NEO INDUSTRIAL PLC   STOCK EXCHANGE RELEASE  12 JULY 2018 AT 10.00 AM

Neo Industrial Plc's Strategy, Targets and Dividend Policy for 2018–2021

The board of directors of Neo Industrial Plc (‘Neo Industrial’ or ‘Company’) has defined financial targets for the Company and approved a strategy for 2018–2021 (‘Strategy Period’).

At the start of the Strategy Period, the Company will focus on developing its current cable segment with the target of strengthening Neo Industrial's solvency and financing position. The Company will seek to profitably grow the cable segment by enhancing its competitiveness and competitive position in the Nordic countries, primarily within the limits of the cable segment’s own cash flow. In the refining chain, the cable segment focuses on semi-finished products and industrial end products.

In addition to the current cable segment, which consists of the wholly-owned Reka Cables Ltd and the affiliate Nestor Cables Ltd, Neo Industrial will seek to acquire a majority stake in 1–2 independent new segments during the Strategy Period.

Neo Industrial will continue to operate in a cost-efficient manner. The group's management system is clear and effective, and there are no plans to increase the group management team during the Strategy Period. Reka Cables Ltd and Nestor Cables Ltd, which operate independently following the general guidelines established by the group, have their own boards of directors, to which outside industry experts will be appointed.

Neo Industrial's board of directors has confirmed the following financial targets for the Company for 2018–2021:
- Significant increase in turnover
- Continuous improvement of operating result
- Equity ratio above 35%
- Return of investment at least 15%

Once the Company's solvency becomes stronger, efforts will be made to increase the amount of dividends into 30% of the Company's net result. The amount of potential future dividends will depend on Neo Industrial's potential profits, financial position, cash flow and working capital requirements.

The above does not affect the 2018 outlook published by Neo Industrial on 12 June 2018.

Neo Industrial Plc
Board of Directors

Additional information:

Markku Rentto, Chairman of the Board, Neo Industrial Plc, Tel. +358 40 500 1858

Neo Industrial Plc in brief:

Neo Industrial's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's class B shares are listed on the main list of NASDAQ Helsinki Stock Exchange. Neo Industrial's business segment is Cable Industry.

More information: www.neoindustrial.fi/en