Neste (NESTE) Investor Update summary

Strategic priorities and market context

• Focus on improving cost competitiveness, strengthening market position, and pivoting to a customer-oriented, efficient operational model emphasizing safety and reliability.

• Maintaining leadership in renewable fuels, aiming for global market leadership and leveraging technology.

• Long-term industry growth expected despite current oversupply, margin pressures, and rising fixed costs.

• Regulatory environment and mandates, especially for SAF and renewable diesel, are key demand drivers.

• CEO agenda and new leadership focus on immediate actions to improve performance and resilience, with clear accountability.

Performance Improvement Program and financial actions

• Launched a Performance Improvement Program targeting €350 million EBITDA run-rate improvement by end of 2026, with €250 million from cost reductions and ~600 FTE reduction.

• Program includes commercial and supply chain optimization, refinery performance, external cost reduction, and organizational streamlining.

• Progress tracked by leadership, with quarterly external reporting starting Q1/25.

• Dividend proposal set at €0.20 for 2024 to support investment-grade credit rating and balance sheet strength.

• Capital discipline prioritized, with CapEx capped at €2.4 billion for 2025–2026, focused on Rotterdam expansion and maintenance.

Asset and project updates

• Rotterdam expansion postponed to 2027, with budget increased from €1.9 billion to €2.5 billion due to higher costs; project under tight monitoring.

• Rotterdam and Singapore refineries are core, strategic assets; no plans to sell equity stakes.

• Porvoo transformation delayed; focus shifts to energy efficiency and green hydrogen integration, with major CapEx deferred.

• Ongoing investments and existing assets expected to drive 10% CAGR in renewable product sales volume through 2029.

• Cash flow before financing activities affected by maintenance shutdowns and operational disruptions.