Neste Oil's Capital Markets Day in London: Enhancing competitiveness and creating growth

Neste Oil Corporation
Stock Exchange Release
11 September 2014 at 2 p.m. (EET)

Neste Oil's Capital Markets Day in London: Enhancing competitiveness and creating growth

Neste Oil is holding a Capital Markets Day in London today, 11 September, featuring presentations by senior management on subjects such as the company's strategy, goals, and recent business developments.

Strategy

Neste Oil's strategy is based on a vision of being the preferred partner for cleaner traffic solutions. Neste Oil wants to be the Baltic Sea downstream champion and grow in global renewable feedstock-based markets.

It will achieve its goals by focusing on its customers and understanding their needs, continually improving its operations, and exploiting new business opportunities. Growth will come from both existing and emerging businesses.

Neste Oil is targeting a strong cash flow to enable it to invest in improving productivity and growth, reduce its debt, and ensure stable dividends.

Oil Products

The aim of the Oil Products business area is to be the Baltic Sea champion in refining and increase its additional refining margin. The goal is to increase this margin to at least USD 5/bbl. To achieve this, Neste Oil intends improving its performance in production, particularly refinery availability, broadening the flexibility of its feedstock base, developing its refining assets, and strengthening its customer offering and market position.

Renewable Products

The Renewable Products business area is focused on feedstock flexibility, growing its productivity, and maximizing the value of its products.

The capacity of Neste Oil's renewable diesel refineries will rise to 2.3 million t/a by the end of 2014 through various efficiency enhancement and optimization measures. The goal is to further increase capacity to 2.6 million t/a without making any major additional investments. The aim is also to reduce renewable diesel production costs from USD 200/t to USD 175/t with units running at full capacity.

The range of feedstocks used will be further extended, particularly in the area of waste and residues. The aim is to have the capability to use 100% waste and residues by 2017.

The NEXBTL product family will be extended into completely new applications outside traffic fuels. Production of biopropane will start in Rotterdam in 2016, generating new business from one of the refinery's sidestreams.

New businesses

Neste Oil intends extending business activities based on its NEXBTL technology utilizing renewable feedstock. There are a number of new potential NEXBTL product applications like renewable lubricants, solvents, and plastics.

Drop-in products produced from renewable inputs that can replace existing conventional equivalents are seen as having a lot of market potential. Neste Oil is looking at the most interesting alternatives and end-product areas likely to offer the greatest added value. New NEXBTL applications are expected to develop into a significant business by the end of the decade.

Financial targets

Neste Oil's most important financial targets are leverage and ROACE. The leverage target is 25-50% and the ROACE target 15%.

Neste Oil's dividend policy is to distribute at least one third of the company's comparable net profit for the year in the form of dividends.

CMD presentation material in English will be available at www.nesteoil.com/investors from around 2.30 p.m. (EET) onwards.

The event can also be followed online at www.nesteoil.com from 2.30 p.m. (EET) onwards.

A replay will be available after the event at www.nesteoil.com/investors.

Neste Oil Corporation

Osmo Kammonen
Senior Vice President, Communications and Brand Marketing

Further information:
Jyrki Mäki-Kala, CFO, tel. +358 10 458 4098

Neste Oil in brief

Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company produces a comprehensive range of major petroleum products and is the world's leading supplier of renewable diesel. Neste Oil had net sales of EUR 17.5 billion in 2013 and employs around 5,000 people, and is listed on Nasdaq OMX Helsinki.
 
Neste Oil is included in the Dow Jones Sustainability World Index, and has featured in The Global 100 list of the world's most sustainable corporations for many years. Forest Footprint Disclosure (FFD) has ranked Neste Oil as one of the best performers in the oil & gas sector. Further information: http://www.nesteoil.com