Decisions taken in the organization meeting of the Neles Board of Directors
Neles Corporation, stock exchange release, July 1, 2020 at 18:00 EEST
In its organization meeting today, Neles Corporation’s Board of Directors made the following decisions:
- appointments of the Board’s committees and deputy CEO
- confirmation and approval of the company’s profitable growth strategy
- confirmation and approval of the company’s mid-term financial targets
- update to the company’s Disclosure Policy
Committees of the Board of Directors
The Board of Directors appointed the following committees and members:
- Audit Committee: Anu Hämäläinen (Chair), Britta Giesen, Niko Pakalén, and Petter Söderström
- Remuneration Committee: Jukka Moisio (Chair), Mark Vernon, and Teija Sarajärvi
As communicated earlier, Olli Isotalo is the President and CEO of Neles. The Board appointed Neles’ Chief Financial Officer Simo Sääskilahti as Deputy CEO. In addition to the Board, the CEO and CFO are the persons discharging managerial responsibilities in accordance with the Market Abuse Regulation (“MAR”).
The CEO and Executive Team appointments were published in detail on June 23, 2020.
Strategy for profitable growth and mid-term financial targets
The Board confirmed and approved Neles’ profitable growth strategy and mid-term financial targets, as announced on May 25, 2020.
Neles’ vision is to become a leading diversified valve and valve automation company, reinventing reliability in flow control. Neles aims to achieve profitable, faster than market growth and will continue to develop its organization and operations to ensure successful execution of its strategy.
The confirmed mid-term financial targets derived from the strategy are:
- Orders received of more than EUR 1 billion around 2025
- Annual organic growth ambition of at least 5%
- EBITA margin of at least 15%, while investing in growth
- Maintaining a strong balance sheet (net debt/EBITDA less than 2.5), while investing in growth
- Dividend payout of approx. 40% of net earnings (excluding PPA amortization related to acquisitions)
Neles’ strategic targets are mid-term ambitions and should not be viewed as guidance for the near-term performance of Neles, as the current Covid-19 pandemic will adversely impact the Neles’ business in the short term.
Neles will publish its half-year review on August 5, 2020.
Update to the Disclosure Policy
The Board confirmed that Neles will observe a 30-day silent period prior to the publication of its financial results. During this time, Neles is not in contact with capital market representatives nor does it comment on the company’s financial performance, markets or its future outlook. The full Disclosure Policy is available on Neles’ website.
For further information, please contact:
Rita Uotila, Vice President, Investor Relations, Neles Corporation, tel. +358 400 954141
Neles is one of the leading providers of mission-critical flow control solutions and services for process industries. With our global team of experts and innovative solutions, we help our customers to improve their process performance and ensure the safe flow of materials. Neles is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 660 million in 2019. Neles employs about 2,900 people in approximately 40 countries. Neles was created in the partial demerger of Metso Corporation, and trading in Neles stock started on July 1, 2020.