Neste Corporation · OMXHEX:NESTE
Neste — Debt Investor Presentation (March 2021)
33 slides from Neste's debt investor presentation, March 2021
Slide 1: Creating a healthier planet for our children
1 Creating a healthier planet for our children Debt Investor Presentation March 2021
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 • Overview • Strategic and sustainable transformation Place and crop your image here • Business segments • A robust financial position • Our Green Finance Framework • Summary of proposed offering
Slide 4: Overview
Overview NESTE
Slide 5: Neste in a nutshell
5 Revenue 2020 by operating destination Neste in a nutshell North and South Other 1% America 14% ▪ We create solutions for combating climate change and accelerating a shift to a circular economy Finland 32% ▪ We are a global leader in renewable diesel with the annual capacity of 3.2 Mt of renewable
Slide 6: Key investment highlights
6 Key investment highlights 1 The world's leading producer of renewable diesel refined from waste and residues 2 Uniquely positioned to develop and capture the Sustainable Aviation Fuel market opportunity 3 Continuous innovations within the Renewable Polymers and Chemicals segment 4 Transformation o
Slide 7: Strategic and sustainable transformation
7 Strategic and sustainable transformation
Slide 8: Our strategic priorities
8 Our strategic priorities Increase innovation Renewable Road Transportation Scale up faster and bolder in Renewables Renewable Aviation Drive efficiency & Renewable transformation in operations Polymers and Chemicals Turn our climate commitments into action
Slide 9: Our climate commitments
9 Our climate commitments Carbon handprint Carbon footprint We will help our customers reduce their We are committed to reaching carbon neutral greenhouse gas emissions by at least 20 production* by 2035 million tons annually by 2030 Neste has focused on producing renewable fuels to replace We need
Slide 10: Carbon neutral production by 2035
10 Carbon neutral production by 2035 Continuous focus areas 1 2 3 4 Ensure awareness and Advocate for supportive Act now to keep in pace Prepare credible commitment policies and regulations with the ambition set by compensation methods the Paris Agreement Highlights of the climate roadmap Increasing
Slide 11: Sustainability work enables our strategy
11 Sustainability work enables our strategy With our renewable and circular solutions, we contribute to the implementation of the Paris Agreement, and the United Nations’ Sustainable Development Goals (SDG) Place and crop your From our perspective, these six SDGs play the biggest role in achieving o
Slide 12: Recognition in sustainability assessments
12 Recognition in sustainability assessments A number of third parties assess the sustainability of Neste’s operations. We have gained recognition and awards in the following sustainability assessments, among many others The Global 100 Dow Jones Sustainability Indices CDP (DJSI) In 2021, Neste was s
Slide 13: Business segments
Business segments NESTE
Slide 14: Our businesses
14 Our businesses Renewable Products Renewable Renewable Renewable Oil Marketing & Road Aviation Polymers and Products Services Transportation Chemicals Renewables Platform
Slide 15: Renewables Platform
15 "The Singapore expansion increases our total production capacity close to 4.5 million tons in 2023. We continue supporting our customers’ growing demand Renewables Platform for renewable products by expanding our production capacity even further and building new feedstock platforms to support suc
Slide 16: Renewable Road Transportation
16 "With Neste MY Renewable Diesel, our customers can reduce their GHG emissions by 90% compared to fossil Renewable Road Transportation diesel use when all emissions over the fuel's life cycle are taken into account." (Calculation method: EU RED) In 2020, our renewable products Main market areas he
Slide 17: Renewable Aviation
17 “Neste MY Sustainable Aviation Fuel is available and used in the market. We are fully committed to supporting Renewable Aviation the aviation industry, its customers and corporates with their emission reduction targets.” Offering Capacity Neste MY Sustainable Aviation In 2019, our annual SAF prod
Slide 18: Renewable Polymers and Chemicals
18 “By working together with the forerunners of the polymers and chemicals sector, we accelerate the industry Renewable Polymers and Chemicals transformation towards a more sustainable, circular economy.” Target Market To become a global leader & preferred About 50% of consumer goods partner as a pr
Slide 19: Oil Products Marketing & Services
19 “We are a reliable partner of our customers with comprehensive offering, high supply security and sustainable, efficient operations.” Oil Products Marketing & Services Oil Products Marketing & Services Crude oil refining capacity Network close to ~14 1,000 million tons annually stations in the Ba
Slide 20: A robust financial position
20 A robust financial position
Slide 21: Our response to the pandemic
21 Our response to the pandemic Top priorities Protective measures Focus on • Despite market turbulence, we continue to focus on strategy execution strategy • Excellent cash flow development during pandemic year supporting several strategic execution investments and acquisitions • Protect our employ
Slide 22: Solid 2020 performance in a challenging year
22 Solid 2020 performance in a challenging year • Group comparable EBIT of EUR 1,416 million • Strong free cash flow* of EUR 1,019 million Place and crop your • Renewable Products demonstrated resilience with increased sales volumes and strong margins image here • Oil Products suffered from a histor
Slide 23: Group financials 2020
23 Group financials 2020 MEUR 2020 2019 Q4/20 Q4/19 Revenue 11,751 15,840 3,028 4,053 EBITDA 1,508 2,731 297 1,164 Comparable operating profit 1,416 1,962 380 781 Renewable Products 1,334 1,599 338 671 Oil Products 50 386 37 117 Marketing & Services 68 77 15 11 Others (incl. eliminations) -36 -100 -
Slide 24: Strong cash conversion and robust financial position
24 Strong cash conversion and robust financial position Free Cash Flow & Cash-out investments (MEUR) Leverage % 1400 50% 1200 40% 1000 1154 1019 995 30% 800 870 834 20% 600 628 8.8 % 568 10% 4.5 % 400 502 407 395 200 0% -1.1 % 0 -10% -3.3 % -4.7 % 2016 2017 2018 2019 2020 Q4/19 Q1/20 Q2/20 Q3/20 Q4/
Slide 25: Debt profile and liquidity
25 Debt profile and liquidity Maturity Profile (MEUR) Liquidity (MEUR) 500 150 400 300 Liquid Funds 1,200 Revolving Credit 200 1,572 Facility Overdraft Facilities 100 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 Short-term Long-term • Average interest rate for interest-bearing liabilities (EUR 1,3
Slide 26: Our Green Finance Framework
26 Our Green Finance Framework
Slide 27: Establishing a Green Finance Framework
28 Establishing a Green Finance Framework Neste will stand clear with its aspiration, leading the way towards a sustainable future together. To achieve our high ambitions, our Green Finance Framework is focused on our development and investments in renewable and circular solutions with the purpose o
Slide 28: Neste's Green Finance Framework: Use of Proceeds
28 1. Use of Proceeds Neste’s Green Finance Framework 2. Selection & Evaluation of Eligible Assets ICMA GBP UN SDG Use of Proceeds and Projects Category 3. Management of PlaceProceeds and cropandyour Eco-efficient & Circular Economy SDG 11 Investments in Renewable & Circular solutions: Renewable pro
Slide 29: Neste's Green Finance Framework: Selection and Evaluation
29 1. Use of Proceeds Neste’s Green Finance Framework 2. Selection & Evaluation of Eligible Assets and Projects ● A Green Finance Committee (“GFC”) has been established with members from management, treasury and sustainability 3. Management of ● The finance representative is the chair of the committ
Slide 30: Neste's Green Finance Framework: Management of Proceeds and Reporting
30 1. Use of Proceeds Neste’s Green Finance Framework 2. Selection & Evaluation of Eligible Assets and Projects Management of Proceeds Reporting 3. Management of PlaceProceeds and cropandyour • Establish a Green Debt Register for monitoring Eligible Assets and Projects and allocation of net Report a
Slide 31: Neste's Green Finance Framework: External Review
31 1. Use of Proceeds Neste’s Green Finance Framework 2. Selection & Evaluation of Eligible Assets and Projects Shades of Green Governance Green Bond and 3. Management of Procedures Loan Principles PlaceProceeds and cropandyour Neste’s Green Finance CICERO Shades of Green finds Based on this review,
Slide 32: Thank you
32 Thank you 1 The world's leading producer of renewable diesel refined from waste and residues 2 Uniquely positioned to develop and capture the Sustainable Aviation Fuel market opportunity 3 Continuous innovations within the Renewable Polymers and Chemicals segment 4 Transformation of high quality
Slide 33: NESTE
NESTE Change runs on renewables