Audit committee

The Board annually appoints the chairman and members of the Audit Committee. The duties of the Audit Committee include monitoring the company's financial position, overseeing financial reporting, assessing the adequacy and appropriateness of internal control and risk management, assessing compliance with laws and regulations, and communicating with the auditor, reviewing the auditor's reports and evaluating the recommendations. The Audit Committee prepares the Board's proposal for the election of the auditor to the Annual General Meeting. The Audit Committee reports to the Board. Neo Industrial's current Audit Committee consists of Marjo Matikainen-Kallström (Chairman) and Ari Järvelä.

In 2018, Neo Industrial's Audit Committee reviewed business risks, balance sheet values, financing, liquidity, test calculation procedures, IFRS 15, IFRS 9, IFRS 16 regulation's effects. Internal audit activities were directed to ensure continuity and to manage process and ICT risks.

During 2018, the Audit Committee convened three times. The participation activity of the members was 100%.

Evaluation of the independence of the members of the Audit Committee

The members of the Audit Committee are independent of the company based on the evaluation made by the Board of Directors.