A good start to the year
January-March in brief (continuing operations)
- Profit before taxes EUR 492 million (+27%)
- Earnings per share EUR 0.39 (+39%)
- Comparable operating profit EUR 486 (393) million
- Strong cash flow from operating activities EUR 303 (62)
million
Key figures, I/06 I/05* 2005 Last 12
continuing operations months
(LTM)
Sales, EUR million 1,343 1,133 3,877 4,087
Operating profit, EUR million 472 406 1,347 1,413
Comparable operating profit, 486 393 1,334 1,427
EUR million
Profit before taxes, EUR 492 386 1,267 1,373
million
Earnings per share, EUR 0.39 0.28 1.01 1.12
Net cash from operating 303 62 1,271 1,512
activities, EUR million
Shareholders equity per share, 7.11 7.67 8.17
EUR
Interest-bearing net debt 3,900 4,878 3,158
(at end of period), EUR million
Average number of shares, 880,725 871,710 872,613 878,694
1,000s
*) Oil operations were deconsolidated and disclosed as
discontinued operations as of Q1/2005. The capital gain was
recorded in discontinued operations Q2/2005. The Q1/2005
balance sheet includes an interest-bearing receivable from
Neste Oil of EUR 804 million and a 15% shareholding in Neste
Oil amounting to EUR 553 million.
Key financial ratios, 2005 LTM
continuing operations
Return on capital employed, % 13.5 15.0
Return on shareholders equity, 13.5 16.0
% *)
Net debt/EBITDA, % 1.8 2.1
*) Return on equity for continuing operations is calculated
based on profit for the period from continuing operations
divided by total equity at the end of the period. Profit for
the period from discontinued operations has been subtracted
from total equity as at 31 December 2005.
The first quarter of 2006 was a good start to the year. The
company's financial performance improved clearly from one
year ago. Operating results in all segments excluding
Markets improved. Cash flow from operating activities was
strong. Due to the EUR 987 million dividend payment during
the first quarter, the company's net debt increased by EUR
742 million to EUR 3,900 million compared to year-end 2005.
Sales and results for continuing operations
January-March
Group sales stood at EUR 1,343 (1,133) million. The increase
in sales was mainly due to increased power consumption
caused by colder than average weather, higher wholesale
power prices, and higher heat sales, partly stemming from
acquired companies in Poland.
Group operating profit totalled EUR 472 (406) million.
Comparable operating profit increased by EUR 93 million to
EUR 486 (393) million. The difference in reported and
comparable operating profit was mainly due to the accounting
effects of IAS 39 in the Power Generation and Heat segments.
Sales from continuing operations, by segment
EUR million I/06 I/05 2005 LTM
Power Generation 643 534 2,058 2,167
Heat 480 385 1,063 1,158
Distribution 219 202 707 724
Markets 547 392 1,365 1,520
Other 20 23 91 88
Eliminations -566 -403 -1,407 -1,570
Total 1,343 1,133 3,877 4,087
Comparable operating profit from continuing operations, by
segment
EUR million I/06 I/05 2005 LTM
Power Generation 293 224 854 923
Heat 126 107 253 272
Distribution 81 66 244 259
Markets 0 7 30 23
Other -14 -11 -47 -50
Total 486 393 1,334 1,427
Operating profit from continuing operations, by segment
EUR million I/06 I/05 2005 LTM
Power Generation 284 223 825 886
Heat 119 112 269 276
Distribution 81 71 251 261
Markets 3 6 32 29
Other -15 -6 -30 -39
Total 472 406 1,347 1,413
Fortum Generation's achieved Nordic power price was EUR 37.1
(31.6) per megawatt-hour, up by 17% from a year ago. The
average spot price of power in Nord Pool (the Nordic power
exchange) was EUR 45.4 (25.9) per megawatt-hour,
approximately 75% higher than a year ago. In Continental
Europe, the spot price for electricity was on average higher
than in Nord Pool, resulting in net exports from the Nordic
countries to Germany.
The comparable operating profit of the Power Generation
segment was higher than during the corresponding period last
year, despite increased taxes on nuclear capacity and hydro
property. The profit increase was mainly due to the higher
achieved power price.
The sales and the comparable operating profit of the Heat
segment improved due to much colder weather than in January-
March 2005, good availability of combined heat and power
(CHP) plants and the acquisitions of two district heating
companies in Poland at the end of 2005. The first quarter's
comparable operating profit of the Heat segment was EUR 19
million higher than last year.
The sales of the Distribution segment were higher, mainly
due to higher volumes. The Distribution segment's comparable
operating profit was higher than a year ago, mainly due to
costs caused by the storms in Sweden and Norway, which
affected the first quarter last year, and also due to higher
volumes.
The sales of the Markets segment were higher due to
increased electricity consumption, higher retail electricity
prices, increased number of customers and new large customer
agreements. The Markets segment reported a lower comparable
operating profit than last year. The main reason for the
lower profit in the segment was the inability to pass on
increasing electricity procurement costs to customers.
Profit before taxes was EUR 492 (386) million.
The Group's net financial expenses were lower than last year
and amounted to EUR 15 (35) million. The main reasons for
the decrease were lower net debt and lower interest rates
than during the corresponding period last year. The Group's
net financial expenses include a positive EUR 15 (11)
million change in the fair value of derivatives, which do
not qualify for hedge accounting under IAS 39.
The share of profit of associates and joint ventures
increased to EUR 35 (15) million. The biggest contributors
to the increase were Hafslund and Gasum.
Minority interests accounted for EUR 26 (25) million. The
minority interests are mainly attributable to Fortum Värme,
in which the City of Stockholm has a 50% economic interest.
Taxes for the period totalled EUR 120 (116) million. The tax
rate according to the income statement was 24.4% (26.1% for
the year 2005).
The profit for the period was EUR 372 (270) million.
Fortum's earnings per share were EUR 0.39 (0.28). Return on
capital employed was 15.0% (13.5% at year-end 2005) for the
last twelve months, and return on shareholders' equity was
16.0% (13.5% at year-end 2005) for the last twelve months.
Market conditions
According to preliminary statistics, the Nordic countries
consumed 121 (116) TWh of electricity during the first
quarter of the year, which was 4% more than during the
corresponding period of the previous year.
During the first quarter, the average spot price for
electricity in Nord Pool, the Nordic power exchange, was EUR
45.4 (25.9) per megawatt-hour, or 75% higher than during the
corresponding period in 2005.
The market price of emissions allowances for 2006 increased
from approximately EUR 22 per tonne of CO2 to approximately
EUR 27 per tonne of CO2 in January, at which level they
remained during the first quarter. This is significantly
higher than during the corresponding period in 2005 when the
emissions price was between EUR 7 and 15 per tonne of CO2.
The year started out with a 7 TWh surplus in the Nordic
water reservoirs. However, the first quarter was cold and
dry, and the Nordic hydro generation remained at a high
level. Thus, by the beginning of April, the Nordic water
reservoirs had decreased to about 4 TWh below the average.
They were at the same level as during the corresponding
period in 2005. However, snow levels are at a lower level
than last year.
In Continental Europe, the spot price of electricity was on
average higher than in Nord Pool, resulting in net exports
from the Nordic countries to Germany.
Total power and heat generation figures
Fortum's total power generation during the first quarter of
2006 was 15.3 (14.7) TWh, of which 15.0 (14.3) TWh was in
the Nordic countries. This represents approximately 12%
(12%) of the total Nordic electricity consumption.
Fortum's total power and heat generation figures are
presented below. In addition, the segment reviews include
the respective figures by segment.
Fortum's total power I/06 I/05 2005 LTM
and heat generation, TwH
Power generation 15.3 14.7 52.3 52.9
Heat generation 11.6 9.7 25.1
27.0
Fortum's own power I/06 I/05 2005 LTM
generation by source, TWH
total in the Nordic
countries
Hydropower 5.8 5.6 21.2 21.4
Nuclear power 7.0 7.0 25.8 25.8
Thermal power 2.2 1.7 4.2 4.7
Total 15.0 14.3 51.2 51.9
Share of own I/06 I/05 2005 LTM
production, %,
total in the Nordic countries
Hydropower 38 39 42 41
Nuclear power 47 49 50 50
Thermal power 15 12 8 9
Total 100 100 100 100
Total power and heat sales figures
Fortum's total power sales were 17.1 (16.6) TWh, of which
16.8 (16.2) TWh were in the Nordic countries. This
represents approximately 14% (14%) of Nordic electricity
consumption during January-March. Heat sales in the Nordic
countries amounted to 7.9 (7.5) TWh and in other countries
to 3.0 (1.6) TWh.
In the table below, Fortum's Nord Pool transactions are
calculated as a net amount of hourly sales and purchases at
the Group level.
Fortum's total I/06 I/05 2005 LTM
electricity and heat
sales, EUR million
Electricity sales 668 546 2002 2124
Heat sales 393 867
314 946
Fortum's total I/06 I/05 2005 LTM
electricity sales by
area, TWh
Sweden 8.4 8.2 30.4 30.6
Finland 7.7 7.4 26.0 26.3
Other countries 1.0 1.0 3.3 3.3
Total 17.1 16.6 59.7 60.2
Fortum's total heat I/06 I/05 2005 LTM
sales by area, TWh
Sweden 4.2 3,9 9.5 9,8
Finland 3.6 3,6 9.8 9,8
Other countries* 3.1 1,6 4.5 6,0
Total 10.9 9,1 23.8 25,6
*) Including the UK, which is reported in the Power
Generation segment, other sales.
SEGMENT REVIEWS
Power Generation
The business area comprises power generation and sales
in the Nordic countries and the provision of operation
and maintenance services in the Nordic area and selected
international markets. The Power Generation segment
sells its production to Nord Pool. The segment includes
the business units Generation, Portfolio Management and
Trading (PMT), and Service.
EUR million I/06 I/05 2005 LTM
Sales 643 534 2,058 2,167
- power sales 558 453 1,682 1,787
- other sales 85 81 376 380
Operating profit 284 223 825 886
Comparable operating profit 293 224 854 923
Net assets (at end of period) 5,913 6,100 5,954
Return on net assets, % 14.0 15.3
Comparable return on net 14.5 16.0
assets, %
In January-March, the segment's power generation in the
Nordic countries was 13.3 (12.8) TWh, of which about 5.8
(5.6) TWh or 43% (44%) was hydropower-based, 7.0 (7.0) TWh
or 53% (55%) nuclear power-based and 0.5 (0.2) TWh or 4%
(1%) thermal power-based. The increase in thermal power
generation was due to higher spot prices caused by colder
and dryer than average weather.
Power generation by area, I/06 I/05 2005 LTM
TWh
Sweden 7.8 7.5 28.4 28.7
Finland 5.5 5.3 18.8 19.0
Other countries 0.3 0.3 1.1 1.1
Total 13.6 13.1 48.3 48.8
Nordic sales volume, TWh 14.9 14.4 52.6 53.1
of which pass-through 1.3 1.4 4.5 4.4
sales
Sales price, EUR/MWh I/06 I/05 2005 LTM
Generation's Nordic power 37.1 31.6 31.2 32.8
price*
*) For the Power Generation segment in the Nordic area,
excluding pass-through sales.
In the first quarter, the average Nord Pool spot price was
75% higher than a year ago. Fortum Generation's average
achieved Nordic power price (excluding pass-through items)
in the first quarter was 17% higher than a year ago, mainly
due to improved hedging prices and higher spot prices. The
related sales volume was 13.6 (13.0) TWh for the first
quarter 2006.
The restrictions in Russian electricity exports to Finland
in January had a small effect on Fortum's imported
electricity. At the same time, Fortum increased its use of
thermal power plants.
In January, Fortum and the Russian Territorial Company No 9
(TGC-9) signed an agreement on conducting technical audits
and preparing proposals for improving the operational
efficiency of the power plants of TGC-9.
Fortum's affiliate OKG announced in January that it has
launched a project to increase the capacity of the third
unit of the Oskarshamn nuclear power plant from the current
1,200 megawatts to 1,450 megawatts. OKG will implement and
fund the power increase and renovation investments through
its own balance sheet. Fortum's ownership entitles it to a
share of over 43% of the production of the power plant,
which Fortum buys at cost price. Fortum's share of the power
increase of the power plant's third unit is slightly over
100 megawatts.
Heat
The business area comprises heat generation and sales in
the Nordic countries and other parts of the Baltic Rim.
Fortum is the leading heat producer in the Nordic
region. The segment also generates power in the combined
heat and power plants (CHP) and sells it to end-
customers mainly by long-term contracts, as well as to
Nord Pool. The segment includes business units Heat and Värme.
EUR million I/06 I/05 2005 LTM
Sales 480 385 1,063 1,158
- heat sales 383 306 834 911
- power sales 69 55 145 159
- other sales 28 24 84 88
Operating profit 119 112 269 276
Comparable operating profit 126 107 253 272
Net assets (at period-end) 2,513 2,441 2,551
Return on net assets, % 11.6 12.1
Comparable return on net 11.0 11.9
assets, %
The segment's heat sales during the first quarter amounted
to 10.3 (8.6) TWh, most of which is generated in the Nordic
countries. In January-March, power sales at combined heat
and power plants (CHP) totalled 1.7 (1.6) TWh.
The volume increase in the segment was mainly the result of
much colder weather than in January-March 2005, good
availability of combined heat and power (CHP) plants and the
acquisitions of two district heating companies in Poland at
the end of 2005. In Sweden, there was good growth in volume
and in the number of new customers.
In January, Fortum's ownership of Fortum Wroclaw S.A. in
Poland increased to 90.2 percent of the share capital and to
94.4 percent of the voting rights. Fortum intends to de-list
the company from the Warsaw stock exchange.
Heat sales by area, TWh I/06 I/05 2005 LTM
Sweden 4.2 3,9 9.5 9,8
Finland 3.6 3,6 9.8 9,8
Other countries 2.5 1,1 2.4 3,8
Total 10.3 8,6 21.7 23,4
Power sales, TWh I/06 I/05 2005 LTM
Total 1.7 1,6 4.1 4,2
Distribution
Fortum owns and operates distribution and regional
networks and distributes electricity to a total of 1.4
million customers in Sweden, Finland, Norway and Estonia.
EUR million I/06 I/05 2005 LTM
Sales 219 202 707 724
- distribution network 188 173 592 607
transmission
- regional network 24 23 82 83
transmission
- other sales 7 6 33 34
Operating profit 81 71 251 261
Comparable operating profit 81 66 244 259
Net assets (at period-end) 3,030 3,113 3,021
Return on net assets, % 8.8 9.3
Comparable return on net 8.6 9.3
assets,%
During the first quarter, the volume of distribution and
regional transmissions totalled 7.8 (7.2) TWh and 5.4 (5.1)
TWh, respectively.
Electricity transmissions via the regional distribution
network to customers outside the Group totalled 4.5 (4.2)
TWh in Sweden and 0.9 (0.9) TWh in Finland.
The first quarter was characterised by favourable weather
conditions in Sweden and Norway. This resulted in higher
than usual distribution volumes and few weather-related
disturbances. In Sweden, the investments over the last years
to improve the reliability of Fortum's distribution networks
are starting to show effect.
In Sweden, a final decision on the supervision of the 2003
network tariffs is expected during the spring. Fortum areas
concerned are the western coast and Stockholm.
Fortum implemented customer guarantees in Norway from
January 1. Fortum is the only energy company in Norway to
give their customers a customer service guarantee. These
guarantees are already in place in Sweden and Finland.
Volume of distributed I/06 I/05 2005 LTM
electricity in
distribution network, TWh
Sweden 4.7 4.4 14.4 14.7
Finland 2.2 2.0 6.3 6.5
Norway 0.8 0.7 2.2 2.3
Estonia 0.1 0.1 0.2 0.2
Total 7.8 7.2 23.1 23.7
Number of electricity 31.3.2006 31.3.2005 2005
distribution customers by
area, 1,000s
Sweden 860 860 860
Finland 410 405 410
Other countries 120 115 120
Total 1,390 1,380 1,390
Markets
Markets is responsible for retail sales of electricity
to a total of 1.2 million private and business customers
as well as to other electricity retailers in Sweden,
Finland and Norway. Markets buys its electricity through
Nord Pool.
EUR million I/06 I/05 2005 LTM
Sales 547 392 1,365 1,520
Operating profit 3 6 32 29
Comparable operating profit 0 7 30 23
Net assets (at period-end) 356 222 228
Return on net assets, % 17.4 13.5
Comparable return on net 16.4 10.9
assets, %
During the first quarter, Markets' electricity sales
totalled 12.7 TWh. The increase of 0.8 TWh compared to the
corresponding period last year was mainly due to increased
electricity consumption for heating purposes, an increased
number of customers compared to the corresponding quarter a
year ago, and new large business customer agreements. During
the first quarter, the number of customers stayed at
approximately the same level as at year-end.
Retail electricity prices on the Nordic market during the
first quarter were generally higher than during the
corresponding period in the previous year. End consumer
prices have, so far, not fully followed the price increase
on the wholesale market (Nord Pool).
Capital expenditures and investments in shares
Capital expenditures and investments in shares for
continuing operations in January-March totalled EUR 114 (49)
million. Investments, excluding acquisitions, were EUR 71
(49) million.
In the final closing of the public tender regarding the
outstanding shares of MPEC Wroclaw on 24 January 2006,
Fortum's ownership reached 90.2 percent of the share capital
and 94.4 percent of the voting rights of the company. Fortum
intends to de-list the company from the Warsaw stock
exchange.
On 2 February 2006, E.ON Nordic AB and Fortum signed a
contract according to which Fortum is purchasing all the
shares of E.ON Finland Oyj owned by E.ON Nordic. When the
purchase takes effect, the contract regarding the shares of
E.ON Finland owned by the City of Espoo, signed by the City
of Espoo and Fortum on 18 January 2006, will also become
effective. With these share transactions Fortum will own a
number of shares entitling it to 99.8% of the share capital
and votes of E.ON Finland. The purchase requires the
approval of the Finnish Competition Authority. The Finnish
Competition Authority announced on 3 March 2006 that it
would continue its evaluation of the acquisition of shares
in E.ON Finland Oyj and that the further processing would
last a maximum of three months.
Financing
First quarter 2006 net debt increased by EUR 742 million to
EUR 3,900 million. The increase in net debt is primarily
linked to the EUR 987 million dividend payment on 2005
results paid in March 2006.
The net cash from operating activities was strong, amounting
to EUR 303 (62) million for the continuing activities.
The Group's net financial expenses were EUR 15 (35) million.
The main reasons for the decrease were lower net debt and
lower interest rates than for the corresponding period last
year. The Group's net financial expenses include a positive
EUR 15 (11) million change in the fair value of derivatives,
which do not qualify for hedge accounting under IAS 39.
Fortum Corporations long-term credit rating from Moodys
and Standard and Poor's was A2 (stable) and A- (stable),
respectively.
Shares and share capital
During the first quarter, a total of 238.0 million Fortum
Corporation shares totalling EUR 4,614 million were traded.
Fortum's market capitalisation, calculated using the closing
quotation of the last trading day of the quarter, was EUR
18,354 million. The highest quotation of Fortum Corporation
shares on the Helsinki Stock Exchange in the first quarter
was EUR 21.50, the lowest EUR 15.71, and the average
quotation EUR 19.38. The closing quotation on the last
trading day of the quarter was EUR 20.82.
A total of 6,252,200 shares subscribed for based on the
share option schemes were entered into the trade register in
the first quarter of 2006. After these subscriptions,
Fortum's share capital is EUR 2,997,257,165 and the total
number of registered shares is 881,546,225.
At the end of the quarter, the Finnish state's holding in
Fortum was 51.1%. The proportion of international
shareholders stood at 34.0%.
The Board of Directors received an authorisation from the
General Meeting of Shareholders to acquire the company's own
shares. The maximum amount of shares to be repurchased is 35
million. In addition, the amount of funds used for the
possible repurchases may not exceed EUR 500 million.
Currently the Board of Directors has no unused
authorisations from the General Meeting of Shareholders to
issue convertible loans or bonds with warrants or issue new
shares.
Annual General Meeting
At the Annual General Meeting, held on 16 March 2006, a cash
dividend of EUR 1.12 (0.58) per share was approved. Of this
dividend, EUR 0.58 per share was attributable to the profit
from the continuing operations in 2005, and EUR 0.54 per
share to the profit from discontinued operations.
The Annual General Meeting authorised the Board of Directors
to decide on repurchasing the companys own shares by using
funds available for distribution of profit. The
authorisation is valid for one year from the date of the
decision of the Annual General Meeting. The maximum amount
of shares to be repurchased is 35 million. In addition, the
amount of funds used for the repurchases may not exceed EUR
500 million.
The maximum amount of shares to be repurchased corresponds
to approximately four per cent of the share capital of the
company and the total voting rights.
The number of members on Fortum's Supervisory Board was
confirmed to be 11. The following persons were re-elected to
the Supervisory Board: Members of Parliament Lasse Hautala,
Rakel Hiltunen, Mikko Immonen, Timo Kalli, Kimmo Kiljunen,
Jari Koskinen and Ben Zyskowicz, second vice chairman of the
City Council Martti Alakoski and Industrial Counsellor Kimmo
Kalela. Member of Parliament Sirpa Paatero was elected as a
new member. Timo Kalli was elected as Chairman and Rakel
Hiltunen as Deputy Chairman of the Supervisory Board. The
Supervisory Board was elected for a term of office that
lasts until the end of the next Annual General Meeting.
The number of members on the Board of Directors was
confirmed to be seven. The following persons were re-elected
to the Board of Directors: Peter Fagernäs (Chairman),
Birgitta Kantola (Deputy Chairman), Birgitta Johansson-
Hedberg, Matti Lehti and Marianne Lie. Esko Aho and
Christian Ramm-Schmidt were elected as new members. The
Board of Directors was elected for a term of office that
lasts until the end of the next Annual General Meeting.
The Annual General Meeting elected Authorised Public
Accountant Deloitte & Touche Oy as auditor.
Group personnel
The average number of employees in the Group during the
period from January to March was 8,886 (13,135). The
decrease is due to the separation of Neste Oil. The number
of employees at the end of the period was 8,900 (8,731).
Events after the period under review
Fortum is participating in the fifth Finnish nuclear plant
with a share of approximately 25%. TVO, the company that is
building and owns the plant, has informed that the reactor
building civil works and the manufacture of certain primary
components are delayed by 8-9 months.
In January, Fortum signed an agreement on the sale of its
approximately 40% holding in Enprima Oy to the Swedish ÅF
Group. The deal was completed on April 24.
Outlook
The key market driver influencing Fortum's business
performance is the Nordic wholesale price of power. Key
drivers behind the wholesale price development are the
Nordic hydrological situation, CO2 emissions allowance
prices, fuel prices and the demand for electricity. The
Swedish krona exchange rate also affects Fortum's result as
results generated by Fortum in Sweden are translated to
euros.
According to general market information, electricity
consumption in the Nordic countries is predicted to increase
by about 1% a year over the next few years.
In mid-April, the Nordic water reservoirs were about 5 TWh
below the average and 2 TWh lower than at the same time in
2005. In mid-April, the market price for emissions
allowances for 2006 was around EUR 29-31 per tonne of CO2.
At the same time, the electricity price in the forward
market for the rest of 2006 was in the range of EUR 53-55
per megawatt-hour, around EUR 49-51 per megawatt-hour for
2007 and around EUR 47-49 per megawatt-hour for 2008.
At the beginning of April, Fortum had hedged approximately
80% of its Nordic Power Generation sales volume for the
remainder of 2006 at approximately EUR 33 per megawatt-hour.
For the calendar year 2007, Fortum has hedged approximately
55% of its Nordic Power Generation sales volume at
approximately EUR 37 per megawatt-hour. These hedge ratios
may vary significantly depending on Fortum's actions on the
electricity derivatives markets. Hedge prices are also
influenced by changes in the SEK/EUR exchange rates, as part
of the hedges are conducted in SEK.
Fortum Generation's achieved Nordic power price typically
depends on e.g. the hedge ratio, hedge price, spot price,
optimisation of Fortum's flexible production portfolio even
on an hourly basis, and currency changes. If Fortum would
not hedge any of its production volumes, a 1 EUR/MWh change
in the spot price would result in approximately a EUR 50
million change in Fortum's annual operating profit.
The first quarter of 2006 was a strong start to the year.
With good growth opportunities and favourable market
fundamentals, Fortum is well positioned also for the
remainder of 2006 and for 2007.
Espoo, 24 April 2006
Fortum Corporation
Board of Directors
Further information:
Mikael Lilius, President and CEO, tel. +358 10 452 9100
Juha Laaksonen, CFO, tel. +358 10 452 4519
The figures have not been audited.
Publication of results in 2006:
Interim Report January - June will be published on 19 July
2006
Interim Report January - September will be published on 19
October 2006
Distribution:
Helsinki Stock Exchange
Key media
www.fortum.com
Information on the financial statement release is available
on Fortums website at: www.fortum.com/investors
FORTUM GROUP
JANUARY-MARCH 2006
Interim Financial Statements are unaudited
CONDENSED CONSOLIDATED INCOME STATEMENT
MEUR Q1/2006 Q1/2005 2005 Last
twelve
months
Continuing operations:
Sales 1 343 1 133 3 877 4 087
Other income -1 25 101 75
Materials and services -526 -423 -1 325 -1 428
Employee benefit costs -131 -129 -481 -483
Depreciation, amortisation and -98 -103 -407 -402
impairment charges
Other expenses -115 -97 -418 -436
Operating profit 472 406 1 347 1 413
Share of profit of associates 35 15 55 75
and joint ventures
Finance costs-net -15 -35 -135 -115
Profit before income tax 492 386 1 267 1 373
Income tax expense -120 -116 -331 -335
Profit for the period from 372 270 936 1 038
continuing operations
Discontinued operations:
Profit for the period from - 84 474 390
discontinued operations
Profit for the period 372 354 1 410 1 428
Attributable to:
Equity holders of the Company 346 329 1 358 1 375
Minority interest 26 25 52 53
372 354 1 410 1 428
Earnings per share for profit from
total Fortum Group attributable
to the equity holders of the
company during the year (in per share)
Basic 0.39 0.38 1.55 1.56
Diluted 0.39 0.37 1.53 1.54
Earnings per share for profit from
continuing operations attributable
to the equity holders of the
company during the year (in per share)
Basic 0.39 0.28 1.01 1.12
Diluted 0.39 0.28 1.00 1.11
Earnings per share for profit from
discontinued operations attributable
to the equity holders of the
company during the year (in per share)
Basic - 0.10 0.54 0.44
Diluted - 0.09 0.53 0.43
CONDENSED CONSOLIDATED BALANCE SHEET
MEUR March 31 March 31 Dec 31
2006 2005 2005
ASSETS
Non-current assets
Intangible assets 85 85 80
Property, plant and equipment 10 077 10 241 10 176
Other long-term investments 2 185 2 122 2 112
Other long-term receivables 121 73 87
Long-term interest bearing 638 649 620
receivables
Total non-current assets 13 106 13 170 13 075
Current assets
Inventories 221 231 256
Trade and other receivables 1 167 1 129 1 011
Interest-bearing receivables 1) - 804 -
Available for sale financial assets 1) - 553 -
Cash and cash equivalents 207 158 788
Total current assets 1 595 2 875 2 055
Total assets 14 701 16 045 15 130
EQUITY
Capital and reserves attributable the
Company's equity holders
Share capital 2 997 2 964 2 976
Other equity 3 270 3 720 4 175
Total 6 267 6 684 7 151
Minority interest 231 171 260
Total equity 6 498 6 855 7 411
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 3 127 4 063 3 118
Deferred tax liabilities 1 535 1 639 1 512
Provisions 610 577 606
Other liabilities 582 503 435
Total non-current liabilities 5 854 6 782 5 671
Current
liabilities
Interest-bearing liabilities 980 973 828
Trade and other payables 2) 1 369 1 435 1 220
Total current liabilities 2 349 2 408 2 048
Total liabilities 8 203 9 190 7 719
Total equity and liabilities 14 701 16 045 15 130
1) In Q1/2005 balance sheet included an interest-bearing receivable from
Neste Oil of EUR 804 million and 15% shareholding in Neste Oil
amounting to EUR 553 million.
2) Dividends to Fortum shareholders EUR 506 million were booked as a
liability in Q1/2005. The cash-flow impact was shown in the
second quarter in 2005.
CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
MEUR Share Share Other Fair Retai Minority Total
capital premium restric value ned
ted and earni
funds other ngs
reserves
Total equity at 2 976 70 2 -117 4 220 260 7 411
31.12.2005
Stock options 21 2 23
excercised
Translation and other -5 -2 -7
differences
Cash dividend -987 -987
Cash flow hedges -256 -3 -259
Other fair value -5 -5
adjustments
Decrease in minority -50 -50
through business combinations
Net profit for the period 346 26 372
Total equity at 2 997 72 2 -378 3 574 231 6 498
31.03.2006
Total equity at 2 948 62 13 134 4 343 150 7 650
31.12.2004
Stock options 16 -13 7 10
excercised
Translation and other -2 -11 -5 -18
differences
Cash dividend -506 -506
Share dividend 1) -920 -920
Cash flow hedges -119 28 1 -90
Other fair value 382 -7 375
adjustments
Net profit for the period 329 25 354
Total equity at 2 964 49 20 395 3 256 171 6 855
31.03.2005
1) In 2005 the effect from the share dividend on Fortum Group equity was
EUR 920 million. In the parent company the effect on retained earnings was
EUR 969 million in 2005.
CONSOLIDATED CASH FLOW STATEMENT
MEUR March 31 March 31 Dec 31
2006 2005 2005
Cash flow from operating
activities
Operating profit before 570 509 1 754
depreciations continuing
operations
Non-cash flow items and 24 -14 15
divesting activities
Financial items and realised foreign 26 -84 -107
exchange gains and losses
Taxes -136 -121 -298
Funds form operations continuing 484 290 1 364
operations
Change in working capital -181 -228 -93
Net cash from operating 303 62 1 271
activities continuing operations
Net cash from operating - 152 133
activities discontinued
operations
Total net cash from operating 303 214 1 404
activities
Cash flow from investing
activities
Capital expenditures -71 -49 -346
Acquisition of shares -43 - -127
Proceeds from sales of fixed assets 3 6 30
Proceeds from sales of shares 0 2 26
Change in other investments -19 -4 19
Net cash used in investing -130 -45 -398
activities continuing operations
Net cash used in investing - -137 1 155
activities discontinued operations
Total net cash used in investing -130 -182 757
activities
Cash flow before financing 173 32 2 161
activities
Cash flow from financing activities
Net change in loans 164 -15 -1 063
Dividends paid to the Company´s -987 - -506
equity holders
Other financing items 71 10 22
Net cash used in financing -752 -5 -1 547
activities continuing operations
Net cash used in financing - 49 29
activities discontinued operations 1)
Total net cash used in financing -752 44 -1 518
activities
Total net increase (+)/decrease
(-) in cash
and marketable securities, -579 76 643
continuing operations
De-consolidation of Neste Oil -63
Total net increase (+)/decrease
(-) in cash
and marketable securities, 13
continuing operations
1) In the first quarter 2005 the effect on cash from de-consolidation of
Neste Oil was netted in financing activities.
KEY RATIOS 1)
MEUR March 31 March 31 June 30 Sept 30 Dec 31 Last
2006 2005 2005 2005 2005 twelve
months
Continuing operations:
EBITDA, 570 509 837 1 178 1 754 1 815
MEUR
Earnings per share 0.39 0.28 0.45 0.65 1.01 1.12
(basic), EUR
Capital employed, 10 605 10 534 10 987 11 154 11 357 10 605
MEUR
Interest-bearing 3 900 4 878 3 595 3 333 3 158 N/A
net debt, MEUR
Capital 114 49 123 213 479 544
expenditure and
investments in
shares, MEUR
Capital 71 49 123 207 346 368
expenditure, MEUR
Return on capital 19.4 16.4 12.4 11.7 13.5 15.0
employed, % 3)
Return on 13.5 16.0
shareholders'
equity, % 2)
Net debt / EBITDA 3) 1.7 2.4 2.2 2.1 1.8 2.1
Gearing % 60 71 53 47 43 N/A
Equity per share, EUR 7.11 7.67 7.64 7.86 8.17 N/A
Equity-to-assets 44 43 43 47 49 N/A
ratio, %
Total
Fortum:
Earnings per share 0.39 0.38 0.99 1.19 1.55 1.56
(basic), EUR
Capital employed, 10 605 11 891 10 987 11 154 11 357 10 605
MEUR
Return on capital 19.4 18.2 16.7 15.3 16.6 17.6
employed, % 3)
Return on 21.4 19.5 19.2 17.6 18.7 21.4
shareholders'
equity, % 3)
Net debt / EBITDA 3) 1.7 1.8 1.5 1.5 1.4 1.8
Interest coverage 16.9 11.6 11.3 10.6 11.6 12.6
Funds from 49.6 39.3 44.2 42.9 43.2 34.9
operations/interes
t-bearing net
debt, % 3)
Average number of 8 886 13 135 11 066 10 279 10 026 N/A
employees
Average number of 880 725 871 710 872 316 872 438 872 613 878694
shares, 1 000 shares
Diluted adjusted 892 406 883 774 883 629 889 157 887 653 889579
average number of
shares, 1 000 shares
Number of shares, 881 546 871 854 872 793 872 981 875 294 N/A
1 000 shares
1) Key ratios in 2005 are based on Fortum total numbers
including continuing and discontinued operations if otherwise
not stated.
2) Return on equity for continuing operations is calculated based on Profit
for the period from continuing operations divided by Total equity
at the end of the period. Profit for the period from discontinued
operations has been subtracted from Total equity as at 31 December 2005.
3) Quarterly figures are
annualised.
SALES BY SEGMENTS
MEUR Q1/06 Q1/05 2005 Last twelve
months
Power Generation 643 534 2 058 2 167
- of which internal -50 55 97 -8
Heat 480 385 1 063 1 158
- of which internal -8 12 12 -8
Distribution 219 202 707 724
- of which internal 2 2 8 8
Markets 547 392 1 365 1 520
- of which internal 41 25 101 117
Other 20 23 91 88
- of which internal 15 22 63 56
Eliminations 1) -566 -403 -1 407 -1 570
Sales from continuing 1 343 1 133 3 877 4 087
operations
Sales from discontinued - 2 061 2 061 -
operations
Eliminations - -20 -20 -
Total 1 343 3 174 5 918 4 087
1) Eliminations include sales and purchases with Nordpool that 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.
OPERATING PROFIT BY SEGMENTS
MEUR Q1/06 Q1/05 2005 Last
twelve
months
Power Generation 284 223 825 886
Heat 119 112 269 276
Distribution 81 71 251 261
Markets 3 6 32 29
Other -15 -6 -30 -39
Operating profit from 472 406 1 347 1 413
continuing operations
Operating profit from - 127 517 390
discontinued operations
Total 472 533 1 864 1 803
COMPARABLE OPERATING PROFIT BY SEGMENTS, CONTINUING OPERATIONS
MEUR Q1/06 Q1/05 2005 Last
twelve
months
Power Generation 293 224 854 923
Heat 126 107 253 272
Distribution 81 66 244 259
Markets 0 7 30 23
Other -14 -11 -47 -50
Comparable operating profit 486 393 1 334 1 427
from continuing operations
Non-recurring items 0 6 30 24
Other items effecting -14 7 -17 -38
comparability
Operating profit from 472 406 1 347 1 413
continuing operations
NON-RECURRING ITEMS BY SEGMENTS
MEUR Q1/06 Q1/05 2005 Last
twelve
months
Power Generation 0 0 -3 -3
Heat 1 0 14 15
Distribution 0 0 1 1
Markets 0 0 0 0
Other -1 6 18 11
Total 0 6 30 24
OTHER ITEMS EFFECTING COMPARABILITY BY SEGMENTS
MEUR Q1/06 Q1/05 2005 Last
twelve
months
Power Generation -9 -1 -26 -34
Heat -8 5 2 -11
Distribution 0 5 6 1
Markets 3 -1 2 6
Other 0 -1 -1 0
Total -14 7 -17 -38
DEPRECIATION, AMORTISATION AND IMPAIRMENT CHARGES BY SEGMENTS
MEUR Q1/06 Q1/05 2005 Last
twelve
months
Power 26 28 112 110
Generation
Heat 30 31 123 122
Distribution 35 37 145 143
Markets 4 4 15 15
Other 3 3 12 12
Total depreciation,
amortisation and impairment charges
from continuing operations 98 103 407 402
Total depreciation, amortisation
and impairment charges from
discontinued operations - 36 36 -
Total 98 139 443 402
SHARE OF PROFITS IN ASSOCIATES AND JOINT VENTURES BY SEGMENTS
MEUR Q1/06 Q1/05 2005 Last
twelve
months
Power Generation 1) 12 2 23 33
Heat 11 6 11 16
Distribution 11 7 20 24
Markets 1 0 1 2
Other 0 0 0 0
Share of profits in associates and 35 15 55 75
joint ventures from continuing operations
Share of profits in associates and - -2 -2 -
joint ventures from discontinued
operations
Total 35 13 53 75
1) The main part of the associated companies in Power Generation are
power production companies from which Fortum purchase electricity at
cost.
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES BY SEGMENTS
MEUR March 31 March Dec 31
2006 31 2005
2005
Power Generation 1 260 1 204 1 259
Heat 149 140 133
Distribution 220 200 210
Markets 8 8 8
Other 0 0 0
Total 1 637 1 552 1 610
CAPITAL EXPENDITURE AND INVESTMENTS IN SHARES BY SEGMENTS
MEUR Q1/06 Q1/05 2005
Power Generation 20 18 129
Heat 61 12 212
Distribution 25 15 115
Markets 5 1 10
Other 3 3 13
Capital expenditure and investments in 114 49 479
shares from continuing operations
Capital expenditure and investments in - 99 99
shares from discontinuing operations-
Total 114 148 578
NET ASSETS BY SEGMENTS
MEUR March 31 March Dec 31
2006 31 2005
2005
Power Generation 5 913 6 100 5 954
Heat 2 513 2 441 2 551
Distribution 3 030 3 113 3 021
Markets 356 222 228
Other and Eliminations 153 163 139
Total 11 965 12 039 11 893
RETURN ON NET ASSETS BY SEGMENTS
% Last twelve Dec 31
months 2005
Power Generation 15.3 14.0
Heat 12.1 11.6
Distribution 9.3 8.8
Markets 13.5 17.4
COMPARABLE RETURN ON NET ASSETS BY SEGMENTS
% Last twelve Dec 31
months 2005
Power Generation 16.0 14.5
Heat 11.9 11.0
Distribution 9.3 8.6
Markets 10.9 16.4
Return on net assets is calculated by dividing the sum of the
annualised operating profit and share of profit of associated companies
and joint ventures withaverage net assets.
ASSETS BY SEGMENTS
MEUR March 31 March 31 Dec 31
2006 2005 2005
Power Generation 6 320 6 982 6 522
Heat 2 871 2 731 2 895
Distribution 3 456 3 537 3 448
Markets 754 476 515
Other and Eliminations 234 -42 216
Assets included in Net assets 13 635 13 684 13 596
Interest-bearing receivables 652 1 453 620
Deferred taxes 68 61 18
Other assets 139 136 108
Available for sale financial assets - 553 -
Cash and cash equivalents 207 158 788
Total assets 14 701 16 045 15 130
LIABILITIES BY SEGMENTS
MEUR March 31 March 31 Dec 31
2006 2005 2005
Power Generation 407 882 568
Heat 358 290 344
Distribution 426 424 427
Markets 398 254 287
Other and Eliminations 81 -205 77
Liabilities included in Net assets 1 670 1 645 1 703
Deferred tax liabilities 1 535 1 639 1 512
Other 1) 891 870 558
Total liabilities included in 4 096 4 154 3 773
capital employed
Interest-bearing liabilities 4 107 5 036 3 946
Total equity 6 498 6 855 7 411
Total equity and liabilities 14 701 16 045 15 130
1) Dividends to Fortum shareholders EUR 506 million were booked as a
liability in Q1/2005. The cash-flow impact was shown in the second
quarter in 2005.
CHANGES IN INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT
MEUR March 31 March 31 Dec 31
2006 2005 2005
Opening 10 256 12 041 12 041
balance
De-consolidation of Neste Oil - -1 540 -1 540
Acquisition of subsidiary -11 -2 171
companies
Capital expenditures 71 49 346
Disposals -2 -2 -31
Depreciation, amortisation and impairment -98 -103 -407
Translation differences -54 -117 -324
Closing 10 162 10 326 10 256
balance
QUARTERLY SALES BY SEGMENTS
MEUR Q1 Q4 Q3 Q2 Q1
2006 2005 2005 2005 2005
Power Generation 643 598 450 476 534
- of which internal -50 23 6 13 55
Heat 480 325 147 206 385
- of which internal -8 0 1 -1 12
Distribution 219 196 149 160 202
- of which internal 2 2 2 2 2
Markets 547 391 284 298 392
- of which internal 41 35 19 22 25
Other 20 20 26 22 23
- of which internal 15 13 13 15 22
Eliminations -566 -418 -282 -304 -403
Sales from continuing 1 343 1 112 774 858 1 133
operations
Sales from discontinued - - - - 2 061
operations
Eliminations - - - - -20
Total 1 343 1 112 774 858 3 174
QUARTERLY OPERATING PROFIT BY SEGMENTS
MEUR Q1 Q4 Q3 Q2 Q1
2006 2005 2005 2005 2005 1)
Power Generation 284 296 181 125 223
Heat 119 94 13 50 112
Distribution 81 76 48 56 71
Markets 3 11 7 8 6
Other -15 -3 -9 -12 -6
Operating profit from 472 474 240 227 406
continuing operations
Operating profit from - - - 390 127
discontinued operations
Total 472 474 240 617 533
1) The accounting treatment of CO2 emission allowances was changed
retroactively in Q2/2005 according to the decision of IASB to withdraw
the IFRIC 3 Emission rights with immediate effect.
QUARTERLY COMPARABLE OPERATING PROFIT BY SEGMENTS, CONTINUING OPERATIONS
MEUR Q1 Q4 Q3 Q2 Q1
2006 2005 2005 2005 2005
Power 293 297 161 172 224
Generation
Heat 126 97 12 37 107
Distribution 81 76 47 55 66
Markets 0 8 7 8 7
Other -14 -18 -7 -11 -11
Comparable operating profit 486 460 220 261 393
from continuing operations
Non-recurring items 0 10 2 12 6
Other items effecting -14 4 18 -46 7
comparability
Operating profit from 472 474 240 227 406
continuing operations
QUARTERLY NON-RECURRING ITEMS IN OPERATING BY SEGMENTS
MEUR Q1 Q4 Q3 Q2 Q1
2006 2005 2005 2005 2005
Power Generation 0 -6 3 0 0
Heat 1 2 1 11 0
Distribution 0 0 0 1 0
Markets 0 0 0 0 0
Other -1 14 -2 0 6
Total 0 10 2 12 6
QUARTERLY OTHER ITEMS EFFECTING COMPARABILITY
MEUR Q1 Q4 Q3 Q2 Q1
2006 2005 2005 2005 2005
Power Generation -9 5 17 -47 -1
Heat -8 -5 0 2 5
Distribution 0 0 1 0 5
Markets 3 3 0 0 -1
Other 0 1 0 -1 -1
Total -14 4 18 -46 7
DISCONTINUED OPERATIONS (including eliminations between Fortum and
discontinued operations)
MEUR Q1 Q1 2005 2)
2006 2005
1)
Sales - 2 061 2 061
Other income - 5 395
Materials and services - -1 726 -1 726
Employee benefit costs - -57 -57
Depreciation, amortisation - -36 -36
and impairment charges
Other expenses - -120 -120
Operating profit - 127 517
Share of profit of - -2 -2
associates and joint ventures
Finance costs-net - -6 -6
Profit before income tax - 119 509
Income tax expense - -35 -35
Profit for the year from - 84 474
discontinued operations
1) The accounting treatment of CO2 emission allowances was changed
retroactively in Q2/2005 according to the decision of IASB to withdraw
the IFRIC 3 Emission rights with immediate effect.
2) Other income includes the capital gain, EUR 390 million, from the
sale of approximately 15% of the shares in Neste Oil Oyj in 2005.
CONTINGENT LIABILITIES
MEUR March 31 March 31 Dec 31
2006 2005 2005
Contingent liabilities
On own behalf
For debt
Pledges 171 156 144
Real estate mortgages 49 71 49
For other commitments
Real estate mortgages 55 70 66
Other contingent 92 72 94
liabilities
Total 367 369 353
On behalf of associated companies and
joint ventures
Pledges and real 3 3 3
estate mortgages
Guarantees 203 247 208
Other contingent 125 182 125
liabilities
Total 331 432 336
On behalf of others
Guarantees 2 3 2
Other contingent 3 2 3
liabilities
Total 5 5 5
Total 703 806 694
Fortum's 100% owned subsidiary Fortum Heat and Gas Oy has a collective
contingent liability with Neste Oil Oyj of the demerged Fortum Oil and
Gas Oy's liabilities based on the Finnish Companies Act's Chapter 14a
Paragraph 6.
Operating lease liabilities
Due within a year 16 15 17
Due after one year and within five years 29 39 31
Due after five years 9 10 9
Total 54 64 57
NUCLEAR RELATED ASSETS AND LIABILITIES
MEUR March 31 March Dec 31
2006 31 2005
2005
Liability for nuclear waste management 618 596 618
according to the Nuclear Energy Act 1)
Fortum´s share of reserves -618 -596 -610
in the Nuclear Waste Fund 2)
Difference covered by real 0 0 8
estate mortgages 3)
1) The legal liability calculated according to the Nuclear Energy Act in
Finland is EUR 618 (596) million as of 31 March 2006 (and 2005
respectively)
Discounted liability in the balance sheet calculated according to IAS
37 is EUR 421 (404) million as of 31 March 2006.
The main reason for the difference in liability is that the legal
liability is not allowed to discount to net present value.
2) Fortum contributes to the Nuclear Waste Fund according to the legal
liability. Fortum´s share of the nuclear waste fund as of 31 March 2006
is EUR 618 (596) million.
The value of the fund asset in the balance sheet is EUR 421 (404)
million as of 31 March 2006 due to IFRIC Interpretation 5, which states
that it can not exceed the carrying value of the related liabilities.
3) At year end there is a difference between the legal liability and
Fortum´s share of the nuclear waste fund due to yearly revised
calculation of the liability.
The difference is due to timing of the annual calculation of the
liability and will be paid during first quarter the following year.
Fortum has given real estate mortgages as security. The real estate
mortgages are included in contingent liabilities.
DERIVATIVES
MEUR March 31 Dec 31
2005 2005
Interest and currency Notional Net fair Notional Net fair
derivatives value value value value
Interest rate swaps 3 359 -41 2 636 11
Forward foreign exchange 8 338 44 5 297 69
contracts
Interest rate and currency swaps 317 -15 2 169 3
Purchased currency options 727 -7 - -
Written currency options 357 5 - -
Electricity derivatives Volume Net fair Volume Net fair
value value
TWh MEUR TWh MEUR
Sales swaps 74 -125 84 -463
Purchase swaps 46 162 49 276
Purchased options 1 -1 1 -1
Written options 7 -3 3 2
Oil Volume Net fair Volume Net fair
derivatives value value
1000 bbl MEUR 1000 MEUR
bbl
Sales swaps and futures 50 -1 90 0
Purchase swaps and futures 770 11 571 6
Accounting policies
The condensed financial statements have been prepared in accordance with
International Accounting Standard (IAS) 34, Interim Financial Reporting.
The accounting policies adopted are consistent with those followed in
the preparation of the Group's annual financial statements for the year
ended 31 December 2005.
Definitions of key
figures
Comparable operating = Operating profit - non-recurring
profit items - other items effecting
comparability
Non-recurring items = Mainly capital
gains and losses
Other items effecting = Includes effects from financial
comparability 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.
EBITDA (Earnings before = Operating profit continuing
interest, taxes, operations + Depreciation,
depreciation amortisation
and amortisation) and impairment charges
continuing operations continuing operations
Return on shareholders' = 100 x Profit for
equity, % the year
Total equity
average
Return on capital = 100 x Profit before taxes + interest
employed, % and other financial expenses
Capital
employed
average
Return on capital = 100 x Profit before taxes continuing
employed continuing operations + interest and other
operations, %
financial expenses
continuing
operations
Capital employed
continuing operations
average
Return on net assets, % = 100 x Operating profit + Share of
profit (loss) in associated
companies and joint
ventures
ventu
res
Net assets
average
Comparable return on net = 100 x Comparable operating profit +
assets, % Share of profit (loss) in
associated companies
and joint ventures
(adjusted for IAS 39
effects)
Comparable net
assets average
Capital = Total assets - non-interest
employed bearing liabilities - deferred
tax liabilities
-
provi
sions
Net = Non-interest bearing assets +
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)
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, % = 100 x Interest-
bearing net
debt
Total
equit
y
Equity per share, EUR = Shareholder'
s equity
Number of shares at the
end of the period
Equity-to-assets ratio, % = 100 x Total equity
including minority
interest
Total
asset
s
Net debt = Operating profit + Depreciation,
/ EBITDA amortisation and impairment
charges
Interest-
bearing net
debt
Net debt / EBITDA = Operating profit continuing
continuing operations operations + Depreciation,
amortisation and
impairment charges
continuing operations
Interest-
bearing net
debt
Interest = Operating
coverage profit
Net interest
expenses
Earnings per share (EPS) = Profit for the
period - minority
interest
Average number of shares
during the period