Neste‘s approach to sustainable circular material solutions

Lars Börger, Vice President, Brand Owner Management

Renewable Polymers and Chemicals, Neste

Bioplastic Conference 2020, Copenhagen Feb 27th, 2020

Our purpose

is to create a healthier

planet for our children

Watch

the

video

Market

capitalization

€ 24.4

billion*

Oil Products

production

capacity

15 Mt/a

2020 Global 100

list:

#3 most sustainable

company in the

world

Neste in numbers

Founded in

1948to secure oil

supply for the

state of Finland

World’s

#1producer of

renewable

diesel and

renewable jet

fuel

Our renewables

help customers

reduce GHG

emissions by

8 Mteach year

Revenue

€ 14.9

billion

Comparable

operating profit

€ 1.4

billion

2018 figures, exception market capitaliization as of 31 March 2019.

70%

of R&D budget

invested on

finding new raw

materials

Renewable

Products

production

capacity

3 to 4.5

Mt/a

Neste is the 3rd most

sustainable company in

the world.*

* Global 100 Index 2020,

Corporate Knights

Also included in DJSI

World index ranking

high on water related

issues, reporting and

supply chain

management

Recognized as world

leader for climate

change and managing

forests-related risks

by CDP (Climate

Disclosure Project)

We will help our

customers reduce their

greenhouse gas emissions

by at least 20 million tons

every year by 2030.

Our promise:

We will reduce carbon

footprint in production

ahead of EU’s climate

and energy targets.

Our promise:

Three out of five business units focusingon renewables

Neste closing the plastics circle

Retailer

Brand owner

Waste plastic

liquefaction

Refining and

upgrading

Processing to products

and packaging

Plastics

manufacturing

Consumer

Waste collection

and sorting

Current Neste

Future Neste

Key partnerships

NEXBTL

technology

Circular

plastics

value chain

Liquefaction

technology

providers

Renewable

raw materials

RENEWABLE

PLASTICS

CIRCULAR

PLASTICS

Neste’s approach to bio-based chemicals and polymers

8

Fuel market (e.g. Petrol

Stations, Fleets)

Renewable

Diesel

NEXBTL

production

Oils and fats

feedstock poolSteam Cracker

Isoalkane

Stream

Polymer

Producer &

Converter

Brandowner

Brandowner

Brandowner

C2

C3

C4

>C4

Pretreatment Catalytic IsomerisationCatalytic hydrotreatment H2

+Bio-Propane

CH3 (C

CH3

CH3

CH2 )nCH

CH3

CH3,

From low-quality raw materials to high-quality products

The share of

waste and residues

80%of our renewable

raw materials

We are the world’s

number

1renewable diesel provider

with the capacity to

produce

3 million tons of

renewable products

With our renewable

products, customers

reduced GHG emissions by

8 Mtin one year, equaling the

annual carbon footprint of

1.2 M average EU citizens

Total plastics demandin Europe 51 Mt/a

and growing

Post-consumer waste in Europe27 Mt/a of which 17 Mt packaging

8.5 Mt/a

3-4 Mt/a

> 1 Mt/a

EU’s Strategy for Plastics in a

Circular Economy:Increase recycling

of plastic and reuse of plastic packaging by

2030

Sources of figures: Plastics Europe, Deloitte, 2017

Target for recycling in EuropeIn the EU waste package, recycling target for plastic packaging• 50% by 2025• 55% by 2030

Currently collected for recycling in Europe

Actually recycled in Europe

Neste target

RENEWABLE CHEMICALS SUPPORT DIFFERENT INDUSTRIES AND RELEVANT BRAND-OWNERS TO FULFILL THEIR SUSTAINABILITY

COMMITMENTS

Cracker

MONOMERSRAW MATERIALS CRACKER INDUSTRIES / BRANDS

TEXTILE

NX

BT

L

RE

NE

WA

BL

E

HY

DR

OC

AR

BO

NS

CONSTRUCTION

CONSUMER

FURNITURE AUTOMOTIVEOPTIMIZED PROCESS

DROP-IN

CONTINUOUS PORTFOLIO

EXPANSION

WHILE MEETING

SUSTAINABILITY

CRITERIA

PRODUCTS

Waste and

residue oils

as well as

vegetable

oils

PERSONAL

CARE

MATERIALS

C1

C2

C5-9

C10+C2

C3

C4

Polymers

Composites

/polyolefins polyamides

ABS polyesters /

Ingredients

/surfactants emollients

propellants/

Adhesives

Coatings

Sealants

NEST

E

REN

EW

ABLE

HY

DR

OC

AR

BO

NS

Footwear

Toys

Packaging

FurnitureCosmetics

and

hygiene

Fabrics

Neste enables more sustainable material choices

Neste Crackers Specialty/chemical

partners

Raw materials

Yes, we have

taken care of

the feedstock

supply chain!

No difference between fossil and

renewable for drop-in solutions

Difference between fossil and

renewable for drop-in solutions

Brand owners

Is it really

sustainable?

2019 - year of partnerships

June Oct Dec2019

Neste and production company LYB announce world’s firstbio-PE and bio-PP production

Neste enables AT-Tuote to launch the world’s first bio-based industrial lubrication

Neste renewed its strategy, RPC business unit established, chemical recycling from R&D to RPC

Feb

New office in Düsseldorf announced and celebrated with stakeholders

K 2019: Clariant launches a new product line based on Neste’s renewable hydrocarbons

Collaboration with recycling company REMONDIS

Collaboration with production company Borealis

Collaboration with recycling company Ravago

2020Nov

Renewable

Plastics value

chain

Neste accelerating circularity

We are driven by a strong sense of purpose

to create a healthier planet for our children.

On our journey towards a carbon neutral world,

we create sustainable value across the value

chain and society.