Slide 1: Second Quarter 2025 Results
Rahim Suleman CEO & President & Director Jonathan Baksh EVP & CFO Second Quarter 2025 Results TSX: NEO.TO | Earnings call | August 12, 2025
Slide 2: Forward-Looking Information Non-IFRS Financial Measures
Forward-Looking Information Non-IFRS Financial Measures The following presentation contains “forward-looking information” within the meaning of applicable securities laws in Canada. Forward- This presentation refers to certain specified financial measures, including non-IFRS financial measures and r
Slide 3: Introduction
Introduction Rahim Suleman 3
Slide 4: Q2 2025 Key Themes
Q2 2025 Key Themes Executing On Driving Operational Delivering Strong Strategic Priorities Efficiency and Financial Commercial Growth Performance 4
Slide 5: Advancing a Localized Permanent Magnet Supply Chain
Advancing a Localized Permanent Neo Annual Permanent Magnet Capacity Target Magnet Supply Chain Built in just 500 days, our European permanent magnet facility is producing to spec ahead of its 10,000 MT September 2025 Grand Opening 20,000 MT New EV Magnet Award from European 5,000 MT Tier 1 Supplier
Slide 6: Global Recognition of Neo's Role in the Rare Earth Magnetics Supply Chain
Gl ob al R e cog nition of N e o’s R ol e in the R are Earth M ag ne tics S u p pl y Chain EU President Ursula von der Leyen, at the G7 2025 Summit in Canada: > 85% of EV/ HEV traction motors use “Today, I brought with me a permanent permanent RE magnets (~1-2 kg/motor) magnet. Not just any magnet—t
Slide 7: Q2 2025 Financial Results
$55-60m Q2 2025 Financial Results to 2025 ADJ. EBITDA (1) OUTLOOK Strong Performance Supported By Resilient Demand, Cost Discipline and Updated Guidance $64-68m Trending Adj. EBITDA(1) ($m) $115m $19m $0.19 $(13)m Q2’25 NET SALES ADJUSTED EBITDA(1) ADJUSTED EPS(1) NET CASH $20 $21 $17 $19 $13 $108m
Slide 8: Neo: A Pure-Play Beneficiary of Supply Chain Shifts and Critical Materials Demand
Neo: A Pure-Play Beneficiary of Supply Chain Shifts and Critical Materials Demand Macro Trends Geopolitical Driving Strong Forces & Public Growth in Neo’s Policy Tailwinds Products Unique Asset Base & Technical Expertise 8
Slide 9: Financials
neo Financials Jonathan Baksh
Slide 10: Revenue and Adj. EBITDA Margin
REVENUE $ 115 m in Q2 2025 VS ~7% YoY Revenue and Adj. EBITDA(1) Margin $160,000 $(000) 30% $108m in Q2 2024 $140,000 $134,903 25% $121,610 • Revenue drivers: higher volumes in $120,000 $111,281 $114,700 Magnequench and improved product mix and $107,549 20% pricing in Rare Metals, partially offset b
Slide 11: Q2 2024/25 Adj. EBITDA Bridge
ADJ.EBITDA (1) Q2 2024/25 Adj. EBITDA(1) Bridge $19 m in Q2 2025 VS ~42% YoY $(000) ($572) $13m in Q2 2024 $1,970 $2,788 Magnequench $1,390 strong volume growth in bonded magnets and powders $18,968 $13,392 Chemicals & Oxides strong growth in auto catalyst business Q2 2024 Magnequench C&O Rare Metal
Slide 12: Magnequench
Magnequench Volume (t) Revenue (US$000) Operating Income Adjusted EBITDA(1) $50,468 1,558 (US$000) (US$000) $2,257 1,190 $42,096 $1,611 $7,558 $6,168 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2025 Highlights Adjusted EBITDA(1) (US$000) • For the quarter, sales volumes increa
Slide 13: Chemical & Oxides
Chemical & Oxides Revenue (US$000) Operating Income (US$000) Adjusted EBITDA(1) (US$000) $34,478 $3,959 $29,443 $5,439 $2,651 $198 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2025 Highlights Adjusted EBITDA(1) • Emissions catalyst volumes for the quarter were up 11% from the prior year, which
Slide 14: Rare Metals
Rare Metals Revenue (US$000) Operating Income (US$000) Adjusted EBITDA(1) (US$000) $35,948 $10,127 $31,909 $8,573 $10,756 $8,786 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2025 Highlights Adjusted EBITDA(1) • Hafnium prices have normalized, with gross margins for the quarter down 8% from the
Slide 15: Cash Flows and Capital Allocation
Cash Flows and Capital Allocation Dividends LTM $12m H1 2025 $6m CASH $ 80 m in Q2 2025 NCIB H1 2025 $2.3m ~$3m VS Strategic Projects $77m in Q1 2025 Emissions Control Catalyst Facility Grand opening Sept 2024 Inflows Outflows $61.1m $6.9m $7.0m Capital spend to date1 Remaining Budget $14m Cash from
Slide 16: Strong Balance Sheet
Strong Balance Sheet Liquidity(1) ($m) $6 Q1 2025 Q2 2025 $45 Total: $77m $80m $131m Cash $80 $71m Gross debt $94m Cash On Hand Undrawn Credit Facilities Grant $6m Net cash $(13)m Cash On Hand $80m $144m $146m Revolving and Other Loan Inventory $45m Capacity Government Grant $4m-$8m $185m Property,
Slide 17: Closing Remarks
Closing Remarks Rahim Suleman 17
Slide 18: Delivering Growth & Capital Returns to Shareholders
Delivering Growth & Capital Returns to Shareholders Neo is strategically positioned to capitalize on mega-trends and the growing demand for secure critical materials supply chains 1. Financial Strength 2. Strong Growth 3. Execution & Resilience Prospects Value-added business Long-term growth A track
Slide 19: Q&A
Q&A
Slide 20: For further investor information and company updates
Performance Materials Corporate Headquarters Suite 1740, 121 King Street West Toronto, Ontario, Canada, M5H 3T9 Phone: (416) 367 8588 For further investor Follow us on: information and company updates: Irina Kuznetsova Director, Investor Relations Contact: ir@neomaterials.com