Investor Presentation - Q2-2019
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Investor Presentation Q2-2019
Disclaimers
Forward-Looking Information
The following presentation contains “forward-looking information” within the meaning of applicable securities laws in Canada. Forward-looking information may relate to
future events or future performance of Neo. All statements in this presentation, other than statements of historical facts, with respect to Neo's objectives and goals, as well
as statements with respect to its beliefs, plans, objectives, expectations, anticipations, estimates, and intentions, are forward-looking information. Specific forward-looking
statements in this presentation include, but are not limited to: expectations regarding certain of Neo's future results and information, including, among other things, revenue,
expenses, revenue growth, capital expenditures, and operations; statements with respect to expected use of cash balances; continuation of prudent management of
working capital; source of funds for ongoing business requirements and capital investments; expectations regarding sufficiency of the allowance for uncollectible accounts
and inventory provisions; analysis regarding sensitivity of the business to changes in exchange rates; impact of recently adopted accounting pronouncements; risk factors
relating to intellectual property protection and intellectual property litigation; and, expectations concerning any remediation efforts to Neo's design of its internal controls over
financial reporting and disclosure controls and procedures. Often, but not always, forward-looking information can be identified by the use of words such as “plans”,
“expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates” or “believes”, or variations of, or the
negatives of, such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. This
information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such
forward-looking information. Neo believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward-looking information included in this discussion and analysis should not be unduly relied upon. For more information
on Neo, investors should review Neo's continuous disclosure filings that are available under its profile at www.sedar.com. Information contained in forward-looking
statements in this Presentation is provided as of the date hereof and Neo disclaims any obligation to update any forward-looking statements, whether as a result of new
information or future events or results, except to the extent required by applicable securities laws.
Non-IFRS Measures
This presentation refers to certain non-IFRS financial measures such as “Operating Income”, “Adjusted Net Income”, “EBITDA”, “Adjusted EBITDA”, and “Adjusted EBITDA
Margin”. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and may not be comparable to similar
measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS financial measures by providing further
understanding of Neo's results of operations from management's perspective. Neo's definitions of non-IFRS measures used in this news release may not be the same as
the definitions for such measures used by other companies in their reporting. Non-IFRS measures have limitations as analytical tools and should not be considered in
isolation nor as a substitute for analysis of Neo's financial information reported under IFRS. Neo uses non-IFRS financial measures to provide investors with supplemental
measures of its base-line operating performance and to eliminate items that have less bearing on operating performance or operating conditions and thus highlight trends in
its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Neo believes that securities analysts, investors and other interested
parties frequently use non-IFRS financial measures in the evaluation of issuers. Neo's management also uses non-IFRS financial measures in order to facilitate operating
performance comparisons from period to period. For the operating segments, Neo also uses “OIBDA” and “Adjusted OIBDA”, which reconciles to operating income. Neo
uses OIBDA and EBITDA interchangeably as the use of adjustments in each measure provides the same calculated outcome of operating performance. For definitions of
how Neo defines such financial measures, please see the "Non-IFRS Financial Measures” section of Neo’s management’s discussion and analysis filing for the year ended
December 31, 2018, available on Neo’s web site at www.neomaterials.com and on SEDAR at www.sedar.com
2
Neo Performance Materials: At A Glance
At A Glance Selected Consolidated Results (US$ thousands)
Exchange / Toronto Stock Exchange: Q-over-Q Comparison Y-over-Y Comparison
Ticker Symbol TSX:NEO Q2 2019 Q2 2018 2019 2018
Headquarters Toronto, Canada Revenue $101,736 $110,433 $210,266 $230,618
China, U.S., Germany, U.K.,
Operational and Net Income $2,293 $19,138 $14,520 $27,990
Canada, Thailand, South
R&D footprint
Korea, Singapore, Estonia Adjusted Net
$5,234 $12,489 $13,374 $22,757
Income
Employees 1,813
Adjusted
$12,004 $17,858 $28,490 $37,146
EBITDA
Shares Outstanding • 38,841,183
(as of 6-30-2019) • 41,105,273 (diluted)
Market Cap Other Financial Metrics (as of 6-30-2019)
C$461.5 million
(as of 8-8-2019)
Net Cash Balance
$70.2 million
52-Week Range (including restricted cash)
C$9.86 – C$18.49
(as of 8-8-2019)
Debt-to-Capitalization
Company Overview
Global Leader Involved in the Innovation, Development, Processing and
Manufacturing of Rare Earth- and Rare Metal-Based Functional Materials
LTM Revenue by Segment1 LTM Revenue by Geography
Rare Metals Europe
Magnequench 25%
22%
Designs, develops and
Magnequench
44%
#1 Global Market
Other
produces rare earth 2%
magnetic powders for Leader of powders for North America
bonded and hot bonded and hot deformed $433.8 19%
$433.8
deformed NdFeB magnets million million
magnets. South Korea
3%
Chemicals & China
Oxides Thailand 33%
34% 3% Japan
15%
Chemicals &
Designs, develops and Top 3 Global
Oxides
produces rare earth- Producer of materials
based functional Adjusted Consolidated EBITDA
engineered materials.
for auto catalysts
$80
$70 +
$60 $68 $67
US$ millions
$50 $58
$40 $48
Rare Metals
Produces, reclaims, #1 Global Producer $30
+
refines and markets of Gallium Trichloride $20 +
high-value rare metals (GaCl3) used in LEDs $10 +
and their compounds.
$-
2016 2017 2018 LTM
___________________________
1. Percentages shown after inter-segment revenue eliminations 4
End Product Applications
The functionality that rare earths and rare metals provide includes magnetic, catalytic, luminescence,
electrochemical, thermal stability and superconductivity properties
Major Applications
(44% of revenue
in LTM)
High Efficiency Hybrid / Electric Vehicles Hard Disk Drives Automation
Motors
34% of revenue
in LTM)
Auto Catalysts Multi-layer Ceramic Wastewater High Precision
Capacitors Treatment Optics
z
(22% of revenue
in LTM) Aerospace Medical Imaging High Efficiency Mobile
Applications Systems Lighting Communication
Rare earths and rare metals are critical to applications used in every day life
5
Growing End Markets with Exposure to Key Growth Trends
Bonded Based Motor
(~215 g / 0.5 lbs)
69.2mm
(2.7”) 30.6mm
(1.2”)
30.6mm
(1.2”)
Electrification of Global Adoption Consumer Growth in Rising Demand
Automobiles of Increasingly Demand for Automation for Superalloys
Stringent Air and Lighter, Smaller,
Water Emission Smarter
Standards Electronic
Devices
Hybrid / Electric Vehicles High Quality Consumer Electronics Robotics Aerospace Applications
Auto Catalysts Autonomous
Phosphate Removal Vehicles
from Water Cloud Computing
Key trends support growing demand for Neo’s products
6
Longstanding Relationships with Leading Global Customer Base
Balanced customer base is well-diversified and includes large industrial, consumer electronics and chemical
processing companies
Significant portion of revenue contribution from customers who have been with Neo for 10+ years
Provides significant value to its customers by being embedded within their supply chain and co-developing
advanced, functional materials engineered to their needs
̶ For example, Neo’s work in partnership with Daido and Honda led to the commercialization of HREE-free
traction motors for hybrid and electric vehicles, such as in current Honda Accord, Insight, Fit, and Freed models.
Representative Longstanding Customers
Market leading customer base with longstanding relationships
7
Unique Global Infrastructure with State-of-the-Art R&D Capabilities
Leading R&D Capabilities Global Sales Force Cost-Competitive Manufacturing
Ability to create functional World leading experts with Best-in-class production facilities
materials specifically engineered technical expertise required to located in cost-competitive
to meet customers’ requirements fulfill customers’ needs jurisdictions
8 R&D facilities across 12 sales offices around the world 10 production facilities located
3 continents across the globe
Sillamäe, Estonia
Abingdon, U.K.
Sagard, Germany
Toronto, ON Peterborough, ON Hyeongok, South Korea
Tϋbingen, Germany
Greenwood Village, CO Tokyo, Japan
Bejing, China
Pendleton, IN
Tianjin, China
Blanding, UT
Quapaw, OK Zibo, China Osaka, Japan
Jiangyin, China Seoul, South Korea
Korat, Thailand
Singapore
Production Facilities Research & Development Corporate Offices Sales & Liaison Offices
Leading global infrastructure provide Neo with a unique competitive advantage in the industry
8
Integrated Product Development With Customers
Vehicle traction motors
High efficiency
motors
Vehicle
emissions
catalysts
Customer Collaboration Drives Product Innovation
TRANSLATE CREATE BIND DESIGN VALIDATE/
DELIVER
Materials for
semiconductor Superalloys
chips Wastewater
Treatment Products 9
Magnequench Case Studies/Results
Reducing Size and Weight
Ferrite Based Motor: MQ Based Motor:
~370g ~215g
Seat Motor ~25 Million pieces in 2017
Improved Efficiency
80
70
Important for
60
Efficiency (%)
50
40
continuous duty 30
20
applications
10
0
0 20 40 60 80 100
Auto Pump
Torque (mN-m)
Auto Pumps volume ~5% of total volume in 2017
Improved Performance
6000
Stall torque
5000
4000
Speed (rpm)
3000
2000
increased >40%
1000
Motor length
0
0 50 100 150 200 250 300 350
Torque (mN-m)
reduced >25%
Trunk Lift Motor >5 Million pieces for Trunk Lift application in 2017
10Q2-2019 Financial Performance: Consolidated
Selected Q2-2019 Consolidated Results
US$ 000s
Q-over-Q Comparison Y-over-Y Comparison High Free Cash Flow Conversion
excl. Volume
Q2 2019 Q2 2018 YTD 2019 2018
Volume
(tonnes)
3,490 3,396 7,097 6,995 Low CAPEX ($8 - $15M)
Revenue $101,736 $110,433 $210,266 $230,618 Scalability (70 – 80% capacity)
Net Income $2,293 $19,138 $14,520 $27,990 Efficient Global Tax Structure
Adjusted Net
$5,234 $12,489 $13,374 $22,757
Income Low Commodity Exposure
Adjusted
$12,004 $17,858 $28,490 $37,146
EBITDA Minimal Debt
Basic EPS $0.05 $0.48 $0.36 $0.70
Dividend (C$0.10)
Adjusted
$0.13 $0.31 $0.33 $0.57
EPS
Strong Net Cash Balance ($70.2M)
Net Cash $68,695 $98,153 (including restricted cash)
(including $70,229 $76,143
(YTD Dec/18) (YTD Dec/17)
restricted cash)
Cash Tax
$4,258 $3,089 $6,159 $5,985
Paid
CAPEX $1,973 $3,929 $4,638 $6,234
11Q2-2019 Financial Performance by Segment
Selected Magnequench Results
Q-over-Q Y-over-Y • Q2-2019 volumes down YoY, mostly in legacy and longer
Comparison Comparison running programs, due to slowdown in auto markets, slower
Q2 2019 Q2 2018 2019 2018 economic performance in some market segments, and
Volume (tonnes) 1,367 1,554 2,812 3,081 anticipated customer inventory adjustments.
($000s)
Revenue $41,473 $56,229 $89,028 $111,963 • Segment continues to see growth related to newer products,
Operating income $6,164 $11,432 $15,645 $24,773
including traction motors for hybrid / electric vehicles and
EBITDA $8,121 $13,261 $19,544 $28,589
programs still ramping up volumes to full production levels.
Adjusted EBITDA $8,255 $13,408 $19,184 $28,883
Selected C&O Results
Q-over-Q Y-over-Y • Segment volume and revenue higher YoY. 3-way autocats saw
Comparison Comparison incremental growth YoY despite general slowdown in auto
Q2 2019 Q2 2018 2019 2018 markets, offset by decline in diesel catalyst products.
Volume (tonnes) 2,053 1,776 4,188 3,783
($000s) • Softer REE commodity prices in 1H-2019 caused lagging
Revenue $38,534 $36,698 $82,107 $81,854 impact b/c of higher-cost inventory relative to current selling
Operating income $3,696 $3,808 $10,322 $5,925 prices, partially offset through timing of high-value spot sales.
EBITDA $4,870 $4,937 $12,660 $8,214 REE commodity prices began rising in June 2019.
Adjusted EBITDA $4,924 $5,180 $11,912 $8,700
Selected Rare Metals Results
Q-over-Q Y-over-Y • Strong sales of Hafnium-based products offset by
Comparison Comparison
continuing price decline in Tantalum-based products.
Q2 2019 Q2 2018 2019 2018
Volume (tonnes) 154 139 272 274 • Segment continues to develop new products and focus on
($000s) value-added margins to mitigate short-term earnings
Revenue $25,027 $21,321 $46,558 $44,092 variations to due material price volatility.
Operating income $(371) $1,160 $(214) $3,639
EBITDA $780 $2,384 $2,142 $6,093
Adjusted EBITDA $1,813 $2,472 $2,988 $6,268
12Low Exposure to Commodity Pricing Risk Allows for
Greater Focus on Value-Added Products and Margins
1 2 3
As a net buyer of rare Example: ~90% of In the chart below,
earths, with no upstream Magnequench sales correlating trends can be
or mining operations, Neo volumes are covered by seen between rare earth
has material cost pass- formulaic pass-through consumption cost and
through agreements on agreements. Most C&O adjustments to selling
the majority of our and RM customers are price for typical “quarterly
business. as well. pass-through customer.”
Focus on downstream, value-added operations mitigates risk of rare earth pricing volatility.
13Multiple Avenues for Growth
1 2 3
Continued Growth in Growth from New
Product Portfolio Acquisitions
Existing Products Product Development
Well positioned to supply materials Working with customers to develop Strong balance sheet and the
within broader magnetic, catalytic, new and next generation versions of financial flexibility to selectively
electronic, healthcare and aerospace current products pursue strategic acquisitions
markets
Driven by key macro trends that Target companies or assets that
Strong competitive position due to: require the functionality that rare would benefit from Neo’s global
̶ Longstanding customer earths provide reach, customer relationships, cost-
relationships competitive facilities and product
Over 20% of current revenues come
̶ Product development and development skills
from products not sold 5 years ago
processing know-how Proven track record of integrating
Neo has been successful at
̶ Cost-competitive manufacturing acquired assets and replicating
innovating new products for new
locations acquired technology in new
markets demanded by customers
geographies
̶ Global reach with direct sales
channels
̶ Geographic diversification of rare
earth manufacturing and raw
material supply
i.e. Growth of complex i.e. Development of traction motors i.e. Integration of Silmet facility,
auto catalysts (hybrid vehicles) with Daido and Honda, recent replication of Oklahoma
and electric vehicles commercialization of wastewater facility in South Korea
treatment
14Investment Highlights
1 2 3 4 5
Global Leader Growing End Unique Global Longstanding Strong
in Growing Markets with Infrastructure Relationships Profitability,
Specialty Markets Exposure to Key Platform with with Leading Cash Flow and
Growth Trends State-of-the-Art Global Customer Financial Position
R&D Capabilities Base
6 Proven Management Team with Exceptional Track Record
Unique combination of these competitive advantages make Neo’s business difficult to replicate
15Questions
Appendix
Industry Overview
Overview Growth CAGR
Two important classes of permanent magnets:
̶ Ferrite (iron-based) Roskill -
Permanent Rare ̶ Neodymium-iron-boron ("NdFeB") (rare-earth based), which includes sintered,
Global
Earth Magnet bonded and hot deformed 10.1% demand for
REO in
Industry Bonded magnet demand is expected to grow as they are better suited for precision permanent
motors, sensors and actuators used in automotive, consumer electronic and robotic 2016-2021 magnets
applications that require small or complex shapes
Products engineered from REOs are used in the production of automotive BoA/Merrill
emission-control catalysts Lynch -
Market
Catalyst Industry Developing auto catalyst applications requires close collaboration with customers
and long lead times, providing a barrier for new entrants 6% growth for
auto
Tightening global air emission standards are a large key driver of growth 2019-2025 catalysts
REEs and rare metals are indispensable inputs for many applications given their Roskill –
Rare Earth unique properties which include magnetic, catalytic, luminescence, electrochemical, Global
Separation
thermal stability and superconductivity
REE deposits are found predominantly in China, which currently supplies ~87% of
5.7% demand for
separated
the global market REOs
2016-2021
Rare metals provide functional benefits such as mechanical strength, resistance to Growth from
thermal creep deformation, corrosion and oxidation and strong surface stability many
Rare Metals Typically include tantalum, niobium, gallium, hafnium, rhenium, indium, germanium,
applications
(aerospace,
manganese, tellurium, lithium and cobalt LEDs, etc.)
Positive industry fundamentals drive growth
18Growth Trends Impacting Neo
Growing demand for rare metals
Increasing demand for Tightening air emission standards in aerospace as they provide
smaller, lighter and more driving growth for higher weight reduction,
efficient micro motors performing auto catalysts increased fuel efficiency
and reduced emissions
Next generation traction motors
used in EVs and HEVs rely on Rare earth materials are Ongoing rare metals demand
superior strength and superior for controlling driven by core
efficiency provided by rare phosphorus in wastewater properties
earths
Neo benefits from increasing demand for virtually all products that require the core functionality that
rare earths and rare metals provide
19Growth Trends Impacting Magnequench
Increasing Use of Micro Motors Electrification of Automobiles1
The number of micro motors and sensors in vehicles is Continuously
variable Fuel
increasing HEV drive
motor /
Windshield
wiper
transmission
Blower
pump
generator
Bonded magnets are better suited for a wide array of
micro motor applications due to their ability to be Variable
valve
formed into unique shapes actuator
Ferrite Based Motor Bonded Based Motor Electronic
(~370 g / 0.8 lbs) (~215 g / 0.5 lbs) control
throttle
86.3mm 69.2mm
(3.4”) 39.3mm (2.7”) Alternator
Power seat
30.6mm
(1.5”)
(1.2”) Automated
Engine
manual
30.3mm 30.6mm cooling fan
transmission
(1.2”) (1.2”)
Starter EPS
sensor
Starter / EPS
generator motor
Ferrite Magnets
~40% lighter Exhaust gas
Antilock brake
system (ABS)
ABS
sensor Neodymium Magnets
recirculation
and smaller1
Hybrid Electric Vehicles (Traction Motors)
Next generation traction motors in HEVs and EVs rely on
Home / Office rare earth magnets due to their superior strength and
Robotics Automotive resulting efficiency
Automation
Neo’s work in partnership with Daido and Honda led to the
commercialization of a new magnetic product used in
Honda’s traction motors, an exciting new platform for future
growth
Neo benefits from demand for virtually all products that require small, efficient motors
___________________________
1. Source: Management estimate
20Growth Trends Impacting Chemicals & Oxides
Tightening Air Emission Standards Increased Demand for Rare Earth Oxides
Tightening air emission standards and global Demand for rare earth oxides are expected to
implementation is driving growth in demand for grow at a 5.7% CAGR from 2016 to 2021
higher performing auto catalysts
~5% – 10% CAGR for auto catalysts from 2016-2021
according to Johnson Matthey and 7.8% CAGR from
10.1% 6%
2015-2020 according to Umicore
Historical Performance Enacted Target
CO2 emission values (g/km),
Liters per 100 kilometers
(gasoline equivalent)
normalized to NEDC
Mexico 2016: 145
Brazil 2017: 138
India 2022: 113 Magnet growth Catalyst growth
Japan 2020: 122* Canada: 2025: 99
S. Korea 2020: 97 China US 2025: 99
EU 2021: 95 2020: 117
2000 2005 2010 2015 2020 2025 2030
Tightening Wastewater Treatment Standards
Source: The International Council of Clean Transportation
(*) Japan has already met its 2020 statutory targets as of 2013
Government regulations have become more stringent
Expected growth in HEVs will require better performing with respect to the allowable amount of phosphorus in
catalysts
wastewater discharge
EV Sales ICE Sales (Including Hybrids) EV - %
140
57% ICE / HEV
100% Rare earth-based functional materials for controlling
EVs as Percentage of
120 92% ICE / HEV
New Vehicle Sales
New Vehicles Sold
100
80% phosphorus in wastewater treatment systems are
superior to other alternatives at reaching low ppm levels
(millions)
80 60%
60 40%
40 Current focus on municipal
20
20%
and industrial centres in the
-
2015 2020 2025 2030 2035 2040
-
U.S. where low phosphorus
Source: Bloomberg New Energy Finance limits are required
21Growth Trends Impacting Rare Metals
Demand Driven by Many Applications Rising Demand for Superalloys
Demand for tantalum and niobium has been driven Superalloys are commonly used in aerospace
by the growth in consumer electronics, metal applications
construction materials, aerospace applications and According to the Boeing Company, passenger travel
healthcare applications growth in the global aviation industry had a 6.2% CAGR
Demand for gallium has been driven by the over the past 5 years
growing LED market as well as the electronics Demand for rare metals in aerospace applications is
market due to gallium’s use in semiconductors and likely to increase at a faster rate than the industry as a
wireless devices whole
Many applications also benefit from the
̶ Global effort to reduce carbon dioxide and energy usage
superconductive properties of rare metals, has led to the development of new technologies that
including these; deliver weight reduction, decreased fuel consumption and
reduced emissions
Neo’s Rare Metals platform provides a complementary suite of functional materials and applications
22Evolution of Applications Using Neo’s Products
Cathode ray lighting (used Fluorescent lighting in turn
in TVs) was phosphor- replaced with LEDs, which
based and required the require GaCl3...
use of rare earths…
Replaced by fluorescent
lighting applications, also
phosphor-based requiring
rare earths…
Continued reliance on Neo’s products even as applications evolve…
New applications continue to require Neo’s products due to the essential functionality they provide
23Company History
NEM (1994 – 2012) Neo Performance (2017+)
Processor of Rare Earths Innovator of Advanced Functional Materials
1994: Began separating rare earths in China 2017: Initial Public Offering
1995: Listed on the TSX Downstream focus with growing end markets
2005: Acquisition of Magnequench, which Adapt with ever changing technologies and
had been designing and manufacturing applications
magnetic powder since 1985 Commercialization of recently developed
2012: Acquired by Molycorp for $1.3 billion products such as wastewater treatment
Capitalize on fast growing markets and
Exposure to commodity price cycles exposure to key trends, including:
‒ Electrification of automobiles
‒ Increasingly stringent emission standards
‒ Growth in automation and others
Under Molycorp (2012 – 2016)
Manufacturer of Functional Materials
2015: Molycorp filed for Chapter 11 in U.S.
2015: Launched wastewater treatment
phosphate removal business
2015: Commercialized MQU program
2016: Emerged from Molycorp bankruptcy as
a much stronger entity, with all original NEM
assets plus Molycorp’s Estonia plant
Pass through costs with value-add products
> 20% of revenue from products that did not
exist 5 years ago
Neo business remained profitable through
Molycorp bankruptcy
Neo consistently generated positive cash flow throughout its history, demonstrating its financial
resilience and attractive value proposition as an advanced engineering products company
24Board of Directors
Name Position Country of Residence Principal Occupation
Constantine Former Chief Executive Officer, Chairman and Director of
Chairman Canada
Karayannopoulos1 Molycorp
Formerly CEO and Executive Director of Lynas Corporation
Eric Noyrez1 Lead Director France
Ltd.
President, CEO and
Geoff R. Bedford Canada President and CEO of Neo Performance Materials
Director
Senior Vice President in the Strategy Credit group of Oaktree
Nicholas Basso Director United States
Capital Management
Senior Vice President in the Opportunities Funds group of
Brook Hinchman Director United States
Oaktree Capital Management
Claire Kennedy1 Director Canada Partner in the Toronto office of Bennett Jones LLP
Vice President in the Strategic Credit group of Oaktree Capital
Aman Kumar Director United Kingdom
Management
Portfolio Manager for the Strategic Credit group of Oaktree
Edgar Lee Director United States
Capital Management
Managing Director in the Opportunities Funds group of
Emily Stephens Director United States
Oaktree Capital Management
___________________________
1. Independent Board Members
25Adjusted EBITDA Reconciliation
See accompanying notes in Neo’s Q2 2019 MD&A, filed on SEDAR and available at NeoMaterials.com
26Adjusted Net Income Reconciliation
See accompanying notes in Neo’s Q2 2019 MD&A, filed on SEDAR and available at NeoMaterials.com
27CONSOLIDATED STATEMENTS OF FINANCIAL POSITION See accompanying notes in Neo’s Q2 2019 Financial Statements, 28 filed on SEDAR and available at NeoMaterials.com
CONSOLIDATED STATEMENTS OF PROFIT & LOSS See accompanying notes in Neo’s Q2 2019 Financial Statements, 29 filed on SEDAR and available at NeoMaterials.com
Global Leader in Growing Specialty Markets
30+ years of experience developing high-performance rare earth
magnetic powders for NdFeB bonded magnets used in motors,
Bonded sensors and actuators for consumer electronics and automotive
#1 Global Market Leader
Magnetic Powders applications of powders for bonded and
Global leader with 70-75% market share; serves as market hot deformed magnets
benchmark and pioneer in technology and quality
Top three global supplier to auto catalyst end markets
Automotive Expertise in working with its customers to meet ever tightening
emission standards by engineering more advanced formulations
Top 3 Global Producer
Catalysts of materials for auto catalysts
Qualified supplier for all leading producers of auto catalysts who
supply all of the leading global OEMs
Pioneer in processing, developing and manufacturing functional Strategic benefits from
material for a diverse range of applications
Rare Earth Only non-Chinese company with a license to separate rare earths in
status as only licensed
Separation China non-Chinese separator
Vertical integration improves quality and reduces overall costs; also of rare earths in China
acts as a launchpad for new uses and applications
Leading global producer of advanced engineered materials made
Specialty Alloys from rare metals #1 Global Producer of
and Rare Metals #1 global producer of GaCl3 GaCl3 used in LEDs
Leading market positions in key specialty markets with high barriers to entry
30Proven Management Team with Exceptional Track Record
Geoff Bedford Rahim Suleman Kevin Morris Constantine Karayannopoulos
President & CEO EVP & CFO EVP & COO Chairman
18 years of experience at Neo1 EVP and CFO since 2017 6 years of experience at Neo1 23 years of experience at Neo1
President, CEO and board Former CFO of Stackpole EVP and COO since 2016 Served as President and CEO of
member since 2013 International both Molycorp and Neo before
being acquired by Molycorp
Greg Kroll Jeffrey Hogan Frank Timmerman
EVP Magnequench EVP Chemicals & Oxides SVP Rare Metals
17 years of experience at Neo1 18 years of experience at Neo1 12 years of experience at Neo1
Former SVP, Sales & Marketing, EVP Chemicals & Oxides since SVP Rare Metals since 2012
at Magnequench 2016
Industry leaders with the expertise to deliver results, based on a combined 200+ years of experience
___________________________ 31
1. Includes all years spent at Neo as well as its predecessors.Information Contact Ali Mahdavi Capital Markets and IR (416) 962-3300 Email: a.mahdavi@neomaterials.com Website: www.neomaterials.com
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