Arvo Vuorenmaa

Vice President

Nuclear Asset Management and Engineering Fortum Generation

Generation Arvo Vuorenmaa 27 May 2009 1

A leading Nordic power and heat company

Leading power and heat company in the Nordic countries Listed at the Helsinki Stock Exchange 1998 More than 50,000 shareholders Among the most traded shares in Helsinki stock exchange Market cap ~24 billion euros
Households 4.7% Financial and insurance institutions 1.5% Other Finnish investors 7.1%

Finnish State 50.8% Foreign investors 35.9%

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Fortum at a glance
Nr 1
Heat Distribution

Nordic countries
Generation Electricity sales Heat sales Distribution cust. Electricity cust. 51.1 TWh 58.5 TWh 20.4 TWh 1.6 million 1.3 million

Key figures Q1/2008, last 12 months

Sales Operating profit Employees 4,579 MEUR 1,966 MEUR 15,689

Electricity sales

Nr 2

Power generation

Russia existing TGC-1 (~25% minority stake)* Power generation ~6 TWh Heat production ~8 TWh
*Fortums share

Poland
Heat sales Electricity sales 3.5 TWh 7 GWh TGC-10 Power generation Heat sales

Russia acquisition
18 TWh 27 TWh

Baltic countries
Heat sales 1.2 TWh Distribution cust. 24,000

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Fortums European production, 2008

Power generation
Hydro power 44% Coal 23%

Heat production
Biomass fuels 20%

Other 2% Peat 1% Biomass 2% Natural gas 2% Coal 4% Nuclear power 45%

Other 10% Oil 4% Waste 7% Peat 7%

Natural gas 16%

Heat pumps, electricity 13%

Total generation 52.6 TWh 89 % CO2 free (Generation capacity 10,788 MW)
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Total production 25.0 TWh (Production capacity 10,468 MW)

Fortum Nuclear

Nuclear power

Average F's production share (MW) (TWh/year)

Fortum's

Finland Loviisa 976 Olkiluoto (TVO) 457 Sweden Oskarshamn 961/1069 Forsmark 703 TOTAL 3097/3205

7.8 3.8 7.5 5.6 24.7

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Fortum Generation - Nuclear power (Loviisa and shares)

Loviisa includes two PWR units
(VVER-440, 2 x 488 MWe(net)).

Fortums shares in jointly owned NPP:s

27 % of Olkiluoto I and II (BWR, 1 700 MWe(net)) 43 % of Oskarshamn I, II and III (BWR, 2 219 MWe(net)) 22 % of Forsmark I, II and III (BWR, 3 154 MWe(net)).

Fortum's nuclear power capacity is 3 106 MWe(net) in total, of which 54% is in Sweden.

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Fortum Generation Loviisa Nuclear Power Plant

Loviisa NPP includes two PWR units VVER-440, 2 x 488 MWe (net). Loviisa 1 started operation in 1977 and Loviisa 2 in 1980. Power upgrade 9+2 % in 1996 Renewed operational licenses for 50 years lifetime in 2007

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Production Annually 1977 - 2008

2
TWh
9,00

8,00

7,00

6,00 60 5,00 50 4,00 40 3,00 30 2,00

1,00

0,00
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09b TWh 2,51 2,98 2,90 1,73 5,82 6,24 6,82 6,91 7,15 6,69 7,17 6,95 7,13 6,52 6,80 6,58 6,99 6,62 6,45 6,82 7,60 7,54 7,86 7,50 7,70 7,29 7,68 7,72 8,14 7,73 8,12 7,67 8,09 % 36,8 39,0 37,9 45,7 75,6 81,0 88,2 89,6 92,4 86,5 92,9 89,9 92,1 84,7 88,2 85,2 90,4 85,6 83,5 87,9 94,5 89,1 92,1 87,9 90,6 85,8 90,2 90,5 95,5 91,0 95,4 89,9 94,9

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100 90 80 70 20 10 0

le tri ity ro u tion net an a a ity a tor 977 2008 a tual 2009 lanne

Indicators and statistics Nuclear Safety & EHS

o iisa 1
   
, 0,0 +0 /year

isk distribution

E HE at s utdo n E HE at o er FIRE at o er SEIS IC F OOD at s utdo n

S utdo n internal 42,5

o t inc u e : ire at s u t o n states

o iisa 1
Risk distribution after year 2008 outage Core damage frequency 6,3E-5/a
ot inc u e : ires urin s ut o n PSA0 M

,0 ,

,0

S utdo n eat er 7,8

2,0 ,

,0 ,0

IN ERN at s utdo n IN ERN at o er

Flood at o er 6,4 Seismic at o er 5,4

20 00 20 02 20 0

99

99

Generation Arvo Vuorenmaa 27 May 2009 9

20 0

20 0

( ' &

'&

' &

'

F OOD at o er

Internal at o er 9,6

' & 0 )

2,

( ' &

S utdo n flood 0,8

S utdo n seismic 0,4 Fire at o er 13,3

# " !

( ( ' ' 0 % $  



( 0 '

' 0

                

eat er at o er 13,8

Challenging targets

20 % reduction of CO2 or 30 % if global commitment Long term goal reduction of CO2 releases with 60 - 80 % in developed countries The improvement of energy efficiency with 20 % by 2020 20 % renewable energy by 2020 Finland 38 %

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Fortums climate strategy

Investments on non-emitting techniques Reduction of CO2 releases The strategy includes:

saving of energy investments of renewable energy development of carbon capture technologies

uilding new nuclear

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Loviisa 3 - Environmental Impact Assessment

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Ol iluoto 3 & 4

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Improving Security of Supply

Round-table Discussion ATOMEXPO 2009 Moscow, 27 May 2009

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CERTIFICATION FORTUMS POLICY

FORTUMs policy is to acquire nuclear fuel products from suppliers whose entire supply chain has quality, environmental and safety certification. Additionally, each part of the supply chain must fulfil the local national legislation requirements and international recommendations. Supplier candidates will be audited before making a contract.

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SECURITY OF SUPPLY OF FUEL ON UTILITY SIDE

DIVERSIFICATION More competition + high product quality + reasonable price If one supplier fails to supply, the others may compensate For still improving the security of supply, small stockpile is enough STOCKPILES In case of one or a few supply chains, stockpile(s) provide a way to secure supplies The size of the stockpile depends on the circumstances and available alternatives

CERTIFICATION FORTUMs policy is to acquire nuclear fuel products from suppliers whose entire supply chain has quality, environmental and safety certification.
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SUPPLIERS WAYS TO INCREASE SECURITY OF SUPPLY

Supplier may use the same methods as utilities (diversification and stockpile) to improve his security of supply Diversification means using - alternative production lines for assemblying and components - several subsuppliers for components Stockpiles may be used for critical components Enough resources for recovering possible disturbances

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INTERNATIONAL COOPERATION IN THE NUCLEAR FUEL MARKET AS A WAY IMPROVE SECURITY OF SUPPLY
On the main level in the international cooperation are the superpowers acting as alone and in IAEA. From a utility point of view, removal of trading restrictions is a welcome objective for that cooperation, because it would promote free competition The second welcome objective is the legislation concerning nuclear liability. The similar legislative business environment in all countries would promote competition as well. The nuclear fuel market is now rather consolidated. From a utility point of view the nuclear renaissance is welcome, because that will give opportunities to new companies to enter the market.

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EXPERIENCE OF LEAKING FUEL ASSEMBLIES AT LOVIISA

Fuel lure rate L aP er Plant L +L

ailed assem lies

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Num er

Failure rate

ea er o 2 ea er o 1 ate ver year ate umu ative

A @ 9 8 5 24 3 5 24 3

76 76 21 21

Important issues

1. Security of supply 2. Quality of the product / Quality certificate 3. Environmental certificates, auditing 4. Competitive price 5. Public acceptance

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THANK YOUR FOR YOUR ATTENTION !

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