Slide 1: Corporate presentation
Corporate presentation FebruaryPresentation Investor 2020 Q3 2022
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 Neo manufactures specialty materials that Ticker Symbol 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, Estonia, an
Slide 5: Neo's Four Foundational Elements
Neo’s Four Foundational Elements 1 Long-standing relationships with customers R&D investment and technical expertise 2 3 Global manufacturing footprint in cost- competitive markets and in locations near customers’ facilities 4 Focus on specialty materials that enable increased sustainability and env
Slide 6: 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 6
Slide 7: 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 and rare metals facility in Euro
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 Sillamäe, Estonia Zibo, China Integrated Process Development Example: Magnet
Slide 12: Growth Strategies
neo” Growth Strategies
Slide 13: Elements of Our Growth Strategy
Elements of Our Growth Strategy Grow Current Diversify Develop M&A, JVs, other Business Global New initiatives Footprint Applications 13
Slide 14: Macro Growth Drivers for Neo Products
Macro Growth Drivers for Neo Products 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 GHG Electrif
Slide 15: 2022 – 2035: Global Demand for Magnetic REE Oxides to Grow 3X
2022 – 2035: Global Demand for Magnetic REE Oxides to Grow 3X Much of this will be driven by double-digit growth from the electric vehicle and wind power sectors Source: Adamas Intelligence, 2022 15
Slide 16: Rare Earths Needed for Electrified Transportation
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 traction mot
Slide 17: EU Magnet Manufacturing Plant
EU Magnet Manufacturing Plant Neo receives first-ever grant under Europe’s JTF • Phase 1: 2,000mt / year magnet block Phase 2: 5,000 mt / year • Commercial discussions with customers indicate far greater demand than Phase 1 • Groundbreaking expected in 2023; operational target of 2025 • Maximizing r
Slide 18: Innovative U.S. - European Rare Earth Supply Initiative
Innovative U.S. - European Rare Earth Supply Initiative Neo and Energy Fuels now operate 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 19: Prospective Rare Earth Supply Initiative: Greenland
Prospective Rare Earth Supply Initiative: Greenland • Neo is purchasing an Neo’s REE exploration license from processing Hudson Resources Inc. facility in Sillamäe, covering the Sarfartoq Carbonatite Estonia Complex in SW Greenland. • Project has a mineralization with a high ratio of Neodymium and P
Slide 20: Prospective Rare Earth Supply Initiative: Yangibana Project
Prospective Rare Earth Supply Initiative: Yangibana Project Neo’s REE processing facility in • Hastings Technology Metals, Neo’s Sillamäe, largest sharerholder, is developing the Estonia Yangibana Rare Earth Project, with substantial Neodymium and Praseodymium resources. • Definitive Feasibility Stu
Slide 21: Prospective Rare Earth Supply Initiative: Koppamurra Project
Prospective Rare Earth Supply Initiative: Koppamurra Project Neo’s REE processing facility in • Non-binding MOU with Australia Sillamäe, Rare Earths for potentially 50% Estonia of the planned production of mixed rare earth carbonate from the Koppamurra Rare Earth Project. • Ionic clay deposits rich
Slide 22: 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 from our key competencies of engineering and manufacturing critical advanced materials. Next Generation Water Anti-Microbial Materials Flame Retardant Coatings Pu
Slide 23: Sustainability Starts with Us
Sustainability Starts with Us 23
Slide 24: 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 25: 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 26: 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 27: Sustainability Partners
Sustainability Partners Neo is a proud member of the following organizations and initiatives focused on increasing environmental protection and improving sustainability outcomes. Rare Earth Industry Association 27
Slide 28: Financial Performance
Financial Performance 28
Slide 29: Q3 2022 Financial Performance
Q3 2022 Financial Performance Selected Consolidated Results Q-over-Q Y-over-Y Prior Years Comparison Comparison US$ 000s YTD Q3 YTD Q3 Q3 2022 Q3 2021 LTM FY2021 FY2020 FY2019 excl. EPS 2022 2021 Revenue $146,627 $119,841 $481,130 $385,837 $634,544 $539,251 $346,692 $407,464 Net (loss) income ($3,81
Slide 30: Q3 2022 Financial Performance by Segment: C&O
Q3 2022 Financial Performance by Segment S elect ed C & O Resu lt s Q-over-Q Y-over-Y Prior Years Comparison Comparison US$ 000s Q3 2022 Q3 2021 YTD Q3 YTD Q3 LTM FY2021 FY2020 FY2019 In The Quarter 2022 2021 • Higher revenue both QoQ and Revenue $52,231 $45,677 $189,244 $152,322 $249,632 $212,711 $
Slide 31: Q3 2022 Financial Performance by Segment: Magnequench
Q3 2022 Financial Performance by Segment S elect ed M agn equ en ch Resu lt s Q-over-Q Y-over-Y Prior Years Comparison Comparison US$ 000s Q3 2022 Q3 2021 YTD Q3 2022 YTD Q3 2021 LTM FY2021 FY2020 FY2019 In The Quarter • Revenue higher by QoQ Revenue $67,402 $60,063 $219,828 $192,856 $290,726 $263,7
Slide 32: Q3 2022 Financial Performance by Segment: Rare Metals
Q3 2022 Financial Performance by Segment S elect ed Rar e M et als Resu lt s Q-over-Q Y-over-Y Prior Years Comparison Comparison US$ 000s Q3 Q3 YTD Q3 YTD Q3 LTM FY2021 FY2020 FY2019 In The Quarter 2022 2021 2022 2021 • Record earnings both QoQ Revenue $31,567 $19,509 $86,521 $56,308 $113,817 $83,60
Slide 33: 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 34: For More Information
For More Information: Ali Mahdavi, SVP of Corporate Development & Capital Markets (416) 962-3300 a.mahdavi@neomaterials.com www.neomaterials.com 34
Slide 35: Appendix Slides
Corporate presentation February 2020 APPENDIX SLIDES 35
Slide 36: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position (All figures in thousands of United States dollars) 36
Slide 37: Consolidated Statements of Profit or Loss
Consolidated Statements of Profit or Loss (All figures in thousands of United States dollars, except per share information) 37
Slide 38: Reconciliation of Net (Loss) Income to EBITDA, Adjusted EBITDA and Free Cash Flow
Reconciliation of Net (Loss) Income to EBITDA, Adjusted EBITDA and Free Cash Flow (All figures in thousands of United States dollars, except where otherwise indicated) 38
Slide 39: Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income
Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income (All figures in thousands of United States dollars, except number of shares and per share information) 39