Neo Performance Materials (NEO) Precious Metals & Critical Minerals Virtual Investor Conference summary

Industry context and macro trends

• Global supply chain for rare earth magnets faces significant challenges, with China dominating separation, metal making, and magnet production stages, creating bottlenecks for Western markets.

• Geopolitical events, such as Chinese export restrictions and G7 recognition, have highlighted the strategic importance of permanent magnets and critical materials.

• Demand for permanent magnets is driven by electric vehicles, robotics, automation, and renewable energy, with Europe representing a larger market than the U.S.

• Governments are investing billions to localize supply chains and reduce reliance on China, supporting industry growth.

• Pricing for critical materials is rising due to strong demand, geopolitical barriers, and stockpiling initiatives.

Company performance and financial highlights

• Achieved record EBITDA in Q1, with strong momentum across all business units, especially in the Rare Metals Division.

• Raised EBITDA guidance multiple times in 2024, now targeting $140–$150 million for fiscal year 2026.

• Diversified revenue streams across products and geographies, with continued margin expansion and growth.

• Dividend policy is reviewed quarterly, but capital is prioritized for growth opportunities over dividend increases.

Operations, assets, and growth strategy

• Operates globally with manufacturing and technical sales teams in Asia, Europe, and the Americas, supporting a diverse customer base.

• European magnet facility launched in 2023 with 2,000 tons capacity; plans to expand to 5,000 tons (phase I-B) and sequential 5,000-ton deployments globally.

• On track to achieve commercial production for two to three programs in Europe in 2025, with qualification magnets already delivered.

• Completed heavy rare earth separation line in Estonia, positioning for future supply chain independence as new deposits come online.

• Rare Metals Division leads in recycling gallium and hafnium, providing green credentials and unique market positioning.