Efficiency programme 2013–2014

Due to the increasingly demanding business environment, Fortum has started an efficiency programme in order to maintain and strengthen strategic flexibility and competitiveness, and to enable the company to reach its financial targets in the future.

The aim is to improve the company’s cash flow by more than approximately EUR 1 billion during 2013–2014 by reducing capital expenditures (capex) by EUR 250 – 350 million, divesting approximately EUR 500 million of non-core assets, reducing fixed costs and focusing on working capital efficiency.

Capex in 2013 will be EUR 1.1 – 1.4 billion and in 2014 EUR 0.9 – 1.1 billion. In the end of 2014, the cost run rate will be approximately EUR 150 million lower compared to 2012, including growth projects.

If headcount reductions are needed Fortum seeks to limit them, by using natural rotation and retirement whenever possible. The assessments will therefore be done at a unit level.