Slide 1: Solid operational start for the year, performance improvement program progresses
1 Solid operational start for the year, performance Place and crop your improvement program image here progresses Heikki Malinen, President & CEO Eeva Sipilä, CFO April 29, 2025 February 13, 2025
Slide 2: Disclaimer
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 ex
Slide 3: Agenda
3 Agenda 1. Q1 in brief President & CEO Heikki Malinen 2. Financial performance CFO Eeva Sipilä 3. Topicals and outlook President & CEO Heikki Malinen 4. Q&A
Slide 4: Q1 in brief
ce) Q1 in brief q NESTE
Slide 5: Work around safety continues
5 Work around safety continues Total Recordable Incident Frequency Process Safety Event Rate (PSER)2, per (TRIF)1, per million hours worked million hours worked 1) Including new organizational units in the US, for example Mahoney Environmental from 2023 onwards 2) Process safety performance is repor
Slide 6: Q1/2025 performance in brief
6 Q1/2025 performance in brief ● Operationally solid production at refineries Group comparable EBITDA ● Renewables sales volume reached 892 kt 210 MEUR (849), of which SAF sales were 130 kt (41) (551) ● SAF sales supported by the start of ReFuelEU legislation (2025: 2% of SAF)1 Comp. sales Total ref
Slide 7: Key initiatives progressing
7 Key initiatives progressing Solid operational Performance SAF production Rotterdam capacity performance on improvement started at expansion refineries program on track Rotterdam progressing 79% utilization for to deliver 350 MEUR Neste’s SAF according to revised Renewable Products EBITDA run rate
Slide 8: Neste and DHL Group to tighten collaboration to reduce logistics emissions
8 Neste and DHL Group to tighten collaboration to reduce logistics emissions Developing a commercial model that would gradually lead to the offtake of around 300,000 tons of neat, i.e. unblended SAF per year from Neste by DHL Group by 2030 and enable the sale and purchase of additional volumes of SA
Slide 9: Performance improvement program achieved 52 MEUR EBITDA run rate improvement (target 350 MEUR)
9 Performance improvement program achieved 52 MEUR EBITDA run rate improvement (target 350 MEUR) Program priority areas Target Progress Commercial acceleration and supply chain optimization Maximize value in end-to-end optimization, streamline business models 350 MEUR run 52 MEUR and enable market o
Slide 10: Financial performance
10 Financial performance nESTE
Slide 11: RD market continued to weaken in Q1
11 RD market continued to weaken in Q1 RD reference gross margin1, USD/ton Q4/24 avg. 512 USD/ton Q1/25 avg. 254 USD/ton Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 1) RD reference gross margin = 60% Argus HVO Class II less UCO CIF ARA adjusted by standard production yield, 40% Argus R100
Slide 12: Group Comp. EBITDA reached 210 MEUR in Q1
12 Group Comp. EBITDA reached 210 MEUR in Q1 • Oil Products' comparable EBITDA totaled Group Comp. EBITDA, by segment, Q1/25, EUR million EUR 120 million. Increased sales volumes but lower refining margins. • Renewable Products' comparable EBITDA was EUR 72 million. Higher sales volume and lower fix
Slide 13: Performance improvement program delivered 52 MEUR annualized EBITDA run rate improvement in Q1
13 Performance improvement program delivered 52 MEUR annualized EBITDA run rate improvement in Q1 Performance improvement program annualized EBITDA • 52 MEUR annual run rate run rate impact, MEUR improvement was achieved by the end of Q1 translating to 13 MEUR quarterly run rate • 6 MEUR impact was
Slide 14: Renewable Products: Production recovery supported sales margin
14 Renewable Products: Production recovery supported sales margin Comparable EBITDA Q1/25 vs. Q4/24, EUR million Renewable sales volume, kt (left axis) and comparable sales margin, USD/ton (right axis) Utilization rate 79 (41)%1 Sales volume 892 (926) kt Diesel price 712 (685) USD/t SAF volume 130 (
Slide 15: Oil Products: Refining margins continued to normalize, mild winter affected sales volumes
15 Oil Products: Refining margins continued to normalize, mild winter affected sales volumes of winter grades Comparable EBITDA Q1/25 vs. Q4/24, EUR million Total refining margin, USD/bbl (left axis) and utilization rate, % (right axis) Total refining margin 9.9 (11.8) USD/bbl Utilization rate 88 (8
Slide 16: Marketing & Services: Mild weather resulted in lower sales
16 Marketing & Services: Mild weather resulted in lower sales, unit margins impacted by competitive market Comparable EBITDA Q1/25 vs. Q4/24, EUR million Comp. EBITDA, MEUR (left axis) and sales volume1, million liters (right axis) 1 Diesel & gasoline station sales, heating oil sales
Slide 17: Cash flow affected by normalizing of inventories
17 Cash flow affected by normalizing of inventories • Inventories were increased in Q1 in line with production Cash flow before financing activities, EUR million plans following the unplanned outages late last year • Working capital efficiency part of Neste’s performance improvement program actions
Slide 18: Investments subject to tight capital discipline and focused on Rotterdam
18 Investments subject to tight capital discipline and focused on Rotterdam Cash-out investments (incl. M&A), EUR million, CAPEX and M&A, EUR Billion, 2022-2028 Q1/2024-Q1/2025 (as per Capital Markets Update 13th of February, 2025) 1.8 1.6 1.6 1.2 1.2 0.5 0.6 2022 2023 2024 2025 2026 2027 2028 In Q1
Slide 19: In February 2025 Neste launched new financials targets for 2025-2026
19 In February 2025 Neste launched new financials targets for 2025-2026 Financial targets 2025-2026 Leverage, net debt to capital, % Target <40% EBITDA EUR 350 million run rate improvement by the end of 2026, of which EUR 250 million from operational costs Leverage < 40% Note: EBITDA improvement vs.
Slide 20: Topicals and outlook
20 20 Topicals and outlook
Slide 21: Mandates crucial in increasing renewable fuels' usage
21 Mandates crucial in increasing renewable fuels’ usage • Mandates and incentives continue to be crucial to usage of SAF and other renewable fuels as the world needs to reduce the use of fossil energy • Neste has invested heavily to contribute to the implementation of renewable fuels mandates, such
Slide 22: Tariffs: macroeconomic risks raising while direct impact limited
22 Tariffs: macroeconomic risks raising while direct impact limited ● Direct impact to Neste is expected to be limited ○ RD, SAF and most oil products are exempt from the announced tariffs ○ Feedstocks are included in them ● Implications for Neste’s operations: ○ US market open to imports from Singa
Slide 23: Opportunities and uncertainties
23 Opportunities and uncertainties Opportunities ● Decrease in feedstock prices ● US renewable fuel incentives and obligations ● German and other national programs in EU to boost sales ● EU’s readiness to support level playing field in SAF Uncertainties ● Renewables optimization particularly challen
Slide 24: Market outlook for 2025
24 Market outlook for 2025 The uncertainty in global trade and geopolitics and their impact on the global economic outlook are causing market volatility. Markets for both renewable fuels and oil products are sensitive to oil price development. The market in renewable fuels is expected to remain over
Slide 25: Guidance 2025 (unchanged)
25 Guidance 2025 (unchanged) Renewable Products' sales volumes in 2025 are expected to be higher than in 2024. Sales volumes Oil Products' sales volumes in 2025 are expected to be higher than in 2024 Scheduled A 5-week turnaround in Rotterdam in Q4 2025 and a 6-week turnaround starting in maintenanc
Slide 26: Q&A
26 Q&A nESTE
Slide 27: Summary
27 Summary 1. Delivering on performance improvement program 2. Rotterdam expansion progressing as planned 3. SAF sales are expected to increase towards end of the year
Slide 28: Thank you
28 Thank you
Slide 29: Appendix
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Slide 30: Key market environment drivers in Q1/2025
30 Key market environment drivers in Q1/2025 Change, % vs. Change, % vs. Avg, Q1/25 Q4/24 Q1/24 Crude oil price (USD/bbl) 75.7 +1 -9 Macro drivers1 Diesel price (USD/ton) 711.5 +4 -16 Renewable Used cooking oil (USD/ton) 1,093 +9 +18 feedstock costs2 Animal fat (USD/ton) 1,079 +14 +15 California LCF
Slide 31: Renewable Products: Key market drivers in the US market
31 Renewable Products: Key market drivers in the US market California Low Carbon Fuel Standard, LCFS credit RIN prices, US cent/RIN price, USD/ton Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Source: Opis
Slide 32: W&R and vegetable oil price development
32 W&R and vegetable oil price development Selected waste and residue and vegetable oil prices1, Comments USD/ton • Generally, waste and residue prices continued to rise during Q1 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 1) Source: AF (EU) - Gebrüder Pöhner, UCO (EU) - Argus, SBO (US) -
Slide 33: Oil Products: Key product margins
33 Oil Products: Key product margins Product margins (price differential vs. Brent), USD/bbl Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Source: Platts
Slide 34: Group financials Q1/2025
34 Group financials Q1/2025 Comparable EBITDA totaled 210 (551) MEUR MEUR Q1/25 Q1/24 Q4/24 2024 Revenue 5,017 4,801 5,568 20,635 EBITDA 200 442 143 1,005 Comparable EBITDA 210 551 168 1,252 Renewable Products 72 242 13 514 Oil Products 120 278 153 633 Marketing & Services 17 23 22 101 Others (incl.
Slide 35: Cash flow impacted by capital expenditure and increasing inventories
35 Cash flow impacted by capital expenditure and increasing inventories in line with our production plans MEUR Q1/25 Q1/24 Q4/24 2024 EBITDA 200 442 143 1,005 Capital gains/losses 0 -2 3 1 Other adjustments 60 -7 58 -150 Change in net working capital -147 -382 709 454 Finance cost, net -64 -47 -42 -
Slide 36: Renewable Products' comparable EBITDA calculation
36 Renewable Products’ comparable EBITDA calculation Q1/24 Q2/24 Q3/24 Q4/24 2024 Q1/25 Total RP sales volume kton1 849 955 999 926 3,729 892 Comparable sales margin USD/ton 562 382 341 242 377 310 Comparable sales margin MEUR 439 339 310 209 1,297 263 Fixed costs MEUR -211 -190 200 -197 -798 -201 C
Slide 37: Oil Products' refinery production costs
37 Oil Products’ refinery production costs Q1/24 Q2/24 Q3/24 Q4/24 2024 Q1/25 million Refined products bbls 21.4 10.2 22.2 22.2 76.0 21.6 Exchange rate EUR/USD 1.09 1.08 1.10 1.07 1.08 1.05 MEUR 70.3 46.5 61.4 63.8 242.0 79.4 Utilities costs USD/bbl 3.6 4.9 3.0 3.1 3.4 3.9 MEUR 53.9 55.7 52.9 66.9 2
Slide 38: Liquidity and maturity profile
38 Liquidity and maturity profile Maturity profile, MEUR Short-term Long-term • Group’s liquidity EUR 3,269 million at the end of March – Liquid funds EUR 1,144 million – Unused committed credit facilities EUR 2,125 million • Average interest rate for interest-bearing liabilities was 3.3% and maturi