Neste Oil Corporation

Company presentation
History of Neste Oil
History of Neste Oil
1948 Neste is founded to ensure Finland’s supply of oil
1957 The Naantali refinery begins operation
1965 The Porvoo refinery comes on line
1995 Neste is listed on the Helsinki Stock Exchange
1998 Neste and IVO merge to form Fortum
2005 Neste Oil separates from Fortum and is listed on the OMX
Nordic Exchange Helsinki
2007 Investment projects are completed at the Porvoo refinery
• First NExBTL diesel plant and diesel production line 4
Decision to construct a large NExBTL diesel refinery in Singapore
2008 The decision is made to construct a large NExBTL diesel refinery in
Rotterdam and a joint venture base oil plant in Bahrain
2009 The second NExBTL diesel plant completed at the Porvoo refinery
2010 The NExBTL diesel refinery completed in Singapore
2011 The NExBTL diesel refinery completed in Rotterdam and the joint
venture base oil plant in Bahrain
Neste Oil in brief

A refinery and marketing company concentrating on

delivering fuels for cleaner traffic
Refining of 15 million tons of oil products per year
Listing on the NASDAQ OMX Helsinki exchange
(stock symbol NES1V)
Turnover of 15.4 billion euros in 2011
Operations in 15 countries
Personnel approx. 5,000
State of Finland as primary owner (50.1% holding)
 Strategy and
operating environment
Neste Oil’s strategy

Providing high-quality solutions for

fueling cleaner traffic

Expanding the Leveraging refining

raw material base excellence
Neste Oil strategy
The operating environment changes…

Growing demand for

energy in traffic and
transport Neste Oil responds
to the challenge:
Oil reserves are
steadily being
New raw materials
depleted Cleaner traffic
and technologies
fuel solutions
Biofuel legislation
Large investments
is developing
Responsible operations
Climate change

Dieselization
Neste Oil’s Business Areas

Oil
Oil Products
Products
and
and Renewables
Renewables Oil
Oil Retail
Retail
Neste Oil’s Business Areas
Oil Products and Renewables
• Procures the crude oil, renewable raw materials and other feedstocks
processed at Neste Oil’s refineries
• Produces a comprehensive range of major petroleum products and
NExBTL renewable diesel and aviation fuel, developed by Neste Oil
• Is looking to grow in premium quality VHVI base oils and renewable
fuels

Oil Retail
• Is the leading station chain in Finland and among the four largest in the
Baltic States, and the St. Petersburg area
• Performs direct sales of the most important oil products
Product assortment
Sales, in thousands of tons (31 December 2011)

Heavy fuel oil: 1,007

Heating oil: 199
Aviation fuel: 763

Base
Base oils:
oils: 332
332

Renewable diesel: 628

Diesel: 6,007

Gasoline: 4,352

Others: 1,997
Market areas

Sales, in thousands of tons (31 December 2011)

USA and Canada: 1,591 Other countries: 194

Rest of Europe: 2,988

Finland: 7,893

Other Nordic countries: 2,618

Neste Oil worldwide

Stockholm Espoo Estonia LithuaniaMoscow

Sundsvall Naantali Latvia Poland St. Petersburg
Nynas Porvoo

Toronto Rotterdam
Beringen
Geneva

Houston
Bahrain
Dubai Singapore
Our values

Responsibility
Excellence
Innovation
Cooperation
Neste Oil aims to be an industry pioneer in
sustainability
Sustainability is an integral part of Neste Oil’s cleaner
traffic strategy
• Developing premium quality products that have a lower
level of impact on the environment

Neste Oil’s approach to sustainability:

• Thorough understanding of the impacts of the products
over their entire lifecycle
• Minimizing the negative impact of raw material supply,
production, and logistics
• Generating added value and wellbeing for stakeholders
• Committed to continuous improvement

Recognition in numerous international

Member since 2007/08
sustainability comparisons
Business Areas
Oil Products and Renewables
Oil Products
One of the largest wholesale suppliers on the Nordic petroleum products
market
Sells a broad range of major products including:
• diesel fuel,
• motor gasoline,
• jet fuel and bunker fuel,
• heating oil and heavy fuel oil,
• gasoline components,
• base oils,
• solvents,
• specialty fuels,
• LPG, and
• bitumen.
Main markets in Europe and North America
Focused on diesel fuel and other middle distillates, and premium-quality
base oils
Premium-quality NEXBASE ® base oils

Used in high performance engine oils and

industrial lubricants

Designed to meet increasingly stringent

environmental and performance requirements
• Decreased oil consumption
• Excellent low temperature fluidity
• Help reducing exhaust and particulate
emissions

Produced at Neste Oil’s Porvoo refinery and

at a joint venture plant in Bahrain
Renewable fuels

Production is based on Neste Oil’s proprietary NExBTL technology

• Produced at Neste Oil’s refineries in Porvoo, Singapore and Rotterdam

NExBTL renewable diesel

• The world’s cleanest diesel
• Fully compatible with fossil diesel
• Commercially available today and sold to other oil companies in Europe
and North America to be used as a premium quality biocomponent

NExBTL renewable aviation fuel

• Neste Oil’s aim is to launch commercial production of NExBTL
renewable aviation fuel
• First batch was produced for Lufthansa’s use in summer 2011
NExBTL – the world’s best and cleanest diesel

Greenhouse gas emissions calculated over the

product’s entire life cycle are 40-80% lower than
those of fossil diesel
Generates significantly lower levels of other
tailpipe emissions
Meets automotive manufacturers’ toughest
specifications
Premium-quality product compared to other
commercially available biodiesel (FAME)
Can be used in all diesel engines as such or
blended with fossil diesel
Compatible with existing distribution systems
Flexible production technology enables the use of
a very wide range of raw materials
NExBTL aviation fuel

Neste Oil is a pioneer in producing high quality biofuels for aviation use
• the first company to supply renewable aviation fuel for daily flights
• one of the only companies in the world already capable of
producing renewable aviation fuel at an industrial scale
NExBTL aviation fuel meets ASTM’s quality specification for aviation
fuels
Helps airlines significantly minimize carbon footprint and GHG
emissions
Fully compatible with current jet engines, a true drop-in solution for
airlines
Oil Retail
Öljyn vähittäismyynti
Oil Retail

Station chain around the Baltic

• 1,145 traffic stations
• 826 of these in Finland
• 326 in Russia, the Baltic countries, and Poland
• Market leader in Finland and growing in the Baltic region
Renewed Neste Oil station chain in Finland consisting of
• Neste Oil traffic stations
• Neste Oil Express automated stations
• Neste Oil Truck stations, serving heavy traffic
Direct sales to corporate and private customers
Neste Oil’s investments

NExBTL
NExBTL
Location Production Investment Completed
Porvoo (2.) 190 000 t/yr > 100 Meur 2009
Singapore 800 000 t/yr 550 Meur 2010
Rotterdam 800 000 t/yr 670 Meur 2011

Oil
Oil Products
Products
Location Production Investment Completion
Bahrain base oil 400,000 t/yr 135 Meur 2011
Porvoo 600 000 t/yr 80 Meur postponed
isomerization
Refineries
Refineries
Refineries in Finland

Porvoo refinery Naantali refinery

Commissioned in 1965 Commissioned in 1957
One of Europe’s most advanced Primarily produces traffic fuels
and versatile refineries and specialty products, such as
Focused on producing premium- bitumen, solvents, and small
quality, low-emission traffic fuels engine gasoline
Crude oil refining capacity of Thanks to its specialty product
approx. 206,000 bbl/d, equivalent focus, refining margin is higher
to some 12 million t/a than other similar refineries
Employs approx. 1,000 people Crude oil refining capacity of an
average of 58,000 bbl/d,
equivalent to approx. 3 million t/a
Employs approx. 400 people
NExBTL refinery in Singapore
Commissioned in 2010
The world's largest and most advanced facility producing renewable diesel
Production capacity 800 000 tons of NExBTL diesel annually
Raw materials include, for example, palm oil and by-products of its production
such as stearin, as well as animal fat
Products are sold to Europe and North America, and later possibly also to Asia
Employs approx. 120 persons
NExBTL refinery in Rotterdam

• Commissioned in September, 2011

• Europe’s largest and most advanced facility producing renewable diesel
• Production capacity 800 000 tons annually
• Employs approx. 150 persons: Neste Oil 110, service provider personnel 40
Marine transportation

We care how we carry

Reliable and cost efficient shipping services

Transports crude oil, oil products, and chemicals

- Close to 30 million tons a year
Operates mainly in the Baltic Sea, North Sea, and
North Atlantic area
Has a fleet of 22 tankers, with a combined deadweight of
0.75 million tons
all vessels have a double hull and are reinforced against ice
Utilizes key strengths of safety, environment responsibility, and
expertise in winter navigation
Excellent performance in customer & authority inspections
Research and technology
Success born of research and technology
Neste Oil’s Research and Technology Unit gives the company a
competitive edge by developing
• refining processes
• catalysts
• technologies
• products
Researching renewable raw materials represents an important
part of the R&D
• About 80% of the company’s R&D costs totalling approximately 40
million euros annually are directed to researching renewable raw
materials
Neste Jacobs offers design services to Neste Oil
and other companies in the business
• the largest and most experienced Nordic design company in the oil
and chemical industry, employing approx. 1,000 people
• Neste Oil’s ownership: 60%
 Cleaner products along the way

1982 1988 1991 1994 2003 2007 2010

Neste Alfa Futura brand: City Futura, with New Futura: New Futura NExBTL Neste Green
lubricants gasoline that an oxygen-containing less sulfur than gasoline diesel 100 diesel
keeps engines clean MTBE component ever before market launch from renewable
synthetic PAO raw materials

1985 1989 1993 1997 2004 2008 2011

City-gasoline: Lead-free Futura Futura CityDiesel: VHVI Sulfur-free Neste Green NExBTL
lead-free, with 95E, replacing end of sales for the base oils gasolines diesel renewable
MTBE as an 92-octane and diesel aviation fuel
low-aromatic and
important gasoline
nearly sulfur-free fuels
component
gasoline
Neste Oil in numbers
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Yearly key figures

Turnover Comparable operating profit

MEUR MEUR
18000 700
16000
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14000
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10000 400

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Yearly key figures

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1200 1000
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2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
Personnel, by division
Total personnel: approximately 5,000 (31 December 2010)

Others: 8%

Technology & Strategy: 5%

Neste Jacobs: 14% Oil Products: 42%

Oil Retail: 26%

Renewable fuels: 5%
Shareholders
76,969 shareholders (31 December 2011)
Corporations: 2.9% Non-profit organizations: 1.9%
Financial and insurance
companies: 2.6%

General government: 9.5%

Households: 13.7%
State of Finland: 50.1%

Foreign owners: 19.4%

Organization
Organization
Organization
Shareholders / Annual General Meeting

Board of Directors

CEO

Business Areas Common functions

Renewables
Products &

Retail
Oil
Oil

Customers
Neste Executive Board
CEO: Matti Lievonen

Common functions Business Areas

Production & Logistics Ilkka Poranen Oil Retail

Oil
Products
Finance
Finance Ilkka
Ilkka Salonen
Salonen and
Renewables

Human
Human Recources
Recources Hannele
Hannele Jakosuo-Jansson
Jakosuo-Jansson Matti Sakari
Lehmus Toivola

HSE
HSE Simo
Simo Honkanen
Honkanen

Technology
Technology &
& Strategy
Strategy Lars
Lars Peter
Peter Lindfors
Lindfors

Communications,
Communications, Marketing,
Marketing, Public
Public Affairs
Affairs O.
O. Kammonen
Kammonen

Legal
Legal Affairs
Affairs Matti
Matti Hautakangas*
Hautakangas*
*Secretary
*Secretary to
to the
the Neste
Neste Executive
Executive Board,
Board, not
not aamember
member
refining the future