Financials

Calculation of key figures

EBITDA

=

 

 

Operating profit + depreciation, amortization and impairments

Comparable operating profit 1)

=

 

 

Operating profit -/+ inventory valuation gains/losses -/+ changes in the fair value of open commodity and currency derivatives -/+ capital gains/losses - insurance and other compensations -/+ other adjustments 

Items affecting comparability

=

 

 

Inventory valuation gains/losses, changes in the fair value of open commodity and currency derivatives, capital gains/losses, insurance and other compensations and other adjustments

Comparable net profit

=

 

 

Comparable operating profit - total financial income and expense - income tax expense - non-controlling interests - tax on items affecting comparability

Return on equity, (ROE), %

=

100

 x

Profit before income taxes - income tax expense, last 12 months
____________________

Total equity average, 5 quarters end values 2)

Return on average capital employed,
after-tax (ROACE),%

=

100

x

Comparable operating profit + financial income +

exchange rate and fair value gains and losses -

income tax expense -

tax on other items affecting ROACE, last 12 months 
_____________________________________

Capital employed average, 5 quarters end values

Capital employed

=

 

 

Total equity + interest bearing liabilities

Interest-bearing net debt

=

 

 

Interest-bearing liabilities - cash and cash equivalents - current investments

Leverage ratio, %

=

100

x

 Interest-bearing net debt
______________________________

Interest bearing net debt + total equity

Gearing, %

=

100

x

Interest-bearing net debt
____________________

Total equity

Equity-to-assets ratio, %

=

100

x

Total equity
__________________________

Total assets - advances received

Net working capital in days outstanding

=

365

 

Net working capital

_______________________

Revenue, last 12 months

 

Return on net assets, %

=

100

x

Segment operating profit, last 12 months
_______________________

Average segment net assets, 5 quarters end values

Net Debt to EBITDA

 

 

 

Interest-bearing net debt

____________________________
EBITDA, last 12 months

Return on net assets, % 

 

 

 

Segment operating profit, last 12 months

____________________________
Average segment net assets, 5 quarters end values

Comparable return on net assets, %

=

100

x

Segment comparable operating profit, last 12 months

____________________________
Average segment net assets, 5 quarters end values

Segment net assets

=

 

 

Property, plant and equipment + intangible assets + investments in joint ventures + inventories + interest-free receivables and liabilities - provisions - pension liabilities allocated to the business segment.

1) In the business environment where Neste operates, commodity prices and foreign exchange rates are volatile and can cause significant fluctuations in inventory values and IFRS operating profit. Comparable operating profit eliminates both the inventory gains/losses generated by the volatility in raw material prices and changes in open derivatives, and better reflects the company's underlying operational performance. Also, it reflects Neste's operational cash flow, where the change in IFRS operating profit caused by inventory valuation is mostly compensated by changing working capital.

2) Total equity average and capital employed average are calculated using last 5 quarters' end values from Q2 2016 interim report onwards, previously calculated using the yearly opening balance and each quarter end values.

Calculation of share-related indicators

Earnings per share (EPS)

=

 

 

Profit for the period attributable to the owners of the parent
_________________________________

Adjusted average number of shares during the period

Comparable earnings per share

=

 

 

Comparable net profit 
_____________________________

Adjusted average number of shares during the period

Equity per share

=

 

 

Shareholder's equity attributable to the owners of the parent
______________________________

Adjusted average number of shares at the end of the period

Cash flow per share

=

 

 

Net cash generated from operating activities
__________________________________

Adjusted average number of shares during the period

Price / earnings ratio (P/E)

=

 

 

Share price at the end of the period
____________________________

Earnings per share

Dividend payout ratio, %

=

100

x

Dividend per share
________________

Earnings per share

Dividend yield, %

=

100

x

Dividend per share
____________________________

Share price at the end of the period

Average share price

=

 

 

Amount traded in euros during the period
__________________________________

Number of shares traded during the period

Market capitalization at the end of the period

=

 

 

Number of shares at the end of the period x share price at the end of the period

 

Calculation of key drivers

Oil Products reference margin (USD/bbl)

=

Product value - feed cost - standard refining variable cost - sales freights

Oil Products total refining margin (USD/bbl)

=

Comparable sales margin x

average EUR/USD exchange rate for the period x

standard refinery yield

__________________________________

Refined sales volume x standard barrels per ton

Oil Products additional margin (USD/bbl) 

=

Oil Products total refining margin - Oil Products reference margin

 

 

 

Renewable Products comparable sales margin (USD/ton)

=

Comparable sales margin

______________________

Total sales volume