Calculation of key figures

EBITDA =     Operating profit + depreciation, amortization and impairments
Comparable EBITDA =     Comparable operating profit + depreciation, amortization and impairments
Comparable operating profit 1) =    

Operating profit -/+ inventory 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 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 capital employed,
pre-tax (ROCE) ,%
= 100 x

Profit before taxes + financial expenses, last 12 months
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Capital employed 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 
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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
Leverage ratio, % = 100 x

 Interest-bearing net debt
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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

Return on net assets, % = 100 x 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.
Research and development expenditure =     Research and development expenditure comprise of the expenses of the Research & Technology unit serving all business areas of the Group, as well as research and technology expenses incurred in business areas, which are included in the consolidated income statement. Depreciation and amortization are included in the figure. The expenses are presented as gross, before deducting grants received.

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 for the period attributable to the owners of the parent
___________________________________________________________________

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 reference margin (USD/ton) = Share of sales Europe x (FAME - CPO) + Share of sales North America x (SME - SBO) 3)
Renewable Products comparable sales margin (USD/ton) =

Comparable sales margin

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Total sales volume

Renewable Products additional margin (USD/ton) = Comparable sales margin - (reference margin - standard variable production costs)

3) FAME = Fatty Acid Methyl Ester (biodiesel), CPO = Crude Palm Oil, SME = Soy Methyl Ester (biodiesel), SBO = Soybean Oil