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 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 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.
Challenges
Why do we need biofuels? People and How much We need goods need more can cleaner traffic to stay on the the environment and transport move take? solutions The world is constantly on the move
Biofuels are part of the solution Lower Reduce emissions from dependency on Combat climate traffic and petroleum change transportation for products cleaner air
Biofuels in traffic Blended with diesel Blended with gasoline FAME HVO Ethanol = Biodiesel = Renewable diesel Typically used at 10% blend Typically used at 5% blend Can be added neat (100%) Raw materials Waste and residue fats from food processing Corn, cereal, sugars as well as vegetable oils
Neste in brief
OUR VISION Creating responsible choices every day
Neste in numbers Several years in Revenue Production employees The world’s the Global 100 list capacity of in 15 countries $12.7 largest producer of the world’s renewable diesel: of ~ 5,000 most sustainable billion over 900 million renewable diesel companies gallons per year
Neste has been a leader in cleaner solutions throughout the years Lead-free Renewable Renewable and Low-sulfur Renewable Jet Fuel Diesel sulfur-free fuels marine fuel Propane 1980 – 2016 2017 2007 2011 2013 2014 2015 2005
Renewable products refineries - over 900 million gallons per year Porvoo, Finland • The world’s first renewable diesel refinery • ~3 MMbbl/yr Singapore The world’s largest • renewable diesel refinery ~8 MMbbl/yr • Rotterdam, The Netherlands The world’s largest • renewable diesel refinery alongside Singapore Biopropane will be • available on the market during the year 2017 ~8 MMbbl/yr •
What is renewable diesel?
What is a triglyceride?
3 Renewable Diesel Molecules & 1 Renewable Propane Molecule
Fuel Property Comparison Neste MY Biodiesel Renewable Diesel ≈ 4.5 Viscosity at +40°C (mm 2 /s) 2.9 ... 3.5 ≈ 51 ≈ 75 ... 99 * 1 Cetane number ≈ - 5 ≈ - 5 ... – 25* 3 Cloud point (°C) ≈ 38 ≈ 44 Heating value (lower) (MJ/kg) ≈ 33 ≈ 34 Heating value (MJ/l) Polyaromatic content (wt-%) 0 0 ≈ 11 Oxygen content (wt-%) 0 Sulfur content (mg/kg) < 10 < 10 ≈ 5.6 Carbon / hydrogen Note *1: Blending cetane number Note *2: ASTM specification > 40 Note *3: Product can be engineered to specific cloud point within this range by adjusting process conditions
Based on several scientific studies with different engines and after- treatment system, 100% Neste Renewable Diesel provides significant reductions in major air pollutants: • Particulate matter (PM) -33% • Nitrogen oxides (NOx) -9% • Carbon monoxide (CO) -24% • Hydrocarbons (HC) -30% Excellent solution for fleets to improve local air quality
Neste’s Solution:
• Production based on Neste’s proprietary NEXBTL technology • Annual production capacity 2.6 million tons = 900 million gallons • Meets ASTM D975 and CARB diesel Neste is the world’s specifications largest producer of • Can be blended and distributed the same way as petroleum diesel, even as renewable diesel such (R99) • Meets even the toughest engine manufacturer requirements • Flexible and suistainable raw material base – over 10 different feedstocks in use
Diverse demand for Neste MY Renewable Diesel, as blending component and 100% use Commercial and Dump and Truck fleets Construction; municipal bus garbage trucks Mining fleets Aviation Marine Emergency Agricultural generators machinery
Low-carbon Neste MY Renewable Diesel is ideal for fleet operations and the quality is always consistent High performance Free of sulphur, oxygen, and aromatics. Together with a high cetane number of 75-95 the fuel ensures an efficient and clean combustion. Smaller environmental footprint Reduces greenhouse gas emissions by up to 80% in addition to sizable reductions in tailpipe emissions. Lower operating costs Longer service and maintenance intervals than for other alternative fuels. Superior cold weather performance Suitable for very cold weather conditions. No matter the raw material, Neste guarantees its fuel will exceed cold temperature requirements . Long shelf life Can be stored over long periods of time with no deterioration in quality or water accumulation. Easy switch; no additional investments Fleets can switch to renewable diesel overnight without any conversion of vehicles or to logistics systems. 21
Neste MY Renewable Diesel is being used by cities, municipalities and corporations around the world, the number of neat users is growing steadily Renewable Fuel Endorsement * * San Francisco Bay Area Super Bowl 50 Host Committee 22 This material is confidential and intended for Neste internal use only *) User of Neste Renewable Jet Fuel
Californian based • Propel Fuels was the first retail chain in the world to sell neat Neste’s Renewable Diesel to consumers Stations across • California First Fill by ”The Green Lady”, Mary Nichols, CARB Chairman
• Neste MY Renewable Diesel is being used by UPS fleets operating in the USA since mid- 2015 • UPS is planning to use up to 46 million gallons equivalents of renewable fuels over the next three years
• Google's gBuses in Silicon Valley, California are running on neat renewable diesel • gBuses shuttle employees from their homes in San Francisco and Oakland to Google’s corporate campuses 25
• The City of San Francisco leapfrogged its efforts to protect the climate from harmful effects of diesel emissions by phasing out the use of petroleum diesel in their municipal fleet and replaced it with Neste’s renewable diesel at the end of 2015 26
• The City of Oakland began filling its vehicles with Neste MY Renewable Diesel in order to reduce the emissions of their municipal fleet • Oakland operates 250 diesel-powered vehicles and equipment • Oakland has used 230,000 gallons of renewable diesel per year
• The City of Walnut Creek is the first city in the US to convert its municipal fleet to renewable diesel • The switch to Neste’s Renewable Diesel in August 2015 reduces the city’s GHG emission by more than 60% • They operate around 60 diesel powered vehicles and equipment
• The City of San Diego has converted its municipal fleet to renewable diesel • Over 1,100 vehicles and equipment, representing approximately 25% of the city's fleet, run on Neste’s renewable diesel • No performance issues have been reported
• The City of Carlsbad has converted its municipal fleet to renewable diesel • Carlsbad runs renewable diesel in a range heavy- duty vehicles including fire trucks, dump trucks and vacuum trucks
• The County of Sacramento has converted its municipal fleet to renewable diesel; reducing greenhouses gases by approx. 8,000 tons annually • Neste’s renewable diesel is used in a range of heavy- duty vehicles including more than 400 municipal public works and specialty vehicles
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