Fortum's segment reporting is based on business operations combined with one segment based on geographical area. The reporting segments under IFRS are Generation, City Solutions, Consumer Solutions and Russia. M&A and Solar & Wind Development and Technology and New Ventures development units are reported under segment Other.
Generation is responsible for Nordic power production. The segment comprises nuclear, hydro and thermal power production, portfolio management, and trading and industrial intelligence, as well as nuclear services globally.
City Solutions develops sustainable city solutions into a growing business for Fortum. The segment comprises heating and cooling, waste-to-energy, biomass and other circular economy solutions. The business operations are located in the Nordics, the Baltic countries and Poland. The segment also includes Fortum’s 50% holding in Fortum Värme, which is a joint venture and is accounted for using the equity method.
Consumer Solutions comprises electricity and gas retail businesses in the Nordics and Poland, including the customer service, invoicing and debt collection business. Fortum is the largest electricity retail business in the Nordics, with approximately 2.5 million customers across different brands in Finland, Sweden, Norway and Poland. The business provides electricity and related value-added products as well as new digital customer solutions.
The Russia segment comprises power and heatgeneration and sales in Russia. The segment also includes Fortum’s over 29% holding in TGC-1, which is an associated company and is accounted for using the equity method.
Technology and New Ventures
Technology and New Ventures is established to speed up innovation and new business development. This unit is responsible for Fortum's research and development activities and be the in-house incubator for startups. It is also responsible for direct and indirect investments in external startups as well as cooperation with universities and research institutions. Furthermore, Fortum's Corporate IT is part of this unit and its role will be developed to a strategic enabler of digitalisation and information technology solutions and applications for the businesses.
M&A and Solar and Wind Development
Fortum strives to create value by driving utility industry consolidation and restructuring through transformational mergers and acquisitions in its current home markets and in the integrating European market. The company also targets a gigawatt-scale solar and wind portfolio. These efforts are centralised under a new unit dedicated to leading group-wide mergers and acquisitions and the development of the solar and wind portfolio.