Neo Performance Materials, Inc. · TSX:NEO
Neo Performance Materials — Q1 2020 Earnings Presentation
22 slides from Neo Performance Materials's earnings presentation, May 2020
Slide 1: Corporate presentation Q1 2020
Corporate presentation FebruaryPresentation Investor 2020 Q1 2020
Slide 2: Disclaimers
Disclaimers Forward-Looking Information T h e following presentation contains “forward-looking information” within the m e a n in g of applicable securities laws in Ca na d a . Forward-looking information m a y relate to future event s or future p erfo rm a nc e of Neo . All statements in this prese
Slide 3: At A Glance
At A Glance Exchange / Toronto Stock Exchange: Ticker Symbol TSX:NEO Headquarters Toronto, Canada Neo manufactures the building blocks of everyday China, U.S., Germany, U.K., products and emerging technologies. Our materials Operational and Canada, Thailand, South Korea, deliver a range of powerful
Slide 4: Macro Trends That Drive Demand for Neo's Advanced Industrial Materials
Macro Trends That Drive Demand for Neo’s Advanced Industrial Materials Hybrid / Electric Growing Demand for Growing Use of Increasing Expanding Health Automobiles Energy-Efficient Renewable Energy Industrial Care Diagnostics Motors & Pumps Automation & Imaging Increased use of Tighter Wastewater Inc
Slide 5: Neo Products That Enable Customer Applications: Advanced Magnetic Materials
Neo Products That Enable Customer Applications: Advanced Magnetic Materials NdFe B magne tic mate rials that #1 MARKET LEADER of powders for e nable more e ne rgy e fficie nt motors bonded and hot deformed magnets. across multiple marke ts. High Efficiency Hybrid / Electric Motors Vehicles Industria
Slide 6: Neo Products That Enable Customer Applications: Advanced Industrial Materials
Neo Products That Enable Customer Applications: Advanced Industrial Materials Advanced materials that enable TOP 3 GLOBAL PRODUCER of key functionality and sustainability materials for environmental in multiple applications. emission catalysts. Auto Catalysts Permanent Magnetic Materials Wastewater
Slide 7: Neo Products That Enable Customer Applications: Superalloys / Electronic Metals
Neo Products That Enable Customer Applications: Superalloys / Electronic Metals Rare metals and compounds used in TOP 3 GLOBAL PRODUCER of superalloys, electronic, tantalum for superalloys. communications, and other markets. Aerospace Mobile Applications Communications High Efficiency Lighting Medic
Slide 8: Advancing Our Customers' Sustainability Goals
Advancing Our Customers’ Sustainability Goals Fewer Automotive Emissions At Neo, we make the building More Energy- blocks of modern technologies Efficient Motors that enhance efficiency and sustainability. Our advanced industrial materials – magnetic powders and magnets, specialty chemicals, metals,
Slide 9: Neo's Three Foundational Elements
Neo’s Three Foundational Elements 1 Long-Standing Relationships With Customers 2 R&D Investment and Technical Expertise 3 Global Manufacturing Footprint in Cost- Competitive Markets 9
Slide 10: Longstanding Relationships with Global Customer Base
Longstanding Relationships with Global Customer Base • A b al anc e d and well-diversified c us t ome r b a s e t h at includes large industrial, c ons um e r electronics and chemical p roce ssing c om p ani e s . • Significant portion of r e v e nue contribution is from c us t ome rs w h o h av e b
Slide 11: Global R&D Assets Support Integrated Product Development With Customers
Global R&D Assets Support Integrated Product Development With Customers Singapore Zibo, China Sillamäe, Estonia Abingdon, UK Integrated Process Development Example: Magnetic Materials Understand Customer Sample Motor Requirements Motor Design Evaluation . Benchmark Motor Magnet Commercialization Per
Slide 12: Unique Global Infrastructure with Cost Competitive Manufacturing
Unique Global Infrastructure with Cost Competitive Manufacturing Production facilities located in cost-competitive jurisdictions. R&D centres and sales offices located across 3 continents. Corporate / Sales R&D Centres 12
Slide 13: Q1 2020 Financial Performance
Q1 2020 Financial Performance Selected Consolidated Results US$ 000s Q-over-Q Comparison Last Completed FY excl. Volume & EPS Q1 2020 Q1 2019 2019 Volume 3,303 3,607 13,599 High Free Cash Flow Conversion (tonnes) Revenue $90,697 $108,530 $407,464 ü Low CAPEX ($8 - 15M) Net Income $518 $12,227 $23,07
Slide 14: Q1 2020 Financial Performance: Business Unit Results
Q1 2020 Financial Performance Business Unit Results MAGNEQUENCH CHEMICALS & OXIDES RARE METALS Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 ($000s) ($000s) ($000s) Revenue $38,526 $47,555 Revenue $33,538 $43,573 Revenue $20,450 $21,531 Adjusted Adjusted Adjusted EBITDA $7,715 $10,929 EBITDA $4,41
Slide 15: Multiple Avenues for Growth
Multiple Avenues for Growth Continued Growth in Growth from New Product Portfolio Acquisitions Existing Products Product Development § Well positioned to supply materials within § Working with customers to develop new § Strong balance sheet and the financial broader magnetic, catalytic, electronic,
Slide 16: Proven Leadership Team with Exceptional Track Record
Proven Leadership Team with Exceptional Track Record Industry leaders with the expertise to deliver results, based on a combined 200+ years of experience Board of Directors Geof Bedford Rahim Suleman Kevin Morris President & CEO EVP & CFO EVP & COO Constantine Karayannopoulos 20 years of experience
Slide 17: Research Coverage / For More Information
Research Coverage ►Canaccord Genuity Corp. (Canada) ►CIBC Capital Markets ►Cormark Securities Ltd. ►RBC Capital Markets ►Scotia Capital Inc. ►Raymond James Ltd. For More Information: Ali Mahdavi, Capital Markets and Investor Relations (416) 962-3300 a.mahdavi@neomaterials.com www.neomaterials.com 17
Slide 18: Appendix Slides
Corporate presentation February 2020 APPENDIX SLIDES
Slide 19: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position (All figures in thousands of United States dollars) See accompanying notes to this table in Neo's Consolidated Financial Statements for the quarter ended March 31, 2020, available on Neo's website at www.neomaterials.com and on SEDAR at www.sedar.com. 19
Slide 20: Consolidated Results of Operations
Consolidated Results of Operations (All figures in thousands of United States dollars) See accompanying notes to this table in Neo's Consolidated Financial Statements for the quarter ended March 31, 2020, available on Neo's website at www.neomaterials.com and on SEDAR at www.sedar.com. 20
Slide 21: Reconciliation to Net Income to EBITDA, Adjusted EBITDA, and Free Cash Flow
Reconciliation to Net Income to EBITDA, Adjusted EBITDA, and Free Cash Flow See accompanying notes to this table in Neo's Consolidated Financial Statements for the quarter ended March 31, 2020, available on Neo's website at www.neomaterials.com and on SEDAR at www.sedar.com. 21
Slide 22: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income See accompanying notes to this table in Neo's Consolidated Financial Statements for the quarter ended March 31, 2020, available on Neo's website at www.neomaterials.com and on SEDAR at www.sedar.com. 22
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