Slide 1: Second Quarter 2022 Results
Second Quarter 2022 Results August 4, 2022 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain statements that are not historical facts and are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of w
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation references certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Total Value Realized, Production Costs, Free Cash Flow, Normalized Stage I Free Cash Flow, and Adjusted O
Slide 4: Second quarter highlights
Second quarter ▪ Stage I operational execution continues highlights – Production remained consistent YoY – Sales volumes continued to closely track production – Bi-annual plant shutdown and timing of shipments impacts sequential quarter comparisons ▪ Financial performance remains strong – Higher rea
Slide 5: Operations and Financial Overview
Operations and Financial Overview
Slide 6: Continued operational execution
Comparable Operational Metrics—Sequential and Year-over-Year Continued +90% YoY +1% QoQ +1% YoY 11,706 (15)% QoQ $13,818 $13,918 operational 9,877 10,000 execution $7,343 2021 2022 Stage II Related Q2 2021 Q1 2022 Q2 2022 Q2 2021 Q1 2022 Q2 2022 ▪ YoY production unchanged; QoQ REO Sales Volumes (MT)
Slide 7: Rapid revenue & earnings growth
(1) Comparable Financial Metrics—Sequential and Year-over-Year Rapid $166.3 +96% YoY (14)% QoQ +137% YoY revenue & $132.3 (17)% QoQ $143.6 $110.0 earnings growth $73.1 2021 2022 $46.4 Q2 2021 Q1 2022 Q2 2022 Q2 2021 Q1 2022 Q2 2022 ▪ Revenue growth driven by higher Revenue Adjusted EBITDA (2) realiz
Slide 8: Significant Stage I normalized free cash flow
(1) YTD 2022 Reported Free Cash Flow to Normalized Stage I Free Cash Flow Bridge Significant 109.3 2.4 $227.7 Stage I normalized free cash flow 13.6 $102.4 ▪ Normalized Stage I Free Cash Flow of $227.7M or 73.5% of YTD revenue ▪ Offtake Agreement completed in Q1 2022; $13.6M paydown was reflected as
Slide 9: Stage II and Stage III Updates
Stage II and Stage III Updates
Slide 10: Stage II - Concentrate dryer and calciner
Stage II - Concentrate dryer and calciner 10
Slide 11: Stage III - Fort Worth magnetics facility
Stage III - Fort Worth magnetics facility 11
Slide 12: Inaugural ESG report published
Inaugural ESG ▪ Electrifying a sustainable future report – Ensuring a Western supply of sustainably sourced raw materials critical to electrifying the world published – Improving processes and inputs to reduce energy consumption and greenhouse gas emissions – Piloting recycling of end-of-life magnet
Slide 13: Additional Photos
Additional Photos
Slide 14: Magnetics facility wall raising
Magnetics facility wall raising
Slide 15: Mill pad
Mill pad
Slide 16: Salt crystallizer and brine concentrator
Salt crystallizer and brine concentrator
Slide 17: Separations pad
Separations pad
Slide 18: Appendix
aD MP maeteriacs Appendix
Slide 19: Summary P&L
Summary P&L MP MATERIALS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the three months ended For the three months ended June 30, March 31, (in thousands, except share and per share data, unaudited) 2022 2021 2022 Revenue: Product sales $ 139,183 $ 72,522 $ 161,755 Other
Slide 20: Reconciliation Net Income to Adjusted EBITDA
Reconciliation Net Income to Adjusted EBITDA For the three For the three months ended months ended June 30, March 31, (in thousands, unaudited) 2022 2021 2022 Net income $ 73,269 $ 27,166 $ 85,551 Adjusted for: Depreciation, depletion and amortization 5,407 6,666 5,260 Interest expense, net 1,326 2,
Slide 21: Reconciliation Net Income to Adjusted Net Income
Reconciliation Net Income to Adjusted Net Income For the three For the three months ended months ended June 30, March 31, (in thousands, unaudited) 2022 2021 2022 Net income $ 73,269 $ 27,166 $ 85,551 Adjusted for: (1) Depletion 3,075 4,686 3,069 (2) Stock-based compensation expense 7,440 4,498 9,77
Slide 22: Reconciliation Diluted EPS to Adjusted Diluted EPS
Reconciliation Diluted EPS to Adjusted Diluted EPS For the three For the three months ended months ended June 30, March 31, (unaudited) 2022 2021 2022 Diluted EPS $ 0.38 $ 0.15 $ 0.45 Adjusted for: (1) Depletion 0.02 0.03 0.01 Stock-based compensation expense 0.04 0.02 0.05 (2) Transaction-related,
Slide 23: YTD 2022 Cash Flow Bridge
YTD 2022 Cash Flow Bridge(1) 17.7 2.9 2.4 $242.2 13.6 $233.5 $219.9 (14.1) Net Cash Provided Offtake Paydown Adjusted Operating (2) Working Capital Cash Interest and Ore Stockpile Transaction- Adjusted EBITDA by Operating Cash Flow Taxes Inventory Related, Start-Up Activities & Other Non- (3) Recurr
Slide 24: Reconciliations Net Cash Provided by Operating Activities to Non-GAAP Measures
Reconciliations Net Cash Provided by Operating Activities to Non-GAAP Financial Measures For the six months ended (in thousands, unaudited) June 30, 2022 Net cash provided by operating activities $ 219,862 (1) Additions to property, plant and equipment, net (117,454) Free Cash Flow 102,408 Adjusted
Slide 25: KPI – Realized Price Reconciliation and Calculation
KPI – Realized Price Reconciliation and Calculation For the three For the three months ended months ended June 30, March 31, (in thousands, unless otherwise stated, unaudited) 2022 2021 2022 (1) Product sales $ 139,183 $ 72,522 $ 161,755 (1)(2) Total Value Realized 139,183 72,522 161,755 Divided by:
Slide 26: KPI – Production Cost Reconciliation and Calculation
KPI – Production Cost Reconciliation and Calculation For the three For the three months ended months ended June 30, March 31, (in thousands, unless otherwise stated, unaudited) 2022 2021 2022 (1) Cost of sales $ 22,092 $ 17,955 $ 23,173 Adjusted for: (2) Stock-based compensation expense (506) (578)