Slide 1: Corporate presentation Investor Presentation Q3 2020
Corporate presentation FebruaryPresentation Investor 2020 Q3 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: About Neo
About Neo 3
Slide 4: At A Glance
At A Glance Exchange / Toronto Stock Exchange: Ticker Symbol TSX:NEO Headquarters Toronto, Canada Neo manufactures advanced materials that Canada, U.S., Germany, U.K., incorporate rare earth and rare metal elements. Operational and Estonia, Thailand, South Korea, These materials form the building bl
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 rare earth separation facility in Europe. REE Separation • Sillam
Slide 7: 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 7
Slide 8: 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 9: 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 10: 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 11: 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 12: Growth Strategies
neo” Growth Strategies
Slide 13: Elements of Our Growth Strategy
Elements of Our Growth Strategy Grow Current New M&A, JVs, other Business Applications initiatives 13
Slide 14: 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 15: 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 16: 2022 – 2030: Forecast NdFeB Magnet Demand for EV/PHEVs
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 16
Slide 17: Sustainability Starts with Us
Sustainability Starts with Us 17
Slide 18: How We Enable Sustainable Technologies
How We Enable Sustainable Technologies Neo utilizes sustainable practices in manufacturing our advanced materials, which themselves enable applications that advance societal sustainability goals Neo Sustainable Practices Sustainable Technologies We Enable • Responsible Sourcing of Rare Earth • Hybri
Slide 19: Financial Performance
Financial Performance 19
Slide 20: Q3 2020 Financial Performance
Q3 2020 Financial Performance Selected Consolidated Results US$ 000s excl. Volume & EPS Q3 2020 Q2 20203 Q1 2020 Q4 2019 Q3 2019 YTD 2020 YTD 2019 Volume (tonnes) 3,035 2,545 3,303 3,371 3,131 8,883 10,228 Revenue $77,864 $67,734 $90,697 $94,553 $102,645 $236,295 $312,911 High Free Cash Net Income/(
Slide 21: Proven Leadership Team with Exceptional Track Record
Proven Leadership Team with Exceptional Track Record Industry leaders with the expertise to deliver results, based on a combined 200+ years of experience Board of Directors Claire Kennedy Board Chair Constantine Karayannopoulos Gail Edwards Rahim Suleman Kevin Morris President, CEO & Director EVP &
Slide 22: For More Information
For More Information: Ali Mahdavi, SVP of Corporate Development & Capital Markets (416) 962-3300 a.mahdavi@neomaterials.com www.neomaterials.com 22
Slide 23: Appendix Slides
Corporate presentation February 2020 APPENDIX SLIDES 23
Slide 24: Q3 2020 Financial Performance by Segment: C&O
Q3 2020 Financial Performance by Segment S elect ed C & O Resu lt s YTD YTD Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 2020 2019 US$ 000s Volume (tonnes) 1,929 1,466 1,935 1,940 1,713 5,330 5,901 In The Quarter • Lower volumes and sales driven Revenue $36,031 $25,320 $33,538 $33,650 $42,469 $94,889 $12
Slide 25: Q3 2020 Financial Performance by Segment: Magnequench
Q3 2020 Financial Performance by Segment S elect ed M agn equ en ch Resu lt s YTD YTD Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 2020 2019 US$ 000s Volume (tonnes) 1,095 1,024 1,271 1,387 1,385 3,390 4,197 In The Quarter • Lower volume and revenue due to Revenue $31,620 $30,267 $38,526 $42,748 $42,024
Slide 26: Q3 2020 Financial Performance by Segment: Rare Metals
Q3 2020 Financial Performance by Segment S elect ed Rar e M et als Resu lt s YTD YTD Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 2020 2019 US$ 000s In The Quarter Volume (tonnes) 91 90 142 128 134 323 406 • Lower volumes and selling prices due largely to COVID, Revenue $13,613 $13,529 $20,450 $21,564 $2
Slide 27: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position (Unaudited - all figures in thousands of United States dollars) 27
Slide 28: Consolidated Statements of Profit or Loss
Consolidated Statements of Profit or Loss (Unaudited - all figures in thousands of United States dollars) 28
Slide 29: Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Free Cash Flow 29
Slide 30: Reconciliation of Net Income (Loss) to Adjusted Net Income or Loss
Reconciliation of Net Income (Loss) to Adjusted Net Income or Loss 30