Annual Report 2013 | Suomeksi |

Generating economic value for stakeholders

Fortum is a significant economic actor in Finland, Sweden, Russia, Poland, Norway and the Baltic countries. We continuously monitor the impact and added welfare of our operations.

The most significant direct monetary flows of Fortum's operations come from sales revenue from customers, procurements from suppliers, compensation to investors and shareholders, growth and maintenance investments, employee wages and salaries, and payments of taxes.

Our operations also have indirect economic impacts. The Finnish State owns 50.8% of Fortum's shares, and we contribute to a functioning society by, among other things, paying taxes and dividends. These secure the basic functioning of Finnish society and build well-being. Investments and the procurement of goods and services provide employment both locally and outside our operating areas. The wages and taxes paid have a positive impact on local communities.

The graphic beside presents Fortum's monetary flows by stakeholder group in 2013 and examples of the generation of

added value. With mouse-over on the stakeholder groups you can find additional information on Fortum's direct and indirect economic impacts on different stakeholders.

Taxes borne in our operating countries totalled EUR 644 million in 2013. The largest share of taxes borne was for the state of Sweden, EUR 382 million.

Generation of added value (values from 2012 in parenthesis)

Fortum

Distribution of added value

Personnel

529 (543*) EUR million

Public sector

591 (593) EUR million

Investors and shareholders

 

1,216 (1,514) EUR million

Investments

1,286 (1,436) EUR million

Suppliers

3,067 (3,002) EUR million

Customers

6,539 (6,398) EUR million

Personnel

  • Operations are concentrated to the Nordic countries, Russia and the Baltic rim area
  • Fortum employed an average of 10,246 (10,600) people
  • Fortum develops the competence and performance of its employees through skills and leadership training and through job rotation
  • Wages and bonuses impact private consumption, and taxes paid by personnel have an impact on the generation of social well-being

Public sector

  • Fortum's income, property and production taxes totaled about EUR 588 (587) million
  • Support for society totaled about EUR 3.2 (5.8) million
  • Fortum supports social development and well-being by paying taxes and social security costs
  • Fortum supports research in the natural, economic and technical sciences within the energy sector

Investors and shareholders

  • 132,072 (124,451) shareholders, the Finnish State owns 50.8% of Fortum
  • Dividends EUR 888 (888) million were paid
  • About 73.8% of dividends was paid to Finnish shareholders
  • Fortum's total shareholder returns have outperformed its European peers during a five-year period
  • The dividend income on the Finnish state's shares has an impact on maintaining both short- and long-term social welfare

Investments

  • Majority of growth was made in Heat and Russia Divisions
  • Almost all of the planned investments in Europe target CO2-free production
  • Maintenance, productivity and legislation-based investments were EUR 794 (848) million
  • Growth investments were EUR 492 (588) million                             
  • Research and development expenditure was EUR 49 (41) million
  • Fortum's investments develop e.g. safety, production capacity, energy efficiency, local infrastructure and electricity distribution reliability
  • Fortum's investments create business opportunities as well as jobs for suppliers of goods and services

Suppliers

  • Fortum refines natural energy sources into electricity and heat
  • Fortum purchases fuels, goods, and services from local and and global suppliers
  • About half of the goods and services Fortum purchases are from suppliers operating in Europe
  • Uranium, gas and majority of coal were purchased from Russia in 2013
  • Collaboration creates jobs for suppliers and unlocks business opportunities in the Nordic, Baltic, Polish and Russian markets
  • Collaboration, networking and partnerships increase Fortum's intellectual capital, enable a wide project base and support the successful throughput of R&D projects

Customers

  • Fortum offers electricity, heating, cooling and town gas as well as related expert services
  • Fortum has 1.2 million private and business customers and 1.6 million electricity distribution customers in the Nordic countries. Wholesale electricity market customers in Russia.
  • Fortum has district heat customers in eight countries and tens of cities 
  • Fortum knows the markets it operates in and develops competitive products and services for its customers
  • The services and environmentally-benign products Fortum offers help to improve energy efficiency and reduce both costs and emissions
  • Fortum develops smart grids that support sustainable community planning
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