Neo Performance Materials, Inc. · TSX:NEO
Neo Performance Materials — Q4 2020 Earnings Presentation
34 slides from Neo Performance Materials's earnings presentation, March 2021
Slide 1: Corporate Investor Presentation Q4 2020
Corporate presentation FebruaryPresentation Investor 2020 Q4 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 Neo manufactures advanced materials that incorporate rare earth and rare metal elements. These Headquarters Toronto, Canada materials form the building blocks of everyday products Operational and Canada, U.S., Germany, U.K., and em
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: 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 (pending) 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 OHS-18001 ü Certified HES Management S
Slide 23: Financial Performance
Financial Performance 23
Slide 24: Q4 & FY 2020 Financial Performance
Q4 & FY 2020 Financial Performance Selected Consolidated Results US$ 000s excl. Volume & EPS Q4 2020 Q3 2020 Q2 20203 Q1 2020 Q4 2019 FY 2020 FY 2019 Volume (tonnes) 3,683 3,035 2,545 3,303 3,371 12,566 13,599 Revenue $110,397 $77,864 $67,734 $90,697 $94,553 $346,692 $407,464 High Free Cash Net Inco
Slide 25: Q4 & FY 2020 Financial Performance by Segment: Chemicals & Oxides
Q4 & FY 2020 Financial Performance by Segment S elect ed C & O Resu lt s US$ 000s except Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 FY 2020 FY 2019 volumes Volume (tonnes) 2,018 1,929 1,466 1,935 1,940 7,348 7,841 In The Quarter • Revenue up 44% YoY and 34% Revenue $48,433 $36,031 $25,320 $33,538 $33,6
Slide 26: Q4 & FY 2020 Financial Performance by Segment: Magnequench
Q4 & FY 2020 Financial Performance by Segment S elect ed M agn equ en ch Resu lt s US$ 000s except Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 FY 2020 FY 2019 volumes Volume (tonnes) 1,626 1,095 1,024 1,271 1,387 5,016 5,584 In The Quarter • Higher revenue sequentially and YoY Revenue $52,553 $31,620 $3
Slide 27: Q4 & FY 2020 Financial Performance by Segment: Rare Metals
Q4 & FY 2020 Financial Performance by Segment S elect ed Rar e M et als Resu lt s US$ 000s except Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 FY 2020 FY 2019 volumes In The Quarter Volume (tonnes) 89 91 90 142 128 412 534 • Lower volumes and selling prices due largely to COVID-19, Revenue $12,096 $13,61
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 (All figures in thousands of United States dollars) 31
Slide 32: Consolidated Statements of Profit or Loss
Consolidated Statements of Profit or Loss (All figures in thousands of United States dollars) 32
Slide 33: 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 33
Slide 34: Reconciliation of Net Income (Loss) to Adjusted Net Income or Loss
Reconciliation of Net Income (Loss) to Adjusted Net Income or Loss 34
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