Contents. Fortum in brief 4 Operational highlights 5 Financial summary 6 President & CEO s review 8 Fortum s compass 10 Market development 11

Transcription

1 Annual Report 2004

2 Contents Investor information Banks and brokers Cover sleeve Cover sleeve Fortum in brief 4 Operational highlights 5 Financial summary 6 President & CEO s review 8 Fortum s compass 10 Market development 11 Segment reviews 14 Power and Heat businesses 15 Power Generation 18 Heat 20 Distribution 21 Markets 23 Oil businesses 24 Oil Refining 25 Oil Retail 28 Shipping and other Oil 29 Corporate citizenship 30 Environment, Health and Safety 31 Human Resources 33 Citizenship 35 Risk management 36 Corporate governance 40 Board of Directors 47 Corporate Executive Committee 48 Other management 49 Financial Statements 50 Board of Directors report 51 IFRS 58 Consolidated income statement 62 Consolidated balance sheet 63 Consolidated cash flow statement 64 Notes to the Financial Statements 65 Group shares and holdings 80 Key financial indicators Calculation of key figures 86 Parent company income statement, balance sheet and cash flow statement 87 Shares and shareholders 91 Proposal for the distribution of earnings 95 Auditors report 95 Statement by the Supervisory Board 96 The trade names mentioned in this Annual Report are trademarks or registered trademarks of their respective owners.

3 Investor information Annual General Meeting The Annual General Meeting of Fortum Corporation will be held on Thursday, 31 March 2005, at am, at Finlandia Hall, Mannerheimintie 13 e, Helsinki. Registration of shareholders who have notified the Company of their attendance will begin at 9.45 am. Registrations for the AGM must be received by 4.00 pm (Finnish time), on 23 March Those wishing to register can do so by telephone on +358 (0) , by fax on +358 (0) , by to or by mail to Fortum Corporation, Rita Lagerstedt, POB 1, FI FORTUM, Finland. Written registrations and any powers of attorney should arrive before the end of the registration period. Payment of dividends The Board of Directors will propose to the AGM that a cash dividend of EUR 0.58 per share be paid for the financial period The record date for dividend payment is 5 April 2005, and the expected dividend payment date is mid-april In addition, the Board of Directors will propose that Fortum s shareholders will receive shares in the new oil company as a dividend. Publication of results Interim Report January March will be published on 3 May 2005 Interim Report January June will be published on 19 July 2005 Interim Report January September will be published on 20 October 2005 The report "Fortum in society" will be published in March, The Annual Report and Interim Reports are available in Finnish, Swedish and English and can also be read on Fortum s Internet home pages at and Fortum management serves analysts and the media with regular press conferences, which are web-cast to the company s home pages. Management also gives personal interviews on a one-on-one and group basis. Fortum participates in various conferences for investors. As of 1 April 2005, Fortum observes a silent period of 30 days prior to publishing its results. Additional information about shares and shareholders is available on pages Contact information The contact for financial information is Mika Paloranta, Vice President, Investor Relations, tel , fax , mika.paloranta@fortum.com. Financial documents can be obtained from Fortum Corporation, Juha Ahonen, POB 1, FI FORTUM, Finland, tel , fax , juha.ahonen@fortum.com. SHARE INFORMATION FOR 2004 Highest share price EUR Lowest share price EUR 7.45 Average share price EUR Total number of shares traded million pcs Market capitalisation 31 Dec 2004 EUR 11.8 billion LARGEST REGISTERED SHAREHOLDERS 31 December 2004 Finnish State 59.26% Ilmarinen Mutual Pension Insurance Company 1.34% Social Insurance Institution 1.22% The municipality of Kurikka 0.72% Fortum Pension Foundation 0.58% State Pension Fund 0.56% OP-Delta Investment Fund 0.45% Fennia Mutual Pension Insurance Company 0.24% Etera Mutual Pension Insurance Company 0.23% Varma Mutual Pension Insurance Company 0.20% Distribution of ownership 31 December 2004 Finnish State 59.3% Households 5.3% Financial and insurance institutions 2.1% Other Finnish investors 8.2% International investors 25.2%

4 BANKS AND BROKERS COVERING FORTUM IN 2004 ABG Sundal Collier, Oslo Alfred Berg Finland Oy, Helsinki Citigroup Smith Barney, London Crédit Agricole Indosuez Cheuvreux Nordic AB, Stockholm Carnegie Investment Bank AB, Finland Branch, Helsinki Deutsche Bank AG, Helsinki Branch, Helsinki Dresdner Kleinwort Wasserstein Securities, London Enskilda Securities AB, Helsinki Evli Bank Plc, Helsinki EQ Bank Ltd., Helsinki FIM Securities Ltd, Helsinki Handelsbanken Securities, Helsinki Kaupthing Sofi, Helsinki Mandatum Stockbrokers Ltd, Helsinki Merrill Lynch, London Morgan Stanley Dean Witter & Co, London Nordea Securities Oyj, Helsinki Opstock Investment Banking, Helsinki Trading code: FUM1V. Type: Energy. Share quotations Monthly average Market capitalisation EUR 1,000 mill. Fortum Dow Jones STOXX 600 Utilities Index HEX general index Number of shares traded mill. shares/day, monthly average share price, EUR EUR Volume Earnings per share EUR Dividend per share EUR *) Board of Directors proposal

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99 Design Evia Helsinki Oy Photographs Heikki Tuuli, Studio Heikki Tuuli Printing Libris Oy Paper Cover Galerie Art 250 g/m 2 Inside pages Galerie Art 135 g/m 2

100 Fortum Corporation Keilaniemi, Espoo POB 1 FI FORTUM, Finland tel fax Domicile Espoo, VAT NO FI