Fortum (FORTUM) investor relations material

Strategic partnership and power purchase agreement

• Announced a 22-year strategic partnership and long-term PPA with Google, covering up to 50% of Loviisa Nuclear Power Plant's capacity from 2030 to 2049, with a smaller capacity starting in 2028, supporting plant upgrades and lifetime extension through 2050.

• This is the first large-scale nuclear PPA in the Nordics and Google's first nuclear lifetime extension PPA globally.

• The deal is expected to increase comparable RONA by 1.4 percentage points once 50% of capacity is contracted, supporting a long-term RONA target of 14%.

• The PPA ensures revenue certainty for a EUR 1 billion investment program at Loviisa, with 80% of projects and EUR 700 million capex still pending decisions.

• The partnership also includes a Memorandum of Understanding for asset development, energy portfolio management, and new nuclear and site development for future data centre needs.

Collaboration for sustainable growth and innovation

• The partnership enables joint development of new renewables, battery storage, and flexibility solutions, including a 94 MW battery for Google's data center in Kajaani.

• Google’s investments are expected to reach EUR 13 billion in 2027-2028 for data centers and infrastructure, supporting over 37,000 jobs and boosting Finland’s GDP by EUR 3.6 billion annually.

• Joint efforts include exploring business models for new nuclear reactors and leveraging Fortum’s powered land for future data centers.

• Partnership aims to advance R&D, engineering careers, and leverage Google’s Cloud, AI, and Data Services for operations.

• The company is prepared to meet rising demand with new supply, including renewables, batteries, and nuclear, as demand from energy-intensive industries grows.

Nordic energy market context and growth opportunities

• Nordic power prices are among the lowest in Europe due to a clean energy mix of hydro, nuclear, and renewables.

• Power demand in the Nordics is projected to grow from 400 TWh to 550 TWh by 2030 and up to 975 TWh by 2050, driven by data centers, electrification, and industrial decarbonisation.

• The region has robust infrastructure, skilled workforce, and significant land and water resources for future energy projects.

• Data centers are currently the most active sector driving power demand, with other industrial sectors expected to follow.