Slide 1: Investor Presentation
Investor Presentation Fast-forwarding Energy & Digital Transformation Technologies TSX: NEO.TO | March 18, 2025
Slide 2: Disclaimer
Investor Presentation • 2 Disclaimer Forward-Looking Information Non-IFRS Financial Measures The following presentation contains “forward-looking information” within the meaning of applicable securities laws in Canada. This presentation refers to certain specified financial measures, including non-I
Slide 3: Navigating Neo's business units and applications
About Why Value Quarterly Investor Presentation • 3 Financials Leadership Neo Invest Creation Highlights Navigating Neo’s business units and applications Magnequench (MQ) Chemicals & Oxides (C&O) • Rare earth magnetic • Rare earth midstream powders separation • Rare earth bonded • Specialty mixed ma
Slide 4: Neo is... By the Numbers
About Why Value Quarterly Investor Presentation • 4 Financials Leadership Neo Invest Creation Highlights By the Numbers Neo is… • A global leader in energy-saving permanent magnets and critical materials, with established technologies and geographically diverse midstream and downstream Revenue by Se
Slide 5: 30+ years of rare earth magnetics
About Why Value Quarterly Investor Presentation • 5 Financials Leadership Neo Invest Creation Highlights Electric Vehicles AI / Semi- China’s strong position (incl. Traction conductors / Motors) in rare earth processing and magnetics Computer Power today creates uncertainty around the global supply
Slide 6: 1. Macro Trends Driving Strong Growth in Neo's Products
About Why Value Quarterly Investor Presentation • 6 Financials Leadership Neo Invest Creation Highlights New Energy Vehicle 1. Macro Trends Driving Strong Growth in Neo’s Products Permanent Magnets for Magnets Critical Traction Motor (both Sintered Materials and HREE-Free Bonded) EV & Energy Transit
Slide 7: 2. Geopolitical Forces & Public Policy Tailwinds
About Why Value Quarterly Investor Presentation • 7 Financials Leadership Neo Invest Creation Highlights 535K Global Forecasted Demand 2. Geopolitical Forces & Public Policy Tailwinds (Mt of NdFeB Magnets) Neo’s global presence and parallel supply chain uniquely position it to Fast-Growing Demand Dr
Slide 8: 3. Unique Asset Base & Technical Expertise
About Why Value Quarterly Investor Presentation • 8 Financials Leadership Neo Invest Creation Highlights 3. Unique Asset Base & Technical Expertise Why Neo is Best Positioned to Win Leading Market Positions Across Multiple End Markets Select End Markets NEO Differentiation Extensive and profitable t
Slide 9: Value Creation Drivers: Delivering Growth & Capital Returns to Shareholders
About Why Value Value Quarterly Investor Presentation • 9 Financials Leadership Neo Invest Creation Creation Highlights Value Creation Drivers: Delivering Growth & Capital Returns to Shareholders Neo is strategically positioned to capitalize on mega-trends and the growing demand for secure critical
Slide 10: 1. Financial Strength & Resilience
About Why Value Value Quarterly Investor Presentation • 10 Financials Leadership Neo Invest Creation Creation Highlights 1. Financial Strength & Resilience ADJUSTED EBITDA(1) GROWTH: FY 2024 Adjusted EBITDA(1) grew over 70% y-o-y Strong Balance Sheet Robust Cash Flows Adjusted EBITDA(1) ($USD) $85M
Slide 11: 2. Strong Growth Prospects in Permanent Magnets
About Why Value Value Quarterly Investor Presentation • 11 Financials Leadership Neo Invest Creation Creation Highlights 2. Strong Growth Prospects in Permanent Magnets Permanent Magnet Market Size in Europe and US (US$) of permanent magnets >90% made in China Chinese + Export ban on permanent magne
Slide 12: 2. Strong Growth Prospects: Rare earth value chain outside of China
About Why Value Value Quarterly Investor Presentation • 12 Financials Leadership Neo Invest Creation Creation Highlights 2. Strong Growth Prospects: Current commercialized rare earth value chain, outside of China Neo has one of the most integrated presence in the value chain with non-captive assets:
Slide 13: 2. Strong Growth Prospects: NAMCO - Emissions Control Catalysts
About Why Value Value Quarterly Investor Presentation • 13 Financials Leadership Neo Invest Creation Creation Highlights 2. Strong Growth Prospects: NAMCO - Emissions Control State-of-the-art environmental emissions control catalysts production facility in China Catalysts Highlights Relocated faci
Slide 14: 2. Strong Growth Prospects: Other Critical Materials
About Why Value Value Quarterly Investor Presentation • 14 Financials Leadership Neo Invest Creation Creation Highlights Aerospace | Superalloys Hf Ta 2. Strong Growth Prospects: Other Critical Materials Superalloys Nuclear Space Superalloys “Over the next 20 years Neo’s rare metals are critical, su
Slide 15: 3. Execution: Delivering on Commitments
About Why Value Value Quarterly Investor Presentation • 15 Financials Leadership Neo Invest Creation Creation Highlights 3. Execution: Delivering on Commitments PROMISE MADE, PROMISE KEPT FUTURE DELIVERY April 2023 December 2023 August 2024 August 2024 September 2024 2025 and Beyond SCALABILITY OPER
Slide 16: Quarterly Updates & Financials
About Why Value Quarterly Investor Presentation • 16 Financials Leadership Neo Invest Creation Highlights Quarterly Updates & Financials
Slide 17: Q4 Highlights
About Why Value Quarterly Investor Presentation • 17 Financials Leadership Neo Invest Creation Highlights Q4 Highlights 2024 Guidance Beat and 2025 Guidance Increase • ~$64 million 2024 Adjusted EBITDA(1) (~70% YoY increase), ~$20 million Q4 2024 • 2025 Adjusted EBITDA(1) guidance increased from $53
Slide 18: Capital Projects & Outlook
About Why Value Quarterly Investor Presentation • 18 Financials Leadership Neo Invest Creation Highlights Capital Projects & Outlook Capital Spend Requirements Source of Cash Targets & Outlook for 2025 Emissions Control Catalyst Facility Relocation Cash On Hand Strategic Targets Grand opening Sept 2
Slide 19: Consolidated Financial Statements
About Why Value Quarterly Investor Presentation • 19 Financials Leadership Neo Invest Creation Highlights Consolidated Financial Statements Strong EBITDA,robust cash flow generation, and financial capacity to support the growth of the business Income Statement Selected Data Shareholder Capital Retur
Slide 20: Financial Performance by Business Unit
About Why Value Quarterly Investor Presentation • 20 Financials Leadership Neo Invest Creation Highlights Financial Performance by Business Unit Magnequench Q-over-Q Comparison Year-over-Year Comparison Year Highlights: • For the year, sales volumes increased by 7.9%, largely due to significant grow
Slide 21: Board of Directors: Independent Directors
About Why Value Quarterly Investor Presentation • 21 Financials Leadership Neo Invest Creation Highlights Board of Directors: Independent Directors Neo’s Board is comprised of current & former senior executives, with backgrounds in law, government, accounting, finance, material science, and rare ear
Slide 22: Executive Management
About Why Value Quarterly Investor Presentation • 22 Financials Leadership Neo Invest Creation Highlights Executive Management Neo’s Executive team is comprised of experienced executives in general management, finance, operations, sales & marketing, law, and engineering Rahim Suleman Jonathan Baksh
Slide 23: Corporate Headquarters
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