99
Investor presentation September 2012
InvestorpresentationSeptember 2012
Contents
1 Neste Oil in brief
2 Strategy
3 Business
4 Feedstock development
5 Sustainability
6 Production and logistics
7 Organization
8 Market development
9 Financials
10 Funding
11 Q2/12 key figures
2
Disclaimer
The following information contains, or may be deemed to contain, “forward-looking statements”.These statements relate to future events or our future financial performance, including, but notlimited to, strategic plans, potential growth, planned operational changes, expected capitalexpenditures, future cash sources and requirements, liquidity and cost savings that involveknown and unknown risks, uncertainties and other factors that may cause Neste OilCorporation’s or its businesses’ actual results, levels of activity, performance or achievementsto be materially different from those expressed or implied by any forward-looking statements. Insome cases, such forward-looking statements can be identified by terminology such as “may,”“will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,”“predict,” “potential,” or “continue,” or the negative of those terms or other comparableterminology. By their nature, forward-looking statements involve risks and uncertaintiesbecause they relate to events and depend on circumstances that may or may not occur in thefuture. Future results may vary from the results expressed in, or implied by, the followingforward-looking statements, possibly to a material degree. All forward-looking statements madein this presentation are based on information presently available to management and Neste OilCorporation assumes no obligation to update any forward-looking statements. Nothing in thispresentation constitutes investment advice and this presentation shall not constitute an offer tosell or the solicitation of an offer to buy any securities or otherwise to engage in any investmentactivity.
3
Neste Oilin brief
Neste Oil in Brief
Refining capacity:15 million t/a of
petroleum productsand 2 million t/a ofrenewable diesel
Net sales: €15.4billion (2011)
Listed on theHelsinki Stock
Exchange
Largest owner: theFinnish State
(50.1%)
A refining andmarketing company
focused onpremium-quality
traffic fuels
Operations in 15countries; employs
approx. 5,000people
5
History of Neste Oil
Neste listed on the HelsinkiStock Exchange
Neste Oil spunoff from Fortum
and relisted
Neste wascreated to secure
Finland’s oilsupply
1948 1957
Naantali refinery
1995 1998 2007–2011
Neste and IVOmerge to form
Fortum
1965
Porvoo refinery
2005
Majorinvestments atPorvoo and inSingapore and
Rotterdam
The world’sleading producer
of renewablediesel today andone of the world’sleading base oil
producers
6
Neste Oil worldwide
SALES AND MARKETING / TRADING• Espoo• Stockholm• Sundsvall• Estonia
PRODUCTION• Porvoo• Naantali• Bahrain
• Latvia• Lithuania• Moscow• St. Petersburg
• Houston• Toronto
• Dubai• Singapore
• Poland• Geneva
• Rotterdam• Singapore
7
Responsibility Excellence
Innovation Cooperation
Our values
8
Strategy
Today’s world is constantly on the move
People andgoods alwaysneed to getsomewhere
How much morecan nature take?
We needcleaner trafficand transport
solutions
10
Our vision
To be thepreferredpartner forcleaner trafficfuel solutions
11
Providing high-quality solutionsfor fuelling cleanertraffic
Expanding theraw materialbase
Leveragingrefiningexcellence
Neste Oil’s strategy
12
Neste Oil’s strengths
Strong marketposition
Cutting edgeR&D
Sustainablebusiness model
Premium-quality products
13
Competitive advantage from cutting-edge R&D
• In-house Research and Development Unit develops refiningprocesses, catalysts, and new technologies and products
• Current research is focused on developing new renewable rawmaterials and technologies for refining them
• Neste Oil collaborates with some of the world’s leading researchinstitutions and companies
• Neste Oil owns 60% of Neste Jacobs• The largest and most experienced oil and chemical industry
engineering company in the Nordic region, employing closeto 1,000 engineering professionals
14
City-gasoline:lead-free, withMTBE as an
importantcomponent
1980
Lead-free Futura95E, replacing
92-octanegasoline
Cleaner products along the way
Futura Citydiesel:end of sales for thelow-aromatic andnearly sulfur-free
gasoline
1990
Sulfur-freegasolines and
diesel fuels
2000
NExBTLrenewable
aviation fuel
2010
Neste Alfalubricants
Futura brand:gasoline that keeps
engines clean
City Futura, with anoxygen-containingMTBE component
synthetic PAO
VHVIbase oils
New Futura:less sulfur than
ever before
New Futuragasoline market
launch
Neste Greendiesel
NExBTL dieselfrom renewable
materials
Neste Green 100diesel
Neste ProDiesel
15
Latest innovation: Neste Pro Diesel
Betterperformance
Lowergreenhouse gas
emissions
Lubricants lastlonger
Less carbon build-up in engines
Lower fuelconsumption
Better low-temperatureperformance
16
Business
Neste Oil’s business areasOil Products and Renewables Oil retail
18
Product range
Sales,1,000 tons (2011)
Diesel 6,007
Gasoline 4,352
Other products 1,997
Heavy fuel oil 1,007
Aviation fuel 763
NExBTL renewable diesel 628
Base oil 332
Heating oil 199
19
Sales,1,000 tons (2011)
Finland 7,893
Rest of Europe 2,988
Other Nordic countries 2,618
US and Canada 1,591
Rest of the world 194
Markets
20
Neste Oil’s growth areas
NExBTLrenewable diesel
Other renewableapplications
Premium-quality base oil Oil retail
21
Neste Oil’s investmentsNExBTL-projects
Location Capacity Investment Operational
Porvoo # 1 190,000 t/a EUR 100 million 2007
Porvoo # 2 190,000 t/a > EUR 100million
2009
Singapore 800,000 t/a EUR 550 million 2010
Rotterdam 800,000 t/a EUR 670 million 2011
Other refining projects
Location Capacity Investment Operational
Bahrain(base oil)
400,000 t/a EUR 135 million 2011
22
NExBTL product family – 100% bioproducts
Flexible feedstock: a widerange of vegetable oils and
animal fats
RenewableNExBTL diesel
RenewableNExBTLjet fuel
Renewablenaphtha
Renewablepropane
23
NExBTL renewable diesel
• Produced from vegetable oil andwaste fat
• Using NExBTL reducesgreenhouse gas and tailpipeemissions significantly
• Compatible with existingdistribution systems andengines
• Meets even the toughestmanufacturer requirements
• Sold to oil companies in Europeand North America
24
Premiumfossil diesel Paraffinic
diesel (e.g.NExBTL)
Visible difference in combustion
25Source: Alliance for Synthetic Fuels in Europe
Driving growth and profitability inRenewable Fuels
Fullcapacityutilization
Workingcapital andsupplychainoptimization
Expansion ofcompetitivefeedstockbase
Focus onhighestmarginsegments andsolutions
Capacitycreep andyielddevelopment
26
Sales in Renewable Fuels
87 80
177
274305
464
0
100
200
300
400
500
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
NExBTL sales by quarter,1,000 tons
27
NExBTL renewable aviation fuel
• Offers airlines an easy wayto cut their emissions
• Compatible with existingaircraft engines
• Performance demonstratedon over 1,000 Lufthansaflights
• Capable of being producedin commercial volumes
• Offers Neste Oil futuregrowth opportunities
28
Premium-quality NEXBASE® base oil
Used in quality motor oils andindustrial lubricants
Designed to meet ever-tougherenvironmental and qualityspecifications
• Reduces fuel consumption• Contributes to lower tailpipe
and particulate emissions
Neste Oil is one of the world’sleading producers andmarketers of premium-qualitybase oil
29
Uses of premium-quality base oils
1. Engine Oil
2. Driveline Fluids
3. Power Steering Fluid
4. Shock Absorber Fluid
5. Gear Oil
6. Greases
30
Oil Retail in brief
Direct sales ofmajor petroleum
products
Captive marketingchannel for Neste
Oil’s premium-quality, low-
emission products
Major marketer andsupplier of
petroleum productsin Northwest
Russia, Estonia,Latvia, Lithuania,
and Poland
Spearhead for theNeste Oil brand
Finland’s leadingservice station
network and one ofthe top three in the
Baltic countries,and the St.
Petersburg region
Aims to achieve aleading position inselected markets
31
Oil Retail’s station network
• Market leader in Finland, agrowing force around theBaltic Rim
• Neste Oil station networkconsists of:
• Neste Oil stations• Neste Oil Express
stations• Neste Oil Truck stations
Poland
Latvia
Lithuania
St.Peters-burg
Finland
61
819
2
2
2
1
3
7
53
49Estonia
market position
61
49
53
57
106
32
Oil Retail sales volumes
644
697
724
693
661
708
600
650
700
750
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
Sales volume (gasoline + diesel) by quarter1,000 m3
33
Feedstockdevelopment
Waste animal fatfrom the meat
processingindustry
Renewable feedstock
Palm oil, stearin,palm fatty acid
distillate (PFAD)
Waste fat fromthe fish
processingindustry
Camelina oil Jatropha oil Soybean oil Rapeseed oil
35
Crude Palm Oil
Waste and sidestream(animal fat, PFAD, stearin)
Others (rapeseed,jatropha-, ja camelina oil)
Feedstock
54 %
41 %
5 %
Neste Oil’s renewable feedstock mix in 2011
36
New raw materials and process alternatives
Algae oil Microbial oil
Harvestingresidue and
biomassgasification
Non-foodvegetable oils
Waste animalfats, waste oils,residue and side
streams
37
Potential future raw materials
• Cooperation with over 20 research institutions around the world.• 80% of Neste Oil’s R&D costs (~EUR 42 million in 2011) directed to
researching renewable raw materials and the refining technologies.• The first ever pilot plant in Europe to produce waste-based microbial oil
is being built at Neste Oil’s Porvoo refinery in Finland.
Microbial oilMicrobial oil Algae oilAlgae oil Biowax from forestharvesting waste
Biowax from forestharvesting waste
38
Europe’s first pilot plant for waste andresidue-based microbial oil
Neste Oil is investing in a pilot plant in Finland to produce microbialoil from waste and residue streams
BIOMASSAgricultural or pulpand paper industry
residues etc.
BIOREACTORBiomass is
transformed intomicrobial oil
OIL-RICHMICROBES
NExBTL PROCESSMicrobial oil is
converted into fuel
PRODUCTNExBTL
Renewable diesel /Aviation Fuel
39
Sustainability
”Safety – Sustainability – Responsibility”in global business environment
• Responsibility andSustainability is basedon strong SafetyCulture
• Globally operatingbusiness requires clearand responsiblegovernance
41
Our sustainability policy
We are sociallyresponsible,
environmentally soundand economically
viable
All our actions are safefor us, our neighbours,contractors, customersand the environment
We act responsibly insociety and respect
human rights whereverwe operate
We provide ourcustomers with
products that helptackle sustainability
issues such as globalclimate change and
improve local airquality
We are committed toengaging with ourstakeholders and
participating in multi-stakeholder initiativesto help develop moresustainable solutions
We use naturalresources responsibly
and are activelyworking towards amore sustainable
supply chain
42
Case Palm Oil: Full traceability to the allpalm oil is traceable to the origin
PLANTATIONS MILLSBiofuel Refinery
HARBOUR CUSTOMER
AUTHORITY
Supplier
Crude Palm Oil (CPO)
Fuel Supplier - Authority•Authority report
PALM OILREFINERY
PFADRBD stearin
Plantation - Mill• Approved mills (Appendix of
the agreement includingname of plantation, Previousland use, plantation historyand establishment year)
• Truck loading/discharging(FFB) documents
Mill - (Refinery) - Harbour• Summary of plantations of
origin for each barge• Summary of discharging of
barges• History of shore tanks of
harbour
Supplier – Biofuel company• B/L• Shoretanks measurement
(+)• CoC report (++)• Certificate of quantity (+)• Certification of quality (+)• Certification of origin/T2L• RSPO certificates• Ullage report (+)
Biofuel - Customer• Customer specific reports• B/L• Shoretanks measurement
(+)• CoC report (++)• Certificate of quantity (+)• Certification of quality (+)• Certification of origin/T2L• RSPO certificates• Ullage report (+)
43
Mill and Estate Mapping for supply chainmanagement
• All palm oil is traceable to its origin• Monitoring and collecting data to ensure compliance with legislation and sustainable operations in
general: Estate history, certifications, sustainability activities etc• GHG assessments for all supplies; milling process, agricultural practices• Special focus on small holders
Mills 51RSPO 21ISCC 10
RSPO+ISCC 13Cert in progress 7
Estates tot. 193March, 2012
44
International recognition for oursustainability
Member since 2007/08
45
Productionand logistics
Neste Oil’s production sites
Bahrain
Singapore
Rotterdam
NaantaliPorvoo
47
Neste Oil’s refineries in Finland
Porvoo refinery• On stream in 1965• One of Europe’s most advanced and
versatile refineries• Output concentrated on premium-
quality, low-emission traffic fuels• Crude oil distillation capacity of
approx. 206,000 bbl/d; producesapprox. 12 million tons of petroleumproducts annually
• Employs around 1,000 people
• Nelson complexity index 12.1
Naantali refinery• On stream in 1957• Main products include traffic fuels
and specialty products such asbitumen, solvents, and small-enginegasoline
• Higher refining margin than refineriesof similar size, thanks to its specialtyproduct output
• Crude oil distillation capacity ofapprox. 58,000 bbl/d; producesapprox. 3 million tons of petroleumproducts annually
• Employs around 400 people• Nelson complexity index 7.1
48
Refinery capacity utilization
Naantali,per cent
Porvoo,per cent
90
8186 85
94
74
0
10
20
30
40
50
60
70
80
90
100
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
86 8490
80 81
35
0
10
20
30
40
50
60
70
80
90
100
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
49
NExBTL refinery in Singapore
• On stream in 2010
• Produces NExBTL renewablediesel for the European andNorth American markets
• Refining capacity of approx.800,000 t/a
• Feedstocks include palm oil,palm oil by-products such asstearin, and waste animal fat
• Employs around 120 people
50
NExBTL refinery in Rotterdam
• On stream in September 2011
• Produces NExBTL renewablediesel for the European andNorth American markets
• Refining capacity of approx.800,000 t/a
• Feedstocks include palm oil,palm oil by-products such asstearin, and waste animal fat
• Employs around 150 people
51
Neste Oil fleet
• Comprises 22 vesselswith a combined tonnageof around 750,000 dwt
• Carries close to 30million tons of crude oil,petroleum products, andchemicals annually
• Operations focused onthe Baltic, the North Sea,and the North Atlantic
52
Neste Shipping fleet
Tugs
Ahti -02, FI, 1A
Esko -81, FI, 1A
Ukko -02, FI, 1A
Tempera -02, FI,106034 DWT, 1A S
Stena Arctica -05, FI,117000 DWT, 1A S
Crude & dirty
Sten Bothnia -08, NIS,16611 DWT, 1A
Mastera -03, FI,106208 DWT, 1A S
Sten Nordic -06, NIS,16613 DWT, 1A
Ternholm -05, NIS,14796 DWT, 1A
Kiisla -04, FI,14750 DWT, 1A S
Sten Hidra -07, NIS,16600 dwt, 1A
Sten Aurora -07, NIS,16600 DWT, 1A
Astoria -99, S,12712 DWT, 1AStena Poseidon -07, FI,
74999 DWT, 1A
Palva -07, FI,74999 DWT, 1A
Futura -04, FI,25084 DWT, 1A S
Neste -05, FI,25080 DWT, 1A S
Jurmo -04, FI,25049 DWT, 1A S
Purha -03, FI,25000 DWT, 1A S
Clean
Suula -05, FI,14665 DWT, 1A S
Sten Suomi -08, NIS,16619 DWT, 1A
Tarndal -98, NIS,8300 DWT, 1A S
Scorpius -06, DIS,11249 DWT, 1A
Ternvik -01, DIS,14804 DWT, 1A
Ternhav -02, DIS,14781 DWT, 1A
53
Organization
Shareholders / Annual General Meeting
Board of Directors
CEO
Business Areas Common functions
Oil Products& Renewables
Oil Retail
Customers
Organization
55
CEO: Matti Lievonen
Production & Logistics Ilkka Poranen
Neste Executive Board
Finance Matti Piri (acting CFO)
Human Resources Hannele Jakosuo-Jansson
HSE Simo Honkanen
Technology Lars Peter Lindfors
Communications, Marketing, Public Affairs O. Kammonen
Strategy Tuomas Hyyryläinen
Common functions Business Areas
Legal Affairs Matti Hautakangas (Secretary, not a member)
Oil Productsand
Renewables
MattiLehmus
Oil Retail
SakariToivola
56
Marketdevelopment
Global oil demand
-500
0
500
1000
1500
NorthAmerica
LatinAmerica
Europe MiddleEast
Africa FSU Asia
2010 2011 2012
Global oil demand growth,thousands barrels per day
58Source: IEA July 2012
European trends
Transport sector
• Largest energyconsumer, 31%of total, rising to33% by 2030
• Largest oilconsumer: 60%of total, rising toover 64% by2030
Road transportdominates
• Over 80% oftotal transportenergyconsumption
• By 2030, carsand trucks willaccount for some50% of totalEuropean oilconsumptionunlessalternativetransportationfuels emerge
Similar trendsaround the world
59Source: IEA
Middle distillate balancesRegional diesel/gasoil balances,million tons
-80
-60
-40
-20
0
20
40
60
Asia Pacific Middle East NorthAmerica
GreaterEurope
FSU
20112015
60Source: Wood Mackenzie June 2012
A complex refiner focuses on middledistillates
44%54%
19%
33%19%
6%18%7%
0 %10 %20 %30 %40 %50 %60 %70 %80 %90 %
100 %
NWE average Neste Oil
Middle distillates Motor gasolineFuel oil Other
• High share ofmiddledistillates
• High share ofgasoline
• Low share offuel oil
61Source: NWE 2011 data from WoodMackenzie
Crude oil price development
80
90
100
110
120
130
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
Brent, $/bbl
-5-4-3-2-101Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
Urals vs. Brent,$/bbl
62
Properties of crude oils
• API gravity is a measure of howheavy or light a petroleum liquidis compared to water
• Crude oil is classified as light,medium or heavy according toits measured API gravity
1. Light crude oil is definedas having an API gravityhigher than 31.1 °API
2. Medium oil is defined ashaving an API gravitybetween 22.3 °API and31.1 °API
3. Heavy oil is defined ashaving an API gravitybelow 22.3 °API
APIgravity Sulfur
Brent dated 38° 0.4%
Fortis (setsBrent dtd
quote)38° 0.6%
Urals 31° 1.3%
WTI 40° 0.3%
63
Margins in Oil Products
Product margins,price difference to Brent Dated, USD/bbl
1) ULSD 10ppm CIF ARA2) Premium Unleaded 10 ppm CIF ARA3) HSFO 3.5% CIF ARA
-30
-20
-10
0
10
20
30
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
Diesel 1)Gasoline 2)HFO 3)
64
Margins in Oil Products
0123456789
10
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
Total refining margin,$/bbl
Reference refiningmargin, $/bbl
Neste Oil’s refining margins,dollars per barrel
65
Base oils market evolution
Group III
Now
Group II (II+)
Group I
Group III
Group I
GTL / III+Future
Group II (II+)
Premium on top-tiermarkets
Mainline sulphurfree base oils
Declining product,bulk in industrial use
40m
illio
nto
ns
30m
illio
nto
ns10
mill
ion
tons
Ord
erof
-mag
nitu
de
66
Three policy forces driving biofuels
GHGreductions
Agriculturalsupport
Energysecurity
67
Global biodiesel demand
13 1420
44
8
33
5
45
8
0
10
20
30
40
50
2012 2015 2020
Latin AmericaAsia-PacificNorth AmericaEurope
+8% p.a
Bio/renewable diesel demand,million tons
2426
41
68Source: Woodmac, Kingsman, Neste Oil and BCGanalysis & estimates
Margin drivers in Renewable Fuels
-150
-100
-50
0
50
100
150
200
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
FAME vs. RSO
900
1,000
1,100
1,200
1,300
1,400
1,500
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
SBO RSO CPO AF
FAME, vegetable oil and animal fat prices,dollars per ton
69
Vegetable oil production
5143
23
14
6 5 4 3 2 1 10
10
20
30
40
50
60
World production of major oils & fats,million tons in 2011/2012
70Source: Oil World
Financials
626602
116
240
178
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011
Annual key figures
12,103
15,043
9,636
11,892
15,420
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2007 2008 2009 2010 2011
Comparable operating profit,millions of euros
Revenue,millions of euros
72
272
508
863943
364
0100200300400500600700800900
1,000
2007 2008 2009 2010 2011
Annual key figures
220
512
177
1,105
197
0
200
400
600
800
1,000
1,200
2007 2008 2009 2010 2011
Cash flow,millions of euros
Investments,millions of euros
73
Comparable EBITDA & EBIT
Comparable EBITDA and EBIT by quarter,millions of euros
0
20
40
60
80
100
120
140
160
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
Comparable EBITDA
Comparable EBIT
74
Cash flow
Cash flow by quarter,millions of euros
58
-126 -129
394
-353
201
-400
-300
-200
-100
0
100
200
300
400
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
75
Investments
Investments by quarter,millions of euros
174
210 216
263
190
374
190 189
12091
6786
48
112
0
50
100
150
200
250
300
350
400
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
76
Leverage
Leverage by quarter, %target range: 25-50%
35.3
39.7 38.8
46.3
43.3
47.0 47.6
42.6 42.5
46.3
49.0
45.7
49.350.3
25
30
35
40
45
50
55
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
77
ROACE
11.6
8.8
5.1
2.53.0
2.12.6
4.63.6 3.6 3.6
2.6 3.0 3.1
0
5
10
15
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
ROACE by quarter, %target: at least 15%
78
Share price
5
7
9
11
13
15
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
Neste Oil share price development,euros
79
Shareholder structure
78,570shareholders (31 August 2012)
50.1 %
21.9 %
14.7 %
13.3 %State of Finland
Finnish institutions
Households
Non-Finnishshareholders
80
Dividend
Payout from comparable net profit,per cent
Payout,euros per share
0.80
0.90
1.00
0.80
0.25
0.35 0.35
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2005 2006 2007 2008 2009 2010 2011
4855 53 51
119
54
105
0
20
40
60
80
100
120
140
2005 2006 2007 2008 2009 2010 2011
target
81
Funding
Credit programs & bonds
Revolving Credit FacilityEUR 1.5 billionMaturity: March 2016Mandated Lead Arrangers: Barclays Capital, BNPParibas, Crédit Agricole CIB, Danske Bank,Skandinaviska Enskilda Banken AB (publ), NordeaBank Finland Plc, Pohjola Bank plc and The Bank ofTokyo-Mitsubishi UFJ, Ltd
Commercial Paper ProgramEUR 400 million unsecured short term notes withmaturities less than one yearDealers: Pohjola Bank, Nordea, Danske Bank,Skandinaviska Enskilda Banken AB (publ), SvenskaHandelsbanken AB (publ) and Swedbank AB (publ),Helsinki Branch
Financial InstitutionsInvestment loans from EIB and NIB totaling EUR 280million (2008-2011)Loans from financial institutions totaling EUR 515million (2008-2009)Overdraft facilities totaling €150 million
Bond Issues7-year fixed rate note 1/2009
Size: EUR 300 millionCoupon: 6.00% (issue price 99.463%, MS + 300bps)Arrangers: Danske, Nordea Markets, Pohjola
5-year fixed rate note 1/2010Size: EUR 300 millionCoupon: 4.875% (issue price 99.532%, MS + 290bps)Arrangers: BNP Paribas, DB, Nordea
5 year fixed rate note 1/2012Size: EUR 250 millionCoupon: 4.00% (issue price 99.711%, MS + 240bps)Arrangers: Danske Markets & Pohjola Markets
83
Funding sources Q2/12
1,173
921
177264
15
279
Financial inst 46%Bond 36%Leasing 7%CP 10%ST Others 1%
Bonds
Financial institutions
EUR Million
CPLeasing
Interest bearing liabilities totaling EUR 2,550 million of which EUR 458 million short term debt
84
Debt structure Q2/12
Interest-bearing netdebt EUR 2,428 million
Total interest-bearingliabilities EUR 2,550million
Short-term interestbearing liabilities EUR458 million
Material Funding ArrangementsSize(€m) Maturity
Bank overdrafts EUR 150 <1 yrDomestic CP EUR 400 <1 yrBilateral loans EUR 200 2013RCF (bilateral) EUR 75 2013Bilateral bank loan EUR 200 2014EIB EUR 150 2014NIB EUR 130 2015=>Bond Issue 2010 EUR 300 2015RCF EUR 1,500 2016Bond Issue 2009 EUR 300 2016Bond Issue 1/2012 EUR 250 2017
85
Dept maturity profile
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016 2017 2018 2019+
Short-term
Long-term
Debt maturity profile at the end of June 2012millions of euros
Average interest rate 3.20%Average maturity 3.7 years
86
Financial risk management
94.0%
2.0 % 4.0 %
Interest bearing debtby currency
EURUSDOther
Foreign Exchange RisksPolicy is to hedge the estimated netcash flow on rolling basis:
On average 80% of the next 6monthsOn average 40% of the following6 months
Both option and forward strategies inuse
Interest Rate RisksAverage interest rate of the loanportfolio is 3.2%Flow risk is EUR 15 million 1)
Duration benchmark of the loanportfolio is 12 months
1) The change in interest expenses within one year if interest rates change 1%
87
Q2 / 2012key figures
MEUR Q2/2012 Q2/2011Revenue 4,297 3,674Comparable EBITDA 121 123Comparable Operating Profit 38 47
Oil Products 49 75
Renewable Fuels -33 -55Oil Retail 15 13Others (incl. eliminations) 7 14
IFRS Operating Profit -117 109Net Cash from Operations 201 -126Earnings per share, EUR -0.44 0.25Leverage, % 50.3 46.3ROACE, % 3.1 3.6
Group Financials Q2/2012
89
Key Figures
MEUR Q2/2012 Q2/2011 H1/2012 H1/2011 2011
Revenue 4,297 3,674 8,751 7,146 15,420
IFRS Operating profit -117 109 71 280 273
Comparable operating profit 38 47 114 90 178
Profit before taxes -144 98 22 258 206
Profit for the period -113 64 8 182 160
Comparable net profit for the period 5 16 39 35 86
Earnings per share, EUR -0.44 0.25 0.03 0.71 0.62
Net cash from operating activities 201 -126 -152 -68 197
Investments 112 91 160 211 364
30 Jun 2012 30 Jun 2011
Interest-bearing net debt 2,428 2,176
ROCE (pre-tax), % 2.7 12.2
ROE, % 0.7 14.7
90
Balance Sheet
2,783 2,527
4,356 4,358
0
1000
2000
3000
4000
5000
6000
7000
8000
30 June ´12 30 June ´11
2,193 2,047
2,550 2,317
2,396 2,521
0
1000
2000
3000
4000
5000
6000
7000
8000
30 June ´12 30 June ´11
Non-current assetsCurrent assets
EquityInt-bear. liabilities
Int-free liabilities
Total assets Total equity & liabilities
7,139 6,885 7,139 6,885
91
Balance Sheet
30 Jun 2012 30 Jun 2011
Capital Employed, MEUR 4,946 4,838
Equity-to-assets, % 33.6 36.7
Leverage, % 50.3 46.3
Gearing, % 101.3 86.3
92
Cash Flow
MEUR Q2/12 Q2/11 H1/12 H1/11 2011
Profit before taxes -144 98 22 258 206
Adjustments total 116 49 181 158 344
Change in working capital 260 -237 -273 -431 -222
Cash from operations 232 -90 -70 -15 328
Net finance costs -4 -1 -42 -13 -44
Taxes -27 -35 -40 -40 -87
Net cash from operations 201 -126 -152 -68 197
Capital expenditure and investments in shares -112 -91 -160 -211 -364
Other 29 25 68 -12 -1
Cash flow before financing activities 118 -192 -244 -291 -168
Net change in loans 1 260 153 142 180
Dividends paid -91 -90 -91 -90 -90
Net increase/decrease in cash 28 -22 -182 -239 -78
93
Refinery Production Costs,Porvoo & Naantali
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 2011
RefinedProducts
Million Barrels 27.4 26.0 28.5 28.8 28.1 24.2 110.8
Exchange Rate EUR/USD 1.37 1.44 1.41 1.35 1.32 1.28 1.4
Utilities costsEUR Milion 59.6 57.2 59.1 59.4 64.4 66.4 235.3
$/bbl 3.0 3.2 2.9 2.8 3.0 3.5 3.0
Fixed costsEUR Million 42.0 60.5 43.8 60.9 49.8 58.1 207.3
$/bbl 2.1 3.4 2.2 2.9 2.3 3.1 2.6
External salesEUR Milion -22.2 -21.7 -24.5 -29.8 -27.8 -27.2 -98.2
$/bbl -1.1 -1.2 -1.2 -1.4 -1.3 -1.4 -1.2
TotalEUR Milion 79.4 95.9 78.5 90.5 86.4 97.3 344.3
$/bbl 4.0 5.3 3.9 4.2 4.1 5.1 4.3
94
Company Outlook
• Neste Oil expects comparableoperating profit to improvesignificantly from 2011
• Fixed costs approx. MEUR 640,and investments approx. MEUR350 in 2012
95
Oil Products Outlook
• Major planned refinerymaintenances for 2012completed
• Approx. 30% of 2012 salesvolume is margin hedged at USD4.7/bbl reference margin levelassuming Urals/Brent differentialUSD -1.0/bbl
• Oil Products’ full-yearcomparable operating profit toimprove vs. 2011 assuming goodproductivity during the secondhalf of the year
96
• Third-quarter comparableoperating profit is expected toimprove from the second quarterbut remain negative
Renewable Fuels Outlook
97
• Full-year comparable operatingprofit is expected to be at least2011 level
Oil Retail Outlook
98
refining the future
