Developing The FutureDeveloping The FutureLars Peter LindforsSenior Vice President, Technology & StrategyCapital Markets Day29 September 2009Lars Peter LindforsSenior Vice President, Technology & StrategyCapital Markets Day29 September 2009229 September 2009Role And Targets Of Research & TechnologyContributes to the Group’s competitiveness and growth by:Supporting market entry of new productsSupporting productivity of conversion unitsEngaging in technology and catalyst developmentDeveloping renewable feedstocksImplementing an active IPR policyCapital Markets Day 2009329 September 2009Neste Oil’s Track Record In TechnologyNExTAMEcomponentsSyntheticBase Oils(PAO)NExETHERScomponentsLow-emissionFutura CityDieselNExBTL Renewable DieselNExOctaneTechnology toreplace MTBEVHVI base oilsEarly1990sMid1990sEarly20002006Product launches1985: Lead-free gasolinewith MTBE component1989: 92-octane gasoline replaced by 95E1993: Low-emission Futura City Diesel1997: VHVI base oils2004: All gasoline anddiesel sulfur-free2005-: NExBTL renewable dieselCapital Markets Day 2009429 September 2009R&T Is Focused On RenewablesR&T expenditure breakdown, 2009EUR millionsFeedstocks13Technology development 16Products8TOTAL37RenewableFossilNew businessExisting businessCapital Markets Day 2009529 September 2009R&T And Neste Jacobs: From Innovation To SuccessTechnologyand processknow-howSiteengineeringservicesInvestmentprojectexecutionRefiningprocessesNewtechnologies& feedstocksValueaddingproductsNeste Oil R&T (personnel ~250)Neste Jacobs (personnel ~750)High-quality fossil fuels, renewable fuels, and base oils to the marketsCapital Markets Day 2009629 September 2009The Evolution Of NExBTL Renewable Diesel1994200119962002First project todevelop use ofbiofeedstocks inrefiningFirst patentapplicationNo prerequisiteyet forcommercial use200320052007R&D restarteddue topreparation ofthe Biofueldirective in theEUProperdevelopment ofthe technologykicked off byNeste Oil R&Dand NesteJacobsProcessmodelingcompletedBasic design ofa NExBTL unitcommencedFirst decision toinvest in aNExBTL plantFirst plant startedup at PorvooSecond plantunderconstructionInvestmentdecision to build a800,000 t/a plantin SingaporeInvestmentdecision to builda 800,000 t/aplant inRotterdam20082009The secondplantstarted upat PorvooCapital Markets Day 2009729 September 2009R&T RoadmapRenewableFeedstocksRefining offossilfeedstocksShort-termLong-termNewtechnologyand productsAlternative feedstocks (e.g. algae, microbes)Oil plants, animal fatsBTL (wood-based)BioJet, Bio base oilsNExBTLProduct quality enhancementConversion technologiesCapital Markets Day 2009829 September 2009Neste Oil’s IPR portfolio65 patented innovations (Closeto 600 patents / applications)85 trademarks (Close to 400 individual trademarks / applications)IPR activity has increased in renewable fuels in particularInvention disclosures in renewables:1-8/2009: 24 new disclosures2008: 8 disclosures2000-2007 annual average of 4 disclosuresImportance of IPR-related issues has increased globallyNeste Oil’s IPR strategyTo build a larger IPR portfolio inexisting and new innovations tosecure the growth strategyStrengthen and broaden the IPR portfolio to maintain competitivenessMonitor possible rights infringements and act accordinglyStrong IPR opens up new business possibilitiesCapital Markets Day 2009refining the futurerefining the future