Neste Capital Markets Day 2016

Creating the next wave of profitable growth - dividend policy revised - Seite 2

Neste sees great potential in many new renewable product applications such as renewable jet fuel and bio-based chemicals, where it can provide distinct advantages to its customers by decreasing their carbon footprint. Neste has already announced a partnership with IKEA to deliver renewable, bio-based plastics, and continues discussions with some other leading global brand owners as well. Neste targets to have 20% of its renewable business sales volume from these new applications by 2020.

During the last three years Neste has increased its renewable diesel capacity from 2.0 to 2.6 million tons/a with minor investments.  Neste's ambition is to increase its renewable products capacity further to maintain its global market leadership in drop-in solutions. The company is exploring different options for the new capacity increase program, and will give more information during the first quarter of 2017.

Financial targets

Neste's most important financial targets are leverage and ROACE after tax, and they remain unchanged. The leverage target is 25-50%, and the long-term ROACE target 15%.

Neste's dividend policy has been revised. The company will distribute at least 40% of the company's comparable net profit for the year in the form of dividends. The previous policy was to distribute at least one third of the comparable net profit.

Short-term outlook

Neste expects Oil Products' reference margin to be somewhat lower in the second half of 2016 than in the first half of the year, as global product inventories are currently on a high level. The Porvoo refinery is expected to run at high utilization rate with no major maintenance shutdowns scheduled.

Renewable Products' reference margin is expected to remain at approximately the average level of the year 2015, and the additional margin is expected to remain strong. Utilization rates of our renewable diesel production facilities are expected to be high.

In Oil Retail the sales volumes and unit margins are expected to follow the previous years' seasonality pattern.

The year has continued well, and we are confident that the year 2016 will be another successful one for Neste.

CMD presentation material in English will be available at www.neste.com/investors from around 2.30 p.m. (EET) onwards.

The event can also be followed online at www.neste.com/investors from 2.30 p.m. (EET) onwards.

A replay will be available after the event at www.neste.com/investors.

Neste Corporation

Osmo Kammonen
Senior Vice President, Communications and Brand Marketing

Further information: Jyrki Mäki-Kala, CFO, tel. [phone]

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates sustainable choices for the needs of transport, businesses and consumers. Our global range of products and services allows customers to lower their carbon footprint by combining high-quality renewable products and oil products to tailor-made service solutions. We are the world's largest producer of renewable diesel refined from waste and residues, and we are also bringing renewable solutions to the aviation and plastics industries. We want to be a reliable partner, whose expertise, R&D and sustainable practices are widely respected. In 2015, Neste's net sales stood at EUR 11 billion, and we were on the Global 100 list of the 100 most sustainable companies in the world. Read more: neste.com/en

---

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Neste Oyj via Globenewswire