Neste Capital Markets Day 2016

Creating the next wave of profitable growth - dividend policy revised

Neste Corporation
Stock Exchange Release
14 September 2016 at 1.30 pm. (EET)

Neste Capital Markets Day 2016: Creating the next wave of profitable growth - dividend policy revised

Neste is holding a Capital Markets Day 2016 in London today, 14 September, featuring presentations by senior management on subjects such as the company's strategy, market outlook and the next steps for profitable growth.

Strategy - ready to take concrete steps in creating the next wave of profitable growth

Neste's success in strategy is based on its unique competitive advantages. The strategic objectives remain unchanged: be the Baltic Sea champion and grow in the global renewables markets. The strategy sets the direction for the company's ambition to grow and create shareholder value. A strong brand helps reaching these goals, and according to a recent survey Neste's brand value has increased markedly.

The company is determined to generate strong cash flow to support investments in growth and productivity, to optimize debt, and to ensure favorable dividend distribution.

Baltic Sea champion

Neste is the leader in low carbon solutions for traffic fuels in the Baltic Sea market. This has been reached by differentiation in customer offerings and by becoming the benchmark in asset quality, as well as continuous focus on operational excellence. It has a unique offering combining both fossil and renewable products. Neste will continue to develop premium products and tailor-made solutions, and focus on customer experience through customer service design and digitalization.

Neste continues its efforts to enhance additional refining margin. The target for additional margin has been raised from the earlier USD 5.0/bbl to above USD 5.5/bbl on average. That will be achieved by performance improvement actions focusing on reliability, and by continuous asset development including the strategic One Refinery concept and productivity investments. Furthermore, we will carefully manage safety and have a disciplined baseload maintenance approach.

Global renewables growth

Neste is the global leader in the renewable diesel market, and is committed to developing significant business from outside road traffic renewable product markets by 2020. Neste has developed unique competitive advantages in flexible feedstock supply, global supply chain, and low-carbon renewable drop-in solutions tailored to customers. The company has built a strong waste and residue feedstock position globally and intends to develop that further by commercial and technological solutions.