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neo Performance Materials Investor Presentation An established global platform in rare earth magnetics and critical materials TSX : NEO.TO | OTCQX : NOPMF August 2026
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Investor Presentation • 2
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Disclaimer Forward-Looking Information This presentation contains “forward-looking information”, within the meaning of applicable securities laws i n 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 information 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; growth prospects; capital expenditures; and operations; risk factors relating to national or international economies, geopolitical risk and other risks present in the jurisdictions in which Neo, its customers, its suppliers, and/or its logistics partners operate; statements with respect to current and future market trends that may directly or indirectly impact sales and revenue of Neo, including but not limited to the price of rare earth elements; 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 and changes in rare earth prices; impact of recently adopted accounting pronouncements; risk factors relating to intellectual property protection and intellectual property litigation; expectations regarding demand for products and applications; expectations regarding the growth of superalloy and superconductor materials; anticipated commercial launch of Neo’s new permanent magnet facility in Europe and related commercial production estimates, forecasted budget, commissioning and costs associated with the facility; Neo’s requalified product portfolio, including the NAMCO product portfolio; expectations regarding tariffs and export restrictions; securing new automotive customer agreements for permanent magnet and emission cata lyst facilities; expectations concerning the continued growth of the Magnequench project and improvements in operations; expectations concerning any remediation efforts to Neo’s design of its internal controls over financial reporting and disclosure controls and procedures; and Neo’s 2026 guidance and the assumptions relating thereto. 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 risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Additionally, Neo’s 2026 guidance reflects management’s expectations regarding the Company’s financial performance in fiscal 2026 based on assumptions which Neo believes to be reasonable as of the date of this presentation, including but not limited to continued Magnequench growth, operational improvements in C&O, relative stability in rare earth pricing, continued strong hafnium demand alongside elevated pricing and tig ht raw material supply conditions, reduction in operating expenses, expectations regarding tariffs and export controls, and securing new customer agreements for permanent magnet and emission catalyst facilities. 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 filings available under Neo’s profile at sedarplus.ca. Information contained in forward-looking statements in this presentation is provided as of the date hereof and Neo disclaims any oblig ation to update any forward-looking information, whether as a result of new information or future events or results, except to the extent required by applicable securities laws. Non-IFRS Financial Measures This presentation refers to certain specified financial measures, including non-IFRS financial measures and ratios such as “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Net Income”, “Adjusted Earnings per Share” and “Free Cash Flow”. These specified financial measures are not recog nized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. Rathe r, these specified financial 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 presentation may not be the same as the definitions for such measures used by other companies in their reporting. Specified financial measures such as non-IFRS measures and ratios 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 specified 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 specified financial measures such as non- IFRS financial measures and ratios in the evaluation of issuers. Neo’s management also uses non-IFRS financial measures and ratios to facilitate operating performance comparisons from period to period. Readers are cautioned that these measures should not be construed as an alternative to their nearest or directly comparable financial measures determined in accordance with IFRS as an indication of Neo’s financial performance. For further information on how Neo defines such specified financial measures, including non-IFRS financial measures and ratios and, where applicable, their reconciliations to the nearest comparable IFRS measures, please see the “Non-IFRS Financial Measures” section of Neo’s MD&A for the three months ended June 30, 2026, whi ch is hereby incorporated by reference into this pr esentation, and at neomaterials.com and on SEDAR+ at sedarplus.ca. Investor Presentation • 3
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Rare Earth Magnetics Supply Crisis Meets Growing Demand Investor Presentation • 4 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix Top Global auto executives are warning of an imminent shortage of rare-earth magnets from China, essential components in systems like windshield wipers and anti-lock brakes, which could lead to a U.S. car plant shutdown within weeks.
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The Solution: Greater Strategic Rare Earth Magnetic Independence “Today, I brought with me a permanent magnet. Not just any magnet—this is a rare- earth permanent magnet. It was manufactured in Estonia, by a Canadian company using raw materials sourced from Australia, for German & French automotive.” > 85% of EV/ HEV traction motors use permanent RE magnets (~1-2 kg/motor) Prime Minister of Canada, Mark Carney, holding a Neo magnet at G7 2025 Billions are being invested to build capabilities that Neo has today EU President Ursula von der Leyen, at the G7 2025 Summit in Canada: Investor Presentation • 5 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Neo is… • A global leader in energy-saving permanent magnets and critical materials, with established technologies and geographically diverse midstream and downstream presence • One of the best-positioned in markets that are forecast to see strong long-term growth driven by global macro trends and geopolitical tailwinds • Strong balance sheet, robust cash flow, and above-industry-average dividend yield • Business segments: • Permanent Magnetics: Magnequench • Critical Materials: Chemicals & Oxides and Rare Metals • Publicly traded on the TSX under “NEO” and headquartered in Toronto, Canada Fast Forwarding Critical Technologies: Diversified & Vertically Integrated Supply Chain, Strategic G lobal Facility Footprint that Can Serve Customers Across the Glo be Revenue by Geography (LTM) % North America Japan Europe Other China Revenue by Segment (LTM) % Rare MetalsChemicals & Oxides By the Numbers #1 MOST EXPERIENCED INTEGRATED GLOBAL RARE EARTH MAGNETICS COMPANY 30+ YEARS OF RARE EARTH MAGNETICS EXPERIENCE: FOUNDER OF THE NdFeB PERMANENT MAGNET $603 LTM TOTAL REVENUE (US$M) $133 LTM Adj. EBITDA(1) (US$M) Vehicle Electrification Energy Transition AI & Server Cooling Robotics & Automation Air & Water Pollution Control Aerospace & Defense Magnequench (1) Non-IFRS Financial Measure. See "Non-IFRS Financial Measures" in the disclaimer section for further information. Note: All financial values are in US dollars, except when stated otherwise. BMO Capital Markets: Max Yerrill, Raj Ray ATB Cormark Securities: Nicholas Boychuk Paradigm Capital: Marvin Wolff Stifel GMP: Ian Gilles Sidoti: Daniel Harriman Analyst Coverage 41% 40% 19% 35% 21% 13% 19% 12% Investor Presentation • 6 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Highest Quarterly Adjusted EBITDA in Neo’s history Investor Presentation • 7 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix Strength across all segments, strong operational ex ecution and a sustained favourable pricing environm ent. Trending Adjusted EBITDA (1) ($m) (1) Neo reports non-IFRS financial measures such as “Adjusted Net Income ”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjust ed EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non -IFRS Financial Measures” section of this news release and in the most recent MD&A, avai lable at neomaterials.com and on SEDAR+ at sedarplus.ca. 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026 $13 $20 $21 $17 $19 $19 $20 $36 $57 Adjusted EBITDA (1) $140 - $150 million (up from $100 - $110 million) Adjusted EBITDA(1) Guidance from July 2026: Q2 2026 $57million YTD 2026 $93 million Neo expects to deliver Adjusted EBITDA results at the high-end of our updated guidance range
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Magnequench (MQ) • Hafnium recycling • Gallium recycling • Nio bium metal • Tantalu m metal • Rare earth magnetic powders • Rare earth bonded magnets • Rare earth sintered magnets • Rare earth separation • Specialty mixed oxides • Enviro nmental catalysts Chemicals & Oxides (C&O) Navigating Neo’s business units and applications Rare Metals (RM) Investor Presentation • 8 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Neo’s Unique Asset Base & Technical Expertise Macro Trends Driving Strong Growth in Neo’s Products End Markets Benefitting from Secular Tailwinds • 30+ years of Rare Earth Magnets experience inside and outside of China • 30+ years of Separation of both LRE and HRE with one of the only facilities in the world outside of China Electric Vehicles Environmentally Sustainable Solutions Robotics / Automation AI / Semiconductors Motors • Existing Customer Base for both Permanent Magnets and Rare Earths • Sophisticated technical capabilities demonstrated by HRE-FREE magnet on Traction Motor • Existing Diverse & Robust Supply Chain Geopolitical Forces & Public Policy Tailwinds Independent supply chains critical for Western governments and OEMs China’s strong position creates uncertainty in the global supply chain Investor Presentation • 9 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Recycling MagnetsSeparation MetalsMining Neo captures value across separation, metals and magnets with integrated optionality, not dependency 6,000mt Bonded China 2,000mt Bonded Thailand 2,000mt Sintered Europe (commercial launch in 2026) China ROW Additional part of the supply chain where Neo generates value Contributes to a reduction in environmental impacts throughout the supply chain Global Market Share China ROWChina ROW China ROW 1) Supply chain excludes HREs 2) Management assessment of producers with at least one year of commercial revenue New Entrants Existing Producers2 New Entrants Existing Producers2 New Entrants Existing Producers2 New Entrants Existing Producers2 Investor Presentation • 10 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix (3) (5) Other small Southeast Asian metal makers (4) (4) 3) USA Rare Earth is in the process of acquiring Serra Verde 4) Energy Fuels is in the process of acquiring ASM and VAC 5) LCM was recently acquired by USA Rare Earth
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Success Factors for a Rare Earth Magnetic Company Neo has 10,000 Mt of Rare Earth Magnetic Capacity Globally • Integrated light and heavy rare earth separation in Europe • Global buyer of rare earth oxides and metals with established supply chain and internal recycling capabilities Secure Raw Material Supply • Long-term strategic partnerships with deep OEM engagement • 30+ years supplying automotive; diversified exposure (AI, robotics, and industrial end-markets) Customer Relationships • Singapore and UK R&D driving rare earth and magnet innovation • One of the original inventors of NdFeB magnets / jetcast technology • Market leading innovation with first HREE-free traction motor magnet Access to Technology • Global manufacturing footprint with deep expertise and operating history • Decades of experience in rare earth separation and metal making, including HRE separation Proven Operational Track Record • Capital efficiency resulting in improved return on invested capital • Continuous improvements driving long- term cost leadership • Using advanced Data Analytics and AI in established manufacturing process Capital and Cost Efficiency Future Mines Silmet SX Direct Customers End Customers Suppliers Investor Presentation • 11 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Investor Presentation • 12 Why Invest Value Creation Annual Highlights FinancialsAbout Neo In the News Appendix KEY ATTRIBUTES BONDED SINTERED S I M I L A R I T I E S Same Customers | Same End Markets 80% D I F F E R E N C E S • Magnetic powder mixed with binder to cure custom shapes • Magnetic powder sintered into solid block, then shaped • High Magnetic Strength • Ultra-High Magnetic Strength • No HRE required • HRE optional China Rest of World SIMILAR PRODUCTION PROCESS P R O D U C T I O N C O N C E N T R A T I O N BONDED SINTERED Feedstock Finished Magnets Milling Pressing Casting Heat Treatment Fe Iron FeB Ferroboron LRE Light Rare Earth Ga Gallium HRE Heavy Rare Earth OUR GLOBAL MAGNETICS FOOTPRINT Korat, ThailandEssex, UK Tianjin, China Chuzhou, China 10,000 mt Permanent Magnet Capacity $239M Magnequench LTM Revenue 95% 93% Bonded Powders Sintered Magnets Bonded Magnets Narva, EstoniaSingapore One Platform, Two Magnet Technologies: Bonded and Sintered
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Investor Presentation • 13 Why Invest Value Creation Annual Highlights FinancialsAbout Neo In the News Appendix Global Demand for Permanent Magnets Continues to Grow Robotics AI Data Centres Drones Wind Farms Micromotors Traction Motors Note: Fast-growing demand drivers include: EVs, robotics, advanced air mobility, and wind power generators Source: "Rare Earth Magnet Market Outlook to 2040 (Dec 2025)", Adamas Intelligence * Management estimate 2015 2025 2035 +354,000 Mt +163,000 Mt 96k 259k 613kFast-Growing Demand Drivers Dominant Demand Drivers The existing magnet market is comprised of approximately 92% sintered and 8% bonded magnets.* Global Forecasted Demand (Mt of NdFeB Magnets)
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50 52,200 2025 2035 Approximate Weight of Rare Earth Magnets in a Humanoid Robot Humanoid Robotics Magnet Growth Forecast* Mt Frameless Torque Motor Output-Side Multi-Turn Absolute Encoder Motor-Side Absolute Encoder Linear Joints Encoder Frameless Torque Motor Rotational Joints Linkage-Driven Hands Coreless Motors /Stepper Motors Tendon-Driven Hands Frameless Torque Motors Camera/LiDAR Battery and Thermal Management (Magnets in the cooling fans) Bonded NdFeB Sintered NdFeB ~0.5kg-1kg ~3kg-6kg Sintered NdFeB Sintered NdFeB Sintered NdFeB Sintered NdFeB Bonded NdFeB Bonded NdFeB Bonded NdFeB Bonded NdFeB Based on management estimates. *Source: "Rare Earth Magnet Market Outlook to 20 40 (Dec 2025)", Adamas Intelligence *Note: Data reflects Humanoid Robotics only. Excludes Industrial Robotics and other Automation categories. Rotational Joints Linear Joints Investor Presentation • 14 Why Invest Value Creation Annual Highlights FinancialsAbout Neo In the News Appendix Rare Earth Magnets in Humanoid Robotics
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Note: Based on a sample drone disassembled by Neo. M otor design and approximate weight are management e stimates. 6,900 21,500 2025 2035 Consumer & Commercial Drone Magnet Growth Forecast* Mt Cooling Fan Gimbal Motors (Camera Stabilization) Approximate Weight of Rare Earth Magnets in a Drone Flight Motors (Propulsion) Voice Coil Actuator (Camera Focus) Sintered NdFeB Bonded NdFeB Sintered NdFeB Bonded NdFeB Bonded NdFeB Sintered NdFeB ~3g-6g ~10g-60g *Source: "Rare Earth Magnet Market Outlook to 2040 (Dec 2025)", Adamas Intelligence. Investor Presentation • 15 Why Invest Value Creation Annual Highlights FinancialsAbout Neo In the News Appendix Rare Earth Magnets in Consumer & Commercial Drones
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2,000 Mt 3,000 Mt 20,000 Mt 5,000 Mt 10,000 Mt Phase 1A Current Phase 1B Expansion Phase 2 Phase 3 & 4 Total Capacity Neo Annual Permanent Magnet Capacity Target Neo Announced multi year Memorandum of Understanding signed with Bosch, reserving dedicated annual magnet production capacity Furnace operations inside the European permanent ma gnet facility Our New Rare Earth Magnet Facility in Europe (Opened in September 2025) Investor Presentation • 16 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix Exterior of the European permanent magnet facility Strip caster in the European permanent magnet facil ity
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Existing Ecosystem & Magnet Capacity ~9,000 ~25,000 ~73,000 2015 2025 2035 Demand Growth Drivers (1) Wind Europe, Latest wind energy data for Europe, Autumn 2025 (2) Barclay’s, Impact Series 14 AI Gets Physical, January 2026 Forecasted European Demand (Metric Tonnes) Supply Base Europe is home to some of the largest motor makers in the world: Existing Magnet Capacity European Media & Government Support Neo received 23% of eligible capital for its European facility from an EU grant Inside Europe’s biggest rare earths factory ‘RESourceEU’ Targets China’s Rare Earth Dominance Future • Automotive: Hybrid and Electric Vehicles Drivetrain, Accessory Drive Systems • Windfarms: EU expected to build average 22 GW new wind farms annually until 2030(1) • Robotics: 3B’s of Humanoid Robots: Brains, Batteries and Brawn (actuators); Europe is home to 34% of Actuator development (2) • AI Data Centres: Neo supplied 12 million magnets to AI data centres in 2025 Existing Europe currently imports 25,000 Mt of magnets with strong existing growth drivers: • High Single Digit CAGR • Diversifying from concentration risk (99% imported from China) Customers Investor Presentation • 17 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix Europe as the Choice for Neo’s First Sintered Magnet Plant
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• One of the only non-captive operators of a large-scale light rare earth separation facility , strengthening Western supply chains • Expanding heavy rare earth capabilities with a terbium and dysprosium mini- production line • Scaling feedstock partnerships and metal-making to enable full European magnet integration World class lab in Silmet Factory Aerial of Silmet Rare Earth FacilityLRE separation line in Europe HRE separation demonstration line in Europe European Rare Earth Separation Capabilities Investor Presentation • 18 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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✓ Operator of strategic rare earth separation facility in Europe ✓ Global distributor of heavy rare earth oxides ✓ Top 3 producer of environmental emissions control catalysts ✓ A leading producer of cooling fan magnets for AI servers ✓ A leading producer of specialty oxides for advanced electronics (i.e., MLCC) ✓ Only recycler of semiconductor-grade gallium in North America ✓ A top recycler of hafnium with a meaningful share in the aerospace market Select End Markets NEO Differentiation ✓ A leading supplier of bonded magnets outside of China used in multiple applications ✓ On track to be the first EU producer of traction motor magnets Electric Vehicles Renewable Energy & Energy Efficiency Emission Control Catalysts Leading Market Positions Across Multiple End Markets Aerospace & Defense AI Servers /Specialty Electronics / MLCC’s/ Semiconductors Why Neo is Best Positioned to Win A proven technology and innovation leader with deep R& D expertise Pioneered the first and only heavy-rare-earth-free magn ets used in commercialized HEV traction motors to this day T echnology Leadership Unique Asset Base & TechnicalExpertise A uniquely positioned network of low-cost facilities, s trategically located to support supply chain diversification and regional sourcing outside of Chin a Globally Distributed Footprint One of the most vertically integrated rare earth magnetics value chain, spanning separation, metals, magnets, and assembly, minimizing delivery and pr ice risk Only separator integrated into a midstream and downstream sup ply chain With over 30 years of global operations, Neo holds a leading market position in bonded magnets Extensive and profitable track record Strengthened financial position and growth outlook drive n by strategic actions Customer Relationships Long-standing customer relationships built on multi-year pr oduct development cycles and rigorous qualification standards Investor Presentation • 19 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Rare Metals & Critical Materials Gallium TantalumHafnium Niobium The largest, most experienced gallium recycling and upgrading operator in North America The only recycler and processor of scrap hafnium in Europe Demand Drivers: Geopolitical These critical metals are on most government’s Critical Materials List as countries need to create diversified and secure supply chains Most of these rare metals are on China’s Export Control List Markets Semiconductor These metals are critical in a number of growing global market s, including : AI Infrastructure Lighting Nuclear Space Aerospace Permanent Magnets EXPORT CONTROL RESTRICTIONS Investor Presentation • 20 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Critical Metals – Supply Constraints & Export Restrictions Driving Higher Prices Gallium (USD/kg) Jul-24 Jul-25 Jul-26 216% $792 $2,500 12-month increase Hafnium (USD/kg) Jul-24 Jul-25 Jul-26 286% $13,500 $3,500 12-month increase Tantalum (USD/kg) Jul-24 Jul-25 Jul-26 137% $800 $337 12-month increase Investor Presentation • 21 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix Notes: Argus
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LTM $133M Adjusted EBITDA: Additional Growth Opportunities From Here • Additional HREE-Free Traction Motor Programs • Expansion of Global Bonded Powders • Resilience of Critical Materials Pricing • Growth in Gallium Recycling Supply • Silmet SX Feed Optimization & Pricing Improvements • Increased Adoption of Water Treatment Products • Launch of Additional Rare Earth-Based Products Base European Rare Earth Permanent Magnets Other Growth • Phase 1A Ramp Underway • Phase 1B Planning Beginning in 2026 • Silmet SX Expansion Possibilities With New Feed • Rare Earth Permanent Magnets Phase-2 and Beyond • Additional Global LRE & HRE Separation • Global Bonded Magnets & Assemblies 1 2 3 Investor Presentation • 22 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Commission Heavy Rare Earth SX Line in Europe Launch 2-3 programs for magnets in Europe Win additional awards to match launch windows in Europe Planning toward 5,000mt of magnets in Europe Additional strategic projects around robust, parallel and globally diverse supply chains in critical materials Launch first magnet assembly project Continued growth and investment across all business segments 2026 Priorities Investor Presentation • 23 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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TSX: NEO.TO | OTCQX: NOPMF • Established, Operating Platform Commercial rare earth separation, metals and permanent magn et production in place today • Structural Growth Exposure AI, Aerospace, Robotics, Automation, EVs and Environmental Sustainability Solutions are driving demand • Technology Differentiation Leadership in HRE separation and HRE-free magnet capabilities • Globally Diverse Integrated operations positioned to diversify supply chains • Longstanding Customer Relationships Existing tier 1 relationships with expanding program awards • Profitable with Disciplined Execution Operating cash flow positive with minimized execution risk An Established, Profitable Rare Earth Magnetics Platform Positioned for Growth Investment Highlights Investor Presentation • 24 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Quarterly Updates & Financials
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Financial Performance by Business Unit (1) Non-IFRS Financial Measure. See "Non-IFRS Financial Measures" in the disclaimer se ction for further informa tion. Magnequench Year-Over-Year Quarterly Comparison Year-over-Year Year-to-Date Comparison US$ 000s (excl. Volume) Q2 2026 Q2 2025 YTD 2026 YTD2025 Volume (tonnes) 1,460 1,558 3,000 2,860 Revenue $64,343 $50,468 $129,075 $94,740 Operating Income $2,356 $1,611 $6,037 $3,504 Adjusted EBITDA (1) $10,467 $7,558 $19,708 $14,217 Chemical & Oxides Year-Over-Year Quarterly Comparison Year-over-Year Year-to-Date Comparison US$ 000s Q2 2026 Q2 2025 YTD 2026 YTD2025 Revenue $37,424 $29,443 $70,606 $76,944 Operating Income $6,641 $3,959 $12,963 $9,687 Adjusted EBITDA (1) $8,506 $5,439 $16,168 $12,282 Rare Metals Year-Over-Year Quarterly Comparison Year-over-Year Year-to-Date Comparison US$ 000s Q2 2026 Q2 2025 YTD 2026 YTD2025 Revenue $106,349 $35,948 $163,443 $68,653 Operating Income $43,345 $10,127 $66,480 $18,278 Adjusted EBITDA (1) $44,406 $10,756 $68,263 $19,397 Investor Presentation • 26 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix Quarter Highlights: • Volume: Decreased 6.3%, driven by Bonded Powder volume decline. However, year-to-date volumes remain modestly higher, with customer volumes, margins, and business fundamentals remaining strong. • Operating Income: Increased 46% year-over-year, driven by disciplined operational execution across Magnequench’s global operations. • Adjusted EBITDA: Magnequench delivered its strongest quarterly EBITDA performance since Q2 2022, with Adjusted EBITDA of $10.5 million, improving almost 40% year-over year. These results reflect a combination of strong volumes and sustained strength in rare earth prices. Quarter Highlights: • Revenue: Increased nearly 200% from the same period last year, driven by strong volumes amid tight global supply and increased prioritization of secure access to critical materials across end markets including aerospace, industrial gas turbines and semiconductors. • Operating Income: Increased 328% year-over-year, driven by strong volumes and sustained elevated pricing, particularly with hafnium. • Adjusted EBITDA: Generated a record Adjusted EBITDA of $44.4 million, improving 313% year- over-year. These results reflect resilient volumes amid tight global supply, as well as sustained elevated pricing. Quarter Highlights: • Volume: Emission Catalyst volume grew 7% year-over-year, reflecting continued solid commercial execution, supported by improved cost performance at our emission catalyst manufacturing facility. • Operating Income: Increased 68% year-over-year, benefitting from higher volumes and strong rare earth pricing. C&O’s reduced exposure to rare earth price volatility strengthens its earnings predictability for the remainder of 2026. • Adjusted EBITDA: Increased to $8.5 million, a 56% year -over-year improvement, driven by solid performance in emission catalysts, higher volumes, as well as favourable rare earth pricing.
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Consolidated Financial Statements (1) Non-IFRS Financial Measure. See "Non-IFRS Financial Meas ures" in the disclaimer se ction for further information . (2) Attributable to shareholders of Neo Performance Mate rial s Inc. (3) Major non-operating cash outflows were CAPEX, Settle ment for the Europe an patent litigation, and dividends paid. Income Statement Selected Data Year-Over-Year Quarterly Comparison Year-over-Year Year-to-Date Comparison US$000s (excl. EPS) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Revenue $205,748 $114,700 $360,710 $236,310 Adjusted EBITDA(1) $57,033 $18,968 $93,264 $36,102 Adjusted net income (loss)(1)(2) $23,694 $8,655 $38,559 $15,166 Adjusted EPS – Basic (1)(2) $0.55 $0.21 $0.91 $0.36 Cash Flow Statement Selected Data Year-Over-Year Quarterly Comparison Year-over-Year Year-to-Date Comparison US$000s Q2 2026 Q2 2025 YTD 2026 YTD 2025 Cash Flow from Operations $(11,353) $(5,172) $(49,645) $(22,848) (Increase) decrease in net working capital $(95,099) $(14,842) $(108,319) $(33,672) Cash Taxes (Paid) Recovered $(4,199) $(2,960) $(18,775) $(8,166) CapEx for PP&E $(9,126) $(8,889) $(16,559) $(20,317) Shareholder Capital Returns Year-Over-Year Quarterly Comparison Year-over-Year Year-to-Date Comparison US$000s (excl. DPS) Q2 2026 Q2 2025 YTD 2026 YTD 2025 DividendsPaid to Shareholders $3,813 $3,159 $7,074 $6,080 Dividend per common share $0.10 $0.10 $0.20 $0.20 Repurchaseof shares under NCIB $0 $2,342 $0 $2,342 Balance Sheet Selected Data Quarter-over-Quarter Comparison US$000s Jun 30, 2026 Mar 31, 2026 Cash(3) (including restricted) $96,224 $41,714 Inventory $276,599 $234,594 Property, Plant & Equipment $195,798 $199,284 Total Debt $157,234 $154,250 Investor Presentation • 27 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Appendix
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Case Study: First-of-kind commercialized Rare Earth magnetics in HEV Traction Motor without heavy rare earths MQ’s Advanced Quenching technology produces magnetic materials with smaller grain size microstructures which enables a high-performance material without HREE Offers high magnetic strength & resistance to demagnetization at elevated temperature, making them suitable for use in high performance applications, such as traction motors The MQ3 magnet is a key part of Honda’s strategy to reduce dependency on China and limited HREE supply HREE-free Traction Motors Magnetic Powder Hot Formed Magnets (MQ3) • Neo’s Magnequench division co-developed with Daido a 0% Heavy Rare Earths magnetic material for use in NEV traction motors for Honda, as a response to the risk around security of REE supply and procurement • MQ’s technical leadership and development was led by its Singapore R&D Commercialization Centre • Neo’s Magnequench division is most technically capable of developing and producing these powders competitively at scale Target Magnetics Powder & Composition Development Neo’s Magnequench and Daido co-developed the only HREE-free traction motor in the world, providing a low-cost, outside-of-China supply chain for traction motor magnets Investor Presentation • 29 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Board of Directors: Independent Directors Neo’sBoard is comprised of current & former senior executives, with backgrounds in law, government, accounting, finance, material science, and rare earth industry management Edgar Lee Chair of Board • 20+ years in M&A and capital markets • Former PM of $6B fund at Oaktree Capital • Management • Former CEO of Oaktree’s 3 Business Development Companies Paul Mascarenas Director • Venture Partner at Fontinalis Partners with global experience in product development and manufacturing • Former Chief Technical Officer and Corporate Vice President of Ford Motor Company • Serves on multiple public company boards; awarded OBE for services to the automotive industry Jonathan Evans Chair , Compensation and Human Resources Committee • 30 years in global operations and executive management experience • President, CEO and Director of Lithium Americas since October 2023 • Bachelor of Science degree in mechanical engineering from Clarkson University, with an MSc from Rensselaer Polytechnic Institute Gail Edwards Chair , Audit Committee and Chair , Corporate Governance and Nominating Committee • Former CFO of large-cap publicly listed companies • 20+ years of experience in corporate government and audit committees Hua Du Director • Current CEO of Asia’s leading aquaculture food supplier • Former President of Global Business Units and Executive of global $15+ billion turnover chemicals and materials company, manufacturing value- add rare earth products Investor Presentation • 30 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Executive Management The Executive Team is Responsible for Growing the Business, Investing Capital, and Contributing to the Communities in Which Neo Operates Neo’sExecutive team is comprised of experienced executives in general management, finance, operations, sales & marketing, law, and engineering Rahim Suleman C E O& President & Director • CFO 2017 – 2023 and CEO since 2023 • Former CFO at Tier 1 automotive suppliers Jonathan Baksh EVP & C FO • Former Divisional CFO at • Celestica • Alumnus of General Electric’s Internal Audit Leadership Program Greg Kroll EVPfor MQ • 25 years of sales and general management experience at Neo’s magnetics division Kevin Morris EVP & C SO • 13 years of executive management at Neo • Former managing partner of US law firm Mohamad El-Mahmoud EVPfor C &O& RM • 25+ years career in P&L and product development management at global Tier 1 automotive suppliers Investor Presentation • 31 Why Invest Why Invest Value Creation Value Creation Annual Highlights Annual Highlights FinancialsAbout Neo In the News Appendix
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Jim Fitzpatrick SVP , Investor Relations & Communications ir@neomaterials.com For further investor information and company updates: Corpor at e Headquarters Suite 1740, 121 King Street West Toronto, Ontario, Canada, M5H 3T9 Phone: (416) 367 8588 Follow us on: