Slide 1: Corporate Presentation Q2 2021
Corporate presentation FebruaryPresentation Investor 2020 Q2 2021
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: About Neo
About Neo 3
Slide 4: At A Glance
At A Glance Exchange / Toronto Stock Exchange: TSX:NEO Ticker Symbol Neo manufactures advanced materials that Headquarters Toronto, Canada incorporate rare earth and rare metal elements. These materials form the building blocks of everyday products Operational and Canada, U.S., Germany, U.K., Estoni
Slide 5: Neo's Three Foundational Elements
Neo’s Three Foundational Elements 1 Long-Standing Relationships With Customers 2 R&D Investment and Technical Expertise Global Manufacturing 3 Footprint in Cost-Competitive Markets and in Locations Near Customers’ Facilities 5
Slide 6: Parallel Rare Earth Supply Chains Inside and Outside of China
Parallel Rare Earth Supply Chains Inside and Outside of China Neo is the only company in the world that operates dual supply chains inside and outside of China for REE separation and REE advanced materials. Neo owns the only operating commercial rare earth separation facility in Europe. REE Separati
Slide 7: New U.S.-European Rare Earth Supply Initiative
New U.S. - European Rare Earth Supply Initiative Neo and Energy Fuels recently launched a ground-breaking initiative to supply U.S. and European markets with value-added rare earth products processed from abundant U.S.-based rare earth feedstock. 1 Monazite sands are produced by The Chemours Co. as
Slide 8: Neo's Advanced Materials Enable Advanced Technologies
Neo’s Advanced Materials Enable Advanced Technologies Neo Tier 1 & OEM Customers REE Separation REE Environmental Mining Catalyst Materials REE Magnetic Materials Applied Innovation A 8
Slide 9: Chemicals & Oxides Business Unit
Chemicals & Oxides Business Unit Advanced materials that enable TOP 3 GLOBAL PRODUCER key f unctionality and of materials f or environmental sustainability in multiple emission catalysts. applications. Applications That Use Our Materials Environmental Catalysts Precursors for permanent magnet powder
Slide 10: Magnequench Business Unit
Magnequench Business Unit NdFeB powders and magnets for #1 MA RK E T L E A DE R o f p o w d ers motors and sensors across f o r bo nded and ho t def o rm ed multiple applications. m ag net s. Applications That Use Our Materials High Efficiency ICE / Hybrid / Pumps & Motors Electric Vehicles Industri
Slide 11: Rare Metals Business Unit
Rare Metals Business Unit Rare metals and compounds used in superalloys, electronics, TOP 3 GLOBAL PRODUCER of communications, LED lighting and tantalum for superalloys. medical markets. Applications That Use Our Materials Aerospace Mobile Applications Communications LED Lighting Medical Imaging Sys
Slide 12: Integrated Product Development With Customers
Integrated Product Development With Customers New product development cycles take years to complete. Neo’s existing development partnerships with Tier 1 and OEM customers is difficult for competitors to replicate. Singapore Zibo, China Sillamäe, Estonia Abingdon, UK Integrated Process Development Ex
Slide 13: Growth Strategies
neo” Growth Strategies
Slide 14: Elements of Our Growth Strategy
Elements of Our Growth Strategy Grow Current New M&A, JVs, other Business Applications initiatives 14
Slide 15: Macro Growth Drivers for Neo Products: 2020-2025
Macro Growth Drivers for Neo Products: 2020 - 2025 Neo’s products deliver magnetic, catalytic, luminescent, electrochemical and enhanced thermal stability properties that enable technologies considered vital to each of these mega trends. Vehicle Water Energy- Applications With Efficient Homes Lower
Slide 16: Rare Earths Needed for Electrified Transportation
EXAMPLE: Rare Earths Needed for Electrified Transportation • Modern vehicles can use > 140 small electric motors, many of which utilize NdFeB magnets. • EV and HEV models use an even greater number of small electric motors that are more likely to use NdFeB magnets. • EVs and HEVs also use larger tra
Slide 17: Forecast NdFeB Magnet Demand for EV/PHEVs 2022-2030
2022 – 2030: Forecast NdFeB Magnet Demand for EV/PHEVs Adamas Intelligence forecasts global demand for rare earth permanent magnets for EV/PHEV traction motors to grow at a CAGR of 23.3%. This will require nearly an order of magnitude higher REO production. Source: Adamas Intelligence 17
Slide 18: Examples in Application Innovation
Examples in Application Innovation Over the past 25 years, Neo’s R&D teams have been actively developing new business portfolios derived in our key competencies of engineering and manufacturing critical advanced materials. Next Generation Water Anti-Microbial Materials Flame Retardant Coatings Purif
Slide 19: Sustainability Starts with Us
Sustainability Starts with Us 19
Slide 20: ESG: Sustainability in Production Operations
ESG: Sustainability in Production Operations Neo utilizes sustainable practices in manufacturing our advanced materials, which themselves enable applications that advance societal sustainability goals Recycling and Rigorous Health & Responsible RE Reclamation of End-of- EcoVadis Surveys Safety Stand
Slide 21: ESG: Sustainability in Outcomes
ESG: Sustainability in Outcomes Neo’s advanced materials are essential components of many of the world’s fastest-growing cleantech applications Neo Advanced Materials Neo Magnetic Materials Are Key to Automotive Are Vital to Energy- Environmental Catalysts Efficient Motors & Pumps Neo Magnetic Mater
Slide 22: Neo Production Facility Certifications
Neo Production Facility Certifications ISO-9001 ISO-14001 ISO-45001 ISO-50001 ISO-27001 IATF-16949 ISO-9001 QC08000 ISO-9001 ISO-14001 ISO-9001 ISO-9001 ISO-45001 ISO-14001 ISO-14001 ISO-17025 ISO-45001 ISO-9001 ISO-45001 IATF-16949 ISO-9001 ISO-14001 ü Certified HES Management Systems ISO-45001 ü D
Slide 23: Financial Performance
Financial Performance 23
Slide 24: Q2 2021 Financial Performance
Q2 2021 Financial Performance Selected Consolidated Results Q-over-Q Comparison Y-over-Y Comparison US$ 000s YTD Q2 YTD Q2 Q1-2021 Q2 2021 Q2 2020 excl. Volume & EPS 2021 2020 Volume (tonnes) 4,206 4,063 2,545 8,269 5,848 Revenue $130,855 $135,141 $67,734 $265,996 $158,431 Net Income (Loss) $7,617 $
Slide 25: Q2 2021 Financial Performance by Segment: C&O
Q2 2021 Financial Performance by Segment S elect ed C & O Resu lt s Q-over-Q Comparison Y-over-Y Comparison US$ 000s except volumes YTD Q2 YTD Q2 Q1 2020 Q2 2021 Q2 2020 2021 2020 In The Quarter Volume (tonnes) 2,423 2,443 1,466 4,866 3,401 • Volumes higher by 66.6% QoQ Revenue $54,390 $52,255 $25,3
Slide 26: Q2 2021 Financial Performance by Segment: Magnequench
Q2 2021 Financial Performance by Segment S elect ed M agn equ en ch Resu lt s Q-over-Q Comparison Y-over-Y Comparison US$ 000s except volumes YTD Q2 YTD Q2 Q1 2021 Q2 2021 Q2 2020 2021 2020 In The Quarter Volume (tonnes) 1,725 1,509 1,024 3,234 2,295 • Volumes up by 47.4% QoQ and Revenue $64,905 $67
Slide 27: Q2 2021 Financial Performance by Segment: Rare Metals
Q2 2021 Financial Performance by Segment S elect ed Rar e M et als Resu lt s Q-over-Q Comparison Y-over-Y Comparison US$ 000s except volumes YTD Q2 YTD Q2 Q1 2021 Q2 2021 Q2 2020 2021 2020 In The Quarter Volume (tonnes) 118 161 90 279 232 • Both volume and revenue higher YoY, with Q2 revenue Revenue
Slide 28: 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 Claire Kennedy Board Chair Constantine Karayannopoulos Gail Edwards President, CEO & Director Rahim Suleman Kevin Morris 26 yea
Slide 29: For More Information
For More Information: Ali Mahdavi, SVP of Corporate Development & Capital Markets (416) 962-3300 a.mahdavi@neomaterials.com www.neomaterials.com 29
Slide 30: Appendix Slides
Corporate presentation February 2020 APPENDIX SLIDES 30
Slide 31: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position (Unaudited - All figures in thousands of United States dollars) 31
Slide 32: Consolidated Statements of Profit or Loss
Consolidated Statements of Profit or Loss (Unaudited - All figures in thousands of United States dollars, except per share information) 32
Slide 33: Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Free Cash Flow (Unaudited - All figures in thousands of United States dollars, except where otherwise indicated) 33
Slide 34: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income (Unaudited - All figures in thousands of United States dollars, except number of shares and per share information) 34