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FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil

Neste Oil · Feb 4, 2015 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 1
    Financial Statements 2014 Matti Lievonen, President & CEO 4 February 2015
  2. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 2
    Table of Contents 1 Q4/14 financials 2 Full-year 2014 review 3 Current topics 4 Appendix 4 February 2015 2
  3. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 3
    Very volatile operating environment Brent, USD/bbl Neste Oil reference margin, USD/bbl FAME vs. palm oil price, USD/ton 130 7 500 120 110 6 400 100 90 5 300 80 70 4 200 60 50 40 3 100 30 20 2 0 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15…
  4. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 4
    Strong year 2014 Volatile markets crude oil price declined stronger US dollar weaker margins in renewables Comparable EBIT almost at 2013 record level Internal improvement actions materialized 4 February 2015 5
  5. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 5
    Q4/14 financials
  6. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 6
    Group financials Q4/14 MEUR Q4/2014 Q4/2013 Revenue 3,552 4,516 Comparable EBITDA 339 245 Comparable operating profit 254 163 Oil Products 109 67 Renewable Products 141 94 Oil Retail 8 15 Others (incl. eliminations) -4 -13…
  7. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 7
    Additional margins improved Group comparable EBIT Q4/13 vs. Q4/14, MEUR +16 254 +17 +90 -2 163 -29 -6 Q4/13 Volumes Reference Additional Fixed costs Fx changes Others Q4/14 margins margins 4 February 2015 8
  8. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 8
    Oil Products benefited from strong markets Comparable EBIT, MEUR 150 Clear improvement in comparable EBIT compared 100 to Q4/2013 Higher reference margin 50 year-on-year 0 Impact of Porvoo hydrogen Q4/13 Q1/14 Q2/14 Q3/14 Q4/14…
  9. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 9
    Support from stronger market Oil Products comparable EBIT Q4/13 vs. Q4/14, MEUR +65 -31 +17 0 109 -7 67 -9 67 Q4/13 Volumes Reference Additional Fixed costs Fx changes Others Q4/14 margin margin 4 February 2015 10
  10. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 10
    Gasoline seasonally high Product margins (price differential vs. Brent), Urals vs. Brent price differential, USD/bbl USD/bbl 20 1 10 0 0 -1 -10 -2 -20 -3 -30 -4 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jan-13 Jul-13 Jan-14 Jul-14…
  11. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 11
    Strong total refining margin Neste Oil refining margins, USD/bbl 12 Reference margin USD 10 5.6/bbl supported by wide Urals-Brent price 8 differential and strong 6 gasoline market 4 Strong additional margin 2 USD 5.8/bbl…
  12. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 12
    Renewable Products earnings supported by reintroduction of BTC Comparable EBIT, MEUR 150 Sales volumes 537,000 tons despite of Singapore 100 maintenance Capacity utilization rate 98% 50 Reference margin significantly lower than in…
  13. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 13
    Strong result achieved Renewable Products comparable EBIT Q4/13 vs. Q4/14, MEUR +17 141 -1 +120* +3 94 -20 -71 52 Q4/13 Volumes Reference Additional Fixed costs Fx changes Others Q4/14 margin margin * Full BTC impact of…
  14. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 14
    European margins under pressure FAME RED Seasonal vs. Palm oil price* Vegetable oil and animal fat prices**, USD/ton differential, USD/ton 500 1 400 400 1 200 300 1 000 200 800 100 0 600 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15…
  15. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 15
    Low SME profitability in North America SME vs. Soybean oil price differential, USD/ton Biodiesel RIN, US cent /gal 800 150 600 100 400 50 200 0 0 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15…
  16. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 16
    Strong additional margin Renewable Products margins, USD/ton 500 Significantly lower reference 400 margin year-on-year 300 Strong additional margin USD 409/ton; of which BTC 200 impact USD 201/ton 100 0 Q4/13 Q1/14 Q2/14 Q3/14…
  17. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 17
    Oil Retail impacted by lower margins Comparable EBIT, MEUR 30 Station network volumes continued to grow, but 20 direct sales declined compared to Q4/13 10 Unit margins under pressure especially in 0 Q4/13 Q1/14 Q2/14 Q3/14 Q4/2014…
  18. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 18
    Unit margins significantly lower Oil Retail comparable EBIT Q4/13 vs. Q4/14, MEUR 15 0 -8 +1 -1 +1 8 Q4/13 Volumes Unit margin Fixed costs Fx changes Others Q4/14 4 February 2015 19
  19. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 19
    Full-year 2014 review
  20. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 20
    Group financials 2014 MEUR 2014 2013 Revenue 15,011 17,238 Comparable EBITDA 913 919 Comparable operating profit 583 596 Oil Products 285 275 Renewable Products 239 273 Oil Retail 68 77 Others (incl. eliminations) -9 -29 IFRS…
  21. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 21
    Segment reviews 2014 Oil Products Renewable Products Oil Retail Reference margin at Sales volumes up by Station sales volumes previous years level 9% increased, but direct Significantly weaker sales declined Strong additional…
  22. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 22
    Successful internal actions compensated softer markets Group comparable EBIT 2013 vs. 2014, MEUR +28 -134* +39 -22 596 +10 583 +66* OP: -6 OP: 10 RP: -128 RP: 56 2013 Volumes Reference Additional Fixed costs Fx changes…
  23. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 23
    Key financial targets at solid levels ROACE, rolling 12 months, % Leverage, % 15 50 11.7 37.9 40 10.1 10 30.0 30 20 5 10 0 0 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 4 February 2015 24
  24. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 24
    Main principle for crude oil price sensitivity Brent, USD/bbl 2013-2014 Inventory valuation losses included in IFRS results, but excluded from comparable 130 EBIT 120 Main principle for USD - 10/bbl change in 110 crude oil price 100…
  25. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 25
    Current topics
  26. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 26
    Outlook for 2015 Group's full-year 2015 comparable EBIT expected to remain robust, although probably lower than in 2014. Porvoo refinery major turnaround scheduled to start in April and last for approx. 8 weeks. Negative EBIT…
  27. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 27
    Dividend proposal Board of Directors will propose dividend of EUR 0.65 per share Yield 3.2% (at year-end 2014 share price) 41% of comparable net profit 4 February 2015 28
  28. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 28
    From Neste Oil to Neste Board of Directors proposes to the AGM to change the company name to Neste Corp. Main reasoning: Name reflects the changes in the company; we are going forward Strategy emphasizes diverse growth: new…
  29. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 29
    We focus on Refinery Markets and Safety Cash flow productivity customers 4 February 2015 30
  30. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 30
    Thank you. Matti Lievonen, President & CEO
  31. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 31
    Appendix
  32. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 32
    Renewable Products EBIT calculation Q1/13 Q2/13 Q3/13 Q4/13 2013 Q1/14 Q2/14 Q3/14 Q4/14 2014 Sales volume, kt 385 411 532 599 1,928 488 561 516 540 2,104 Reference margin, /ton 365 346 453 350 371 206 214 247 211 221 Additional…
  33. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 33
    Refinery production costs, Porvoo & Naantali Q1/13 Q2/13 Q3/13 Q4/13 2013 Q1/14 Q2/14 Q3/14 Q4/14 2014 Refined Million barrels 26.7 24.7 28.8 26.6 106.9 25.3 26.2 26.0 25.8 103.4 products Exchange EUR/USD 1.32 1.31 1.33 1.36 1.33…
  34. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 34
    Balance sheet Total assets Total equity & liabilities Non-current assets Int-bear. liabilities Equity Current assets Int-free liabilities Other Other 8 000 8 000 6,494 7,043 6,494 7,043 7 000 7 000 103 2 6 000 6 000 2 924 5 000 4…
  35. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 35
    Cash flow MEUR Q4/14 Q4/13 Q3/14 2014 2013 Profit before income taxes -32 167 25 78 561 Adjustments total 33 101 75 325 360 Change in working capital 370 386 -219 -33 100 Cash from operations 370 654 -119 369 1,021 Net finance…
  36. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 36
    Liquidity & maturity profile MEUR 700 Total liquidity at the end of December 600 2014 was EUR 2,194 million Cash and cash equivalents totalled 500 EUR 246 million 400 Unused committed credit facilities 300 totalled EUR 1,603 million…
  37. FEBRUARY 2015 INVESTOR PRESENTATION – Neste Oil – slide 37
    The only way is forward.

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