Slide 1: Fast forwarding the clean energy transition: A Generational Opportunity
Fast forwarding the clean energy transition A Generational Opportunity
Slide 2: Disclaimer
Disclaimer Forward-Looking Information Non-IFRS Measures The following presentation contains “forward-looking information” within the meaning This presentation refers to certain non-IFRS financial measures such as “Operating of applicable securities laws in Canada. Forward-looking information may re
Slide 3: Navigating Neo's business units and applications
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 magnets oxides • Rare earth sintered • Environmental magnets catalysts Rare Metals (RM) • Hafnium recycler
Slide 4: Navigating Neo's inflection point thesis: why invest now
Navigating Neo’s inflection point thesis: why invest now Click bubble for relevant page. Why Neo is Financial Progress on Inflection in positioned to Results Initiatives the Industry win? RE Magnetics Quarterly in EVs Performance Growth Shareholder Questions on Mega-Trend Valuation at a glance Tailw
Slide 5: NEO at a glance - Global Leadership
NEO at a glance - Global Leadership Neo is an advanced materials science, engineering & manufacturing company, with a focus on rare earth magnetics and other critical materials. Rare Earth Magnetics market outside of Global Leader in Rare Earth & Rare Metal China about to increase rapidly and sizeab
Slide 6: NEO at a glance
NEO at a glance Headquarters Publicly Traded Exchange Toronto, Canada TSX: NEO.TO Revenue by Revenue by Segment (LTM) % Geography (LTM) % Global Footprint Employees Canada, China, Estonia, Japan, ~1,910 Rare Germany, South Korea, Thailand, Magnequench North Europe Metals America Singapore, United Ki
Slide 7: Growth Drivers
Growth Drivers Neo’s products deliver critical properties that enable technologies vital to each of these growth drivers Electric Vehicles Energy EfÏcient & Environmental Footprint Advanced Microelectronics Powerful Motors Reduction & Aerospace Technologies NanoPowders 1-2kg of our magnets in an EV
Slide 8: Understanding the Global Rare Earth Magnet Growth Curve
Understanding the Global Rare Earth Magnet Growth Curve What is driving the global rare earth magnetics demand today? What will drive it tomorrow? 500,000 Source: Adamas Intelligence, BAML Securities NdFeB Magnet Demand for Product Mt of NdFeB Magnets 400,000 +340,000 Mt 280,289 Manufacturing Outsid
Slide 9: Why are Rare Earth Magnetics important for EVs/PHEVs
Why are Rare Earth Magnetics important for EVs/PHEVs Rare earth magnets are critical in all motors of EVs, including traction motors EV Traction Motors Rare earth Traction Motors • 1-2kg of rare earth magnets in EV traction motor magnetics • 85% of EV motors use rare earth magnets save 20+% of batte
Slide 10: Neo's Position in Parallel and Integrated Supply Chain
Neo’s Position in Parallel and Integrated Supply Chain Non-captive midstream & downstream assets offer supply chain resiliency and optionality to our customers. End-of-Life & Upstream Rare Earths Miners Rare Metals Miners Scrap Sources Light Heavy Metal making JVs for Midstream Rare Earths Separatio
Slide 11: Focus on Rare Earth EV Magnetics Growth outside of China
Focus on Rare Earth EV Magnetics Growth outside of China 11
Slide 12: Neo's New Positioning in the EV Magnet Growth Curve
Neo’s New Positioning in the EV Magnet Growth Curve An example of Neo’s growth opportunities in rare earth magnetics: EV traction motors in Europe and North America EV Magnet Europe & North America Market First ex-China Sintered Magnet Plant for EVs Opportunity in 2035 40M EV X 1.5KG/EV X $80+/KG Co
Slide 13: Why now? Inflection Point in Industry
Why now? Inflection Point in Industry Paradigm shifts creating major opportunity for Neo Performance Materials Energy Transition and Customers Requiring Supply Public Policy Tailwinds Electric Vehicles Chain Diversification EVs to grow from 11 million to 63 ~90% of rare earth magnets EU’s Critical R
Slide 14: How the ex-China EV motor magnet market unfolds
How the ex-China EV motor magnet market unfolds What does it take to win business in this market space? Neo wins with: operating dual supply chains - inside and outside of China - along the value chain its 25 years of RE magnet R&D, commercialization and manufacturing its three decades of automotive
Slide 15: Current commercialized rare earth value chain, ex-China
Current commercialized rare earth value chain, ex-China Neo is already the company with the most intergrated presence in the value chain, with non-captive assets. Most intergrated and only dual supply chain to serve customers: Mining Separation Metals & Alloys Magnets Specialty Oxides Recycling Sour
Slide 16: Neo's Proven Magnetics Competency
Neo’s Proven Magnetics Competency Neo has more rare earth advanced degrees and technical experts across RE magnetics than any other company outside of China or Japan. First-of-its-kind EV Motor-Magnet Complex Motor-Magnet Design Customer Case: Customer Case: Ultra-High-Speed Motor, major cost Tracti
Slide 17: Business Units in Focus
Business Units in Focus tA - is in hg et 5 i, ee
Slide 18: Business Unit Focus: Magnequench
Business Unit Focus: Magnequench Neo’s Magnequench is currently the #1 market leader for rare earth magnetic powders for bonded and hot deformed NdFeB magnets Original founder of the NdFeB Applications of Products magnet, 37 years ago: Founded within General Motors in 1986, it was spun-out in the mi
Slide 19: Business Unit Focus: Magnequench
Business Unit Focus: Magnequench Strategic M&A in growth areas with thoughtful post-merger integration Acquisition of AsiaMag in 2019 Acquisition of SGTec in 2023 (Chuzhou, China) (Essex, United Kingdom) The acquisition of AsiaMag (Chuzhou, China) The acquisition of SGTec advances Neo’s Customers in
Slide 20: Business Unit Focus: Chemicals & Oxides
Business Unit Focus: Chemicals & Oxides Parallel supply chain, with focus on rare earth separation and rare-earth-based advanced products. Three decades of experience in rare Commercialized Water Treatment earth production product from non-magnetic rare earths Only company to have rare earth separat
Slide 21: Business Unit Focus: Chemicals & Oxides
Business Unit Focus: Chemicals & Oxides Critical midstream assets and know-how that supplies our magnet business with oxides and commercialized specialty chemicals for environmental and microelectronic applications. Environmental Catalysts Advanced Rare Earth Products New Product Development Municip
Slide 22: Business Unit Focus: Rare Metals
Business Unit Focus: Rare Metals Recycling and high-purity refining value-add steps of critical minerals for growth industries High barriers to entry due to significant capital investment requirements and technical requirements. Industries Depending on our RM Products Diversified salesforce, R&D and
Slide 23: Business Unit Focus: Rare Metals
Business Unit Focus: Rare Metals The only LED and semiconductor-grade gallium producer in North America Operating Facility Proprietary Recycling Technology Location: Ontario (Canada) Electro-winning of metallic liquid gallium in customized cells, from sodium gallate Feedstock: all recycled sources o
Slide 24: Quarterly Progress & Financial Results
Quarterly Progress & Financial Results
Slide 25: Consolidated Financial Statements
Consolidated Financial Statements Healthy EBITDA, strong cash flow generation, and financial capacity to grow. Income Statement Selected Data Balance Sheet Selected Data Q-over-Q Year-over-Year Q-over-Q Year-over-Year Comparison Comparison Comparison Comparison US$ 000s (excl. US$ 000s (excl. Q4 202
Slide 26: Financial Performance by Business Unit
Financial Performance by Business Unit Year-over-Year Quarter Highlights: Q-over-Q Comparison Magnequench Comparison • Volumes were up driven by growth of sales in China and US$ 000s (excl. Volume finished magnets (including acquisition of SGTec); as Q4 2023 Q4 2022 YTD 2023 YTD 2022 & EPS) well as
Slide 27: Impact of Rare Earth Pricing on Gross Margins
Impact of Rare Earth Pricing on Gross Margins • Volatility in rare earth prices can negatively or positively impact gross margins due lead-lag (the selling of higher or lower cost inventory C&O Rare Earth Separation Gross Margin purchased months earlier) In Relation to Consolidated Gross Margin • Le
Slide 28: Strategic Capital Projects Funding Plan
Strategic Capital Projects Funding Plan Capital Spend Requirements Source of Cash NAMCO Relocation Debt Funded Facility nearing completion; site commissioning in 1H’24 Existing loan capacity ($75M for NAMCO), plus $60-90M additional project financing (anticipated) for Europe magnets $33.6M* $41.4M**
Slide 29: Update on Short-term Accountabilities by May 2024
Update on Short-term Accountabilities by May 2024 1-2 MOUs for Magnetic 1-3 Sourcing Agree- 2-3 Changes in Manu- Commitments and Critical Materials ments to Diversify Sup- facturing Strategy and ply and Support Growth Operational Footprint • Awarded next generation • Executed sourcing • Closed midst
Slide 30: Governance & Management
Performance Materials Governance & Management
Slide 31: Sustainability in our Products
Sustainability in our Products Neo’s products truly fast-forward our world’s transition to green technologies, by supporting the management of energy reduction/generation and water/air quality. CO2-e Abatement via EVs Protection of Freshwater Aviation Emissions Reduction Empower the annual abatement
Slide 32: Annual, Transparent ESG Reporting at our Customer Standards
Annual, Transparent ESG Reporting at our Customer Standards Neo’s quantitative and qualitative performance of its environmental, social, and governance impact and practices undergoes an annual review & publication process. Sillamäe, Korat, Zibo, Estonia Thailand China Tianjin Jiangyi China China • O
Slide 33: Executive Management
Executive Management Neo’s Executive team is comprised by experienced executives in general management, finance, operations, sales & marketing, law, and engineering. Rahim Suleman Jonathan Baksh* Kevin Morris CEO & President CFO & EVP CSO & EVP • Former CFO of Neo for 6 • Former Divisional CFO at •
Slide 34: Board of Directors: Non-Executive Directors
Board of Directors: Non-Executive Directors Neo’s Board is comprised by current & former senior executives, with backgrounds in law, government, accounting, finance, material science, and rare earth industry management. Claire Kennedy Eric Noyrez Chair of Board Lead Director • Former senior partner
Slide 35: Building Trust by Addressing Concerns
Building Trust by Addressing Concerns
Slide 36: Addressing Investor Concerns: China Activities and RE Price Volatility
Addressing Investor Concerns Concern 1: Commercial Concern 2: RE Price Volatility Activities in China & Impact on Neo’s Earnings Neo has too much concentration of business in China and Quarterly results are too volatile, unpredictable and highly that is too risky. correlated with RE price movements.
Slide 37: Addressing Investor Concerns: Upstream Strategy and MQ Volumes
Addressing Investor Concerns Concern 3: Upstream Concern 4: MQ Volumes have Strategy not been growing Neo’s growth prospects seem limited by access to Rare Earth The story around RE Magnetics is clearly compelling and indeed carbonate feedstock. Neo is not a mining company. How can Neo generational.
Slide 38: Addressing Investor Concerns: North American Magnet Strategy and Awareness
Addressing Investor Concerns Concern 5: North American Concern 6: Shareholder and Public Magnet Strategy Awareness of Neo’s Story Others have announced their RE Magnets for North America Neo’s story sounds great and the opportunity is immense. Yet, strategies (and received funding awards) – acknowle
Slide 39: Corporate Headquarters
Performance Materials Corporate Headquarters Suite 1740, 121 King Street West Toronto, Ontario, Canada, M5H 3T9 Phone: (416) 367 8588