Commencement of a new plan period within the share-based long-term incentive scheme of Neles Corporation

The Board of Directors of Neles Corporation has decided on the commencement of a new plan period within the share-based long-term incentive scheme targeted to Neles’ management and key employees. The scheme comprises a Performance Share Plan (also "PSP") for the top management, a deferred share unit plan (also "DSUP") for other management and selected key employees and a Restricted Share Plan (also "RSP") as a complementary structure for specific situations.

Neles originally announced the establishment of the long-term incentive scheme on July 1, 2020.

Performance Share Plan (PSP) 2021 - 2023

The next individual plan within the PSP structure, PSP 2021-2023, commences as of the beginning of 2021 and the potential share rewards thereunder will be paid in the spring 2024, provided that the performance targets set by the Board of Directors for this plan are achieved.

The potential share reward under PSP 2021-2023 will be paid based on the performance targets relative total shareholder return of Neles' share and earnings per share (EPS).

The members of Neles Executive Management Team are eligible to participate in PSP 2021-2023.

If all the performance targets set for PSP 2021-2023 are fully achieved, the aggregate maximum number of shares to be paid based on this plan is approximately 277,000 shares (referring to gross earnings before the withholding of the applicable payroll tax).

Deferred share unit plan (DSUP) 2021 - 2023

DSUP 2021 – 2023 is the first individual plan within the DSUP structure. DSUP 2021-2023 commences as of the beginning of 2021 and the potential reward thereunder will be paid in cash in the spring 2024, provided that the performance targets set by the Board of Directors for this plan are achieved.

DSUP 2021 – 2023 rewards its participants for individual and company and/or business unit level performance during a one-year performance period comprising the calendar year 2021. The reward potentially earned during the year 2021 will be converted to synthetic share units for an approximately two-year share price performance period. The reward is paid thereafter in cash in the spring 2024 based on the value of the share of Neles at the time of payment.

If all the performance targets set for DSUP 2021-2023 are fully achieved, the aggregate maximum monetary amount of rewards payable based on this plan and estimated on the date hereof is approximately EUR 1.7 million (referring to gross earnings before the withholding of the applicable payroll tax). The final maximum value of the rewards may deviate significantly from this estimate based on the development of the value of Neles share during the afore-mentioned share price performance period.

Restricted Share Plan (RSP) 2021 - 2023

The next individual plan within the RSP structure, RSP 2021-2023, commences as of the beginning of 2021 and the share rewards potentially granted thereunder will be paid in the spring 2024.

The purpose of the Restricted Share Plan is to serve as a complementary long-term retention tool for individually selected key employees of Neles in specific situations.

The aggregate maximum number of shares to be paid based on RSP 2021-2023 is approximately 46,000 shares (referring to gross earnings before the withholding of the applicable payroll tax).

Other terms

The value of the reward payable to each participant based on each of the afore-described plans is limited by a maximum cap linked to Neles' share price development.

Neles applies a share ownership policy to the members of Neles Executive Management Team. According to this policy, each member of Neles Executive Management Team is expected to retain in his/her ownership at least half of the shares received under the share-based incentive programs of the company until the value of his/her share ownership in Neles corresponds to at least his/her annual gross base salary.

For further information, please contact:

Rita Uotila, Vice President, Investor Relations, Neles Corporation, tel. +358 400 954141

Neles Corporation

Distribution:

Nasdaq Helsinki

Main media

www.neles.com

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 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 around 40 countries. Neles was created in the partial demerger of Metso Corporation, and trading in Neles stock started on July 1, 2020.

www.neles.com, Twitter.com/nelesflow