Fortum (FORTUM) Investor presentation summary

Strategic priorities and market positioning

• Focus on reliable energy delivery, decarbonisation, and customer-centric transformation, underpinned by values of ambition, care, and collaboration.

• Nordic market offers low-carbon, affordable electricity, strong infrastructure, and skilled workforce, attracting data centres and industrial demand.

• Power generation dominated by nuclear (52%) and hydro (44%), with a total capacity of 9,296 MW as of end 2025.

• Flexible generation fleet and optimisation premium provide a competitive edge, with a targeted premium of 8-10 €/MWh in 2026.

• Strategic capital allocation balances €2.0 bn investments (2026–2030) between maintenance and growth, aiming for a 14% RONA and 60–90% dividend payout.

Financial performance and outlook

• Achieved power price of 62.5 €/MWh in Q1 2026, supported by higher hydro generation and optimisation premium.

• Comparable operating profit rose to €521 million in Q1 2026, mainly from higher spot prices and volumes.

• Net debt-to-EBITDA at 1.1x, with €1,469 million net debt and liquidity reserves of €6.4 bn.

• Capital expenditure guidance for 2026–2030: €2.0 bn, with €250 million annual maintenance and €750 million growth capex.

• Dividend policy targets 60–90% payout of comparable EPS, maintaining a solid investment grade rating.

Growth opportunities and operational development

• Projected Nordic power demand to rise from 395 TWh (2023) to 975 TWh (2050), driven by data centres, electrification, and green industries.

• Renewables pipeline of ~8 GW in permitting, targeting 1.2 GW ready-to-build by 2028.

• New investments require higher power prices; LCOE for new nuclear and offshore wind significantly above current market prices.

• Expansion of interconnector capacity to over 13 GW by end 2026 enhances market integration and export potential.

• Customer partnerships focus on low-carbon PPAs and holistic energy management, with sites adjacent to major infrastructure.