Finlands Transmission System Operator Disclaimer These materials - PowerPoint PPT Presentation

Public September 2019 Finland´s Transmission System Operator

Disclaimer These materials have been prepared based upon information that Fingrid Fingrid Oyj assumes no obligation to, and expressly disclaims any Oyj believes to be reliable. Market data presented is based on the obligation to, update or revise any forward-looking statements, whether as information and belief of Fingrid Oyj's management and has not been a result of new information, future events or otherwise. independently verified. Certain data in this presentation was obtained from various external data sources and Fingrid Oyj has not verified such data The circulation of these materials may, in certain countries, be subject to with independent sources. Such data involves risks and uncertainties and specific regulation and the person(s) in possession of this presentation is subject to change based on various factors. Fingrid Oyj makes no should observe such restrictions. representation or warranty, express or implied, as to the accuracy or completeness of the information contained in these materials and Nothing in these materials shall constitute or form part of any legal accordingly, Fingrid Oyj accepts no responsibility or liability (in negligence agreement, or any offer to sell or the solicitation of any offer to buy any or otherwise) for the information contained herein. securities or notes issued under Fingrid Oyj's commercial paper or medium-term note programs. These materials may contain forward-looking statements. These forward- looking statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncertainties, assumptions and other important factors, many of which are outside management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation.

Table of Contents • Executive summary 4 • Company overview 9 • Operations • Description of operations 25 • Efficiency of operations 35 • Earnings model 42 • Pricing 51 • Capex 57 • Operating environment 63 • Financials • Financial performance 73 • Financing 84 • Ratings 91

Executive summary 4 30.9.2019

Fingrid is the sole transmission system operator (TSO) in Finland Fingrid transmits Fingrid manages Fingrid continuously in its own network cross-border ensures power approximately connections system production 75% between Finland and consumption and Sweden, balance in Finland of electricity transmitted Estonia, Russia in Finland and Norway 5 Fingrid Debt Investor Presentation 30.9.2019

Fingrid's network covers entire Finland 14 100 km 10 reserve power of power lines over 114 substation plants 320 km 46 000 towers > 930 MW reserve of submarine cable 6 Fingrid Debt Investor Presentation 30.9.2019

Fingrid has achieved its targets in 2011 - 2018 2011 2018 Net profit MEUR 33 MEUR 183 Return Below regulatory allowed At regulatory allowed* Dividend MEUR 7 MEUR 171 Efficiency High benchmark study rankings High benchmark study rankings Investments In schedule and budget In schedule and budget Fingrid has a proven track record of continuously executing its defined strategy *Cumulative deficit MEUR -5 in 2016-2018 7 Fingrid Debt Investor Presentation 30.9.2019

Key investment considerations Regulation Fair, stable and predictable regulatory model Ownership The Finnish state owns 53% and Finnish financial institutions 47% Strategic importance Considered as strategically important holding to the Finnish state* Operating leverage Construction and maintenance of the network is outsourced Efficiency & Quality Fingrid is one of the most cost efficient and reliable TSOs worldwide Financials Continuous solid operating profitability Rating Fingrid benefits from AA-/A+ ratings (S&P, Fitch**) * Source: Prime Minister's Office, Finland. (2016). Government resolution on state-ownership policy. ** Senior unsecured rating from Fitch is 'A+' and issuer default rating 'A' Fingrid provides a solid long-term investment in a stable operating environment 8 Fingrid Debt Investor Presentation 30.9.2019

Company overview 9 30.9.2019

10 Fingrid Debt Investor Presentation 24.9.2019

Balanced strategy CUSTOMERS AND SOCIETY We secure reliable electricity and a well-functioning electricity market for society. We offer affordable services that meet our customers’ needs. FINANCE We operate cost-effectively and bring value to our owners. INTERNAL PROCESSES Adequacy of the transmission system System operation Promoting the electricity market We carry out investments and maintenance We operate the national grid proactively We actively maintain and develop the safely and efficiently at the right time. and reliably. electricity market. PERSONNEL AND EXPERTISE An open, collaborative, renewing and target-oriented work community. 11 Fingrid Debt Investor Presentation 30.9.2019

Corporate level strategic choices World class efficiency Focus on core operations Customer oriented We utilize innovatively the best Outstanding execution of our core We develop our business operations available technologies and the operations in changing operating and operating models actively, in a possibilities of digitalization. We environment. We do not seek to expand customer oriented manner and for the maintain the required core into new businesses or to participate in benefit of Finland. competences in-house. We cooperate competitive businesses. with the best partners. Security and sustainability Integration oriented Market oriented During the transformation of the power We operate in a market-oriented way in We actively promote the integration of system we maintain the current high European and Baltic sea electricity all areas, because functioning markets level of system operation. Sustainability markets taking into account the produce the best and most innovative and safety are in focus in everything we solutions in all operations. interests of Finland. do. 12 Fingrid Debt Investor Presentation 30.9.2019

Strictly private and Confidential Company's key programs Customers and society My Fingrid (+ICT) Customer data in order Finance Renewal of energy settlement system Enterprise architecture and data in order Enterprise risk management Architecture (+ICT) Data governance model Finance data in order Adequacy of the transmission system System operation Promoting the electricity market Forest line Digital substation IoT Nordic co-operation Change of approach to Imbalance Datahub control & protection Pernoon- RSC RCC settlement RAC3 system activities koski OL3 FennoSkan 1 Asset data in order Control room Interrface Crossflex life extension / Recovery from major 2023 Helsinki 400 kV solution replacement disturbances Intelligent ICT Personnel and competence O365 Process Management of digital Automation Renewing Fingrid culture Work fluency Values Loikka 3 identity life cycle development Implementation of Next Generation Network DevOps model Key program Key program, R&D Fingrid Debt Investor Presentation 30.9.2019 13

Digital substation pilot under construction Digital substation is one of Fingrid's key development projects • Digitalisation is expected to decrease construction and maintenance costs as well as providing more reliable operation • Conventionally used copper cable is replaced with optical fibre, which saves space up to 60% and decreases the need for copper cable up to 80% • Digital substations can be set up for self- monitoring and they are also safer and more environmentally friendly than traditional substations • Once the experiences of the pilot have been analysed, Fingrid will begin test operation of the first fully digital substation 14 Fingrid Debt Investor Presentation 30.9.2019

Fingrid operates in a matrix organisation structure Fingrid Oyj Jukka Ruusunen, President & CEO 84% of Fingrid's GRID ASSET POWER MARKETS FINANCE AND ICT HRD LEGAL AND COMMUNICATI SERVICES MANAGEMENT SYSTEM TREASURY ADMINISTRATI personnel holds AND OPERATIONS ON VE AFFAIRS PLANNING an academic degree Full-time, permanent employees at the end of 2018 Asta Timo Kiiveri Reima Päivinen Sihvonen- Jussi Jyrinsalo Jan Montell Kari Suominen Tiina Miettinen Marina Louhija Punkka** Customers Executive Jussi Jyrinsalo management team Finance and business development Jan Montell is highly regarded Adequacy of transmission system Kari Kuusela in the Finnish Reima Päivinen System operation Asta business community Promoting the electricity market Sihvonen-Punkka Personnel and expertise Tiina Miettinen Fully implemented matrix structure ensures efficient strategy implementation and personnel engagement **Ms. Asta Sihvonen-Punkka nominated as deputy CEO as of July 2019 15 Fingrid Debt Investor Presentation 30.9.2019