value chain system

PowerPoint Presentation

Value Chain SystemNeste Oil CorporationPresentation by HANOI group

Courtesy of:Vitali Segun Khoa Wile

Presentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

1About Neste OilCorporationNeste Oil is a refinery and marketing firm established solely for the purpose of delivering fuel for consumption.Neste Oil was founded in 1948 in order to make sure there is sufficient availability of oil for the people in Finland.It has refinaries in Naantali Refinery (1957) and Porvo Refinery (1965). It has NExBTL diesel refinaries in other countries like Bahrain, Syngapore and more.Neste Oil is listed of the Helsinki Stock ExchangeNeste Oil and IVO merged to form FortumNeste Oil separates from Fortum and is located on the OMX Nordic Exchange HelsinkiPresentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

2Refinery


3Inbound LogisticsThe basically procure crude oil. Other Consumables are processed at Neste Oils Refinaries.Palm oil is expected to be the fastest growing vegetable oil over the next few years. While rapeseed oil is currently the most widely used raw material in the European biodiesel industry, it is unlikely that volumes will be able to keep pace with the growing demand for biodiesel.


4OperationsThey produce several kinds of petroleum products, NExBTL renewable diesel and aviation fuel developed by Neste Oil.The company merged Oil Products and Renewable Fuels business areas to create a single business Oil Products and Renewables to generate increased operational efficiency and synergy.


5Neste Oils Strategy

Providing high-quality solutions forfueling cleaner trafficLeveraging refiningexcellenceExpanding theraw material basePresentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

6Neste Oil Strategy


7Neste Oils Business Areas

Oil Products and RenewablesOil RetailPresentation by HANOI group [Vitali.. Segun.. Khoa & Wile]8Nestes Oil Business Area Oil Products and Renewables Procures the crude oil, renewable raw materials and other feedstocksprocessed at Neste Oils refineries Produces a comprehensive range of major petroleum products and NExBTL renewable diesel and aviation fuel, developed by Neste Oil Is looking to grow in premium quality VHVI base oils and renewable fuels Oil Retail Is the leading station chain in Finland and among the four largest in the Baltic States, and the St. Petersburg area Performs direct sales of the most important oil productsPresentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

9The operating environment changesGrowing demand for energy in traffic andtransport

Oil reserves are steadily being DepletedCleaner traffic fuel solutions

Biofuel legislationis developing

Climate change

DieselizationNeste Oil respondsto the challenge:New raw materialsand technologiesLarge investmentsResponsible operationsPresentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

10Outbound LogisticsThis is basically how the crude oil are delivered to the final consumers. A fleet of 194 tanker trucks owned by private contractors handle road-based deliveries of Neste Oils liquid fuel and gas products (130 of these operate in Finland and 64 in the Baltic countries, Poland, Russia, and Sweden).Neste Oils fleet of tankers carries over 30 million tons of crude oil, petroleum products, and chemicals annually primarily to and from destinationSSs in the Baltic, the North Sea, and the North Atlantic. The fleet gives Neste Oil a strong competitive advantage in the logistics field and guarantees that customers receive products punctually and reliably year-round.Presentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

11Road Transportation


12Marinr Transportation

SalesThe company sells its main products low-emission gasoline and diesel fuel to oil company customers.


14Sales by productsPresentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

15Sales by regionsSales to countries:Finland 54%Other Nordic countries (Sweden, Norway, Denmark) 19%Rest of Europe 18%The US and Canada 8%Other countries 1%Presentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

16Revenue by reporting segments:

Oil products 67%Oil retail 31% Fuels 2%.

Sales by countries:Diesel fuel 39%Heavy fuel 12%Heavy fuel oil 6%Motor gasoline and gasoline components 30%Heating oil 5%Jet fuel 4%Base oils 4%Biofuels 2%


18ServiceNeste Oil owns 60% (Jacobs Engineering Group of the US owns the other 40% of the company) of Neste Jacobs, an engineering company that offers technology, design, and project management services and solutions to customers in the oil and gas, petrochemicals, chemicals, and biotechnology sectors in Europe, North America, and the Middle East.

Neste Jacobs also strengthened its organization in the Middle East, where it has licensed its technology for use in the new joint venture base oil plant being built in Bahrain by Neste Oil and Bapco.

The companys office in the Middle East also serves a base oil project in Abu Dhabi, which is being developed on the basis of technology licensed from Neste Jacobs.


19InfrastructureThe companys sustainability experts closely monitor legislation in areas such as renewable fuels and are responsible for ensuring that Neste Oils products comply with statutory sustainability requirements. They are also responsible for developing operations as required by official requirements. The company's risk management policy emphasizes awareness and proactive management of risks to enhance opportunities, reduce threat, thus gaining competitive advantage and is an integrated part of decision making, planning and operational processes.HR managementNeste Oil provided employment for 5,030 persons on average in Finland and around the world in 2010. The company prioritized systematic leadership and management development, delivering the right level of support for its matrix organization. The company also succeeded in securing new talent for its international needs. Presentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

21TechnologyLaunching trial use of a 100% biofuel in 2010 Research on new raw materials: microbes, algae, and wood-based biomass, etc.Cooperation with Aalto University on production new raw materials from yeasts and moulds. New technologies are tested at the NSE Biofuels (Neste Oils and Stora Ensos joint venture) demonstration plant at Varkaus and environmental impact assessment work are commenced on potential sites for commercial bio-refinery factory

TechnologyNExBTL Worlds most advanced renewable diesel fuelBetter than both conventional biodiesel and fossil diesel reduces greenhouse gas emissions by over 50% over its entire lifecycleproduced from a mix of palm oil, waste animal fat, and rapeseed oil


23ProcurementPalm oil and palm fatty acid distillated from Asian region.Neste Oil buys all the surplus rapeseed oil produced at Raisios plants in Finland, and sources the remainder of what it uses from other EU countries.Neste Oil uses waste and by-products from the food industry that are unsuitable for human consumption in producing NExBTL renewable diesel.Presentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

24Our presentation ends here.Thanks you all for your attention.Presentation by HANOI group [Vitali.. Segun.. Khoa & Wile]

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value chain system

Documents

crude oil

palm oil

rapeseed oil

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hanoi group vitali

single business oil

sufficient availability

fortumneste oil separates