Profit Warning: Neo Industrial Plc Lowers Its Near-Term Outlook as a Result of July 2018 Being More Quiet Than Expected and Market Outlook Appearing Uncertain

NEO INDUSTRIAL PLC     STOCK EXCHANGE RELEASE              15 AUGUST 2018 AT 8.00 AM

Profit Warning: Neo Industrial Plc Lowers Its Near-Term Outlook as a Result of July 2018 Being More Quiet Than Expected and Market Outlook Appearing Uncertain

As a result of July 2018 being more quiet than expected and market market outlook appearing uncertain, Neo Industrial Plc (“Neo Industrial”) lowers its near-term outlook as follows:

The sanctions concerning the production of aluminum raw materials imposed by United States against Russia have been postponed to October 2018. Due to this, it is not possible to provide a reliable assessment on the effects of the sanctions on the availability and prices of aluminum raw materials as well as on the price level of aluminium cables for the time being. The company has secured significant part of its aluminum rod deliveries utilised in connection with cable production with current contracts.

Turnover in 2018 is expected to remain lower as compared to the previous year. Due to the weak performance of the first quarter of 2018 and the uncertain market overlook, the full-year operating result is expected to significantly weaken from last year, albeit to remain clearly positive.

Neo Industrial provided the following estimate on its outlook for 2018 in its announcement published on 12 June 2018: “Due to the weak performance of the first quarter of 2018, the full-year operating result is expected to weaken from last year, albeit to remain notably positive”.

Neo Industrial Oyj
Board of Directors

Additional information:

Ralf Sohlström, Managing Director, tel. +358 40 770 2720
Markku Rentto, Chairman of the Board, 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