Neste Corporation · OMXHEX:NESTE
Neste — Q2 2025 Earnings Presentation
37 slides from Neste's earnings presentation, Jul 24, 2025
Slide 1: Reliable operations with improved results, performance improvement program delivering
1 Reliable operations with improved results, performance Place and crop your improvement program image here delivering Heikki Malinen, President & CEO Eeva Sipilä, CFO July 24, 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. Q2 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: Q2 in brief
ce) Q2 in brief q NESTE
Slide 5: High focus on safety continues
5 High focus on 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 rep
Slide 6: Key initiatives progressing
6 Key initiatives progressing Reliable Achievements on Performance Rotterdam capacity operations at the commercial front improvement expansion refineries program on track progressing 81% utilization for record high deliver 350 MEUR according to revised Renewable Products renewables’ sales EBITDA run
Slide 7: Q2/2025 performance in brief
7 Q2/2025 performance in brief Renewable Comparable sales Total refining Products sales margin in Renewable margin in Oil volume Products Products 1,096 kt 361 USD/ton 10.0 USD/bbl (892) (310) (9.9) Group comparable Free Cash Leverage within EBITDA Flow target level 341 MEUR 226 MEUR 37.8% (210) (-2
Slide 8: Performance improvement program delivered 107 MEUR EBITDA run rate improvement
8 Performance improvement program delivered 107 MEUR EBITDA run rate improvement Program priority areas Target Progress Commercial acceleration and supply chain optimization 350 MEUR run 107 MEUR rate EBITDA annualized run improvement by rate improvement end of 2026 by the end of H1 Refinery perform
Slide 9: Financial performance
Financial performance nESTE
Slide 10: RD reference gross margin climbed up in Q2 due to tight short-term market
10 RD reference gross margin climbed up in Q2 due to tight short-term market Renewable diesel reference gross margin1, USD/ton Revenue - Feedstock cost Q4/24 avg. Q1/25 avg. Q2/25 avg. = Gross margin 512 USD/ton 254 USD/ton 376 USD/ton - Production & logistics costs = Sales margin Q1 24 Q2 24 Q3 24
Slide 11: Group Comparable EBITDA reached 341 MEUR in Q2
11 Group Comparable EBITDA reached 341 MEUR in Q2 Group Comp. EBITDA, by segment, Q2/25, • Renewable Products: record high sales EUR million volumes, feedstock prices remained high • Oil Products: sales volumes increased but refining margin was lower • Marketing & Services: lower volumes were balanc
Slide 12: Performance improvement program delivering, 107 MEUR run-rate improvement so far
12 Performance improvement program delivering, 107 MEUR run-rate improvement so far >95% of impact in H1 from operational cost reductions, 350 remainder from revenue levers. Impacts for example from: • Headcount reductions completed • Lower discretionary spend and 107 procurement contract renegotiat
Slide 13: Renewable Products: Reliable operations, record volumes and performance improvements visible
13 Renewable Products: Reliable operations, record volumes and performance improvements visible Renewable sales volume, kt and comparable sales Comparable EBITDA Q2/25 vs. Q1/25, EUR million margin, USD/ton RD 836 (728) kt SAF 233 (130) kt Europe/NA 73/27 (69/31)% CFPC (US) recognition in Q2 Utiliza
Slide 14: Oil Products: Higher sales volumes and performance improvements outweighed by increased supply costs
14 Oil Products: Higher sales volumes and performance improvements outweighed by increased supply costs Total refining margin, USD/bbl and utilization rate, % Comparable EBITDA Q2/25 vs. Q1/25, EUR million Total refining margin 10.0 (9.9) USD/bbl Utilization rate 92 (88)% Gasoline crack 19.2 (13.4)
Slide 15: Marketing & Services: Strong quarter supported by successful commercial operations
15 Marketing & Services: Strong quarter supported by successful commercial operations Comp. EBITDA, MEUR and Comparable EBITDA Q2/25 vs. Q1/25, EUR million sales volume1, million liters 1 Diesel & gasoline station sales, heating oil sales
Slide 16: Investments subject to tight capital discipline and focused on Rotterdam
16 Investments subject to tight capital discipline and focused on Rotterdam Cash-out investments (incl. M&A), EUR million Cash flow before financing activities, EUR million
Slide 17: We are on track with our financial targets for 2025-2026
17 We are on track with our financial targets for 2025-2026 Leverage, net debt to capital, % Financial targets 2025-2026 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. 2024 baseli
Slide 18: Topicals and outlook
18 18 Topicals and outlook
Slide 19: Positive developments in regulation, supporting long-term renewables demand
19 Positive developments in regulation, supporting long-term renewables demand ReFuelEU Aviation mandate at 2%, (appr. 1.2 Mt), additional demand stimulating mechanisms under discussion Renewable Energy Directive (RED) III is being implemented to national laws, e.g. in Germany the key proposals woul
Slide 20: Successful startup of SAF production in Rotterdam
20 Successful startup of SAF production in Rotterdam - Neste is world’s largest SAF producer - In 2027, Neste’s SAF production capacity in Rotterdam alone will be sufficient to meet the entire ReFuelEU mandate - In 2025, we have strengthened collaboration with many clients globally, including DHL, A
Slide 21: Flexibility as a competitive advantage in renewables
21 Flexibility as a competitive advantage in renewables Global access to Production in three Global commercial wide feedstock pool continents presence Backward integrated Leading pretreatment Trusted partner for collection in the US technology SAF and RD and Europe customers Capability to switch Gro
Slide 22: Opportunities and uncertainties
22 Opportunities and uncertainties Opportunities ● Global presence and flexibility creating additional value ● Confirmation of the German bill with several favorable proposals ● Creation of new EU mechanisms to increase SAF demand ● Decrease in feedstock prices ● Improvement in diesel cracks ● Diver
Slide 23: Market outlook for 2025
23 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 24: Guidance 2025 (unchanged)
24 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 6-week (previously 5 weeks) turnaround in Rotterdam in Q4 2025 and a 6-week maintenance
Slide 25: Q&A
25 Q&A nESTE
Slide 26: Summary
26 Summary 1. Delivering on performance improvement program, Rotterdam expansion progressing as planned 2. Capturing market opportunities and ensuring safe and reliable operations 3. Supportive regulatory development
Slide 27: Thank you
27 Thank you
Slide 28: Appendix
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Slide 29: Key market environment drivers in Q2/2025
29 Key market environment drivers in Q2/2025 Change, % vs. Change, % vs. Avg, Q2/25 Q1/25 Q2/24 Crude oil price (USD/bbl) 67.8 -10 -20 Macro drivers1 Diesel price (USD/ton) 647 -9 -18 Renewable Used cooking oil (USD/ton) 1,074 -2 +11 feedstock costs2 Animal fat (USD/ton) 1,127 +4 +16 California LCFS
Slide 30: Renewable Products: Key market drivers in the US market
30 Renewable Products: Key market drivers in the US market California Low Carbon Fuel Standard, LCFS credit RIN prices, US cent/RIN price, USD/ton Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Source: Opis
Slide 31: W&R and vegetable oil price development
31 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 Q2 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 1) Source: AF (EU) - Gebrüder Pöhner, UCO (EU) - Argus, SBO (US) -
Slide 32: Oil Products: Key product margins
32 Oil Products: Key product margins Product margins (price differential vs. Brent), USD/bbl Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Source: Platts
Slide 33: Group financials Q2/2025
33 Group financials Q2/2025 Comparable EBITDA totaled 341 (240) MEUR MEUR Q2/25 Q2/24 Q1/25 2024 Revenue 4,511 4,642 5,017 20,635 EBITDA 246 119 200 1,005 Comparable EBITDA 341 240 210 1,252 Renewable Products 174 152 72 514 Oil Products 135 62 120 633 Marketing & Services 32 24 17 101 Others (incl.
Slide 34: Improved working capital efficiency supported cash flow generation
34 Improved working capital efficiency supported cash flow generation MEUR Q2/25 Q2/24 Q1/25 2024 EBITDA 246 119 200 1,005 Capital gains/losses 0 0 0 1 Other adjustments 54 -23 60 -150 Change in net working capital 185 -16 -147 454 Finance cost, net -49 -42 -64 -150 Income taxes paid 0 -32 -8 -5 Net
Slide 35: Renewable Products' comparable EBITDA calculation
35 Renewable Products’ comparable EBITDA calculation Q1/24 Q2/24 Q3/24 Q4/24 2024 Q1/25 Q2/25 Total RP sales volume kton1 849 955 999 926 3,729 892 1,096 Comparable sales margin USD/ton 562 382 341 242 377 310 361 Comparable sales margin MEUR 439 339 310 209 1,297 263 348 Fixed costs MEUR -211 -190
Slide 36: Oil Products' refinery production costs
36 Oil Products’ refinery production costs Q1/24 Q2/24 Q3/24 Q4/24 2024 Q1/25 Q2/25 Refined million bbls 21.4 10.2 22.2 22.2 76.0 21.6 22.1 products Exchange rate EUR/USD 1.09 1.08 1.10 1.07 1.08 1.05 1.13 MEUR 70.3 46.5 61.4 63.8 242.0 79.4 62.6 Utilities costs USD/bbl 3.6 4.9 3.0 3.1 3.4 3.9 3.2 M
Slide 37: Liquidity and maturity profile
37 Liquidity and maturity profile Maturity profile, MEUR Short-term Long-term • Group’s liquidity EUR 3,256 million at the end of June 2025 – Liquid funds EUR 981 million – Unused committed credit facilities EUR 2,275 million • Average interest rate for interest-bearing liabilities was 3.4% and matu