Slide 1: First Quarter 2025 Results
Rahim Suleman CEO & President & Director Jonathan Baksh EVP & CFO First Quarter 2025 Results TSX: NEO.TO | Earnings call | May 9, 2025
Slide 2: Forward-Looking Information Non-IFRS Financial Measures
Forward-Looking Information Non-IFRS Financial Measures The following presentation contains “forward-looking information” within the meaning of applicable securities laws in Canada. Forward- This presentation refers to certain specified financial measures, including non-IFRS financial measures and r
Slide 3: Introduction
Introduction Rahim Suleman 3
Slide 4: Q1 2025 Key Themes
Q1 2025 Key Themes Financial Results Meaningful Winning Amid Ahead Of Progress On Our Geopolitical Expectations Growth Projects Turbulence 4
Slide 5: Q1 2025 Financial Results
Q1 2025 Financial Results Strong Performance Supported By Trending EBITDA ($m) Resilient Demand And Cost Discipline $122m $17m $0.09 $6m $20 $21 $17 $13 $11 Q1’25 NET SALES ADJUSTED EBITDA(1) ADJUSTED EPS(1) NET CASH Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $122m $11m $0.01 $14m (2) CASH : $77m Q1’24
Slide 6: Emission Control Catalyst Facility
Emission Control Catalyst Facility Fully commissioned Achieved run-rate capacity for requalified products Production volumes up over 21% sequentially On track for double-digit annual growth The facility effectively drives: High cash flow conversion Strong customer momentum 6
Slide 7: European Permanent Magnet Facility
European Permanent Magnet Facility One of the most important critical materials projects in Europe and among a select few globally Strategically positioned to meet growing demand for localized supply chains in EVs, robotics, and other critical technologies Remains firmly on track, both on time and o
Slide 8: Magnet Delivery to Tier 1 Customer in April 2025
Magnet Delivery to Tier 1 Customer in April 2025 Produced and shipped over 18,000 sintered magnet pieces as initial samples The magnets are EV traction motor grade and represent an important technical milestone Production part approval process is scheduled for the first half of 2026, with mass produ
Slide 9: Positioned to Win With Diversified, Parallel Supply Chains Amid Shifting Geopolitics
Positioned to Win With Diversified, Parallel supply Chains Amid Shifting Geopolitics Strategic Advantage Shifting Geopolitics: Neo is a net U.S. Tariffs beneficiary of shifting geopolitics due to our regionally diversified, vertically integrated model. Assessment(1) Potential Exposure Clear Differen
Slide 10: Positioned to Win With Diversified, Parallel Supply Chains (Cont'd)
Positioned to Win With Diversified, Parallel supply Chains Amid Shifting Geopolitics (Cont'd) Unique Magnet Advantage: Neo is the only company Export Controls globally with a heavy-rare-earth-free magnet already in use for EV traction motors with Honda and Daido. Proven Resilience to Export Controls
Slide 11: Heavy Rare Earth Separation Project in Europe Commenced
Heavy Rare Earth Separation Project in Europe Commenced Leveraging 30+ years of experience to develop a pilot-scale heavy rare earth separation line at its European facility Addressing a key global supply chain gap by ensuring availability of critical elements for high-tech applications Critical ste
Slide 12: Neo: A Pure-Play Beneficiary of Supply Chain Shifts and Critical Materials Demand
Neo: A Pure-Play Beneficiary of Supply Chain Shifts and Critical Materials Demand Macro Trends Geopolitical Driving Strong Forces & Public Growth in Neo’s Policy Tailwinds Products Unique Asset Base & Technical Expertise 12
Slide 13: Financials
Financials Jonathan Baksh 13
Slide 14: Revenue and Adj. EBITDA Margin
REVENUE $ 122 m in Q1 2025 VS ~0% YoY Revenue and Adj. EBITDA(1) Margin $122m in Q1 2024 $160,000 $(000) 30% $140,000 $134,903 • Revenue drivers: lower pricing in the Rare 25% $122,095 $121,610 Metals and Magnequench segments, $120,000 $111,281 largely offset by improved realized prices $107,549 in
Slide 15: Adj. EBITDA Bridge
ADJ.EBITDA (1) Q1 2024/25 Adj. EBITDA(1) Bridge $17 m in Q1 2025 VS ~60% YoY $(000) $11m in Q1 2024 $7,222 ( $598 ) $17,134 ( $795 ) Magnequench continued growth in bonded magnets and $10,760 $545 traction motor powder applications Chemicals & Oxides strong recovery in auto catalyst business Rare Me
Slide 16: Magnequench
Magnequench Volume (t) Revenue (US$000) Operating Income (US$000) Adjusted EBITDA(1) (US$000) $45,480 $3,384 1,295 1,302 $6,824 $6,657 $44,273 $2,018 $1,894 1,213 $6,112 $43,500 Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Q1 2025 Highlights • For t
Slide 17: Chemical & Oxides
Chemical & Oxides Revenue (US$000) Operating Income (US$000) Adjusted EBITDA(1) (US$000) $6,842 $47,500 $5,728 $43,606 $40,513 $27 $1,350 $(2,104) $(380) Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Q1 2025 Highlights • Adjusted EBITDA (1) increased by $7 million compared
Slide 18: Rare Metals
Rare Metals Revenue (US$000) Operating Income (US$000) Adjusted EBITDA(1) (US$000) $16,910 $17,383 $48,441 $37,278 $32,705 $8,800 $9,238 $8,640 $8,151 Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Q1 2025 Highlights • Hafnium pricing has now normalized, as anticipated, resu
Slide 19: Cash Flows and Capital Allocation
Cash Flows and Capital Allocation Dividends CASH LTM $12m $ 77 m in Q1 2025 Q1 2025 $3m ~($8m) VS Strategic Projects $85m in Q4 2024 Grand opening Sept 2024 Inflows Outflows $54.3m $13.7m $7.0m Capital spend to date1 Remaining Budget spend1 Savings $9m Cash from Net Change In Working Capital $15m Op
Slide 20: Strong Balance Sheet
Strong Balance Sheet Liquidity(1) ($m) $9 Q4 2024 Q1 2025 Total: $77 $85m Cash $77m $66 $152m $72m Gross debt $71m Cash On Hand Undrawn Credit Facilities Grant $14m Net cash $6m Cash On Hand $77m $139m Inventory $144m EDC Credit Facility $25m Revolving and Other Loan Capacity $41m $179m Property, Pl
Slide 21: Outlook unchanged
Outlook unchanged Expectations for 2025 Adjusted EBITDA(1) of $55 - $60m 1. Non-IFRS Financial Measure. See "Non-IFRS Financial Measures" in the disclaimer section for further information. Note: All financial values are in US dollars, except when stated otherwise 21
Slide 22: Closing Remarks
Closing Remarks Rahim Suleman 22
Slide 23: Delivering Growth & Capital Returns to Shareholders
Delivering Growth & Capital Returns to Shareholders Neo is strategically positioned to capitalize on mega-trends and the growing demand for secure critical materials supply chains 1. Financial Strength 2. Strong Growth 3. Execution & Resilience Prospects Value-added business Long-term growth A track
Slide 24: Q&A
Q&A
Slide 25: For further investor information and company updates
Performance Materials Corporate Headquarters Suite 1740, 121 King Street West Toronto, Ontario, Canada, M5H 3T9 Phone: (416) 367 8588 For further investor Follow us on: information and company updates: Irina Kuznetsova Director, Investor Relations Contact: ir@neomaterials.com