Neste Oil to transfer its statutory occupational pensions to Ilmarinen

Neste Oil Corporation
Stock Exchange Release
7 December 2009 at 3 pm (EET)

Neste Oil to transfer its statutory occupational pensions to Ilmarinen

Neste Oil has decided to transfer the management of its statutory occupational pensions and the associated pension portfolio to the Ilmarinen Mutual Pension Insurance Company as of 1 April 2010. The move will not affect the level or scope of pension cover provided to personnel or people who have already retired. A total of 3,370 people are covered by the statutory occupational pensions currently managed by the Neste Oil Pension Fund.

The statutory pension liabilities that are currently the responsibility of the Neste Oil Pension Fund and that will be transferred to Ilmarinen total approximately €310 million as of the end of 2009. As a result of the transfer, a non-recurring charge is expected to be booked against Neste Oil's consolidated IFRS financial statements in the second quarter of 2010. The transfer is expected to have a positive cash flow impact.

In addition to statutory pension cover, the Neste Oil Pension Fund also provides supplementary pension benefits to employees who joined the company prior to 1994. The possibility of transferring this provision to a mutual pension insurance company is being investigated.

The transfer will require the approval of the Finnish Financial Supervisory Authority and the Finnish Competition Authority.

Neste Oil Corporation

Hanna Maula
Director, Corporate Communications

Further information: CFO Ilkka Salonen, tel. +358 (0)10 458 4490

 

Neste Oil in brief

Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company is the world's leading supplier of renewable diesel. Neste Oil's refineries are located in Porvoo and Naantali and have a combined crude oil refining capacity of approx. 260,000 barrels a day. The company had net sales of EUR 15 billion in 2008 and employs around 5,200 people. Neste Oil's share is listed on the NASDAQ OMX Helsinki.

Neste Oil has been selected into the Dow Jones Sustainability World Index and awarded 'Best in Class' recognition for its social accountability by Storebrand. The company is also featured in the Ethibel Pioneer Investment Register and included in Innovest's Global 100 list of the world's most sustainable corporations. Further information: www.nesteoil.com.