Supporting Businesses

Transcription

1 Supporting Businesses

2 Maintain our position in supporting businesses Refining the future The leading provider of cleaner traffic fuels Supporting businesses Refining Complementary businesses ( Base oils, Gasoline components ) Supporting businesses ( Retail & Shipping ) Biodiesel Play a key role in the portfolio but significant growth is not expected Excellent operational and financial performance 1

3 Supporting Businesses Oil Retail Matti Peitso Executive Vice President

4 Strong retail position Neste Oil Retail The leading petroleum products marketer and distributor in Finland 880 Finland 1) Important player in the growing markets in Baltic Rim including the St. Petersburg area Norway Sweden 37 St.Petersburg 37 Estonia Approx. 1,100 retail outlets, of which ~80% in Finland Denmark 35 Latvia 33 Lithuania 76 Poland Belarus 3 1) including D-stations and sales points

5 Several advantages to leverage Our retail advantage Market leader in all main product categories in Finland Retail market shares in Finland % 80% Most recognized retail brand in Finland Strongest brand in the St. Petersburg area 60% 40% 20% 27% 41% 38% 54% An important channel for Testing new product innovations Launching new products Collecting market data 0% Gasoline Diesel Heating oil Neste Oil market share Competitor market shares Heavy fuel oil 4 Source: Finnish Oil and Gas Federation

6 Neste Oil's retail network in Finland Unmanned stations D-stations Dealer owned, Dealer operated Company owned, Dealer operated 5 Note: 08/2006

7 Focus on operational and asset related improvements Focus areas Improving operational and capital efficiency Optimizing current network Increasing usage of automation and technology Streamlining the asset base 6

8 Footprint in attractive growth markets Retail position outside Finland 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 ,000 m 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. 7

9 Supporting Businesses Shipping Risto Näsi Executive Vice President

10 Shipping supports our growth strategy Security of supply and exports, especially winter time Capability to schedule crude supply and product exports Shipping plays an important role in our growth in refining and biodiesel Leverage scale benefits by using larger cargo sizes 9

11 Successful risk management in growing market Our shipping flexibility Flexible portfolio increasing role of time charter vessels Port calls: 3721 calls last year Young fleet compared to European average (10 years) Own vessels below 2.5 years T/C vessels below 6 years More than 40 million tons of cargo transported annually (50% for Neste) Operations in Baltic Sea, North Sea and Intercontinental routes Neste Oil Shipping fleet split by categories Number of ships Time charter Bareboat Own 10

12 Commoditization of the Baltic tanker market Ice class capacity supply and demand Shipping freight rates & Russian oil export from Primorsk Number of ships WS Mt 6,0 5,0 4,0 3,0 2,0 1, / / / / / / /09 0 0,0 jan-04 jul-04 jan-05 jul-05 jan-06 jul-06 Required number of ships Available number of ships Monthly Crude freight rates (Primorsk/NWE), WS Monthly Russian oil exports from Primorsk, Mt 11

13 Multiple world-class achievements Neste Shipping - achievements Condition of Ships: Best in the World ( Port State Control Assessment) Standards: First to implement international standards within Shipping Innovation: European Innovation Prize in tanker class Improved safety: First ice-strengthened escort tugs Quality of fleet: All vessels registered to the highest Finnish-Swedish ice-class Utilization rate: ~96 % average, one of the highest 12

14 Aim to remain the best service provider in the Baltic market Neste Shipping core competencies Deep knowledge of the business environment Largest ice classed tanker fleet and experienced skillful personnel operating regularly in ice conditions Continuous upgrade and maintenance of professional skills Continuous development of fleet to meet customer needs 13

15 We continue to follow the market developments closely Neste Shipping current developments Baltic seaborne trade growing fastest in the world Tanker companies consolidating Oversupply of ice classed vessels for Baltic trade Exploring options cooperation, partnering etc. (Stena, Tsakos) 14