Fortum (FORTUM) Investor presentation summary

Strategic priorities and market positioning

• Focus on delivering reliable energy, driving industrial decarbonisation, and transforming operations for sustainability and efficiency.

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

• Power generation is dominated by nuclear (52%) and hydro (44%), with a business portfolio emphasising flexibility and optimisation.

• Ready-to-build renewables pipeline of ~8 GW, targeting 1.2 GW by 2028, to meet future customer needs and support decarbonisation.

• Strategic capital allocation balances €2.0 bn investments (2026–2030) between maintenance and growth, with a dividend payout policy of 60–90% of comparable EPS.

Financial performance and outlook

• Achieved power price of €62.5/MWh in Q1 2026, supported by a double-digit optimisation premium and improved hydro generation.

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

• Net debt-to-comparable EBITDA at 1.1x, with strong liquidity reserves of €6.4 bn and a BBB+ credit rating.

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

• For 2026, 75% of Nordic generation is hedged at €39/MWh, with an optimisation premium of €8–10/MWh.

Operational highlights and portfolio

• Generation capacity at 9,296 MW (hydro 4,671 MW, nuclear 3,255 MW, wind 380 MW, CHP 425 MW, other thermal 565 MW).

• Nordic power market is highly fragmented, with over 350 companies and Fortum as a leading player in both generation and retail.

• Flexible generation fleet enables an optimisation premium of €8–10/MWh in 2026, leveraging hydropower flexibility and environmental value products.

• Interconnector capacity in the Nordics is set to exceed 13 GW by end-2026, supporting market integration and export opportunities.

• Power generation in 2025: 52% nuclear, 44% hydro, 2% wind, 1% coal, 1% other.