First Quarter

results 2016
Matti Lievonen, President & CEO
27 April 2016
Agenda

1 Q1/16 Group financials

2 Q1/16 Segment reviews

3 Current topics

4 Appendix

27 April 2016 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 not limited to,
strategic plans, potential growth, planned operational changes, expected capital expenditures, future
cash sources and requirements, liquidity and cost savings that involve known and unknown risks,
uncertainties and other factors that may cause Neste Corporations or its businesses actual results,
levels of activity, performance or achievements to be materially different from those expressed or
implied by any forward-looking statements. In some 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
comparable terminology. By their nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not occur in the future.
Future results may vary from the results expressed in, or implied by, the following forward-looking
statements, possibly to a material degree. All forward-looking statements made in this presentation are
based on information presently available to management and Neste Corporation assumes no obligation
to update any forward-looking statements. Nothing in this presentation constitutes investment advice
and this presentation shall not constitute an offer to sell or the solicitation of an offer to buy any
securities or otherwise to engage in any investment activity.

27 April 2016 3
Good start for the year

Comparable EBIT EUR

175 million

Refining market followed

normal seasonality

Renewable Products
continued to deliver strong
profits

Solid cash flow

Strong balance sheet

27 April 2016 4
Financial targets comfortably met

ROACE, rolling 12 months, % Leverage, %

20 50
16.0
40
15
30 28.3
10
20

5
10

0 0
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

27 April 2016 5
Q1/16
Group
financials
Group financials Q1/16
MEUR Q1/2016 Q1/2015

Revenue 2,306 2,744

Comparable EBITDA 262 292

IFRS EBITDA 341 311

Comparable operating profit 175 215

Oil Products 86 156

Renewable Products 80 42

Oil Retail 22 17

Others (incl. eliminations) -13 0

IFRS operating profit 254 233

Cash flow before financing activities 73 -83

Comparable earnings per share, EUR 0.57 0.59

27 April 2016 7
Normalized market compensated by
higher additional margin
Group comparable EBIT Q1/15 vs. Q1/16, MEUR

215 +2 -56 +6 -17

+50
-24
175

Q1/15 Volumes Reference Additional Fx changes Fixed costs Others Q1/16

margin margin

27 April 2016 8
Q1/16
Segment
reviews
 Oil Products performance reflected
normalized refining market
Comparable EBIT, MEUR

200
Comparable EBIT 86 MEUR
160 (156 MEUR)
120 Sales volume 3.1 Mton (3.2),
80 building contango inventories
40 Share of Baltic Sea area sales
0 60% (63%)
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16
Urals share of feed 64%
MEUR Q1/16 Q1/15 2015 (61%)
Revenue 1,359 1,976 7,467 Investments 45 MEUR (69
MEUR)
Comparable EBIT 86 156 439
RONA* 14.9% (17.4%)
Net assets 2,484 2,439 2,320
* Comparable RONA rolling 12 months

27 April 2016 10
Result impacted by lower reference
margin
Oil Products comparable EBIT Q1/15 vs. Q1/16, MEUR

156 -6 -56

+11 +5 -10 -14

86

Q1/15 Volumes Reference Additional Fx changes Fixed costs Others Q1/16

margin margin

27 April 2016 11
 Gasoline continued as main driver of
refining margin
Product margins (price differential vs. Brent), Urals vs. Brent price differential,
USD/bbl USD/bbl

30 1

20
0

10
-1
0
-2
-10

-3
-20

-30 -4
Jan-13 Jan-14 Jan-15 Jan-16 Jan-13 Jan-14 Jan-15 Jan-16

Diesel Gasoline Heavy Fuel Oil

27 April 2016 12
Higher additional margin supported
total refining margin
Total refining margin, USD/bbl

14 Total refining margin USD

10.49/bbl (11.66)
12
Additional margin USD 5.61/bbl
10 (4.21)
8
Additional margin negatively
6 impacted by unit maintenance, but
positively by currency hedging
4
Porvoo average utilization rate
2
88% (98%)
0
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Refinery production costs USD
3.9/bbl (3.5)
Reference margin

Additional margin

27 April 2016 13
 Renewable Products continued
strong performance
Comparable EBIT, MEUR
Comparable EBIT 80 MEUR (42
250
MEUR)
200
Sales volume 531 kton (513); share of
150 North America 28% (22%)

100 Additional margin supported by

successful margin management
50
US Blenders Tax Credit in place for
0
2016
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16
Share of waste and residues
MEUR Q1/16 Q1/15 2015 feedstock 75% (62%)
Revenue 584 496 2,372 Investments 17 MEUR (5 MEUR)

Comparable EBIT 80 42 402 RONA* 24.1% (14.7%)

Net assets 1,828 1,930 1,884

* Comparable RONA rolling 12 months

27 April 2016 14
 Result supported by strong
additional margin
Renewable Products comparable EBIT Q1/15 vs. Q1/16, MEUR

+39 +2 -5
-2 80

42 +5 0

Q1/15 Volumes Reference Additional Fx changes Fixed costs Others Q1/16

margin margin

27 April 2016 15
 Weak European biodiesel margins
FAME RED Seasonal vs. Palm oil price* Vegetable oil and animal fat prices**, USD/ton
differential, USD/ton

500 1,400

400 1,200

300 1,000

200 800

100 600

0 400
Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16

Soybean Rapeseed Palm oil Animal fat

* Including $70/ton freight
**Quotations in NWE, source: Oil World

27 April 2016 16
 US margins continued to improve
SME vs. Soybean oil price differential, USD/ton Biodiesel RIN, US cent /gal

800
150

600

100
400

200
50
0

-200 0
Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16

Biomass-based diesel (D4)

Conventional renewable fuel (D6)

27 April 2016 17
 Additional margin remained solid
Renewable Products margins, USD/ton
700
Reference margin at same
600
level year-on-year
500
Additional margin supported
400
by US Blenders Tax Credit
300 and by successful margin
200 management
100 Optimized feedstock mix
0
Low production costs
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Reference margin Additional margin

27 April 2016 18
 Excellent result in Oil Retail
Comparable EBIT, MEUR

30 Comparable EBIT 22
MEUR (17 MEUR)
20
Sales volumes increased in
all markets
10
Weaker ruble had EUR 1
0 million negative impact
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16
Investments 2 MEUR (4
MEUR Q1/16 Q1/15 2015
MEUR)

Revenue 776 882 3,748 RONA* 45.1% (29.7%)

Comparable EBIT 22 17 84

Net assets 164 220 184

* Comparable RONA rolling 12 months

27 April 2016 19
 Increased sales volumes
Oil Retail comparable EBIT Q1/15 vs. Q1/16, MEUR

22
+4
+3 0 -1 -1
17

Q1/15 Volumes Unit margin Fx changes Fixed costs Others Q1/16

27 April 2016 20
Current
topics
Outlook for 2016

Year has started well

Market outlook is
generally positive
Good operational
performance expected
We are confident that
year 2016 will be
another successful one
for Neste

27 April 2016 22
Segment outlook for 2016
Oil Products
Reference margin Utilization rate

Expected to be supported by good gasoline Porvoo refinery expected to run at high utilization
margins while diesel margins are expected to rate. No scheduled major maintenance outages.
remain flat. In Q2 2015 major turnaround at Porvoo.

Renewable Products
Reference margin Utilization rate
Expected to remain at approximately the average Utilization rates expected to be high, excluding
level of year 2015. Additional margin is expected to scheduled nine week major turnaround at
remain strong. Rotterdam refinery in Q2 2016. Negative EBIT
impact of turnaround approx. EUR 35 million.

Oil Retail
Unit margins and sales volumes
Expected to follow previous years seasonality
pattern.

27 April 2016 23
New global project launched to study
future renewable solutions

Pre-order the Future project

enables people to participate in the
development of future renewable
solutions
Aims to raise awareness on
renewable materials as an existing
solution to reduce carbon footprint
One product and service concept to
be developed into a prototype that
will be launched in 2017
www.neste.com/preorderthefuture

27 April 2016 24
Capital Markets Day 2016

Neste will host a Capital

Markets Day in London
on 14 September 2016
Invitations to follow

27 April 2016 25
We focus on

Refinery Markets and

Safety Cash flow
productivity customers

27 April 2016 26
Appendix
 Renewable Products comparable
EBIT calculation
Q1/15 Q2/15 Q3/15 Q4/15 2015 Q1/16

Sales volume, kt 513 554 575 625 2,267 531

Reference margin, $/ton 149 172 194 209 182 149

Additional margin, $/ton 186 168 176 424 247 270

Variable production costs, $/ton 130 130 130 130 130 130

Comparable sales margin, $/ton 205 210 239 503 299 288

Comparable sales margin, MEUR 94 105 124 288 611 139

Fixed costs, MEUR 30 28 25 33 116 35

Depreciations, MEUR 22 24 24 24 95 24

Comparable EBIT, MEUR 42 54 75 231 402 80

27 April 2016 28
Refinery production costs,
Porvoo & Naantali
Q1/15 Q2/15 Q3/15 Q4/15 2015 Q1/16

Refined products Million barrels 27.3 12.2 27.8 25.4 92.6 25.6

Exchange rate EUR/USD 1.13 1.10 1.11 1.09 1.11 1.10

EUR million 36.6 33.3 29.8 30.9 130.6 37.1

Utilities costs
USD/bbl 1.5 3.0 1.2 1.3 1.6 1.6

EUR million 52.1 59.6 53.1 63.4 228.2 58.7

Fixed costs
USD/bbl 2.2 5.4 2.1 2.7 2.7 2.5

EUR million -5.2 -5.0 -5.8 -5.2 -21.1 -5.7

External cost
sales USD/bbl -0.2 -0.4 -0.2 -0.2 -0.3 -0.2

EUR million 83.5 88.0 77.2 89.1 337.8 90.1

Total
USD/bbl 3.5 8.0 3.1 3.8 4.0 3.9

27 April 2016 29
Balance sheet
Total assets Total equity & liabilities
Non-current assets Int-bear. liabilities Equity
Current assets Int-free liabilities

8,000 8,000
7,150 7,150
6,830 6,830
7,000 7,000

6,000 6,000
2,826
5,000 4,088 5,000
3,095
4,128
4,000 4,000

3,000 3,000 2,275

1,818
2,000 2,000
2,702 3,061
1,000 1,000 1,918 2,049
0 0
31 Mar 16 31 Mar 15 31 Mar 16 31 Mar 15

27 April 2016 30
 Cash flow
MEUR Q1/16 Q1/15 Q4/15 2015

EBITDA (IFRS) 341 311 355 1,057

Capital gains/losses -10 -79 0 -77

Other adjustments -15 -36 -26 -27

Change in working capital -136 -367 36 -94
Net finance costs -42 -11 -9 -88

Taxes -21 -2 23 -27

Net cash generated from operating activities 117 -185 380 743

Capital expenditure -71 -83 -79 -505

Other investing activities 28 184 0 241

Cash flow before financing activities 73 -83 300 480

27 April 2016 31
 Liquidity & maturity profile
MEUR

700
Total liquidity at the end of March 2016
600 was EUR 2,644 million
Cash and cash equivalents totalled
500
EUR 594 million
400 Unused committed credit facilities
totalled EUR 1,650 million
300
Unused CP programmes (not
200 committed) totalled EUR 400
million
100
Average interest rate was 3.4% and
0 maturity 3.6 years at the end of March
2016 2017 2018 2019 2020 2021+ No financial covenants in Groups
existing loan agreements
Short-term

Long-term

27 April 2016 32
The only way
is forward.