Neste Oil Investor Presentation 29 April 2009

1

UPDATED: 29 April 2009

2

Contents

5 Overview11 Strategy21 Production and logistics41 Businesses

100 Financials119 Share & Funding127 Global Oil Industry157 Social Responsibility168 Appendix

3

Safe Harbor Statement

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 expenditures, future cash sources and

requirements, liquidity and cost savings that involve known and unknown risks, uncertainties and other factors

that may cause Neste Oil Corporation’s or its businesses’ actual results, levels of activity, performance or

achievements to be materially different from those expressed or implied by any forward-looking statements.

In some cases, such forward-looking statements can be identified by terminology such as “may,” “will,”

“could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or

“continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking

statements involve risks and uncertainties because they relate to events and depend on circumstances that

may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the

following forward-looking statements, possibly to a material degree. All forward-looking statements made in

this presentation based on information presently available to management and Neste Oil Corporation

assumes no obligation to update any forward-looking statements. Nothing in this presentation constitutes

investment advice and this presentation shall not constitute an offer to sell or the solicitation of an offer to buy

any securities or otherwise to engage in any investment activity.

Overview

7

VISION:

The leading provider of cleaner traffic fuels

8

Neste Oil in Brief2008

Comparable EBIT 1)

€ 602 MM

1) Excludes “Oil Other”

●

Oil refining & marketing company with focus on high quality refined petroleum products with reduced environmental impact

●

Listed

in the Helsinki Stock Exchange under

the symbol

NES1V●

Approximately

5,000

employees●

Market capitalization approximately EUR 3

billion

●

Included in the Dow Jones Sustainability World Index as of September 2007

Oil Products 602

Renewable

Fuels

2Oil Retail

22 Other -29 (and eliminations +5)

9

Neste Oil's Global Presence

Focus in Northern Europe

Singapore

BeringenEdmonton

Houston Sines

Toronto

Dubai

Long Beach

Oil Retail

Production and logistics

Oil Products

Refinery, plant, or

other facility

Office

Naantali

St Petersburg

MoscowLatvia

Nynäs

Lithuania

Porvoo

Estonia

Poland

Renewable

Fuels Singapore(under deveploment)

Rotterdam (under deveploment)

Extensive retail network-

Over 200 stations

Ownership of the only Finnish refineries- Porvoo: 205,000 bbl/d- Naantali: 56,000 bbl/d

Leading wholesale market positions across refined products

Market leader in Finland-

Almost 900 outlets-

Direct sales of petroleum products to end customers

Finland Baltic States, Poland and St. Petersburg

Shipping fleet of average 30 crude and product tankers with a carrying capacity of almost 1.3 MM tons

Three

refineries

in Sweden

and the UK, as well

as stakes

in other

sites

specializing

in production

and marketing

bitumen

and napthenics (through Nynäs 50/50 JV with PdVSA)

-

Bitumen

volumes

about

2.5MT and napthenics

close

to 0.8MT (2006)

JV Nynäs: Sweden/UK

Porvoo

Top-tier base oil production, 250,000 t/a

Beringen, Belgium

50,000 t/a base oil plant Sines, Portugal

50,000 t/a ETBE plantEdmonton, Canada

530,000 t/a iso-octane plant (50% ownership)

Production outside Finland

Bahrain (under deveploment)

Geneva

Atlantic Basin

Strategy

13

Leveraging refining

excellence

Increasing the range of

feedstocks

Delivering high-quality products for cleaner

traffic

We will reinforce the key elements of our strategy

14

Group structure

Customer orientationCustomer orientation

Oil ProductsOil Products Renewable Fuels

Renewable Fuels

Refining the future

Common approaches

Excellent operational and financial results

Responsibility Cooperation Innovation Excellence

The leading supplier of products for cleaner traffic

Oil RetailOil Retail

15

0

10

20

30

40

50

Q1/06 Q3/06 Q1/07 Q3/07 Q1/08 Q3/08 Q1/09

Key financial targets: Leverage between 25-50%

Leverage 1), %

target: between 25-50%

1) Net debt/Net debt + equity

16

0

5

10

15

20

25

Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09

2) After tax, rolling 4 quarters

Return on average capital employed after tax (ROACE) 2),%

target: at least 15%

Key financial targets: ROACE at least 15%

17

0%

10%

20%

30%

40%

50%

60%

2005 2006 2007 2008

Competitive payout policy

Payout from reported EPS

Adjusted for non-recurring items

Target of at least 33%

2007 dividend 1.00 € /share

Payout ratio

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2005 2006 2007 2008

Payout EUR/share

EUR

Proposal to AG

MProposal to A

GM

Proposal to AG

MProposal to A

GM

18

Neste Oil has very complex refining assets

Western Europe refinery configuration factors

Data collected from: Solomon 2007

0 2 4 6 8 10 12 14 16

HydroskimmingRefineries

Complex Refineries

Neste Oil 2006

Neste Oil 2007 (afterDiesel-project)

Solomon refinery configuration factor

19

Higher margins expected for complex refiners

Notes: Low Conversion < 25%, Medium Conversion >25% <50%, High Conversion >50% Relative Normalised Conversion CapacitySources: Oil and Gas Journal; Internal Analysis

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

Medium Conversionrefineries

48%

High ConversionRefineries

25%

Refining Capacity (Kbpd)

RelativeCost

Expected Demand 2015

Low Conversion refineries

27%

Average margin

Zero margin

Highest margin

Pricelevel

Illustrative

2015 supply curve vs demandWestern Europe

Our position

20

Investment Projects 2009 – 2011Segment Location Capacity Investment

(total budget)Schedule Other

Renewable Fuels

NExBTL plant Porvoo 170,000 t/a > 100 Meur 2009 Under construction

NExBTL plant Singapore 800,000 t/a 550 Meur 2010 Under construction

NExBTL plant Rotterdam 800,000 t/a 670 Meur 2011 Under construction

Oil Products

Base oil plant Bahrain 400,000 t/a 115–135 Meur

2011 JV: Neste share is 45% →

180,000 t/a

Isomerization unit Porvoo 600,000 t/a 80 Meur Project is postponed

before market

situation improves

Processes 600,000 t/a of low-value gasoline into high-quality gasoline. Increases refinery´s total gasoline output by 200,000 t/a

Base oil plant Abu Dhabi 500,000 t/a Open Open JV: Neste share is 20% →

100,000 t/a

No final investment decision made

Production and logistics

22

Oil Refining: Porvoo refinery

Porvoo refinery

23

Porvoo Refinery•

Porvoo

is Neste Oil’s principal refinery, in operation since the mid 1960s•

An atmospheric distillation capacity of 205,000 bpd•

The Diesel Project increased the refinery’s complexity:-

from 10.5 to approximately 14.5 (Solomon refinery configuration

factor)-

from 10.4 to approximately 12.1 (Nelson complexity index)•

Very extensive bedrock cavern capacity and tank farm combined with deep sea harbour

1) bpd, except for hydrogen plants2) These new units will be started-up in connection with the Diesel Project.

Fluid Process Units Current Licensor/ Start-Up Year of Major

capacity 1) Process Designer Year Modifications

Atmospheric Crude Distillation 206,000

Lummus/Neste Oil

1975

1993Vacuum Distillation 1

52,300

Lummus/Neste Oil

1972

1993Vacuum Distillation 2

23,000

Lummus/Neste Oil

1988Visbreaking

26,050

Shell

1979Fluid Catalytic Cracking 42,300

Texaco

1972

1993Hydrocracking

21,500

UOP/Unocal

1965

1989Continuous Catalytic Reforming 41,700

UOP

1986Hydrogen Plant (thousands of standard cubic feet per day) 22,300

Power Gas

1965ETBE / MTBE

2,235

Neste Oil/ Snamprogetti

1993

1993Alkylation

7,750

Phillips

1988

1993TAME 2,880

Neste Oil

1995Hydrotreating/ Naphtha 67,100

Exxon

1975

1993Distillate Aromatics Saturation 16,500

Neste Oil

1992Hydrotreating/Distillate 2 24,800

Shell

1972Hydrotreating/Distillate 3

54,100

Shell

1993

1999VGO Desulphurization 55,600

Unocal

1975

1999EHVI Unit

6,690

Chevron

1997

1997LCF(2) 41,800

ChevronLummus

2006MHC(2) 33,500

ChevronLummus

2006New Hydrogen Plant(2) (thousands of standard cubic feet per day)

118,385

Unde

GmbH

2006

Note: capacity barrels streamday basisNote: capacity barrels streamday basis

24

Por

voo

Ref

iner

yco

mpl

exity

ratio

is a

ppro

xim

atel

y14

.5 (S

olom

on)

Oil Refining Process at the Porvoo Refinery

25

The New Diesel Production line in Porvoo

HFO0,5 Mt/aDEMI water

Off Gas / Propane

Existing refinery

Hydrogen production unit

Desulfurization and conversion of HFO

Gas to process

Sulfur freediesel 1 Mt/a

Crude oil

HFO 2 Mt/a

Natural Gas

11 Mt/a

26

Naantali refinery

27

Naantali Refinery•

The Naantali

refinery began operations in the late 1950s and refines gasolines, diesel fuels, LPGs, aviation fuels, heating oil, heavy fuel oil, bitumens

and solvents•

An ongoing investment program at the Naantali

refinery has focused on increasing the production of specialty petroleum products, such as specialty gasolines, solvents and bitumen

•

An atmospheric distillation capacity of 56,000 bpd (crude and other feedstocks)•

The complexity of the Naantali

refinery:-

8.4 (Solomon refinery configuration factor)-

7.1 (Nelson complexity index)Process Units

Current Licensor/ Start-Up Year

of

Majorcapacity, bpd Process Designer Year Modifications

Crude Distillation (Unit 1)

28,300

Lummus

1957

1996Crude Distillation (Unit 2)

28,300

Lummus

1962

1996Light Naphtha Dehexanizer

9,700

Neste Oil

1982Naphtha Dehexanizer

10,800

Neste Oil

1995Solvent Distillation

2,200

Neste Oil

1982

2003Arosat

500

Lummus

1971

1998Special Gasoline (BEL) unit

1,800

Neste Oil

1989

1994Reformer Unit

7,700

UOP

1985JET fuel unit

3,000

UOP

1998TCC Gasoline Desulphurization

6,600

Axens

2002Catalytic Polymerization

600

Chevron/UOP

1957

1987Solvent Hydrotreater

5,700

Neste Oil

1991

2003Solvents Dearomatization

5,200

Neste Oil

1993

2003Middle Distillate Hydrotreater

2

19,800

Lummus

1981

2002TCC-Feed Hydrotreater

7,200

Neste Oil

1987Thermofor

Catalytic Cracker

14,300

Mobil Oil/Neste Oil

1957

1982Vacuum Distillation Unit

16,900

Lummus

1957

1982Visbreaker

8,800

Shell

1979Bitumen Distillation Unit

5,700

Neste Oil

1963

2003Sulphur

Recovery Unit

60

Comprimo

1973

1995Naphtha Hydrotreater

9,000 Neste Oil 1963 1982Mild Vacuum Unit

5,700 Neste Oil 1963 2003Bitumen Unit 7,800 Neste Oil 1998 200Vapor Recovery Unit

N.A.

Lummus

1957

Note: capacity barrels streamday basisNote: capacity barrels streamday basis

28

CRUDEOIL

DISTILLATION1 AND 2

CRUDEOIL

OTHERFEED

GASOLINEDESULPHURISATION

SOLVENTDESULPHUR-

ISATION

VACUUMDISTILLATION

HEXANEREMOVAL

BITUMENUNIT

VISBREAKING

HYDRO-GENATION

AROSATUNIT

SOLVENTDISTILLATION

TCC-UNIT

GASRECOVERY POLYMERI-

SATION

GASOLINEREFORMATION

JET FUELTREATMENT

GAS OILDESULPHUR-

ISATION

SULPHURRECOVERY

UNIT

PROPANEBUTANE

REMOVAL OF AROMATIC

COMPOUNDSFROM SOLVENT

CITYDIESELLIGHT

FUEL OIL

JETFUEL

HEAVYSOLVENTS

NAPHTHAMOTOR-

GASOLINE

LIGHTSOLVENTS

HEAVYFUEL OILBITUMEN

SULPHUR

H2

H2

H2

H2S-FEED

SPECIALITYGASOLINE UNIT SPECIALITY

GASOLINES

Oil Refining Process at the Naantali Refinery

29

Use of Russian Heavier Crude Continues to Increase

•

Neste Oil is procuring approximately 2/3 of its feedstock under one-year

term

contracts and 1/3 on a spot basis–

Pricing under term contracts is based on market prices•

Neste Oil’s largest suppliers are major Russian oil companies–

No supplier represents more than 20% of total procurement•

Apart from tankers,

Russian crude is also transported by rail (around 1.3 million tons in 2006)

3447 47 54 52 54 57 63

75

6653 57

46 48 46 43 3725

6443 51

3653 49

0%10%20%30%40%50%60%70%80%90%

100%

2003 2004 2005 2006 2007 2008Q1

2008Q2

2008Q3

2008Q4

2008 2009Q1

2009e

Russian Export Blend Other

Share of REB out of total feed of Neste Oil´s refineries

30

70

0%10%20%30%40%50%

60%70%80%90%

100%

2008

European average

Source: Neste Oil, BernsteinResearch

30

Russian crude oil is very close to Porvoo and Naantali

Million tons

17.7

44.857.4

66.174.2 74.3

0

20

40

60

80

2003 2004 2005 2006 2007 2008Oil export from Primorsk

Primorsk oil harborPorvoo refineryNaantali refinery

31

Russian crude replaces North Sea crude

Total feedstocks (%)

Diesel replaces heavy fuel oil

Total output (1000 tons)

Note: very rough 2009-estimate is based on 2005/2006/2007 production yields added by diesel project

Our product slate and use of Russian crude have changed

Urals

Urals

Other crudes

Other feedstock

Other feedstock

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2009e

Middle distillates

Middle distillates

Middle distillates

Gasoline

Gasoline

Gasoline

Other

Other Other

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,00011,00012,00013,00014,00015,00016,00017,000

2007 2009e 2011e (afterSingapore and

RotterdamNExBTL-plants

are up andrunning)

Heavy products: Heavy fuel oil, bitumen etc.Gasoline: gasoline, gasoline componentsMiddle distillates: diesel, jet fuel, heating oil, NEXbTLOther: base oils, lpg, solvents, naphta

Heavy prodducts

Heavy prodducts

Heavy prodducts

32

High crude oil prices favor cracking margins

0

1

2

3

4

5

6

0 10 20 30 40 50 60 70 80 90 100 110

Brent cracking margin Yearly average (1995-2007) - North West Europe

Historical prices(Brent Crude annual average price)

Refining Margin ($/bbl)

Brent Crude price ($/bbl)

Crude oil price from 19601960-1986: Arabian Light, 1987-today: Brent Dated

0

20

40

60

80

100

120

140

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Crude price nominal Crude price in 2008 money

Up to Jan 19, 2008$/bbl

33

Large scale storage facilities and modern marine terminals are supporting our business

Rock caverns Tank farms Harbour

Porvoo refinery 24 bedrock caverns, capacity 5.6 million cubic meters

Capacity 1.6 million cubic meters

Approach route up to 15.3 meters deep, capacity to accomondate vessels up to160,000 cargo tons

Naantali refinery 1 becrock cavern, capacity 0.25 million cubic meters + 7 steel shell tanks inside bedrock, capacity 0.03 million cubic meters

Capacity 0.82 million cubic meters

Approach route up to 15.3 meters deep

Refineries together

25 caverns (+7 steel shell tanks inside bedrock), capacity 5.88 million cubic meters

Tank farm capacity 2.42 million cubic meters

•

Storage system and harbour capacity together with our own shipping fleet are key drivers for Neste Oil´s superior logistics•

Flexibility; we can keep products as components (e.g. gasoline) and blend them just before shipment fulfilling buyer’s requirements even with very short notice

•

Large scale contango storaging in favourable market conditions •

Modern harbour and bedrock caverns are also safery elements

34Shipping guarantees safe and secure crude supplies and product shipments.

35

Shipping supports our growth strategy

Security of supply and exports, especially

winter time

Capability to schedule crude supply and product exports

Leverage scale benefits by using larger cargo sizes

Shipping plays an important role in our

growth in refining and renewable diesel

36

Successful risk management in growing market

0

5

10

15

20

25

30

35

40

1999 2000 2001 2002 2003 2004 2005 2006

Time charter Bareboat Own

Neste Oil Shipping fleet split by categories

Number of shipsOur shipping flexibility

•

Flexible portfolio –

increasing role of time charter vessels

•

Port calls: 3741

calls in 2008

•

Neste Shipping average vessel age is below 5

years

•

More than 40 million tons of cargo transported annually (50% for Neste)

•

Operations in Baltic Sea, North Sea and Intercontinental routes

2007

37

0

10

20

30

40

50

60

70

80

2002

/200

3

2003

/200

4

2004

/200

5

2005

/200

6

2006

/200

7

2007

/200

8

2008

/200

9

2009

/201

0

Commoditization of the Baltic tanker market

0

100

200

300

400

500

600

700

Jan-

04Ap

r-04

Jul-0

4O

ct-0

4Ja

n-05

Apr-0

5Ju

l-05

Oct

-05

Jan-

06Ap

r-06

Jul-0

6O

ct-0

6Ja

n-07

Apr-0

7Ju

l-07

Oct

-07

Jan-

08Ap

r-08

Jul-0

8O

ct-0

8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Monthly Crude freight rates (Primorsk/NWE), WSMonthly Russian oil exports from Primorsk, Mt

WS Mt

Monthly shipping freight rates & Russian oil export from Primorsk

Required number of shipsAvailable number of ships

Number of ships

Ice class capacity supply and demand

38

0

1 0 0

2 0 0

3 0 0

4 0 0

Tanker Freight Rates

World Scale points

North Sea Crude freight rates Transatlantic Product freights

2005 2006 2007 2008 2009

39

Sten Bothnia -08, NIS, 16661 DWT, 1A

Kiisla -04, FI, 14750 DWT, 1A S

Tärnhav -02, S, 14796 DWT, 1A

Sten Hidra -07, NIS, 16600 dwt, 1A

Sten Aurora -07, NIS, 16600 DWT, 1A

Sten Baltic -05, NIS, 16613 DWT, 1A

Sten Nordic -06, NIS, 16613 DWT, 1A

Mastera -03, FI, 106208 DWT, 1A S

Tempera -02, FI, 106034 DWT, 1A S

Propontis -06, GR, 117055 DWT, 1A

Amanda -05, PT, 7000 DWT, 1A

Tärndal -98, NIS, 8300 DWT, 1A S

Neste Shipping Fleet

Proteas -06, GR, 117055 DWT, 1A

Stena Arctica -05, FI, 117000 DWT, 1A S

Crude Carriers

We care howwe carry

Scorpius -06, S, 11249 DWT, 1A

Astina -06, S, 11283 DWT, 1A

Astoria -99, S, 12712 DWT, 1A

Stena Poseidon -07, FI, 74999 DWT, 1A

Palva -07, FI, 74999 DWT, 1A

Apollon -05, BS, 53000 DWT, 1A

Ariadne -05, BS, 53000 DWT, 1A

Futura -04, FI, 25084 DWT, 1A S

Neste -05, FI, 25080 DWT, 1A S

Jurmo -04, FI, 25049 DWT, 1A S

Purha -03, FI, 25000 DWT, 1A S

Sidsel Knutsen -93, NIS, 22625 DWT, 1A

Product Carriers

Ek-River -94, S, 17259 DWT, 1A

Turid Knutsen -93, NIS, 22617 DWT, 1A

Product Carriers Product Carriers

Pushers, Barges, Tugs

Bitpro 2 / Aulis -90, FI, 4088 DWT, 1A

Bitpro 1 / Kari -89, FI, 4088 DWT, 1A

Ahti -02, FI, 1A

Esko -81, FI

Ukko -02, FI, 1A

Suula -05, FI, 14665 DWT, 1A S

Updated

19.1.2009

Businesses

Oil Products

44

Long track record of superior refining margins

●

Key drivers of Neste Oil’s superior refining margin:

Ability to use heavier crude and other feedstocks

Refinery configuration and high-value product

slate (including base oils)

Location and logistics (transport differential in domestic and export markets)

Note:Margins are calculated in different ways and are not directly comparableRefining margins include variable costs

IEA Brent Cracking

benchmark marginNeste Oil Total Refining Margin

USD/bbl

9.62

11.92 10.2

9.88

11.91

12.38

9.44

13.54

15.0513.39

10.460

2

4

6

8

10

12

14

1619

95

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Q1/

2007

Q2/

2007

Q3/

2007

Q4/

2007

Q1/

2008

Q2/

2008

Q3/

2008

Q4/

2008

Q1/

2009

0

2

4

6

8

10

12

14

16

451) Brent Dated 2) ULSD 10ppm CIF ARA3) Premium Unleaded 10 ppm CIF ARA 4) HSFO 3.5% CIF ARA

Product margins

Heavy Fuel Oil 4)Gasoline 3)Diesel 2) (price

difference

to crude

oil price

1), USD/bbl)

USD/bbl

-50-40-30-20-10

01020304050

Q12005

Q2 Q3 Q4 Q12006

Q2 Q3 Q4 Q12007

Q2 Q3 Q4 Q12008

Q2 Q3 Q4 Q12009

Q2-50-40-30-20-1001020304050

46

Brent crude oil and Brent/Urals differentialBrent dated

USD/bbl

-8

-7

-6

-5

-4

-3

-2

-1

0

-8

-7

-6

-5

-4

-3

-2

-1

0

0

20

40

60

80

100

120

140

160

Q12005

Q2 Q3 Q4 Q12006

Q2 Q3 Q4 Q12007

Q2 Q3 Q4 Q12008

Q2 Q3 Q4 Q12009

Q20

20

40

60

80

100

120

140

160

47

Neste Oil is a middle distillate producer

42%36%

54%

19%46%

33%

39%

19% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

European average US average Neste Oil

Middle distillates Motor gasoline OtherSources: EIA, Wood Mackenzie, Neste Oil

2007 2007 2009e

48

Neste Oil is a middle distillate producer

33% 28% 22% 22% 24%

44% 46%

54%52%

50% 47% 44%

35% 33%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Neste Saras OMV Petroplus PKN Orlen TSO VLO

Gasoline Middle Distillates Heavy products (mainly heavy fuel oil) Other

Data: Neste Oil = 2009e / Other companies = 2007-2008

Data source: company based data

49

Sales from in-house production

43 43 44 46 48 5240 47 54 49

34 36 35 31 30 2435

3029

29

9 7 8 8 7 6 8 66 10

14 14 13 15 15 18 17 16 11 12

0%5%

10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%

100%

2004 2005 2006 2007 2008 Q12008

Q22008

Q32008

Q42008

Q12009

Middle distillates Gasoline Heavy Fuel Oil Other

14.3 MT 3.8 MT3.3 MT13.0 MT14.2 MT 14.3 MT 3.8 MT 3.8 MT14.6 MT 3.4 MT

50

58 57 57 56 52 54 48 55 52 54

15 16 14 1414 13

1314 16 16

15 15 18 16 20 2320

21 19 16

11 10 10 12 13 8 1910 12 14

0%

10%

20%

30%

40%

50%60%

70%

80%

90%

100%

2004 2005 2006 2007 2008 Q12008

Q22008

Q32008

Q42008

Q12009

Finland Nordics Other Europe USA & Canada Other

13.0 MT14.2 MT 14.1 MT 3.3 MT14.3 MT 3.8 MT

Sales by geographical area

3.8 MT 3.8 MT14.6 MT 3.4 MT

51

Strong wholesale market positions in Finland and Sweden

Gasoline Diesel Gasoline Diesel

NOTE: Neste Oil estimate

100% 96% 16% 25%

Neste Oil market share in 2008

Wholesale market shares in Finland Wholesale market shares in Sweden

52

Iso-octane - a bespoke component for the US gasoline pool

1. Gasoline blend-stocks from main refinery units

• Lower than desired octane

2. Bio-components blended per regulation

•

Increasing use of ethanol as blending components increases vapour pressure

Gasoline that meets stringent specifications

Specialty gasoline

components

Gasoline that DOES NOT meet stringent specifications

Our focus

++ ==

XX1. or

2. without

addition

of specialty

gasoline

components

53

Co-development of new products /

formulations

Base oil and lubricant

formulation

Additive and lubricant

formulation

Base Oils’ Business Concept

Neste Oil Base Oils

Additive companies

Car manufacturers

(First fill)

Lubricant manufacturer

Retail channel(Service fill)

54

Demand for high quality base oils is growing

Consumer preferences• fuel economy

Legislation• Emission reduction• Fuel economy

OEM needs• Engine cleanliness• Fuel economy

55

05

101520253035404550

1998 2001 2004 2007 2010 2013

Market shift increases attractiveness of high-quality base oils

Sources: ExxonMobil; Neste Oil; Fuels & Lubes

Global Base oils capacity outlook

Automotiveusage

Industrialusage

Group I

Group IV

Mtpa

Our focus is Group III

Group II

Group III

56

Supply-demand balance forecast for group III base oils is lucrative

Sources: Press releases, Neste Oil estimates

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2005 2007 2009 2011 2013 2015

t/a

DemandSupply

57

We will leverage our market position to exploit those growth opportunities

Company 3

12%

Company 448%

Neste Oil47%

Neste Oil18%

Key strategic advantages•

Focus on higher quality base oils•

Extensive portfolio of car industry approvals•

Broad customer portfolio•

Leading position in Europe

Total market 430 ktpa

Total market1120 ktpa

European merchant market (group III) 2007 Global merchant market (group III) 2007

Competitors53%

Competitors82%

58

In addition to automotive uses, base oils are used in industrial lubricants and as process oils

Uses of NEXBASETM Base OilsExample: Where are lubricants used in the Mercedes C series

59

Nynas is a specialized global company

● Sales around 3 000 M$ ●

Crude processing: approx. 3 million tons.

●

Most important products: bitumen, base oil, transformer oil, process oil.

●

Percent of sales outside Sweden: 88%.

●

Employees: Around 850 in more than 30 countries all over the world.

Customer logos

12% Fuel

18% Specialty oils

70% Bitumen

96% Fuel

4% Bitumen,Specialty oilsand Lubes

Typicaloil company

http://www.abb.com/global/abbzh/abbzh251.nsf!OpenDatabase&mt=&l=us

http://www.areva.com/servlet/ContentServer?pagename=arevagroup_en/home

http://www.total.com/

http://www.fuchs-oil.de/home_de.html?&no_cache=1

Renewable Fuels

61

Neste Oil's approach on sustainable biofuels

True GHG savings over entire life cycle

Sustainable feedstock and full traceability

Lower tail pipe emissions

NExBTL renewable diesel

62

The challenge of the energy industry: Increasing demand, climate change and energy security

Total transport

Source:

EIA 2007 &

IEA 2008

●

Total

world

energy

demand continues

to grow

●

New energy

solutions

are urgently

called

for

●

Future

energy

supply

will

be based

on multiple

technologies

and feedstock ●

Minimizing

environmental

e

ffectsand ensuring

sustainability

are

driving

the development ●

Significant

new feedstock

for transport fuels

include:

vegetable oils, tallow, forestresidues, side products, wasteetc.

63

Renewable diesel – A global market view

EUROPE-

Dieselized automotive market-

Regulatory framework supporting biodiesel> Main market for biodiesel and NExBTL

US and Canada-

Gasoline driven market-

Regulatory framework supporting biofuels> Growing market for NExBTL

ASIA-


Legal framework mainly under development > Growing market for NExBTL

20108 Mt

201013 Mt

2010~8 Mt

LATIN AMERICA -


Global leader in ethanol (Brazil)-

Biodiesel market expected to grow> Market to follow up

20103 Mt

Biofuel in diesel target

for2010

Neste Oil internal analysis. Based on KBC regional diesel demand

estimates and national biofuel

targets (data collected from market information sources).

64

>/= 2% > 5% > 7 %

EU biofuel regimes (2008) EU biofuel regimes (2010)

Source: Neste Oil

Government policies further boost demand – increasing targets

65

Status of the Renewable Energy DirectiveRENEWABLE ENERGY DIRECTIVE●

Setting binding targets for the use of biofuels in transport within EU●

Clear, shared rules for sustainability of biofuels

KEY RESULTS●

Biofuel target in transportation maintained at 10 % by 2020●

Use of renewable electricity in transport supported heavily (2.5

x liquid bioenergy)●

Waste, residues, non-food cellulosic and ligno-cellulosic material supported (2 X liquid bioenergy)

●

GHG threshold 35% by 2010, rising to 50 % by 2017, and even further to 60 % in regard to new plants

●

Principle of harmonized legislation across EU member states applied

CONCLUSIONS ●

The directive

has a positive approach to feedstock trade with 3rd countries●

The directive will allow our current feedstock base ●

Palm oil has a low default value on GHG savings (26% compared to

the 35% threshold); we will use the actual value, to be calculated still (preliminary indications 40-60%)

●

Current

approval

process has two steps: harmonized sustainability legislation across the EU, and formal product appproval process at member state level

●

General: the directive

is more positive than what was expected based on Parliamentary discussion; the sustainability

criteria

are

seen

as reasonable

and manageable from operators’

point of view

66

Mt

23.2

4.95.76.1

11.613

21

0

5

10

15

20

25

2004 2005 2006 2007 2010e 2020eproduction total capacity

Note: Assumes that both gasoline and diesel have 5.75% biocontent in 2010 and 10% in 2020 : Sources: European Biodiesel Board, EU Commission

Historical and targeted EU biomass based diesel production

EU: Biodiesel production and capacity in 2004-2007 and Commission proposal for 2010-2020

EU 5.75% and 10% targets means ~13 Mt capacity need in 2010 and 21 Mt in 2020

Renewable Energy Directive●

10% of energy consumption in transport from renewable sources by 2020

●

GHG saving -35% in 2010; 50% in 2017 and 60% for new installations 2017

●

Member States legislations to include the RED within 18months from official publication

●

Open questions to be resolved in Comission led Comitology -process

5.75%5.75%

10.0%10.0%

67

NExBTL PROCESS

NExBTL renewable diesel by Neste Oil

FLEXIBLE FEEDSTOCKFLEXIBLE FEEDSTOCK

Vegetable oils and animal fats, feedstock

base

expanding

Commercial

scale

productionalready

in place

SIGNIFICANT LIFE CYCLE GREENHOUSE GAS SAVINGS AND IMPROVED AIR QUALITY

68

Renewable diesel volume growth

0250,000500,000750,000

1,000,0001,250,0001,500,0001,750,0002,000,000

2007 2009 2010 2011 2015

nam

epla

te c

apac

ity t/

a

Porvoo I Porvoo II Singapore Rotterdam

69May 6, 2009 Renewable Fuels69

NExBTL renewable diesel is the best fuel of its type available anywhere, and can be used in all diesel engines.

Product

•

NExBTL is the cleanest diesel available, and its technology is several years ahead of any competitors in the renewable fuels market

•

Can be produced in large volumes on an industrial scale•

NExBTL renewable diesel significantly reduces both tailpipe and greenhouse gas emissions

•

NExBTL renewable diesel can be used in all modern diesel engines, hence there is no need to replace existing vehicles

•

Can be used as such or as a blending component in conventional diesel•

Performance and ease of use is equal to that of fossil diesel•

NExBTL renewable diesel is engine-friendly

High cetane number

A pure hydrocarbon

70

Neste Oil's NExBTL renewable diesel

•

Key advantages: feedstock flexibility, excellent fuel properties

•

High quality (energy value, cetane number, cold properties) justifies premium pricing

TechnologyEsteröinti

Esteri - biodiesel

BiodieselFAME / RME

NExBTLrenewable

dieselFischer-Tropsch

Feedstock

End product

BiomassaKasviöljyt &

EläinrasvatKaasutus &

Fischer- Tropsch

Vetykäsitte ly

Vegetable oils & animal fats

(mainly rapeseed oil)

Esterification

Ester-based biodiesel

OII

H3

C-O-C-R

Vegetable oils &animal fats

Hydrogenation

Bio-based hydrocarbon

Cn

H2n+2

Biomass

Gasification &Fischer-Tropsch

Bio-based hydrocarbon

Cn

H2n+2

Mineral Oil

Refining

Hydrocarbon

Cn

H2n+2

Fossil diesel

71

Commercial

Esters

BTL

Vegetable oils

Esterification

FAME =

Biodiesel

In

Out

BTL GTL

Mineral Oil

Gasoline

Jet

Diesel

Cn H2n+2

Cn H2n

ParaffinsAromatics

Polyaromatics

Refining

Natural gas

Coal

GasificationFischer-Tropsch

Cn H2n+2

Paraffins

Gasoline

Jet

Diesel

Vegetable oils

Animal fats

Hydrotreating

Cn H2n+2

Paraffins

Renewable:Gasoline

Jet

Diesel

Biomass

Cn H2n+2

Paraffins

NExBTL is a hydrocarbon renewable diesel

Commercial Commercial Commercialby

Neste Oil

Gasification Fischer-Tropsch

Renewable:Gasoline

Jet

Diesel

Developmentphase

72

(1) EN590/2005(2) Blending cetane number

0< 10< 10Sulfur content (mg/kg)

StableStableUnstabl

eProduct stability

43

- 5

53

835

Sulphur-freeDiesel fuel1)

38

- 5

51

885

RME

44Heating value (lower)

(MJ/kg)

- 5 ... - 30Cloud point (°C)

84 ... 992)Cetane number

775 ... 785Density at +15°C (kg/m3)

NExBTLFuelproperties

Comparing key fuel properties

•

CO2

reduction•

Cleaner emissions•

No implications for existing car pool

•

No need to relax specifications to achieve high bio content

•

Distribution within existing oil refinery logistics

•

No need to compromise fuel quality

NExBTL characteristics

73

NExBTL renewable diesel is superior to traditional biodiesel

•

Technically possible to blend up to 100%

•

No need to relax specifications to achieve high bio-content

•

All emissions reduced•

No "use by" -date•

No implications for end users

•

No implications for vehicle technology


•

Maximum blend of 5 % (EN590 diesel specification)

•

Bio targets not achievable without specification changes

•

NOx increase•

Limited storage possibilities•

Problems with engine cleanliness

•

Ash formation blocks exhaust after treatment filters

Traditional biodiesel

74

NExBTL´s competitive position

FAME/RME biodiesel

Sulphur-free dieselfuel


product quality

prod

uct m

arke

t pric

e $/

ton

- Price premium due to higher quality and energy content

illustrative example

>90% of world’s biodiesel production

is FAME/RME

0

75

NExBTL´s competitive position

FAME/RME biodiesel

Sulphur-free Dieselfuel

NExBTL renewable dieselfe

edst

ock

pric

e $/

ton

investment cost & operating cost $/ton

-mainly rapeseed oil

- flexible feedstock base

-crude oil

illustrative example

0

76

Illustrative pricing for NExBTL renewable diesel

AssumptionsAssumptions

●

NExBTL premium includes:

•

density premium

•

energy content premium

•

premium for higher cetane, better

cold properties and branding

value

●

Illustrative base price for palm oil is

500 USD/t

●

NExBTL premium includes:

•

density premium

•

energy content premium

•

premium for higher cetane, better

cold properties and branding

value

●

Illustrative base price for palm oil is

500 USD/t

Components of NExBTL price

NExBTLPremium

FAME overRapeseed Oil

Rapeseed Oilover Palm Oil

Palm Oil (CPO)

Cos

t / p

rice

diffe

renc

e (in

$/t)

100-200

100-200

500

77

We have the flexibility to use cheapest feedstock available

Source: Oil World

Feedstockflexibility

•

Rapeseed oil availability restricts first generation biodiesel production from meeting EU targets

•

NExBTL can use almost any vegetable oil or animal fat as feedstock

Can fulfil EU target

Provides a competitive cost position

Price development of different feedstocks

0100200300400500600700800900

100011001200130014001500160017001800

Jan-

01A

pr-0

1Ju

l-01

Oct

-01

Jan-

02A

pr-0

2Ju

l-02

Oct

-02

Jan-

03A

pr-0

3Ju

l-03

Oct

-03

Jan-

04A

pr-0

4Ju

l-04

Oct

-04

Jan-

05A

pr-0

5Ju

l-05

Oct

-05

Jan-

06A

pr-0

6Ju

l-06

Oct

-06

Jan-

07A

pr-0

7Ju

l-07

Oct

-07

Jan-

08A

pr-0

8Ju

l-08

Oct

-08

Jan-

09A

pr-0

9

USD

/t

0100200300400500600700800900100011001200130014001500160017001800

Soya Oil Dutch fob ex mill Palm oil crude cif nweTallow US b.f. cif Rott Rapeseed Oil Dutch fob ex mill


Using NExBTL renewable diesel improves the quality of the air we breathe.

Significant reduction in tailpipe emission

•

Engine tests have proven that particulate, carbon monoxide, and nitrogen oxide emissions released by NExBTL renewable diesel are all lower than with traditional diesel

•

Regulated emissions are significantly reduced

NOx

10% lower

Particulates 28% lower

CO

28% lower

HC

50% lower

Source: Scania, MAN, VTT

79

Significant reduction in GHG emissions

NExBTL diesel

Vegetable

oil production, processing

and transportation0.95 -

2.25 t CO2

1.3 -2.6 t CO2 per ton of NExBTL

Production

and processing

End

use

Fossil

diesel

Crude

oil production,

processing

and transportation

Refining

End

use

3.8 t CO2 per ton of diesel

Annual

production

of the first

NExBTL plant

in Porvoo is 170 000 tons

GHG emissions

of NExBTL renewable

diesel over

the entire

lifecycle

are

40-60% lower

than

those

of fossil

diesel

Majority

of emissions

are

generated

during

raw

material

production

Potential

to reduce

GHG emissions

in raw

material

production• optimising

fertilizer

use• waste

water

treatment• use

of waste

Source: Concawe/Eucar WTW 2004, IFEU

80

Commitment to sustainability

●

We believe that by acting responsibly the industry can make a change and therefore sustainability is at the heart of all biofuel operations:

●

Working with governments to develop policies on sustainable development

●

Comply with highest standards (e.g. RSPO, RSB, RTRS)●

Work with raw material suppliers to continuously improve sustainability performance

●

Search for new competitive non-food feedstock alternatives and implement them as soon as possible

●

Continuously improve the greenhouse gas balance and environmental impacts of the whole lifecycle

●

Production growth of vegetable oils must be based on increasing yields of currently used land area and utilisation of wasteland

81

Global biomass potentialMillion hectares globally

Ton/hectare yield

Million tons crude oil equivalent production 2007

1. existing crops (sugar cane, sugar beet, oil crops, wheat, maize, palm)

100-200 5-20 250-500

2. energy crops (Miscanthus, Reed canary grass, eucalyptus etc.)

200-400 15-20 1000-2000

3. agricultural wastes (straw, cornstover, bagasse, rice hulls, palm wastes)

300-600 5-15 700-2000

4. forestry wastes (sawdust, logging residues, black liquor)

100-200 10-20 500-800

Conclusion: Many studies put potential at 2000-5000 Mtoe/aCompare: Current global traffic fuel need ~ 2000 Million ton crude oil

equivalent / year

82

Among existing crops palmoil yield is superior (in crude oil equivalent)

End product: Yield (ton/hectare) as crude oil equivalent:

rapeseed oil (EU)

NExBTL / (FAME) 0.9

soya oil(US)

NExBTL / (FAME) 0.54

palm oil (Malaysia)

NExBTL / (FAME) 4.2

wheat (EU) EtOH 1.1

barley (Finland)

EtOH 0.6

corn(US)

EtOH 1.2

sugar beet (EU)

EtOH 3.1

sugar cane (Brazil)

EtOH 3

Jatropha* NExBTL / (FAME) 1 - 1,5

Algae* NExBTL / (FAME) 30

* Alternative feedstock, commercial volumes not yet available

Source: Several sources & Neste Oil internal analysis

83

From plantations to our site: The palm oil we use is fully traceable

SEEDLINGSThe seedlings are grown in a nursery adjacent to the plantation

PLANTATIONPlantations are set up according to RSPO’s sustainable development criteria

CULTIVATION 12-month old trees are planted. Proper care guarantees well-being and long life of the palms.

OIL PRESSING The palm fruit is freed from the bunches and mashed. Oil is extracted by mechanical pressing and stored in tanks which are sealed

until transportation. The rest of the bunch is recycled or used towards energy.

HARVEST Oil palm trees bear fruit for approximately 30 years. At harvest the fruit bunches are cut down and transported to the extraction plant adjacent to the plantation.

The separation of Neste Oil’s fruit ensures traceability.

TRANSPORT Neste Oil’s palm oil is loaded into ships, sealed and shipped to Europe.

REFINERY At the NExBTL plant at Neste Oil's refinery in Finland, palm oil is used as one of the raw materials for NExBTL renewable diesel.

Audited by SGS 5/2007 Audited by SGS 3-4/2008

84

Auditing our supply chain

SGS audited the supplier against the QUALIPLAM Programme. It looked at 6 oil plantations

within Sandakan region in May 2007.

Key findings:

●

Full compliance in 6 areas, e.g soil fertility, avoiding of use of fire, no use of child labour and protection of sexual harassment, transparency and contribution to sustainable development

●

High compliance in 10 areas, e.g such as land ownership and operation procedures, land preservation, conservation of endangered species and working conditions for employees and their contractors

●

Medium compliance for 12 criteria e.g appropriate use of agrochemicals, health and safety plans, trainings as well as information and management issues

●

Low compliance for 4 criteria -

energy efficiency, emissions reduction and a monitoring system for improved operations.

●

Non compliance: none

Development Plan established, full compliance by 2008, check points, follow-up audit


R&D

●

Neste Oil is working with over 20 research institutions in Finland and around the world

●

Neste Oil has six research initiatives under way, aimed at identifying new raw material suitable for use as biofuel inputs

●

The research initiatives include non-food vegetable oil, such as jatropha, algae, and microbes

●

A pilot plant to demonstrate the use of forest residuals

is under construction in Finland

An example of the opportunities and challenges involved: algae ●

A growing amount of algae research is being carried out worldwide●

Oil has already been produced from algae on a laboratory scale●

Scaling up production to meet the volumes required by an industrial plant is a major challenge

86

Use of edible and nonfood raw materials

87

Bio-based diesel technology and feedstock evolution: new feedstocks will enter the market

0

2

4

6

8

10

12

2006 2010 2015 2020

% o

f die

sel p

ool

3rd Generation2nd Generation1st Generation

illustrative

2% 5.75% 8% 10%

2020: Equal to 25 Mton

Rapid development of ALGAE and other non-food

feedstock

2% 5.75% 8% 10%

Rapeseed methyl ester

Hydrocarbons from biomass

Hydrocarbons from bio-oils


Algae

Forest residuals

and biomass gasification

Microbes

Neste Oil’s six research initiatives

Nonfood vegetable oil

89

NOSE: Joint venture with Stora Enso to develop biofuels from wood residues

●

First step•

Demonstration plant at Stora Enso’s Varkaus Mill in Finland

•

Develop technology for purification of syngas •

Start-up in 2009

●

Second step •

Expand production to commercial scale

●

The project combines expertise from Neste Oil, Stora Enso, and VTT (the Technical Research Centre of Finland)

90

NOSE: Joint venture with Stora Enso to develop biofuels from wood residues

Forest

biomass

1 000 000 t/a) Dry

ing

Gas

ifier

Gas

purif

icat

ion

to

Ultr

a C

lean

Gas

Fisc

her-

Trop

csh

Synt

hesi

s Biodiesel crude

wax

to refining

100 000 t/a

RE

FIN

ING

WA

X IN

TO

FUE

L

Joint Venture

Steam

(energy

equivalent

to 100 000 t/a fuel

oil)

91

Drivers supporting lignocellulose-based renewable fuels

Wood residues as an example – StoraEnso/Neste Oil

1. Climate change

Renewable diesel made from lignocellulosic

feedstocks such as wood residues by Biomass to Liquids (BTL) technology is very greenhouse gas (GHG) efficient, i.e. resulting in low net CO2 emissions throughout the cycle

GHG balance is expected to have a direct impact on price level

2. Feedstock availability

Lignocellulosic

feedstocks need to be taken into use as current farming-

based biomass is not sufficient for the targeted growth

Strong pressure to find non-food raw materials

3. Product quality

Cleaner tailpipe emissions targeted

The properties of renewable diesel made using a BTL process are comparable or above those of conventional diesel

Automotive companies appreciate BTL as the quality and compatibility are better than those of 1st generation biodiesel = FAME (Fatty Acid

Methyl Ester)

Oil Retail

93

Strong retail position

Note: 03/2008

Neste Oil Retail

•

The leading petroleum products marketer and distributor in Finland

•

Important player in the growing markets in Baltic Rim including the St. Petersburg area

•

Approx. 1,170 retail outlets, of which 2/3

in Finland

881881

94

Significant restructuring on the Finnish market

0%5%

10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%

100%

2002 2003 2004 2005 2006 2007 2008

Development Of Market Shares Gasoline 2002 - 2008

Note : Sale of Esso and JET has resulted in significant redistribution of market sharesSources: Oil & Gas Federation; Neste Oil; BAH analysis

Neste Oil

Teboil

JET

ABC

Esso1)

St1

Shell

SEO

0%5%

10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%

100%

2002 2003 2004 2005 2006 2007 2008

Neste Oil

Teboil

JETABC

St1

Shell

SEO

Esso1)

Development Of Market SharesDiesel 2002 - 2008

95

Project to strengthen position in Finland

Source: Neste Oil and Finnish Oil and Gas Federation

27.341.8 30.8 44.1

0%

20%

40%

60%

80%

100%

Gasoline Diesel Heatingoil

Heavyfuel oil

Neste Oil market share

Competitor market shares

•

Build network concepts for customer segments

•

Improve loyalty system

•

Refresh brand image

•

Optimize network

•

Enhance functional quality

•

Improve cost efficiency

Retail market shares in Finland 2008

96

Neste Oil's retail network in Finland

Note: 12/2007

Unmanned stations D-stations

Dealer owned, Dealer operated

Company owned, Dealer operated

21% 29%

36% 13%

97

•

A significant player in the Baltic Rim –

especially in the St. Petersburg area

•

Growing market with healthy margins

•

We continue to grow in this market

Baltic Rim sales volumes 1,000 m3

Footprint in attractive growth markets

0200

400600800

1,0001,200

1,4001,600

2001

2002

2003

2004

2005

2006

2007

Gasoline Diesel Fuel Heating Oil

Notes: Baltic rim = Estonia, Latvia, Lithuania, Poland, St. Petersburg area. Figures include both direct sales and sales through retail network.

Retail position outside Finland

98

0%

5%

10%

15%

20%

25%

St.Petersburg

Estonia Latvia Lithuania Poland

Gasoline Diesel

-6%

-4%

-2%

0%

2%

4%

6%

St.

Petersburg

Estonia Latv ia Lithuania Poland

Gasoline Diesel

Our market share in growing markets

2)

1)

1) Gasoline

and diesel together2) Market share

is around

10% in selected

areas

Estimate for our market shares in Baltic Rim area in 2009Estimated Baltic Rim total market growth in 2009

Highest margin and

our first priority

Financials

101

15,043

12,030

591

4,073

4371160

2000

4000

6000

8000

10000

12000

14000

16000

2008

602

510

5022

55

20

100

200

300

400

500

600

700

2008

Sales Comparable operating profit

Gro

up

Oil

Ref

inin

g

Spec

ialty

Prod

ucts

Ren

ewab

lefu

els

Oil

Ret

ail

Ship

ping

Gro

up

Oil

Ref

inin

g

Spec

ialty

Prod

ucts

Ren

ewab

lefu

els

Oil

Ret

ail

Ship

ping

Key figures by segments

Neste Oil's reporting segments are the five business divisions as well as Other segment consisting of Group administration, shared service functions as well as Research and Technology and Neste Jacobs.

102

Key figures by segments

1,972

327 351 272

3,363

371

0

500

1000

1500

2000

2500

3000

3500

4000

31.12.2008

13.9%

6.0%

19.2%

21.7%

0.9%

0%

5%

10%

15%

20%

25%

31.12.2008

Net assets Comparable return on net assets, %G

roup

Oil

Ref

inin

g

Spec

ialty

Prod

ucts

Ren

ewab

lefu

els

Oil

Ret

ail

Ship

ping

Oil

Ref

inin

g

Ren

ewab

lefu

els

Spec

ialty

Prod

ucts

Oil

Ret

ail Sh

ippi

ng

Neste Oil's reporting segments are the five business divisions as well as Other segment consisting of Group administration, shared service functions as well as Research and Technology and Neste Jacobs.

103

Indicative Comparable EPS

Comparable EPS = comparable EBIT –

reported financial costs –

taxes (26%) / reported number of shares

0.34

0.520.60

0.26

1.72

0.46

0.65

0.49

0.27

1.87

0.30

0.51 0.56

0.21

1.58

0.09

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Q1 Q2 Q3 Q4 Q1-Q4

Q1 Q2 Q3 Q4 Q1-Q4

Q1 Q2 Q3 Q4 Q1-Q4

Q1

2006 2006 2006 2006 2006 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2009

104

Q1/09 comparable EBIT of EUR 56 million

1) Excluding inventory gains/losses, changes in the fair value of oil- and freight derivatives and capital gains/losses

119

189202

87

158

225

159

84

119

181199

103

56

0

50

100

150

200

250

Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09

MEUR2007 20082006

105

Comparable operating profit EUR 56 million (119 million)Total refining margin 9.44 usd/bbl (11.91)Operational cash flow EUR 17 million (-113 million)Liquidity position remained healthy with total liquidity*

of 1,485 million euros

Renewable diesel projects proceeded according to planSpecial attention to fixed costs

Major organizational restructuring was startedTarget to improve efficiency, customer orientation and

implementation of the corporate strategy

First quarter 2009 in brief

Results

Investments &

fixed costs

Organizational changes

* Cash and cash equivalents and commited, utilized credit facilities

106

2008 comparable EBIT of EUR 602 million

565

597

626

602

530

540

550

560

570

580

590

600

610

620

630

640

2005 2006 2007 2008

MEUR %

15.5

13.1

0

2

4

6

8

10

12

14

16

18

20

2007 2008

ROACE

107

Key Figures EUR million unless otherwise noted

Q1/09 Q1/08 2008 2007

Revenue 2,053 3,297 15,043 12,103Operating profit before depreciation 150 263 409 996Operating profit 95 204 186 801

- comparable operating profit 1) 56 119 602 626Profit before income taxes 81 191 129 763

EPS, EUR 0.24 0.56 0.38 2.25

Net cash from operating activities 17 -113 512 541Capital expenditure and investments in shares 174 82 508 334

31 Mar 09 31 Mar 08

Interest bearing net debt 1,216 1,212Capital employed 3,491 3,591ROCE, (Pre-tax), % 11.7 24.0ROE, % 11.1 24.2Personnel, average 5,252 4,912

1) Excluding inventory gains/losses, changes in the fair value of oil- and freight derivatives and gains/losses from asset sales

108

Balance Sheet

1,8682,453

3,112

2,793

0

1000

2000

3000

4000

5000

6000

31 Mar 2009 31 Mar 08

1,488 1,655

1,263 1,275

2,2292,316

0

1000

2000

3000

4000

5000

6000

31 Mar 09 31 Mar 08

Total assets Total equity and liabilities

Non-current assetsCurrent assets

Equity Int-bear. liabilitiesInt-free liabilities

4,980 5,246 4,980 5,246

31 Mar 09 31 Mar 08

Capital employed, MEUR 3,491 3,591Equity-to-assets, % 44.9 44.2Leverage, % 35.3 34.3Gearing, % 54.6 52.3

Non-current assets as classified as held for sale

109

MEUR Q1/09 Q1/08 2008 2007

Profit before taxes 81 191 129 763Adjustments total 108 78 249 184Change in working capital -224 -337 248 -189Cash from operations -35 -68 626 758Net finance costs 14 -23 -29 -40Taxes 38 -22 -85 -177Net cash from operations 17 -113 512 541Capital expenditure and investments in shares -174 -82 -508 -334Other -53 -15 13 -13Cash flow before financing activities -210 -210 17 194Net change in loans 201 468 244 20Dividends paid 0 -245 -256 -231Net increase/decrease in cash -9 13 5 -17

Cash at the end of the period

Cash Flow

110

Outlook for 2009 (28-4-2009)●

The global economy has not improved and oil demand forecasts have been revised down

●

Drop of demand will coincide with new refining capacity coming onstream, which will continue to put pressure on refining margins

●

Diesel margins are expected to stay well lower than in previous years

●

Slightly better gasoline margins expected compared to the previous outlook

●

Demand for base oils to stay weaker compared to 2008. Personnel at the PAO plant in Belgium will be laid off for four weeks in May

●

Oil freight rates seem to remain very weak throughout the year

●

Renewable Fuels segment is unlikely to report positive results in 2009, due to increasing costs related to expansion of the business

●

Low demand will continue to reflect in Oil Retail’s sales volumes and margins

●

A planned two-month shutdown on Production Line 4 started in mid April to enhance the line’s productivity

●

Capex estimate revised down to EUR 890 million from the previous estimate of 950 million

111

Segment financials – Oil Products

SEGMENT FINANCIALSEUR million Q1/08 Q2/08 Q3/08 Q4/08 2008 Q1/09

Oil Products

Reported EBIT 197 272 15 -301 183 106Comparable EBIT 113 162 173 154 602 64

Depreciation 46 41 44 44 175 44

Investments 33 39 46 47 165 43

Net assets 2,951 2,436 2,660Comparable RONA, % 16.2 21.2 10.0

SALES VOLUMES1000 tons 3,256 3,755 3,791 3,735 14,571 3,430Million barrels 25 28 29 28 110 26

REFINING MARGINSIEA Brent cracking margin, $/bbl 2.87 5.51 5.24 4.26 4.74 2.34Neste Oil Total Refining Margin, $/bbl 11.91 12.38 13.54 15.05 13.39 9.44

SEGMENT FINANCIALSEUR million Q1/08 Q2/08 Q3/08 Q4/08 2008 Q1/09

Oil Products

Reported EBIT 197 272 15 -301 183 106Comparable EBIT 113 162 173 154 602 64

Depreciation 46 41 44 44 175 44

Investments 33 39 46 47 165 43

Net assets 2,951 2,436 2,660Comparable RONA, % 16.2 21.2 10.0

SALES VOLUMES1000 tons 3,256 3,755 3,791 3,735 14,571 3,430Million barrels 25 28 29 28 110 26

REFINING MARGINSIEA Brent cracking margin, $/bbl 2.87 5.51 5.24 4.26 4.74 2.34Neste Oil Total Refining Margin, $/bbl 11.91 12.38 13.54 15.05 13.39 9.44

112

Segment financials – Renewable Fuels

SEGMENT FINANCIALSEUR million Q1/07 Q2/07 Q3/07 Q4/07 2007 Q1/08 Q2/08 Q3/08 Q4/08 2008 Q1/09

Renewable Fuels

Reported EBIT -3 -4 -7 2 -12 1 12 -2 -9 2 -10

Comparable EBIT -5 -5 -6 3 -13 2 13 -3 -10 2 -7

Depreciation 0 1 2 2 5 2 1 2 2 7 2

Investments 17 17 13 22 69 27 50 64 108 249 123

Net assets 88 112 122 142 142 166 212 259 371 371 462

Comparable RONA, % -26.3 -22.7 -22.1 -12.3 -12.3 5.2 15.9 8.2 0.9 0.9 -6.6

Sales volumes in 1000 tons 0 0 5 23 28 18 35 23 70 94 31


Renewable Fuels

Reported EBIT -3 -4 -7 2 -12 1 12 -2 -9 2 -10

Comparable EBIT -5 -5 -6 3 -13 2 13 -3 -10 2 -7

Depreciation 0 1 2 2 5 2 1 2 2 7 2

Investments 17 17 13 22 69 27 50 64 108 249 123

Net assets 88 112 122 142 142 166 212 259 371 371 462

Comparable RONA, % -26.3 -22.7 -22.1 -12.3 -12.3 5.2 15.9 8.2 0.9 0.9 -6.6

Sales volumes in 1000 tons 0 0 5 23 28 18 35 23 70 94 31

113

Segment financials – Oil Retail


Oil Retail

Reported EBIT 11 18 22 9 60 11 11 9 -6 25 12

Comparable EBIT 11 17 21 10 59 9 11 7 -5 22 12

Depreciation 6 7 7 7 27 8 8 9 6 31 7

Investments 7 11 9 24 51 8 15 18 22 63 4

Net assets 319 318 368 381 381 362 385 351 351 351 321

Comparable RONA, % 13.4 17.3 19.5 17.1 17.1 9.7 10.7 9.7 6 6 14.3

Sales volumes, 1000m3 1,144 1,097 1,087 1,190 4,519 1,056 1,051 1,104 1,141 4,353 1,021


Oil Retail

Reported EBIT 11 18 22 9 60 11 11 9 -6 25 12

Comparable EBIT 11 17 21 10 59 9 11 7 -5 22 12

Depreciation 6 7 7 7 27 8 8 9 6 31 7

Investments 7 11 9 24 51 8 15 18 22 63 4

Net assets 319 318 368 381 381 362 385 351 351 351 321

Comparable RONA, % 13.4 17.3 19.5 17.1 17.1 9.7 10.7 9.7 6 6 14.3

Sales volumes, 1000m3 1,144 1,097 1,087 1,190 4,519 1,056 1,051 1,104 1,141 4,353 1,021

114

Key sensitivities for 2009

Approximate Effect on Neste Oil’s 2009 EBIT before hedgesAnnual change

●

EUR/USD-rate +/-

10%

+/-

100-120

MEUR

●

Total Refining Margin +/-

1.00 USD/bbl

+/-

110 MUSD

●

Crude oil price +/-

1.00 USD/bbl

+/-

10 MUSD

●

Crude oil freight rates +/-

10 Aframax

WS points

+/-

10 MUSD

115

Capex, investments by gategory

Capital expenditure• Maintenance related expenditure at or below depreciation also in the coming years

• Significant growth related investments expected

195 223153153

0100200300400500600700800900

1000

2005 2005 2006 2006 2007 2007 2008 2008 2009e 2009eMaintenance Productivity Strategic Depreciation

668668

535535

334334

508508

890890

116

Net working capital and inventories

0100200300400500600700800900

1,0001,1001,2001,3001,4001,500

31 Dec 2006 31 Dec 2007 30 June 2008 31 Dec 2008 31 Mar 2009

mill

ion

EUR

Inventories Net working capital

117

DivestmentsMaintenance capexStrategic and productivity investmentsDividend

Net cash from operations

Sources and uses of cash

sources uses

0

100

200

300

400

500

600

700

800

900

sources uses sources uses sources uses sources uses

mill

ion

EUR

2007 2006 2005 2008

118

Key Costs

●

Material

costs

have

increased

as a result

of increased

crude

oil prices

EUR million 2005 2006 2007 2008

Personnel

223

224

256

315Materials and services 8,443

11,183

10,279

13,657(Feedstocks

account for more than 99%Depreciation, amortisation

and write-downs

153

153

195

223Other operating expenses

534

597

683

719

Total 9,353 12,157 11,413 14,914

Share & Funding

121

Share performance and ownershipShare price development

Shareholders by sector

50.2 %

17.4 %

12.0 %

20.4 %

Finnish State

Households

Finnish Institutions

Non-FinnishShareholders

0.00 €

5.00 €

10.00 €

15.00 €

20.00 €

25.00 €

30.00 €

35.00 €

Apr

-200

5

Jun-

2005

Aug

-200

5

Oct

-200

5

Dec

-200

5

Feb-

2006

Apr

-200

6

Jun-

2006

Aug

-200

6

Oct

-200

6

Dec

-200

6

Feb-

2007

Apr

-200

7

Jun-

2007

Aug

-200

7

Oct

-200

7

Dec

-200

7

Feb-

2008

Apr

-200

8

Jun-

2008

Aug

-200

8

Oct

-200

8

Dec

-200

8

Feb-

2009

122

Neste Oil’s credit programs in place

Total of EUR 400 million unsecured short term notes with maturities less than one year

Dealers: Pohjola Bank, Nordea, Sampo Bank plc,Skandinaviska Enskilda Banken AB (publ) and Svenska Handelsbanken AB (publ).

Senior term notes of EUR 200 million

4 years floating rate note 1/2005Issued: EUR 80 million Yield: three-month euribor +0.40%

7 years fixed rate note 1/2005Issued: EUR 120 millionCoupon rate: 3.50%, issue price: 99.606%, mid-swap +0.60%

Joint Lead Arrangers: Sampo Bank and Pohjola Bank

Domestic Bonds 2005 Domestic Commercial Paper Program 2005

Revolving Credit Facility 2005

Overdraft facilities for bank accounts with selected cash pool banks

EUR 1.5 billion

5 years (+1+1)

Mandated Lead Arrangers: Barclays Capital, BNP Paribas, Citigroup, Nordea and SEB

Participating Banks: Calyon, Svenska Handelsbanken, Danske Bank, Sampo Bank ,Pohjola Bank, Royal Bank of Scotland, HSBC, HSH Nordbank, Dresdner Bank, Swedbank, ABN Amro Bank, Bank DnB NORD, Bank of Tokyo-Mitsubishi, ING Bank, Deutsche Bank, BBVA, Societe Generale, DBS Bank

Investment Loans 2005-2007

Bilateral Loans 2008

Loans from Scandinavian financial institutions totaling EUR 315 million, average maturity 5 y.

Loans from EIB and NIB totaling EUR 230million

Max.

EUR 50 million per bank totaling EUR 150 million

123

121

20

83

174

110

754

LT Fin. inst 60%Domestic Bond 10%LT Others 2%Leasing 7%CP 14%ST Others 9%

121

20

83

174

110

754

LT Fin. inst 60%Domestic Bond 10%LT Others 2%Leasing 7%CP 14%ST Others 9%

Interest-bearing liabilities 1)

974

298

Long-term Short-term1) At the end of March, 2009

•

Interest-bearing

net

debt

EUR 1,217

million

•

Total

interest-bearing

liabilities EUR 1,263

million

•

Short-term

interest

bearing liabilities

EUR 289

million

0

100

200

300

400

500

600

2009 2010 2011 2012 2013 2014+

Short-term Long-term

TOTAL1,263 MEUR

Maturity profile

Interest-bearing liablities, Meur

Interest-bearing liabilities, Meur

TOTAL1,263 MEUR

124

Liquidity and financing

• Total liquidity at the end of December EUR 1,485 million• New funding during 2008 totaling EUR 365 million •

Committed facilities include: Revolving credit facilities totalling EUR 1,575 million Overdraft facilities totaling EUR 150 million

•

Average interest rate 2.8% and average maturity 4.4 years•

Flow risk EUR 6.2 million1)

•

No financial covenants in existing loan agreements•

No major refinancing needs until 2012

•

Short-term financing needs met by revolving credit facility and overdrafts, commercial papers (EUR 370 million) in reserve

•

No credit losses with counterparty banks•

Syndicate banking group mainly unchanged and consists of relatively strong banks

1) The change in interest expenses within one year if interest rates change 1%At the end of March, 2009

125

Financial risk management

91%

8% 1%

EUR USD Other

•

Foreign Exchange Risks•

Policy

is to hedge

the estimated

net

cash

flow

on rolling

basis:•

100% of the next

6 months•

50% of the following

6 months

•

Both

option and forward

strategies

in use

•

Interest Rate Risks•

Average

Interest

Rate

of the loan portfolio

is 2.8%•

Flow

Risk

is EUR 6.2

million

1)

•

Duration

benchmark

target

of the loan portfolio

is 12 months

1) The change in interest expenses within one year if interest rates change 1%

TOTAL1,263 MEUR

Currency structure of interest-bearing liabilities, %

At the end of March, 2009

Global Crude Oil and Products Demand and Supply

Crude Oil

130

Oil consumption by market areas

Source: IEA Oil Market Report 10-April-2009

•

Total

consumption

in 2009

is estimated

to be

85.3

million

bbl/d

•

Asia Pacific drives

the world:•

2009

estimated

growth

rates•Asia Pacific -0.3%•North America -1.7%•Europe&Eurasia

-1.9%•Total

World growth

-0.6%

(-2.4

million

bbl/d)

35%

18%9%4%

29%

5%

Americas Europe Middle EastAfrica Asia Pacific FSU

World consumption by geographical area

131

Brent crude oil and Brent/Urals differentialBrent dated

USD/bbl

-8

-7

-6

-5

-4

-3

-2

-1

0

-8

-7

-6

-5

-4

-3

-2

-1

0

0

20

40

60

80

100

120

140

160

Q12005

Q2 Q3 Q4 Q12006

Q2 Q3 Q4 Q12007

Q2 Q3 Q4 Q12008

Q2 Q3 Q4 Q12009

Q20

20

40

60

80

100

120

140

160

132

Qualities of The Most Important Crude Oils

API gravity Sulfur

Brent dated 38° 0.4%

Fortis (usually sets daily Brent dtd quote) 38° 0.6%

Urals 31° 1.3%

WTI 40° 0.3%

0%10%20%30%40%50%60%70%80%90%

100%

2009e

Neste Oil aims to maximize Urals usage; estimate for 2009 is 3/4 of total feedstocks used

133

Oil transportations in the Baltic Sea area (Million tons)

CRUDE PRODUCTS

Belarus

Estonia

Latvia

Lithuania

Poland

Russia

Germany

SwedenNorway Finland

ButingeKlaipeda

Tallinn

VysotskPrimorskSt. Petersburg

RigaVentspils

Kaliningrad

Gdansk

Paldisk

Sillamäe

3,5 1,311,46 10

2003 2004 2005

8,6

2006

8,5

2007

2,3

17,7

44,857,4

2003 2004 2005

66,1

2006

74,2

2007

5,20,7

0,1 1,7

2004 2005

9,5

2006

11,7

2007

7,212,6 11,8

2003 2004 2005 2006

12,6

2007

14,7

2,1

22,529,5

14

10

7

2003 2004 2005

0,1

27,6

2006

0,5

20

2007

14,515,913,5

2,63,3 2,1

2003 2004 2005

16,0

2006

16,1

2007

1,4

1,9

2005

1,7

2007

10,87 6,1

2003 2004 2005

5,9

2006

4,6

2007

3,42,42,9

5,23,3 3,5

2003 2004 2005

4,6

3,3

2006

6,1

1

2007

6,6 6,5 5,8

2003 2004 2005 2006

6,6

2007

6,3

8,44,4 3,2

2003 2004 2005

4,7

2006

0,1

4

2007

0,6

2007

74,2

2008

134

Russian oil production and exports

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 20080

10

20

30

40

50

60

70

80

2001 2002 2003 2004 2005 2006 2007 2008

Russian oil exports from Primorsk harbour, MtRussian oil production volume, Mt

31%

36%

7%

5%

2%

4%

2%

2%4%

2%3%

2%

Novorossiysk Primorsk Germany

Poland Hungary Butinge

Slovakia Gdansk Tuapse

Czech Rep Odessa Pivdenne

Russian pipeline oil export by destination 2005

21%

20%

16%

20%

9%

7%3%3%

1%0%

TNK-BP Lukoil Surgutneftegaz

Rosneft Sibneft Tatneft

Slavneft Bashneft Yukos

Gazprom

Russian pipeline oil export by producer 2005

135

Top crude oil exporters 2006

note: difference between supply and demandsource: Pira 2007

Products

137

Regional Consumption by Product Group 2008

OECD Europe 15.17 MM bbl/dOECD North America 24.32 MM bbl/d

NON OECD China 7,862 MM bbl/dOECD Pacific 8,04 MM bbl/d

6 %7 %

16 %

9 %

41 %

11 %

10 %

LPG & Ethane Naphta Motor GasolineJet & Kerosene Gas/Diesel Oil Residual Fuel OilOther Products

8%10%

18%

4%36%

8%

16%


12%

20%

19%11%

21%

11%6%


Source: IEA Oil Market Report 16-Jan-2009

11%1%

44%7%

21%

5%

11%


138IEA December-January 2008-2009

Demand growth returns when global economy recovers

?

• The idea of how demand growth will shape up has not fundamentally changed• At the moment we don’t know yet when one can expect oil demand growth to

resume and where on the development curve demand will then be• Latest IEA medium-term forecast is from December 2008 but this month 2009

demand estimate was cut by 1 mb/d to –

0.5 mb/d, will growth then return?

Global cumulative demand growth

139

This market environment favours diesel producers

Gasoline Middle distillatesFuel Oil Other


Simple refiner(25% of the global capacity)

Complex gasoline producer in the US

Gasoline oriented producer

Low refining margin at the moment

Fuel oil oriented producer

Weak refining margin

Complex middle distilate producer

(Neste Oil)

Middle distillate oriented producer

High refining margin


140

Resolving European product imbalances

Deficit

Surplus

Jet fuel

GasolineDiesel/gasoil

• Europe

has

a significant

surplus

of gasoline

and a deficit

in middle

distillates• Most of excess

gasoline

is exported

to fill

the deficit

existing

in the USA• Russia

is the most

important

source

of heating

oil and diesel, which

requiressulfur

removal

to meet

European

traffic

fuel

emission standards• Jet fuel

deficit

is mostly

covered

through

imports

from

the Middle East

141

Transport fuels in EU - Europe is a diesel market

2020

Gasoline

Diesel

80

90

100

110

120

130

140

150

160

170

180

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Mill

ion

tonn

es p

er y

ear

Source: Eurostat Source: Purvin &Gertz

389

80

• CO2 emissions

legislation

favours

diesel vehicles• Growth

of heavy transport based

on diesel technology• By 2030 over

2/3 of all

European

transport energy

consumption• Trends

similar

elsewhere

142

European trends

Transport sector●

Largest energy consumer: 31% of total, rising to 33% by 2030. ●

Largest oil consumer: 60% of total, rising to over 64% in 2030.

Road transport dominates●

Over 80% of total transport energy consumption. ●

By 2030 cars and trucks will account for

some 50% of total European oil consumption –

unless alternative transportation fuels emerge.

Similar trends around the world

143

Middle distillates demand to show the strongest growth

Source: Wood Mackenzie January 2009

•

Dieselization of European car fleet likely to continue•

Jet fuel demand is on the rise•

Healthy demand for gasoil in power generation•

Possibility of shipping moving into use of gasoil instead of bunker fuel in the future (?)

6.5 6.7 6.6 6.8 7.6

20.123.1 25.0 26.2

29.8

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

2000 2005 2008 2010 2015

mill

ion

bbl/d

Jet/Kerosene Diesel/Gasoil

6.5 6.7 6.6 6.8 7.6

20.123.1 25.0 26.2

29.8

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

2000 2005 2008 2010 2015

mill

ion

bbl/d

Jet/Kerosene Diesel/Gasoil

144

Note: includes refinery supply + non refinery supply (for example biodiesel, ethanol and LPG from NGL production) Source: Wood Mackenzie January 2009

Global supply/demand balance of middle distillates

-40

-30

-20

-10

0

10

20

30

40

50

Asia

Pac

ific

Mid

dle

East

Nor

thAm

eric

a

Latin

Amer

ica

Gre

ater

Euro

pe

FSU

Sub-

Saha

ran

Afric

a

Glo

bal,

Mt

2007 2010

Mt Diesel/Gasoil

-40

-30

-20

-10

0

10

20

30

40

50

Asia

Pac

ific

Mid

dle

East

Nor

thAm

eric

a

Latin

Amer

ica

Gre

ater

Euro

pe

FSU

Sub-

Saha

ran

Afric

a

Glo

bal,

Mt

2007 2010

Mt Diesel/GasoilDemand/supply balance of middle distillates

145

Share of diesel cars of new registrations 2008

43.6 47.8

50.7

69.3

25.1

79.077.3

3.668.4

33.5

45.9

49.636.2

54.6

77.0

72.4

32.3

Association of European Automobile Manufacturers

2008: 52.7 %(EU-15, Iceland, Norwayand Switzerland)

146

Diesel balances in Europe 2007 and 2015 ( Mt/a )

Whole Europe

-40

-30

-20

-10

02007 2015

NWE

-20

-15

-10

-5

0

52007 2015

Eastern & Central Europe

-10

-5

0

52007 2015

Mediterranean

-30

-20

-10

02007 2015

Balances include :

+ 7 Mt in 2007

+ 16 Mt in 2015 of renewable diesel

for whole Europe

Source: Wood MackenzieSource: Wood Mackenzie

147

In gasoil (diesel) road use is growing – other use is stable


0

5

10

15

20

25

30

35

2000 2005 2008 2010 2015

Gas

oil D

eman

d, M

b/d

.

Road Transport Residential/Commercial Other

148

19.7 21.3 22.2 22.7 23.9

-

5.0

10.0

15.0

20.0

25.0

30.0

2000 2005 2008 2010 2015

mill

ion

bbl/d

Gasoline

19.7 21.3 22.2 22.7 23.9

-

5.0

10.0

15.0

20.0

25.0

30.0

2000 2005 2008 2010 2015

mill

ion

bbl/d

Gasoline

Asia will be the main driver of gasoline demand


•

North America will remain the biggest gasoline market but growth prospects have softened

-

Demand destruction due to recession

-

Increasing use of ethanol

-

Urge to increase fuel efficiency

149

-60

-40

-20

0

20

40

60

80As

ia P

acific

Mid

dle

East

Nor

thAm

eric

a

Latin

Amer

ica

Gre

ater

Euro

pe

FSU

Sub-

Saha

ran

Afric

a

Glo

bal,

Mt

2007 2010

Mt Gasoline

-60

-40

-20

0

20

40

60

80As

ia P

acific

Mid

dle

East

Nor

thAm

eric

a

Latin

Amer

ica

Gre

ater

Euro

pe

FSU

Sub-

Saha

ran

Afric

a

Glo

bal,

Mt

2007 2010

Mt Gasoline

Note: includes refinery supply + non refinery supply (for example biodiesel, ethanol and LPG from NGL production) Source: Wood Mackenzie January 2009

Demand/supply balance of gasoline

Regional imbalances offer opportunities for exportrefineries

150

Fuel oil use as bunker fuel is growing, other demand declining


•

Bunker demand is expected to increase by 2% annually•

Bunker specifications are stricter, especially in the North Sea and the Baltic

•

Power generation using more and more gasoil, renewables and other alternatives (coal, natural gas)

2.2 2.7 2.9 3.1 3.6

7.4 6.6 5.8 5.6 5.5

0

2

4

6

8

10

12

2000 2005 2008 2010 2015

Fuel

Oil

Dem

and,

Mb/

d.

Bunkers Inland

151

Global supply/demand balance (2006 and 2010)Fuel Oil

-80

-60

-40

-20

0

20

40

60

80As

ia P

acific

Mid

dle

East

Nor

thAm

eric

a

Latin

Amer

ica

Gre

ater

Euro

pe

FSU

Sub-

Saha

ran

Afric

a

2006 2010

Mt

Deficit

Surplus

Note: includes refinery supply + non refinery supply (for example biodiesel, ethanol and LPG from NGL production) Source: Wood Mackenzie

152

0

0,5

1

1,5

2

2008 2009 2010 2011 2012 2013

OECD China Other Asia Middle East Other Non-OECD

IEA, KBC, Wood Mackenzie, Company view

Jamnagar, India = 580,000 bd,mechanical completion 8/2008,full utilization estimated 2Q2009

Port Arthur, GaryvilleWood River, Borger> 600,000 bd in USA

China 2.1 mbd to meetdomestic demand growth

• Due to weak demand overcapacity occurs now and eases in the following years assuming growth returns• After 2010 most major projects delayed, some canceled such as the largest, Kuwait’s 615,000 bd Al-Zour• Some investments will be completed also in 2013 but all major ones seem to be delayed beyond that

Likely distillation capacity additions (mbd) Neste Oil view, February 2009 (now ~ 657 existing regular refineries)

Mb/d

?(some + slippage

from earlier)

153

Porvoo: 205,000 bbl/d-Nelson 12.1 / Solomon 14.5

Plock: 276,000 bbl/d -Nelson comp. index 9.5

Schwedt: 210,000 bbl/d-Nelson comp. Index 10.36

Leuna: bbl/d 227,000 bbl/d-Nelson comp. Index NA.

Karlsruhe: 302,000 bbl/d-Nelson comp. 9.75 Index

Sarroch: 300 000 bbl/d-Nelson comp. Index 9.9

Raffinerie Mediterranee: 320 000bbl/d-Nelson comp. Index 9.3

Anvors (Antwerp) : 360,000bbl/d-Nelson comp. Index NA.

Pernis: 416,000 bbl/d-Nelson comp. Index NA.

Nelson complexity averages:

• Europe 6.5• USA 9.5

Notes:

1. Supersites classification is based on Wood Mackenzie ”global Refinery View –map”2. Capacities are atmospheric distillation capacities

Source: Wood Mackenzie

Supersites in Europe – Porvoo Refinery is one of them supersite: strategic, large scale, competitive assets usually integrated with large petrochemical operations

154

Neste vs. peers’ (independent refineries) refining capacities in Europe

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000

Unipetrol

Lotos

Motor Oil

Neste Oil

Saras

Mol

Hellenic Petroleum

ERG

Tupras

PKN Orlen

Petroplus Holdings

bbl / yearSource: companies

155

Source: BernsteinResearch

Neste Oil’s Assets Are Highly Complex

Sustainability &

Social responsibility

159

Material balance and emissions

160

CO2 emissions and emission rights

3

3.1

3.2

3.3

3.4

3.5

3.6

2008e 2009e 2010e 2011e 2012e

mill

lion

tons

CO2-emissions allocated CO2-rights

•

We have a short position around 0.3 million tons/a

161

0

200

400

600

800

1000

1990 1995 2000 2005 2010

Sul

fur m

ax. (

mg/

kg)

EUNeste Futura

EU 2005 ... 2008: Sulfur

max. 50 mg/kg

Sulfur content of gasoline

Neste Oil 2004 ... Sulfur

max. 10 mg/kg

162

0

200

400

600

800

1000

1990 1995 2000 2005 2010

Sul

fur m

ax. (

mg/

kg

EU Neste Oil

EU 2005 ... 2008: Sulfur

max. 50 mg/kg

Neste Oil 2004 ... Sulfur

max. 10 mg/kg

Sulfur content of diesel fuel

163

Health, Safety and Environmental (HSE) policy of Neste Oil

(approved by the Neste Executive Team March 11th 2005)

We●

develop, make and deliver to our customers superior products and technologies which are safe and environmentally sound

●

comply with all applicable regulatory requirements ●

regard good handling of HSE issues as an integral part of our business activities, and aim at efficient management of related risks

●

act responsibly in society and in our use of natural resources, and make decisions supportive of sustainable development

●

prove our commitment to the Responsible Care ProgramSee: www.nesteoil.com/environment

164

Social responsibility

●

Sustainability

principles

for biofuels●

Supplier

selection

criteria●

Neste Oil follows •

the recommendations covering the operations of multinational companies issued by the OECD,

•

recommendations on good corporate governance.

●

The company also operates in accordance with

•

the UN Charter on Human Rights •

the ILO Declaration on Fundamental Principles and Rights at Work.

•

These ban actions infringing people’s human rights, discrimination, forced labor, and the use of child labor.

●

Neste Oil abides by these requirements in its own operations and expects its partners to do the same

CEO Declaration of Support for the Responsible Care® Global Charter

I support the Responsible Care® Global Charter which seeks companies to strengthen Responsible Care worldwide working with national chemical associations.

By implementing the Charter, Neste Oil will:– continue to improve its environmental, health and safety performance– advance sustainable development – champion and facilitate the appropriate extension of Responsible Care

across the business value chain, and– address stakeholder expectations in the continuing development of

Responsible Care

As part of these commitments, Neste Oil will work with customers and suppliers to manage its chemical products using a risk-based and life-cycle oriented approach supported by sound scientific information. These commitments include making relevant risk information publicly transparent and cooperating with governments and the public to promote the safe use of chemicals worldwide.

By implementing the Responsible Care® Global Charter, Neste Oil is playing its part in improving the quality of life of the global community.

Espoo, March 3, 2006

Risto RinnePresident and CEOG

LOB

AL

CH

AR

TE

R

165

The key social, environmental and governance related risks facing the business and what Neste Oil does to minimized these risks

●

Strategic risk: ability to respond to developing product market –

future growth in climate benign products

•

Neste Oil strategy statement in Sep 2006: risk eliminated

●

Ensuring renewable raw material acceptability

•

Sustainability criteria for biofuels, supply chain management, active work to promote certifications, flexibility of NExBTL

technology: risk minimized

●

Major ship wreck in the Baltic Sea: business wide image risk

•

Trained own crew, double-hull fleet, escort tugs, vetting process: risks controlled

●

Global market with local regulations: level playing field unrealistic target for the moment

●

Increased conversion rates with increased energy use at the refineries: challenging to meet simultaneously CO2 reduction targets and tightening product specifications; and maintain profitability

166

●

Products meet the most stringent environmental demands

●

NExBTL Diesel is produced in accordance with the principles of sustainable development

●

Progressive product and process development – exporter of clean traffic fuel technology

●

Highly efficient production processes, which comply with the ISO 14001, OHSAS 18001, and ISO 9001:2000 environmental, health and safety, and quality standards

●

Committed to Responsible Care initiative since 1992; RC Global Charter 2006

●

Well prepared for the new European chemical legislation, the REACH

Strong Commitment to the Environment

Appendix

169

HSE Simo Honkanen

Finance Ilkka Salonen

Production & Logistics Ilkka Poranen

Human Resources Hannele Jakosuo-Jansson

Technology & Strategy Lars Peter Lindfors

Communications Osmo Kammonen

Legal Affairs Matti Hautakangas

President &CEO Matti Lievonen

Oil Products

Matti Lehmus

Renewable Fuels

Jarmo Honkamaa

Deputy CEO

Oil Retail

Sakari Toivola

Common functions

Business Areas

Neste Executive BoardNeste Executive Board

170

Management's Compensation

1) Annual salary and fringe benefits2) A short-term incentive bonuses●

Based on both the Company's financial performance and the individual performance

3) A long-term management performance share arrangement●

Includes two three-year earning periods, which will start in 2007 and 2010, with benefits in 2010 and 2013

●

Maximum amount payable for each three-year earning period, however, will be a person's accumulated fixed gross annual salary for three years.

●

Maximum amount of total rewards in the first program will be equivalent in value to 360,000 Neste Oil shares.

●

Triggers for paying an incentive will be the development of Neste Oil's comparable operating profit and the total shareholder return of Neste Oil's

share against an international oil industry share index (FTSE Global Energy Total

Return Index)

●

The plan prohibits the transfer of shares within one year from the end of the earning period, i.e. the length of the plan is four years for each lot of shares

●

The company’s senior management will be required to own shares equivalent in

value to their annual gross salary. This obligation to own shares relates

to shares earned from these incentive programs, and will be valid as long as service or employment in the Group continues

171

Finland Russia BelgiumUS Latvia EstoniaLithuania Poland UKSweden Canada SingaporeThe Netherlands

1.1%

25.1%

37 %

27.6%

Oil Products Renewable FuelsOil Retail Other

Employees by segment Employees by country

Total (average) 5,162

Finland 75%

Russia 18%

Other 7%

Personnel

172

Notes

173

●

Market Data section on www.nesteoil.com

(Investors section)●

Weekly

updated

data on international reference

refining

margin, product

margins, crude

oil price

and heavy/light

price

differential●

Refining

margin

calculation

formula and refining

margin

yields●

Neste Oil's

feedstock

and product

yields

2008●

Additional

data on refining

process, industry

demand

and supply

and inventories

NESTE OIL RESULTS IN 2009

Q1 28.4.2009 Q2 30.7.2009 Q3 29.10.2009

www.nesteoil.com [email protected]

174

Crude Oil

From Totons

(metric) kilolitres barrels US gallons tons per year

Tonnes (metric) 1 1.165 7.33 307.86 -Kilolitres 0.8581 1 6.2898 264.17 -Barrels 0.1364 0.159 1 42 -US Gallons 0.00325 0.0038 0.0238 1 -Barrels per day - - - - 49.8(based on worldwide average gravity)

Products

From To convert tons kilolitres tonsbarrels to barrels to tons to kilolitres

tons

LPG 0.086 11.6 0.542 1.844Gasoline 0.118 8.5 0.740 1.351Kerosene 0.128 7.8 0.806 1.24Gas oil / Diesel 0.133 7.5 0.839 1.192Fuel oil 0.149 6.7 0.939 1.065

Units and conversion multiples

Neste Oil Investor Presentation 29 April 2009

Economy & Finance

Transcript of Neste Oil Investor Presentation 29 April 2009