled in cash	2,424	13	22	2,433
Interest bearing debt in sold subsidiaries	77	22	22	77
Change in receivables relating to divestments	0	0	-2	-2
Gross divestments of shares in subsidiaries	2,501	35	42	2,508
Gross divestment of associates	1	0	100	101
Gross divestment of available for sale financial assets	0	0	0	0
Total	2,502	35	142	2,609

Assets held for sale at the balance sheet date

As of 31 March 2014 there were no Assets held for sale. The assets and liabilities relating to Finnish distribution business were classified as assets held for sale in the balance sheet as of 31 December 2013. The sale was completed in March 2014.

January-March 2014

Assets held for sale 1)

EUR million	March 31, 2014	March 31, 2013	Dec 31 2013
Intangible assets and property, plant and equipment	0	0	1,116
Other assets	0	0	42
Cash and cash equivalents	0	0	15
Total	0	0	1,173

Liabilities related to assets held for sale 1)

EUR million	March 31, 2014	March 31, 2013	Dec 31 2013
Interest-bearing liabilities	0	0	20
Deferred tax liabilities	0	0	141
Connection fees	0	0	306
Other liabilities	0	0	73
Total	0	0	540

1) Amounts are presented net of internal balances with other Fortum subsidiaries, such as internal financing amounting to EUR 61 million as at 31 Dec 2013.

Announced disposals after balance sheet date

In April 2014 Fortum agreed to sell its Norwegian electricity distribution to the Hafslund Group, listed on the Oslo Stock Exchange, and its heat businesses in Norway to iCON Infrastructure Partners II, L.P. fund. In addition, Fortum has agreed to sell its shareholding in Fredrikstad Energi AS (49%) and Fredrikstad Energi Nett AS (35%) to the Hafslund Group.

The total consideration is approximately EUR 340 million on a debt- and cash-free basis. Fortum expects to complete the divestments during the second quarter of 2014 after the necessary regulatory approvals as well as customary closing conditions have been met. Fortum expects to book a one-time sales gain totalling approximately EUR 70 million and corresponding to approximately EUR 0.08 per share in the second quarter 2014 results. The sales gain will be booked in Fortum's Distribution segment and Heat and Electricity Sales and Solutions segment.

Impact on Distribution segment information

The Finnish distribution operations are included in the segment information presented in Note 4 until the closing of the transaction in March 2014. The Norwegian distribution operations continue to be included in segment information until closing of the transaction. The following tables present the impact of the divestments to the segment information as consolidated to Fortum Group. See additional quarterly information for 2013 in the Quarterly information excel publised with this interim report.

EUR million	Finnish and Norwegian distribution operations Q1 2014	Swedish distribution operations Q1 2014	Total distribution operations Q1 2014	Finnish and Norwegian distribution operations 2013	Swedish distribution operations 2013	Total distribution operations 2013
Comparable EBITDA	50	122	171	165	384	548
Comparable operating profit	31	88	119	87	246	332
Operating profit	1,881	87	1,968	86	263	349
Depreciation and amortisation1)	18	34	52	78	138	216
Capital expenditure	8	17	25	134	121	255
Number of employees (at year end)	94	372	466	431	374	805
Volume of distributed electricity, TWh	4.2	8.0	12.2	14.6	27.8	42.4
Number of electricity distribution customers, thousands	103	903	1,006	744	903	1,648

1)Depreciations for the Finnish distribution operations have continued during the assets held for sale period.

7. Exchange rates

The balance sheet date rate is based on exchange rate published by the European Central Bank for the closing date. The average exchange rate is calculated as an average of each months ending rate from the European Central Bank during the year and ending rate previous year. Key exchange rates for Fortum Group applied in the accounts:

Average rate	Jan-March 2014	Jan-Dec 2013	Jan-Sept 2013	Jan-June 2013	Jan-March 2013
Sweden (SEK)	8.8777	8.6624	8.6040	8.5599	8.5043
Norway (NOK)	8.3510	7.8266	7.6958	7.5555	7.4456
Poland (PLN)	4.1857	4.2027	4.2097	4.1954	4.1501
Russia (RUB)	47.9490	42.4441	41.7516	40.8468	40.2378
Balance sheet date rate	March 31 2013	Dec 31 2013	Sept 30 2013	June 30 2013	March 31 2013

Sweden (SEK)	8.9483	8.8591	8.6575	8.7773	8.3553
Norway (NOK)	8.2550	8.3630	8.1140	7.8845	7.5120
Poland (PLN)	4.1719	4.1543	4.2288	4.3376	4.1804
Russia (RUB)	48.7800	45.3246	43.8240	42.8450	39.7617

8. Income tax expense

Tax rate according to the income statement for Q1 2014 was 3.7% (Q1 2013: 17.6%). The main impact on the tax rate in Q1 2014 related to tax exempt capital gain in Finland. Tax rate for Q1 2014, excluding the impact of share of profits of associated companies and joint ventures, non-taxable capital gains was 20.6% (Q1 2013: 21.3%). Also the tax rate used in the income statement is always impacted by the fact that the share of profits of associates and joint ventures is recorded based on Fortum's share of profits after tax.

In Finland, the corporate tax rate was decreased to 20.0% from 24.5% starting 1 January 2014. In Q4 2013, the one-time positive effect from the tax rate change was approximately EUR 79 million.

9. Dividend per share

A dividend in respect of 2013 of EUR 1.10 per share, amounting to a total dividend of EUR 977 million, was decided at the Annual General Meeting on 8 April 2014. These Financial statements do not reflect this dividend. The dividend was paid on 22 April 2014.

A dividend in respect of 2012 of EUR 1.00 per share, amounting to a total dividend of EUR 888 million, was decided at the Annual General Meeting on 9 April 2013. The dividend was paid on 19 April 2013.

10. Changes in intangible assets

EUR million	March 31 2014	March 31 2013	Dec 31 2013
Opening balance	384	427	427
Capital expenditures	12	3	46
Changes of emission rights	1	-2	7
Depreciation, amortisation and impairment	-7	-5	-26
Sale of subsidiary companies	0	0	-3
Reclassifications	8	-1	2
Moved to assets held for sale1)	0	0	-35
Translation differences and other adjustments	-17	5	-34
Closing balance	381	428	384

Goodwill included in closing balance	256	313	275
Change in goodwill during the period due to translation differences	-19	4	-34

11. Changes in property, plant and equipment

EUR million	March 31 2014	March 31 2013	Dec 31 2013
Opening balance	12,849	14,235	14,235
Increase through acquisition of subsidiary companies	0	0	10
Capital expenditures	122	177	959
Changes of nuclear asset retirement cost	-1	0	45
Disposals	0	0	-47
Depreciation, amortisation and impairment	-143	-135	-594
Sale of subsidiary companies	0	-28	-27
Reclassifications	-8	1	-2
Moved to assets held for sale1)	0	0	-1,081
Translation differences and other adjustments	-284	231	-649
Closing balance	12,536	14,480	12,849

1) Finnish Distribution business which was classified as assets held for sale at the end of 2013.

12. Changes in participations in associates and joint ventures

EUR million	March 31 2014	March 31 2013	Dec 31 2013
Opening balance	2,341	2,373	2,373
Share of profits of associates and joint ventures	72	78	178
Dividend income received	-1	-2	-73
OCI items associated companies	1	35	55
Translation differences and other adjustments	-39	19	-128
Divestments	0	0	-65
Closing balance	2,374	2,504	2,341

Share of profits from associates and joint ventures

Fortum's share of profit from associates and joint ventures in Q1 2014 was EUR 72 million (2013: 78), of which Fortum Värme represented EUR 44 million (Q1 2013: 49), see Note 2, Hafslund EUR 8 million (Q1 2013: 9), TGC-1 EUR 14 million (Q1 2013: 19) and Gasum EUR 7 million (Q1 2013: 5).

According to Fortum Group accounting policies the share of profits from Hafslund and TGC-1 is included in Fortum Group figures based on the previous quarter information since updated interim information is not normally available.

Divestments

During the first quarter 2014 Power and Technology segment divested Fortum's 30% shareholding in Karlshamn Kraft AB (see Note 6).

13. Interest-bearing receivables

	Carrying amount	Fair value	Carrying amount	Fair value
EUR million	March 31 2014	March 31 2014	Dec 31 2013	Dec 31 2013
Long-term loan receivables	2,529	2,635	2,600	2,702
Leasing receivables	2	4	2	4
Total long-term interest-bearing receivables 1)	2,531	2,639	2,602	2,706
Other current receivables	0	0	1	1
Total	2,531	2,639	2,603	2,707

1) Carrying amount including current portion of long-term receivables EUR 5 million (Dec 31 2013: 5).

Long-term loan receivables include receivables from associated companies and joint ventures EUR 2,517 million (Dec 31 2013 EUR EUR 2,587). These receivables include EUR 1,298 million (Dec 31 2013: 1,312) from Swedish nuclear companies, OKG AB and Forsmarks Kraftgrupp AB, which are mainly funded with shareholder loans, pro rata each shareholder's ownership. Long-term loan receivables include also receivables from Fortum Värme, EUR 1,072 (Dec 31 2013: 1,135) and Teollisuuden Voima Oyj (TVO), EUR 85 million (Dec 31 2013: 85).

TVO is building Olkiluoto 3, the nuclear power plant , which is funded through external loans, share issues and shareholder loans according to shareholders' agreement between the owners of TVO. At end of March 2014 Fortum has EUR 70 million outstanding receivables regarding Olkiluoto 3 and is additionally committed to provide at maximum EUR 125 million. A subordinated shareholder loan EUR 15 million has also been given to fund planning of Olkiluoto 4, to which Fortum has additionally committed to provide EUR 57 million.

14. Interest-bearing liabilities and cash and cash equivalents

Interest-bearing debt	Carrying amount	Fair value	Carrying amount	Fair value
EUR million	March 31 2014	March 31 2014	Dec 31 2013	Dec 31 2013
Bonds	5,092	5,431	5,839	6,232
Loans from financial institutions	843	904	854	912
Other long term interest-bearing debt 1)	1,518	1,581	1,494	1,515
Total long term interest-bearing debt 2)	7,453	7,916	8,187	8,659
Commercial paper	208	209	718	719
Other short term interest-bearing debt	166	166	154	154
Total short term interest-bearing debt	374	375	872	873
Total 3)	7,827	8,291	9,059	9,532

1) Including loan from Finnish State Nuclear Waste Fund and Teollisuuden Voima EUR 1,040 million (Dec 31 2013: 995), loans from Fortum´s Finnish pension institutions EUR 178 million (Dec 31 2013: 198) and other loans EUR 300 million (Dec 31 2013: 301).

2) Including current portion of long-term debt.

3) Including interest-bearing liabilities, EUR 20 million, in Liabilities related to assets held for sale at 31 December 2013.

In March Fortum increased the amount of re-borrowing from the Finnish nuclear waste fund and Teollisuuden Voima by EUR 45 million to EUR 1,040 million. During the first quarter Fortum repaid a maturing EUR 750 million bond.

At the end of March 2014, the amount of short term financing was EUR 374 million (Dec 31 2013: 872). The interest-bearing debt decreased during the first quarter by EUR 1,232 million from EUR 9,059 million to EUR 7,827 million.

Total cash and cash equivalents increased by EUR 1,724 million from EUR 1,265 million to EUR 2,989 million during the quarter. At the end of the quarter the cash and cash equivalents held by OAO Fortum amounted to EUR 198 (Dec 31 2013: 113) million.

15. Nuclear related assets and liabilities

EUR million	March 31 2014	March 31 2013	Dec 31 2013
Carrying values in the balance sheet
Nuclear provisions	750	684	744
Share in the State Nuclear Waste Management Fund	750	684	744

Legal liability and actual share of the State Nuclear Waste Management Fund
Liability for nuclear waste management according to the Nuclear Energy Act	1,059	996	1,059
Funding obligation target	1,039	996	1,039
Fortum's share of the State Nuclear Waste Management Fund	1,039	956	1,005

Nuclear related provisions

According to Nuclear Energy Act Fortum submits the proposal for the nuclear waste management liability regarding the Loviisa nuclear power plant to the Ministry of Employement and Economy by end of June every third year. The liability is based on nuclear waste management plan which is also updated every third year. The cost estimates related to the new nuclear waste management plan were completed in Q2 2013. The overall future cost estimate increased mainly due to higher costs for interim and final storage of spent fuel and decommissioning of the power plant. The liability was decided by the Ministry of Employment and Economy at the end of year 2013.

The legal liability on 31 March 2014, decided by the the Ministry of Employment and Economy in December 2013, was EUR 1,059 million. The provision in the balance sheet related to nuclear waste management is based on cash flows for future costs which uses the same basis as the legal liability. The carrying value of the nuclear provision, calculated according to IAS 37, increased by EUR 6 million compared to 31 December 2013, totalling EUR 750 million on 31 March 2014. The main reason for the difference between the carrying value of the provision and the legal liability is the fact that the legal liability is not discounted to net present value.

Fortum's share in the State Nuclear Waste Management Fund

Fortum contributes funds to the Finnish State Nuclear Waste Management Fund based on the yearly funding obligation target decided by the governmental authorities in December in connection with the decision of size of the legal liability. The current funding obligation target decided in December 2013 is EUR 1,039 million. Fortum has paid the fee of EUR 34 million in March 2014 whereafter Fortum's share of the State Nuclear Waste Management Fund is fully funded. According to Nuclear Energy Act, Fortum is obligated to contribute fund in full to the State Nuclear Waste Management Fund to cover legal liability. Based on the law, Fortum applied for periodising of the payments to the fund over three years, due to proposed increase in the legal liability. The application was approved by the Ministry of the Employment and the Economy in December 2013. The Fund is from an IFRS perspective overfunded with EUR 289 million, since Fortum's share of the Fund on 31 March 2014 was EUR 1,039 million and the carrying value in the balance sheet was EUR 750 million.

Effects to comparable operating profit and operating profit

Operating profit in Power and Technology segment is affected by the accounting principle for Fortum's share of the Finnish Nuclear Waste Management Fund, since the carrying value of the Fund in Fortum's balance sheet can in maximum be equal to the amount of the provisions according to IFRS. As long as the Fund is overfunded from an IFRS perspective, the effects to operating profit from this adjustment will be positive if the provisions increase more than the Fund and negative if actual value of the fund increases more than the provisions. This accounting effect is not included in Comparable operating profit in Fortum financial reporting, see Other items affecting comparability in Note 4. Fortum had an effect from this adjustment in Q1 2014 of EUR -4 million, compared to EUR -3 million in Q1 2013.

Associated companies

Fortum has minority shareholdings in associated Finnish and Swedish nuclear production companies. Fortum has for these companies accounted for its share of the effects from nuclear related assets and provisions according to Fortum accounting principles.

16. Other provisions

		CSA provisions		Other provisions
EUR million	March 31 2014	March 31 2013	Dec 31 2013	March 31 2014	March 31 2013	Dec 31 2013
Opening balance	103	178	178	14	28	28
Unused provisions reversed	0	0	-48	-1	-2	-10
Increase in the provisions	0	0	0	8	1	9
Provisions used	0	-11	-24	-1	-2	-13
Unwinding of discount	2	4	12	0	0	0
Exchange rate differences	-7	3	-16	0	0	0
Closing balance	97	173	103	19	25	14
Current provisions 1)	19	0	20	2	6	3
Non-current provisions	78	173	83	17	20	12

1) Included in trade and other payables in the balance sheet.

Fortum's investment programme in Russia is subject to possible penalties that can be claimed if the new capacity is substantially delayed or agreed major terms of the capacity supply agreement (CSA) are not otherwise fulfilled. The provision made for possible penalties is assessed at each balance sheet date and the assessment is based on changes in estimated risks and timing related to commissioning of the remaining power plants in the investment programme.

The remaining CSA provision at the end of Q1 2014 amounts to EUR 97 million (at year end 2013: 103) including EUR 19 million covering the remaining penalties to be paid in 2014 regarding the delay of Nyagan 2. No penalties have been paid during Q1 2014 (Q1 2013: 11). The provision increases due to unwinding of the discounting of potential future penalty payments, which during Q1 2014 resulted in an increase of the provision with EUR 2 million (Q1 2013: 4). The unwinding effect is recognised in other financial expenses.

17. Pledged assets

EUR million	March 31 2014	March 31 2013	Dec 31 2013
On own behalf
For debt
Pledges	299	293	301
Real estate mortgages	137	137	137
For other commitments
Real estate mortgages	103	124	103
On behalf of associated companies and joint ventures
Pledges and real estate mortgages	0	3	3

Pledged assets for debt

Participants in the Finnish State Nuclear Waste Management Fund are allowed to borrow from the Fund. Fortum has pledged shares in Kemijoki Oy as a security. As of 31 March 2014 the value of the pledged shares amounted to EUR 269 million (Dec 31 2013: 269).

Pledges also include bank deposits as trading collateral of EUR 11 million (Dec 31 2013: 12) for trading of electricity and CO2 emission allowances in Nasdaq OMX Commodities Europe, in Intercontinental Exchange (ICE) and European Energy Exchange (EEX).

Fortum Tartu in Estonia (60% owned by Fortum) has given real estate mortgages for a value of EUR 96 million (Dec 31 2013: 96) as a security for an external loan. Real estate mortgages have also been given for loans from Fortum's pension fund for EUR 41 million (Dec 31 2013: 41).

Regarding the relevant interest-bearing liabilities, see Note 14 Interest-bearing liabilities and cash and cash equivalents.

Pledged assets for other commitments

Fortum has given real estate mortgages in power plants in Finland, total value of EUR 103 million in March 2014 (Dec 31 2013: 103), as a security to the Finnish State Nuclear Waste Management Fund for the uncovered part of the legal liability and unexpected events relating to future costs for decomissioning and disposal of spent fuel in Loviisa nuclear power plant. The size of the securities given is updated yearly in Q2 based on the decisions regarding the legal liabilities and the funding target which take place around year end every year.

18. Operating lease commitments

EUR million	March 31 2014	March 31 2013	Dec 31 2013
Due within a year	23	20	27
Due after one year and within five years	38	39	47
Due after five years	102	123	108
Total	162	183	181

19. Capital commitments

EUR million	March 31 2014	March 31 2013	Dec 31 2013
Property, plant and equipment	504	920	524
Intangible assets	6	5	6
Total	510	925	530

20. Contingent liabilities

EUR million	March 31 2014	March 31 2013	Dec 31 2013
On own behalf
Other contingent liabilities	72	66	77
On behalf of associated companies and joint ventures
Guarantees	510	541	514
Other contingent liabilities	125	125	125
On behalf of others
Guarantees	2	1	3

Guarantees on behalf of associated companies

Guarantees and other contingent liabilities on behalf of associated companies and joint ventures mainly consist of guarantees relating to Fortum's associated nuclear companies (Teollisuuden Voima Oyj, Forsmarks Kraftgrupp AB and OKG AB). The guarantees given on behalf of Forsmarks Kraftgrupp AB and OKG AB amounted to SEK 3,696 million (EUR 413 million) at 31 March 2014 (Dec 31 2013: EUR 417 million). The guarantee given on behalf of Teollisuuden Voima Oyj to the Finnish State Nuclear Waste Management Fund amounted to EUR 40 million at 31 March 2014 (Dec 31 2013: 40).

21. Legal actions and official proceedings

Group companies

The Swedish Energy Authority (EI), which regulates and supervises the distribution network tariffs in Sweden, has issued a decision concerning the allowed income frame for the years 2012-2015. EI has based its decision on a model with a transition rule stating that it takes 18 years to reach the allowed level of income. The EI decision has been appealed to the County Administrative Court by more than 80 distribution companies, including Fortum Distribution AB. The basis for Fortum Distribution AB's appeal is that the model is not compatible with the existing legislation and that EI has applied an incorrect method for the calculation of Weighted Average Cost of Capital (WACC). In December 2013, the court decided in favor of the industry on all major topics. However, the decision has been appealed by EI to the next level, the Administrative Court of Appeal. EI has filed a detailed appeal in February 2014 and developed grounds for the appeal in March 2014. Fortum is presently preparing replies to these submissions. Timetable for consideration of the matter by the Administrative Court of Appeal is not yet set.

Fortum received income tax assessments in Sweden for the years 2009, 2010 and 2011 in December 2011, December 2012 and December 2013, respectively. According to the tax authorities, Fortum would have to pay additional income taxes for the years 2009, 2010 and 2011 for the reallocation of loans between the Swedish subsidiaries in 2004-2005, as well as additional income taxes for the years 2010 and 2011 for financing of the acquisition of TGC 10 (current OAO Fortum) in 2008. The claims are based on a change in tax regulation as of 2009. Fortum considers the claims unjustifiable and has appealed the decisions. Based on legal analysis, no provision has been recognised in the financial statements.

If the decisions by the tax authority remain final despite the appeals processes, the impact on net profit would be approximately SEK 425 million (EUR 47 million) for the year 2009, approximately SEK 444 million (EUR 50 million) for the year 2010 and approximately SEK 511 million (EUR 57 million) for the year 2011.

The Administrative Court has now investigated Fortum's appeal for the year 2009 and, on 9 October 2013, ruled against the tax authority. The Administrative Court approved the appeal on formal legal grounds. Both the tax authority and Fortum have appealed the court's decision. Fortum is dissatisfied with the amount of legal costs that the Court ordered the tax authority to pay and appealed this part of the decision. Decision from the court of appeal is expected in 2014.

Fortum has received income tax assessments in Belgium for the years 2008, 2009 and 2010. Tax authorities disagree with the tax treatment of Fortum EIF NV. Fortum finds the tax authorities' interpretation not to be based on the local regulation. The court proceedings concerning the appeal started in February and will go on later in 2014. No provision has been accounted for in the financial statements. If the decision by the tax authorities remains final despite the appeal process, the impact on the net profit would be approximately EUR 36 million for the year 2008, approximately EUR 27 million for the year 2009 and approximately EUR 15 million for the year 2010. The tax has already been paid. If the appeal is approved, Fortum will receive a 7% interest on the amount.

Fortum received an income tax assessment in Finland for 2007 in December 2013. Tax authorities claim in the transfer pricing audit, that detailed business decisions are done by Fortum Oyj and therefore re-characterize the equity Fortum has injected to its Belgium subsidiary Fortum Project Finance NV not to be equity, but funds to be available for the subsidiary. Tax authorities' view is that the interest income that Fortum Project Finance NV received from its loans should be taxed in Finland, not Belgium. The Belgium tax authorities have an opposite view on the issue. Fortum considers the claims of the Finnish tax authorities unjustifiable both for legal grounds and interpretation. Fortum thinks tax should be levied based on law, not political interpretation of the law. Fortum has appealed the tax assessment decision in February 2014. Fortum has also appealed the tax authorities communication obligation concerning the audit documents. Further Fortum has started the mutual agreement procedure (MAP) between Finland, Belgium and Netherlands all the audited years. The appeals are based on national legislation in Finland and the EU arbitration between Finland and Belgium. Based on legal analysis, no provision has been recognized in the financial statements. If the decisions by the tax authority remain final despite the appeals processes, the impact on net profit would be approximately EUR 136 million for the year 2007.

Fortum has on-going tax audits in Finland, Belgium, Russia and some other countries.

Associated companies

In Finland Fortum is participating in the country's fifth nuclear power plant unit, Olkiluoto 3 (OL3), through the shareholding in Teollisuuden Voima Oyj (TVO) with an approximately 25% share representing some 400 MW in capacity. The civil construction works of the Olkiluoto 3 plant unit have been mainly completed, and the reactor main components are installed. Reactor containment pressure and leak-tightness tests have been completed. Design of the I&C system continued and testing began. Information about the start-up date of electricity production of OL3 plant unit is pending the finalization of the schedule clarification by the Supplier, AREVA-Siemens Consortium. Therefore TVO does not provide an estimate of the start-up time of OL3 nuclear power plant unit at the moment.

In December 2008 the OL3 supplier, AREVA-Siemens, initiated the International Chamber of Commerce (ICC) arbitration proceedings and submitted a claim concerning the delay and the ensuing costs incurred at the Olkiluoto 3 project. In 2012, TVO submitted a counterclaim and defense in the matter. The quantification estimate of TVO's costs and losses was approximately EUR 1.8 billion, which included TVO's actual claim and estimated part until August 2014. The arbitration proceedings may continue for several years and TVO's claimed amounts will be updated. The supplier updated its original claim in October 2013. The updated claim including quantification until the end of June 2011 and together with the original claim, is in total approximately EUR 2.7 billion. TVO has considered and found the claim by the supplier to be without merit, and is in the process of scrutinizing the new material and responding to it.

In addition to the litigations described above, some Group companies are involved in other routine tax and other disputes incidental to their normal conduct of business. Based on the information currently available, management does not consider the liabilities arising out of such litigations likely to be material to the Group's financial position.

22. Related party transactions

Related parties are described in the annual financial statements as of the year ended 31 December 2013. No material changes have occurred during Q1 2014.

At the year-end 2013 the Finnish State owned 50.76% of the shares in Fortum. There has been no change in the shareholding during Q1 2014.

Transactions with associated companies and joint ventures

EUR million	Q1 2014	Q1 2013	2013
Sales	8	15	94
Interest on loan receivables	16	17	62
Purchases	171	208	652

Associated company and joint ventures balances

EUR million	March 31 2014	March 31 2013	Dec 31 2013
Long-term interest-bearing loan receivables	2,517	2,499	2,587
Trade receivables	14	20	28
Other receivables	20	40	33

Long-term loan payables	261	234	248
Trade payables	11	27	15
Other payables	3	11	3

23. Events after the balance sheet date

In April 2014 Fortum announced the sale of its Norwegian electricity distribution and heat businesses (see Note 6).

					24. Definition of key figures
--	--	--	--	--	-------------------------------

EBITDA (Earnings before interest, taxes, depreciation and amortisation)	=	Operating profit + Depreciation, amortisation and impairment charges
Comparable EBITDA	=	EBITDA - items affecting comparability - Net release of CSA provision
Items affecting comparability	=	Non-recurring items + other items affecting comparability
Comparable operating profit	=	Operating profit - non-recurring items - other items affecting comparability
Non-recurring items	=	Mainly capital gains and losses
Other items affecting comparability	=	Includes effects from financial derivatives hedging future cash-flows where hedge accounting is not applied according to IAS 39 and effects from the accounting of Fortum´s part of the Finnish Nuclear Waste Fund where the asset in the balance sheet cannot exceed the related liabilities according to IFRIC interpretation 5.
Funds from operations (FFO)	=	Net cash from operating activities before change in working capital
Capital expenditure	=	Capitalised investments in property, plant and equipment and intangible assets including maintenance, productivity, growth and investments required by legislation including borrowing costs capitalised during the construction period. Maintenance investments expand the lifetime of an existing asset, maintain useage/availability and/or maintains reliability. Productivity investments improve productivity in an existing asset. Growth investments' purpose is to build new assets and/or to increase customer base within existing businesses. Legislation investments are done at certain point of time due to legal requirements.
Gross investments in shares	=	Investments in subsidiary shares, shares in associated companies and other shares in available for sale financial assets. Investments in subsidiary shares are net of cash and grossed with interest-bearing liabilities in the acquired company.
Return on shareholders' equity, %	=	Profit for the year Total equity average	x 100

Return on capital employed, %	=	Profit before taxes + interest and other financial expenses Capital employed average	x 100
Return on net assets, %	=	Operating profit + Share of profit (loss) in associated companies and joint ventures Net assets average	x 100
Comparable return on net assets, %	=	Comparable operating profit + Share of profit (loss) in associated companies and joint ventures (adjusted for IAS 39 effects, nuclear fund adjustments and major sales gains or losses)	x 100
		Comparable net assets average
Capital employed	=	Total assets - non-interest bearing liabilities - deferred tax liabilities - provisions
Net assets	=	Non-interest bearing assets + interest-bearing assets related to the Nuclear Waste Fund - non-interest bearing liabilities - provisions (non-interest bearing assets and liabilities do not include finance related items, tax and deferred tax and assets and liabilities from fair valuations of derivatives where hedge accounting is applied)

24. Definition of key figures

Comparable net assets	=	Net assets adjusted for non-interest bearing assets and liabilities arising from financial derivatives hedging future cash flows where hedge accounting is not applied according to IAS 39
Interest-bearing net debt	=	Interest-bearing liabilities - cash and cash equivalents
Gearing, %	=	Interest-bearing net debt Total equity	x 100
Equity-to-assets ratio, %	=	Total equity including non-controlling interest Total assets	x 100
Net debt / EBITDA	=	Interest-bearing net debt Operating profit + Depreciation, amortisation and impairment charges
Comparable net debt / EBITDA	=	Interest-bearing net debt Comparable EBITDA
Interest coverage	=	Operating profit Net interest expenses
Interest coverage including capitalised borrowing costs	=	Operating profit
		Net interest expenses - capitalised borrowing costs
Earnings per share (EPS)	=	Profit for the period - non-controlling interest Average number of shares during the period
Equity per share	=	Shareholder's equity Number of shares at the end of the period
Last twelve months (LTM)	=	Twelve months preceding the reporting date

Market conditions and achieved power prices

Power consumption				Last
	Q1	Q1		twelve
TWh	2014	2013	2013	months
Nordic countries	110	117	386	379
Russia	283	288	1,026	1,021
Tyumen	25	24	87	88
Chelyabinsk	10	10	36	36
Russia Urals area	70	70	257	257

Average prices				Last
	Q1	Q1		twelve
	2014	2013	2013	months
Spot price for power in Nord Pool power exchange, EUR/MWh	30.2	42.0	38.1	35.2
Spot price for power in Finland, EUR/MWh	35.2	42.1	41.2	39.5
Spot price for power in Sweden, SE3, Stockholm EUR/MWh	30.0	42.0	39.4	36.5
Spot price for power in Sweden, SE2, Sundsvall EUR/MWh	29.8	41.8	39.2	36.2
Spot price for power in European and Urals part of Russia, RUB/MWh 1)	1,116	1,002	1,104	1,128
Average capacity price, tRUB/MW/month	335	273	276	293
Spot price for power in Germany, EUR/MWh	33.5	42.3	37.8	35.6
Average regulated gas price in Urals region, RUB/1000 m3	3,362	2,924	3,131	3,362
Average capacity price for old capacity, tRUB/MW/month 2)	183	177	163	165
Average capacity price for new capacity, tRUB/MW/month 2)	609	678	576	573
Spot price for power (market price), Urals hub, RUB/MWh 1)	1,018	931	1,021	1,031
CO2, (ETS EUA), EUR/tonne CO2	6	5	5	5
Coal (ICE Rotterdam), USD/tonne	79	87	82	80
Oil (Brent Crude), USD/bbl	108	113	109	108

1) Excluding capacity tariff.

2) Capacity prices paid only for the capacity available at the time.

Water reservoirs
	March 31	March 31	Dec 31
TWh	2014	2013	2013
Nordic water reservoirs level	45	35	82
Nordic water reservoirs level, long-term average	41	41	83

Export/import				Last
	Q1	Q1		twelve
TWh (+ = import to, - = export from Nordic area)	2014	2013	2013	months
Export / import between Nordic area and Continental Europe+Baltics	-5	-2	-3	-6
Export / import between Nordic area and Russia	1	2	5	4
Export / import Nordic area, Total	-4	0	2	-2

Power market liberalisation in Russia				Last
	Q1	Q1		twelve
%	2014	2013	2013	months
Share of power sold at the liberalised price by OAO Fortum	82	83	81	81

Achieved power prices				Last
	Q1	Q1		twelve
EUR/MWh	2014	2013	2013	months
Power's Nordic power price	39.7	45.7	46.4	44.5
Achieved power price for OAO Fortum	30.7	30.6	32.1	32.1

Fortum's production and sales volumes

Power generation
	Q1	Q1		Last twelve
TWh	2014	2013	2013	months
Fortum power generation in the EU and Norway	14.3	14.4	47.4	47.3
Fortum power generation in Russia	6.3	5.5	20.0	20.8
Total	20.6	19.9	67.4	68.1

Heat production
	Q1	Q1		Last twelve
TWh	2014	2013	2013	months
Heat production in the EU and Norway	3.0	3.8	10.4	9.6
Heat production in Russia	9.9	9.6	24.2	24.5
Total	12.9	13.4	34.6	34.1

Power generation capacity by segment
	March 31	March 31	Dec 31
MW	2014	2013	2013
Power	9,176	9,666	9,475
Heat, Electricity Sales and Solutions	793	957	793
Russia	4,292	3,404	4,250
Total	14,261	14,027	14,518

Heat production capacity by segment
	March 31	March 31	Dec 31
MW	2014	2013	2013
Power	250	250	250
Heat, Electricity Sales and Solutions	4,230	4,790	4,317
Russia	13,466	13,396	13,466
Total	17,946	18,436	18,033

Power generation by source in the Nordic area
	Q1	Q1		Last twelve
TWh	2014	2013	2013	months
Hydropower	6.4	5.8	18.1	18.7
Nuclear power	6.6	6.7	23.7	23.6
Thermal power	0.5	1.2	3.4	2.7
Total	13.5	13.7	45.2	45.0

Power generation by source in the Nordic area
	Q1	Q1		Last twelve
%	2014	2013	2013	months
Hydropower	48	42	40	46
Nuclear power	49	49	52	52
Thermal power	3	9	8	2
Total	100	100	100	100

Power sales
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Power sales in the EU and Norway	625	746	2,462	2,341
Power sales in Russia	218	226	822	814
Total	843	972	3,284	3,155

Fortum's production and sales volumes

Heat sales
	Q1	Q1		Last twelve
EUR million	2014	2013	2013	months
Heat sales in the EU and Norway	177	208	538	507
Heat sales in Russia	112	116	290	286
Total	289	324	828	793

Power sales by area
	Q1	Q1		Last twelve
TWh	2014	2013	2013	months
Finland	6.0	7.1	23.4	22.3
Sweden	8.2	7.3	23.3	24.2
Russia	7.1	7.4	25.6	25.3
Other countries	1.1	1.4	4.3	4.0
Total	22.4	23.2	76.6	75.8

NordPool transactions are calculated as a net amount of hourly sales and purchases at the Group level.

Heat sales by area
	Q1	Q1		Last twelve
TWh	2014	2013	2013	months
Russia	9.7	9.7	24.1	24.1
Finland	1.3	2.0	5.5	4.8
Poland	1.5	2.0	4.1	3.6
Other countries1)	1.1	1.0	3.1	3.2
Total	13.6	14.7	36.8	35.7

1) Including the UK, which is reported in the Power and Technology segment, other sales.

RESTATED AND PREVIOUSLY COMMUNICATED (OLD) QUARTERLY INFORMATION FOR 2013

The following tables present the quarterly information for 2013 as restated due to the adoption of IFRS 10 and 11, which change the consolidation of AB Fortum Värme holding samägt med Stockholms stad in the Fortum Group. Fortum Värme is a district heating company producing heat and power with CHP plants in Stockholm area. According to the adopted IFRS standards Fortum Värme is a joint venture and thus consolidated with equity method from 1 January 2014 onwards. Before the change the company was consolidated as a subsidiary with 50% minority interest. See additional information regarding the change in accounting principle in Note 2 of the Q1 2014 interim report.

The segment information has also been restated for 2013 based on the new business structure. See additional information in Note 4 of the Q1 2014 interim report.

Condensed consolidated income statement

	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Sales	1,654	2,858	3,918	5,309	1,991	3,318	4,466	6,056
Other income	13	30	40	93	12	32	42	94
Materials and services	-738	-1,250	-1,726	-2,270	-885	-1,439	-1,939	-2,533
Employee benefits	-120	-237	-338	-460	-140	-275	-389	-529
Depreciation, amortisation and
impairment charges	-140	-290	-459	-621	-169	-348	-546	-740
Other expenses	-144	-299	-456	-648	-159	-340	-520	-741
Comparable operating profit	524	813	979	1,403	650	948	1,114	1,607
Items affecting comparability	-47	93	22	106	-47	93	24	105
Operating profit	477	905	1,002	1,508	603	1,041	1,138	1,712
Share of profit/loss of associates
and joint ventures	78	112	115	178	29	62	66	105
Interest expense	-70	-150	-226	-301	-69	-147	-222	-295
Interest income	18	37	56	75	10	20	31	42
Fair value gains and losses on
financial instruments	-2	-6	-8	-16	-2	-6	-7	-16
Other financial expenses - net	-12	-23	-35	-47	-12	-23	-36	-49
Finance costs - net	-65	-140	-212	-289	-73	-156	-234	-318
Profit before income tax	490	878	904	1,398	559	947	970	1,499
Income tax expense	-86	-160	-157	-186	-107	-181	-177	-220
Profit for the period	404	718	748	1,212	452	766	793	1,279

Attributable to:
Owners of the parent	401	715	746	1,204	401	715	746	1,204
Non-controlling interests	3	3	2	8	51	51	47	75
	404	718	748	1,212	452	766	793	1,279

Earnings per share (in € per share)
Basic	0.45	0.80	0.84	1.36	0.45	0.80	0.84	1.36
Diluted	0.45	0.80	0.84	1.36	0.45	0.80	0.84	1.36

EUR million	Q1 2013 restated	Q1-Q2 2013 restated	Q1-Q3 2013 restated	2013 restated	Q1 2013 old	Q1-Q2 2013 old	Q1-Q3 2013 old	2013 old
Comparable operating profit	524	813	979	1,403	650	948	1,114	1,607
Non-recurring items (capital gains and losses)	4	5	44	61	4	4	44	61
Changes in fair values of derivatives hedging future cash flow	-48	58	-48	21	-48	58	-47	21
Nuclear fund adjustment	-3	31	27	23	-3	31	27	23
Items affecting comparability	-47	93	22	106	-47	93	24	105
Operating profit	477	905	1,002	1,508	603	1,041	1,138	1,712

RESTATED AND PREVIOUSLY COMMUNICATED (OLD) QUARTERLY INFORMATION FOR 2013

Condensed consolidated statement of comprehensive income

	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
EUR million	2013 restated	2013 restated	2013 restated	2013 restated	2013 old	2013 old	2013 old	2013 old
Profit for the period	404	718	748	1,212	452	766	793	1,279

Other comprehensive income
Items that may be reclassified to profit or loss in subsequent periods
Cash flow hedges
Fair value gains/losses in the period	-36	67	15	96	-40	73	16	105
Transfers to income statement	-1	-25	-47	-51	-1	-25	-46	-51
Transfers to inventory/fixed assets	0	1	-7	-8	0	1	-7	-8
Tax effect	9	-15	10	-6	9	-17	10	-8
Net investment hedges
Fair value gains/losses in the period	0	12	18	28	0	12	18	28
Tax effect	0	-3	-5	-7	0	-3	-5	-7
Available for sale financial assets
Fair value changes in the period	0	0	0	0	0	0	0	0
Exchange differences on translating foreign operations	63	-271	-326	-478	78	-283	-331	-496
Share of other comprehensive income of associates	-2	3	20	42	1	1	20	39
Other changes	0				0	0	0	0
	33	-231	-322	-384	47	-241	-325	-398
Items that will not be reclassified to profit or loss in
Actuarial gains/losses on defined benefit plans	1	2	13	44	0	2	13	58
Actuarial gains/losses on defined benefit plans in
associates	34	34	21	9	34	34	21	2
Other comprehensive income for the period, net of tax	68	-195	-288	-331	81	-205	-291	-338
Total comprehensive income for the year	473	522	460	882	533	561	502	941
Total comprehensive income attributable to
Owners of the parent	469	524	464	881	469	524	464	881
Non-controlling interests	4	-2	-4	1	64	37	38	60
	473	522	460	882	533	561	502	941

RESTATED AND PREVIOUSLY COMMUNICATED (OLD) QUARTERLY INFORMATION FOR 2013

Condensed consolidated balance sheet

	Jan 1	March 31	June 30	Sept 30	Dec 31	Dec 31	March 31	June 30	Sept 30	Dec 31
	2013	2013	2013	2013	2013	2012	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	restated	old	old	old	old	old
ASSETS
Non-current assets
Intangible assets	427	428	402	408	384	442	444	410	416	392
Property, plant and equipment	14,235	14,480	13,984	14,095	12,849	16,497	16,816	16,251	16,424	15,201
Participations in associates and
joint ventures	2,373	2,504	2,339	2,311	2,341	1,979	2,049	1,925	1,899	1,905
Share in State Nuclear Waste
Management Fund	678	684	729	736	744	678	684	729	736	744
Other non-current assets	68	69	68	69	77	69	69	69	69	75
Deferred tax assets	169	119	130	160	126	177	128	138	169	130
Derivative financial instruments	452	379	373	324	367	451	375	370	322	363
Long-term interest-bearing
receivables	2,555	2,511	2,366	2,491	2,598	1,384	1,411	1,360	1,415	1,463
Total non-current assets	20,958	21,175	20,393	20,594	19,486	21,677	21,976	21,252	21,450	20,273
Current assets
Inventories	298	244	285	286	264	428	329	372	376	375
Derivative financial instruments	233	208	445	174	307	223	202	440	168	297
Trade and other receivables	1,044	1,054	749	668	869	1,270	1,309	825	741	1,048
Cash and cash equivalents	961	1,716	1,025	1,094	1,250	963	1,719	1,028	1,095	1,254
Assets held for sale	0	0	58	0	1,173	0	0	57	0	1,173
Total current assets	2,537	3,224	2,563	2,221	3,863	2,884	3,559	2,722	2,380	4,147
Total assets	23,495	24,398	22,955	22,816	23,348	24,561	25,535	23,974	23,830	24,420

EQUITY
Equity attributable to owners of
the parent
Share capital Share premium	3,046	3,046	3,046	3,046	3,046	3,046	3,046	3,046	3,046	3,046
Retained earnings	73 7,020	73 7,477	73 6,574	73 6,538	73 6,851	73 7,020	73 7,477	73 6,574	73 6,538	73 6,851
Other equity components	-99	-94	-22	-56	54	-99	-93	-22	-56	54

Total Non-controlling interests	10,039	10,502	9,672	9,601	10,024	10,040	10,503	9,671	9,601	10,024
Total equity	108 10,147	111 10,613	103 9,775	101 9,702	101 10,124	603 10,643	667 11,170	614 10,285	620 10,221	638 10,662

LIABILITIES
Non-current liabilities
Interest-bearing liabilities	7,647	7,291	7,048	7,061	6,936	7,699	7,344	7,077	7,086	6,960
Derivative financial instruments	182	180	129	156	181	182	179	123	153	177
Deferred tax liabilities	1,561	1,517	1,533	1,527	1,338	1,879	1,842	1,846	1,845	1,648
Nuclear provisions	678	684	729	736	744	678	684	729	736	744
Other provisions	199	193	165	168	94	207	201	174	176	103
Pension obligations	120	121	116	89	50	152	154	148	121	65
Other non-current liabilities	467	461	460	462	148	472	465	464	466	151
Total non-current liabilities	10,854	10,446	10,180	10,198	9,492	11,269	10,869	10,561	10,583	9,848
Current liabilities
Interest-bearing liabilities	1,071	1,801	1,953	1,866	2,103	1,078	1,808	1,986	1,906	2,138
Derivative financial instruments	271	345	134	132	95	264	339	128	128	85
Trade and other payables	1,152	1,191	914	917	994	1,307	1,349	1,014	992	1,147
Liabilities related to assets held for
sale	0	0	0	0	540	0	0	0	0	540
Total current liabilities	2,494	3,338	3,001	2,915	3,732	2,649	3,496	3,128	3,026	3,910

Total liabilities	13,348	13,784	13,181	13,113	13,224	13,918	14,365	13,689	13,609	13,758
Total equity and liabilities	23,495	24,398	22,955	22,816	23,348	24,561	25,535	23,974	23,830	24,420

RESTATED AND PREVIOUSLY COMMUNICATED (OLD) QUARTERLY INFORMATION FOR 2013

Condensed consolidated cash flow statement

	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Cash flow from operating activities
Net profit for the period	404	718	748	1,212	452	766	793	1,279
Adjustments:
Income tax expenses Finance costs-net	86	160	157	186	107	181	177	220
Share of profit of associates and joint ventures	65 -78	140 -112	212 -115	289 -178	73 -29	156 -62	234 -66	318 -105
Depreciation, amortisation and impairment charges	140	290	459	620	169	348	546	740
Operating profit before depreciations (EBITDA)	617	1,196	1,461	2,129	772	1,389	1,684	2,452
Non-cash flow items and divesting activities	26	-163	-104	-262	27	-161	-104	-260
Interest received	12	25	36	62	7	13	21	28
Interest paid	-115	-251	-301	-371	-115	-253	-302	-374
Dividends received	2	57	71	74	1	34	48	50
Realised foreign exchange gains and losses and other
financial items	-109	-140	-49	47	-109	-141	-50	46
Taxes	-31	-81	-149	-210	-24	-82	-158	-229
Funds from operations	402	641	966	1,469	559	799	1,139	1,713
Change in working capital	65	107	185	79	87	247	321	123
Total net cash from operating activities	467	749	1,150	1,548	646	1,046	1,460	1,836

Cash flow from investing activities
Capital expenditures	-210	-411	-670	-1,004	-287	-547	-877	-1,271
Acquisitions of shares Proceeds from sales of fixed assets	-1 2	-12 3	-12 16	-15 66	-1 2	-12 3	-12 16	-15 66
Divestments of shares	13	15	107	122	13	15	107	122
Proceeds from the interest-bearing receivables relating to	22	22	22	22	22	22	22	22
Shareholder loans to associated companies	107	136	40	-136	6	-6	-45	-136
Change in other interest-bearing receivables	0	-1	-1	2	0	-1	-1	2
Total net cash used in investing activities	-67	-248	-497	-944	-245	-526	-790	-1,210

Cash flow before financing activities	400	501	653	604	401	520	670	626

Cash flow from financing activities
Proceeds from long-term liabilities	379	768	775	781	379	774	783	790
Payments of long-term liabilities	-3	-20	-94	-636	-4	-21	-96	-642
Change in short-term liabilities	-22	-289	-309	438	-22	-290	-309	438
Dividends paid to the owners of the parent	0	-888	-888	-888	0	-888	-888	-888
Other financing items	-1	5	10	22	-1	-18	-14	-2
Total net cash used in financing activities	353	-425	-507	-284	352	-443	-524	-304
Total net increase(+) / decrease(-) in cash and cash	752	76	146	320	753	77	146	322

Cash and cash equivalents at the beginning of the period Foreign exchange differences in cash and cash equivalents	961 3	961 -12	961 -14	961 -17	963 3	963 -12	963 -14	963 -16
Cash and cash equivalents at the end of the period	1,716	1,025	1,094	1,265	1,719	1,028	1,095	1,269

RESTATED AND PREVIOUSLY COMMUNICATED (OLD) QUARTERLY INFORMATION FOR 2013

Key ratios

	March 31 2013	June 30 2013	Sept 30 2013	Dec 31 2013	March 31 2013	June 30 2013	Sept 30 2013	Dec 31 2013
	restated	restated	restated	restated	old	old	old	old
EBITDA, EUR million	617	1,196	1,461	2,129	772	1,389	1,684	2,452
Comparable EBITDA, EUR million	664	1,093	1,429	1,975	819	1,286	1,650	2,299
Earnings per share (basic), EUR	0.45	0.80	0.84	1.36	0.45	0.80	0.84	1.36
Capital employed, EUR million	19,705	18,775	18,630	19,183	20,322	19,348	19,213	19,780
Interest-bearing net debt, EUR million	7,376	7,975	7,834	7,793	7,433	8,035	7,897	7,849
Interest-bearing net debt without Värme financing, EUR million	6,275	6,969	6,758	6,658
Capital expenditure and gross investments in shares, EUR million	182	420	690	1,020	222	533	862	1,299
Capital expenditure, EUR million	181	407	677	1,005	221	521	850	1,284
Return on capital employed, % 1)	12.4	10.5	8.0	9.0	13.4	10.8	8.2	9.2
Return on shareholders' equity, % 1)	16.9	13.5	10.0	12.0	17.8	13.7	10.1	12.0
Net debt / EBITDA 1)	2.8	3.5	4.0	3.7	2.3	3.0	3.5	3.2
Comparable net debt / EBITDA 1)	2.8	3.6	4.1	3.9	2.3	3.1	3.6	3.4
Comparable net debt / EBITDA without Värme financing 1)	2.4	3.2	3.5	3.4
Interest coverage	9.3	8.1	5.9	6.7	10.2	8.2	6.0	6.8
Interest coverage including capitalised borrowing costs	6.4	6.2	4.6	5.3	7.2	6.3	4.7	5.3
Funds from operations/interest-bearing net debt, % 1)	26.2	17.8	16.6	18.8	34.4	21.6	19.4	21.8
Funds from operations/interest-bearing net debt without Värme financing, % 1)	30.8	20.4	19.3	22.1
Gearing, %	69	82	81	77	67	78	77	74
Equity per share, EUR	11.82	10.89	10.81	11.28	11.82	10.89	10.81	11.28
Equity-to-assets ratio, %	43	43	43	43	44	43	43	44
Number of employees	9,591	9,768	9,412	9,186	10,313	10,506	10,105	9,886
Average number of employees	9,606	9,640	9,611	9,532	10,335	10,368	10,328	10,246
Average number of shares, 1 000 shares	888,367	888,367	888,367	888,367	888,367	888,367	888,367	888,367
Diluted adjusted average number of shares, 1 000 shares	888,367	888,367	888,367	888,367	888,367	888,367	888,367	888,367
Number of registered shares, 1 000 shares	888,367	888,367	888,367	888,367	888,367	888,367	888,367	888,367

1) Quarterly figures are annualised except items affecting comparability.

For definitions, see Note 23.

RESTATED AND PREVIOUSLY COMMUNICATED (OLD) QUARTERLY INFORMATION FOR 2013

Segment information

Sales by segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	665	1,213	1,709	2,252	664	1,211	1,706	2,248
- of which internal	22	35	44	69	23	36	45	70
Heat, Electricity Sales and Solutions	531	839	1,094	1,516
- of which internal	31	52	66	87
Heat (old)					629	912	1,126	1,565
- of which internal					3	5	6	8
Electricity sales (old)					262	415	548	744
- of which internal					27	43	56	73
Russia	344	595	805	1,119	344	595	805	1,119
- of which internal	0	0	0	0	-	-	-	-
Distribution	339	566	784	1,064	342	572	791	1,075
- of which internal	4	8	13	19	9	17	26	36
Other	15	29	43	63	16	31	47	69
- of which internal	12	25	37	54	16	31	46	67
Netting of Nord Pool transactions	-171	-266	-356	-478	-188	-286	-378	-510
Eliminations	-70	-119	-161	-228	-78	-132	-179	-254
Total	1,654	2,858	3,918	5,309	1,991	3,318	4,466	6,056
Restatement of Värme					-337	-460	-548	-747
Total with Värme consolidated					1,654	2,858	3,918	5,309

Comparable operating profit by segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	303	513	652	859	303	513	651	858
Heat, Electricity Sales and Solutions	57	70	68	109
Heat (old)					170	181	167	273
Electricity sales (old)					15	28	41	48
Russia	41	61	46	156	41	61	46	156
Distribution	137	197	256	332	137	197	254	331
Other	-14	-28	-42	-54	-16	-32	-45	-59
Total	524	813	979	1,403	650	948	1,114	1,607
Restatement of Värme					-126	-135	-135	-204
Total with Värme consolidated					524	813	979	1,403

Operating profit by segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	263	600	644	922	263	600	643	921
Heat, Electricity Sales and Solutions	51	75	83	134
Heat (old)					175	183	180	288
Electricity sales (old)					5	31	45	56
Russia	40	61	46	156	40	61	46	156
Distribution	136	197	274	349	136	197	272	348
Other	-14	-28	-45	-53	-16	-31	-48	-57
Total	477	905	1,002	1,508	603	1,041	1,138	1,712
Restatement of Värme					-126	-136	-136	-204
Total with Värme consolidated					477	905	1,002	1,508

Non-recurring items by segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	5	5	18	25	4	4	18	25
Heat, Electricity Sales and Solutions	0	0	9	18
Heat (old)					0	0	9	18
Electricity sales (old)					-	-	0	0
Russia	0	0	0	0	0	0	0	0
Distribution	0	0	17	17	0	0	17	17
Other	0	0	0	1	0	0	0	1
Total	4	5	44	61	4	4	44	61

Other items affecting comparability by segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	-45	83	-26	38	-44	83	-26	38
Heat, Electricity Sales and Solutions	-6	5	6	7
Heat (old)					5	2	4	-3
Electricity sales (old)					-10	3	4	8
Russia	0	0	0	0	-1	0	0	0
Distribution	-1	0	1	0	-1	0	1	0
Other	1	1	-2	1	0	1	-3	1
Total	-51	88	-21	45	-51	89	-20	44

Comparable EBITDA by segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	334	575	765	1,007	334	574	762	1,003
Heat, Electricity Sales and Solutions	81	119	142	211
Heat (old)					222	286	325	489
Electricity sales (old)					15	29	42	50
Russia	71	120	143	258	71	120	143	258
Distribution	191	304	417	548	191	305	417	550
Other	-13	-26	-39	-49	-14	-28	-39	-51
Total	664	1,093	1,429	1,975	819	1,286	1,650	2,299
Restatement of Värme					-155	-193	-221	-324
Total with Värme consolidated					664	1,093	1,429	1,975

Depreciation, amortisation and impairment charges by
segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology1)	31	63	113	148	31	61	111	145
Heat, Electricity Sales and Solutions	23	49	75	102
Heat (old)					52	105	158	216
Electricity sales (old)					0	1	1	2
Russia	31	69	107	150	30	69	107	150
Distribution	54	107	161	216	54	108	163	219
Other	1	2	4	5	2	4	6	8
Total	140	290	459	621	169	348	546	740
Restatement of Värme					-29	-58	-87	-119
Total with Värme consolidated					140	290	459	621

Share of profit/loss in associates and joint ventures by
segment EUR million	Q1 2013 restated	Q1-Q2 2013 restated	Q1-Q3 2013 restated	2013 restated	Q1 2013 old	Q1-Q2 2013 old	Q1-Q3 2013 old	2013 old
Power and Technology	-11	-9	-22	4	-11	-9	-22	4
Heat, Electricity Sales and Solutions	58	63	64	91
Heat (old)					9	12	15	19
Electricity sales (old)					0	0	0	0
Russia	19	41	47	46	19	41	47	46
Distribution	3	1	4	4	3	2	4	5
Other	10	17	23	32	9	16	22	31
Total	78	112	115	178	29	62	66	105
Restatement of Värme					49	50	49	73
Total with Värme consolidated					78	112	115	178

Participation in associates and joint ventures by segment
EUR million	March 31 2013 restated	June 30 2013 restated	Sept 30 2013 restated	Dec 31 2013 restated	March 31 2013 old	June 30 2013 old	Sept 30 2013 old	Dec 31 2013 old
Power and Technology	913	902	868	896	913	902	869	896
Heat, Electricity Sales and Solutions	620	581	569	592
Heat (old)					166	166	156	156
Electricity sales (old)					0	0	0	0
Russia	502	487	479	463	502	487	479	463
Distribution	97	86	53	52	110	101	69	68
Other	371	342	341	339	358	326	326	322
Total	2,504	2,397	2,311	2,341	2,049	1,982	1,899	1,905
Restatement of Värme					455	415	412	436
Total with Värme consolidated					2,504	2,397	2,311	2,341

Capital expenditure by segment
EUR million	Q1 2013 restated	Q1-Q2 2013 restated	Q1-Q3 2013 restated	2013 restated	Q1 2013 old	Q1-Q2 2013 old	Q1-Q3 2013 old	2013 old
Power and Technology	26	69	117	179	26	69	117	178
Heat, Electricity Sales and Solutions	33	59	96	123
Heat (old)					74	170	266	397
Electricity sales (old)					0	0	0	1
Russia	71	169	294	435	71	169	294	435
Distribution	49	109	165	255	50	111	168	260
Other	1	2	5	12	0	2	5	13
Total	181	407	677	1,005	221	521	850	1,284
Restatement of Värme					-40	-114	-173	-279
Total with Värme consolidated					181	407	677	1,005

Gross investments in shares by segment	Q1 2013	Q1-Q2 2013	Q1-Q3 2013	2013	Q1 2013	Q1-Q2 2013	Q1-Q3 2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	0	1	1	2	1	1	1	2
Heat, Electricity Sales and Solutions	0	11	11	11
Heat (old)					-	0	0	0
Electricity sales (old)					-	-	0	0
Russia	0	0	0	0	-	-	0	0
Distribution	0	0	0	0	-	-	0	0
Other	0	0	0	2	-	11	11	13
Total	1	13	13	15	1	12	12	15

Gross divestments of shares by segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
EUR million	2013 restated	2013 restated	2013 restated	2013 restated	2013 old	2013 old	2013 old	2013 old
Power and Technology	35	35	75	79	35	35	75	79
Heat, Electricity Sales and Solutions	0	0	0	11
Heat (old)					-	0	0	11
Electricity sales (old)					-	-	-	-
Russia	0	0	0	0	-	-	-	-
Distribution	0	0	52	52	-	0	52	52
Other	0	0	0	0	-	-	-	-
Total	35	35	127	142	35	35	127	142

Net assets by segment	March 31	June 30	Sept 30	Dec 31	March 31	June 30	Sept 30	Dec 31
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	6,421	6,402	6,285	6,355	6,394	6,374	6,258	6,329
Heat, Electricity Sales and Solutions	2,408	2,287	2,275	2,295
Heat (old)					4,393	4,144	4,235	4,283
Electricity sales (old)					71	19	8	39
Russia	3,998	3,793	3,795	3,846	3,998	3,793	3,795	3,846
Distribution	3,941	3,742	3,759	3,745	3,965	3,774	3,786	3,770
Other	115	415	297	295	129	438	314	315
Total	16,882	16,639	16,410	16,537	18,950	18,542	18,396	18,582
Restatement of Värme					-2,068	-1,903	-1,986	-2,045
Total with Värme consolidated					16,882	16,639	16,410	16,537

Comparable return on net assets by segment	Dec 31	Dec 31
	2013	2013
%	restated	old
Power and Technology	13.8	13.8
Heat, Electricity Sales and Solutions	8.7
Heat (old)		6.8
Electricity sales (old)		137.9
Russia	5.2	5.2
Distribution	8.8	8.8
Other	-6.9	-8.3

Return on net assets by segment	Dec 31	Dec 31
	2013	2013
%	restated	old
Power and Technology	14.5	14.6
Heat, Electricity Sales and Solutions	9.7
Heat (old)		7.2
Electricity sales (old)		148.9
Russia	5.2	5.2
Distribution	9.3	9.2
Other	-8.5	-9.6

Assets by segment	March 31	June 30	Sept 30	Dec 31	March 31	June 30	Sept 30	Dec 31
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	7,508	7,454	7,315	7,366	7,478	7,424	7,286	7,337
Heat, Electricity Sales and Solutions	3,017	2,771	2,705	2,860
Heat (old)					4,853	4,503	4,565	4,709
Electricity sales (old)					361	241	193	310
Russia	4,450	4,193	4,189	4,150	4,450	4,193	4,189	4,150
Distribution	4,485	4,239	4,229	4,271	4,513	4,275	4,260	4,301
Other	475	546	446	437	493	572	465	460
Eliminations	-348	-256	-229	-293	-317	-231	-203	-268
Assets included in Net assets	19,587	18,947	18,655	18,791	21,831	20,977	20,755	20,999
Interest-bearing receivables	2,506	2,386	2,453	2,477	1,420	1,368	1,421	1,467
Deferred taxes	119	130	160	126	128	138	169	130
Other assets	470	465	452	704	437	463	390	570
Cash and cash equivalents	1,716	1,025	1,094	1,250	1,719	1,028	1,095	1,254
Total assets	24,398	22,955	22,816	23,348	25,535	23,974	23,830	24,420

Liabilities by segment	March 31	June 30	Sept 30	Dec 31	March 31	June 30	Sept 30	Dec 31
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power and Technology	1,088	1,053	1,031	1,010	1,084	1,050	1,028	1,008
Heat, Electricity Sales and Solutions	609	483	429	565
Heat (old)					460	359	330	426
Electricity sales (old)					290	222	185	271
Russia	452	400	394	304	452	400	394	304
Distribution	544	498	471	526	548	501	474	531
Other	360	131	149	142	364	134	151	145
Eliminations	-348	-256	-229	-293	-317	-231	-203	-268
Liabilities included in Net assets	2,705	2,309	2,244	2,254	2,881	2,435	2,359	2,417
Deferred tax liabilities	1,517	1,533	1,527	1,338	1,842	1,846	1,845	1,648
Other liabilities	470	339	415	573	490	345	413	575
Capital employed	4,691	4,180	4,186	4,166	5,213	4,626	4,617	4,640
Interest-bearing liabilities	9,092	9,000	8,927	9,058	9,152	9,063	8,992	9,118
Total equity	10,613	9,773	9,700	10,124	11,170	10,285	10,221	10,662
Total equity and liabilities	24,398	22,955	22,816	23,348	25,535	23,974	23,830	24,420

Number of employees	March 31 2013	June 30 2013	Sept 30 2013	Dec 31 2013	March 31 2013	June 30 2013	Sept 30 2013	Dec 31 2013
	restated	restated	restated	restated	old	old	old	old
Power and Technology	1,899	2,009	1,889	1,723	1,884	1,994	1,876	1,709
Heat, Electricity Sales and Solutions	2,086	2,116	1,987	1,968
Heat (old)					2,192	2,221	2,107	2,102
Electricity sales (old)					502	519	500	496
Russia	4,284	4,297	4,197	4,162	4,284	4,297	4,197	4,162
Distribution	765	782	802	805	866	882	860	852
Other	557	564	537	528	585	593	565	565
Total	9,591	9,768	9,412	9,186	10,313	10,506	10,105	9,886
Restatement of Värme					-722	-738	-693	-700
Total with Värme consolidated					9,591	9,768	9,412	9,186

Average number of employees	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
	restated	restated	restated	restated	old	old	old	old
Power and Technology	1,922	1,936	1,935	1,900	1,908	1,922	1,922	1,887
Heat, Electricity Sales and Solutions	2,095	2,098	2,074	2,051
Heat (old)					2,203	2,204	2,181	2,164
Electricity sales (old)					506	508	508	506
Russia	4,268	4,279	4,265	4,245	4,268	4,279	4,265	4,245
Distribution	761	766	780	786	866	868	869	866
Other	560	560	556	550	584	587	583	578
Total	9,606	9,640	9,611	9,532	10,335	10,368	10,328	10,246
Restatement of Värme					-729	-728	-717	-714
Total with Värme consolidated					9,606	9,640	9,611	9,532

Power generation	Q1 2013	Q1-Q2 2013	Q1-Q3 2013	2013	Q1 2013	Q1-Q2 2013	Q1-Q3 2013	2013
TWh	restated	restated	restated	restated	old	old	old	old
Fortum power generation in the EU and Norway	14.4	26.1	36.2	47.4	14.9	26.9	37.1	48.7
Fortum power generation in Russia	5.5	10.3	14.5	20.0	5.5	10.3	14.5	20.0
Total	19.9	36.4	50.7	67.4	20.4	37.2	51.6	68.7

Heat production	Q1 2013	Q1-Q2 2013	Q1-Q3 2013	2013	Q1 2013	Q1-Q2 2013	Q1-Q3 2013	2013
TWh	restated	restated	restated	restated	old	old	old	old
Heat production in the EU and Norway	3.8	5.8	7.3	10.4	7.4	10.8	13.2	18.6
Heat production in Russia	9.6	13.7	16.2	24.2	9.6	13.7	16.2	24.2
Total	13.4	19.5	23.5	34.6	17.0	24.5	29.4	42.8

Power generation capacity by segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
MW	restated	restated	restated	restated	old	old	old	old
Power	9,666	9,696	9,725	9,475	9,666	9,696	9,725	9,475
Heat, Electricity Sales and Solutions	957	897	919	793
Heat (old)					1,481	1,502	1,524	1,398
Russia	3,404	3,825	3,825	4,250	3,404	3,825	3,825	4,250
Other					0	5	5	5
Total	14,027	14,418	14,469	14,518	14,551	15,028	15,079	15,128

Heat production capacity by segment	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
MW	restated	restated	restated	restated	old	old	old	old
Power	250	250	250	250	250	250	250	250
Heat, Electricity Sales and Solutions	4,790	4,620	4,724	4,317
Heat (old)					8,248	8,247	8,362	7,943
Russia	13,396	13,466	13,466	13,466	13,396	13,466	13,466	13,466
Total	18,436	18,336	18,440	18,033	21,894	21,963	22,078	21,659

Power generation by source in the Nordic area	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
TWh	restated	restated	restated	restated	old	old	old	old
Hydropower	5.8	10.3	14.2	18.1	5.8	10.3	14.2	18.1
Nuclear power	6.7	12.6	17.7	23.7	6.7	12.6	17.7	23.7
Thermal power	1.2	2.1	2.7	3.4	1.7	2.8	3.7	4.7
Total	13.7	25.0	34.6	45.2	14.2	25.7	35.6	46.5

Power generation by source in the Nordic area	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
%	restated	restated	restated	restated	old	old	old	old
Hydropower	42	41	41	40	41	40	40	39
Nuclear power	49	51	51	52	47	49	50	51
Thermal power	9	8	8	8	12	11	10	10
Total	100	100	100	100	100	100	100	100

Power sales	Q1 2013	Q1-Q2 2013	Q1-Q3 2013	2013	Q1 2013	Q1-Q2 2013	Q1-Q3 2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Power sales in the EU and Norway	746	1,343	1,873	2,462	770	1,378	1,914	2,519
Power sales in Russia	226	428	608	822	226	428	608	822
Total	972	1,771	2,481	3,284	996	1,806	2,522	3,341

Heat sales	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
EUR million	restated	restated	restated	restated	old	old	old	old
Heat sales in the EU and Norway	208	310	383	538	525	729	872	1,210
Heat sales in Russia	116	164	192	290	116	164	192	290
Total	324	474	575	828	641	893	1,064	1,500

Power sales by area	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
	2013	2013	2013	2013	2013	2013	2013	2013
TWh	restated	restated	restated	restated	old	old	old	old
Finland	7.1	13.1	18.0	23.4	7.1	13.1	18.0	23.4
Sweden	7.3	13.0	18.2	23.3	7.8	13.7	19.0	24.6
Russia	7.4	13.8	19.2	25.6	7.4	13.8	19.2	25.6
Other countries	1.4	2.3	3.0	4.3	1.4	2.3	3.0	4.3
Total	23.2	42.2	58.4	76.6	23.7	42.9	59.2	77.9

Heat sales by area	Q1	Q1-Q2	Q1-Q3		Q1	Q1-Q2	Q1-Q3
TWh	2013 restated	2013 restated	2013 restated	2013 restated	2013 old	2013 old	2013 old	2013 old
Russia	9.7	13.8	16.3	24.1	9.7	13.8	16.3	24.1
Finland	2.0	3.1	3.9	5.5	2.0	3.1	3.9	5.5
Sweden	0.0	0.0	0.0	0.0	3.8	5.1	5.8	8.2
Poland	2.0	2.5	2.8	4.1	2.0	2.5	2.8	4.1
Other countries	1.0	1.8	2.3	3.1	1.0	1.8	2.3	3.1
Total	14.7	21.2	25.3	36.8	18.5	26.3	31.1	45.0

AI Terminal

Fortum Oyj

3217_10-q_2014-04-29_0e30fc31-d3eb-4975-9805-b1713ad844ae.pdf

Fortum Corporation

Interim Report January-March 2014

Contents

Tables to the interim financial statements

Good comparable operating profit despite low prices and weak rouble

January−March 2014

Summary of outlook

Fortum's President and CEO Tapio Kuula

Efficiency programme 2013-2014

Assessment of the electricity distribution business

Restatement related to IFRS changes and the new reporting structure

Financial results

January–March

Sales by segment

Comparable operating profit by segment

Operating profit by segment

Financial position and cash flow

Cash flow

Assets and capital employed

Equity

Financing

Key figures

Market conditions

Nordic countries

Russia

European business environment and carbon market

Segment reviews

Power and Technology

January–March

Heat, Electricity Sales and Solutions

January–March

Russia

January–March

Distribution

January–March

Capital expenditures, divestments and investments in shares

Power and Technology

Heat, Electricity Sales and Solutions

Distribution

Shares and share capital

Group personnel

Research and development

Sustainability

Fortum's sustainability targets and performance*

Economic responsibility

Environmental responsibility

Social responsibility

Changes in Fortum's Management

Events after the balance sheet date

Annual General Meeting 2014

Outlook

Key drivers and risks

Nordic market

Power and Technology

Russia

Distribution

Capital expenditure and divestments

Taxation

Hedging

Dividend payment

Condensed consolidated income statement

Condensed consolidated statement of comprehensive income

Condensed consolidated balance sheet

Condensed consolidated statement of changes in total equity

Translation differences

Cash flow hedges

Cash dividends

Condensed consolidated cash flow statement

Non-cash flow items and divesting activities

Realised foreign exchange gains and losses and other financial items

Additional cash flow information

Change in working capital

Capital expenditure in cash flow

Acquisition of shares in cash flow

Divestment of shares in cash flow

Change in net debt

Key ratios